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US Dolar sinks, what do you think?

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  • User profile image
    phreaks

    It's sinking for a number of reasons.

    Federal defecit, low interest rates, credit crisis,  CDO/CDS debt backed securities trend, real-estate bubble, oil prices.

    Combine all of those issues which each in itself can become a problem if not managed properly and you have a really big problem.

    Current Outlook:  Stormy.

  • User profile image
    Secret​Software

    phreaks wrote:
    

    It's sinking for a number of reasons.

    Federal defecit, low interest rates, credit crisis,  CDO/CDS debt backed securities trend, real-estate bubble, oil prices.

    Combine all of those issues which each in itself can become a problem if not managed properly and you have a really big problem.

    Current Outlook:  Stormy.



    NO. Its sinking because the Military, namely the Pentagon, spend all of that money on "Star wars" like equipment, that costs trillions of dollars.

    The stuff you sight would not have lead to the collapse of the dollar, rather it is the massive military spending, that  Rumsfield did to transformed the Armed forces of the USA to the 21 century challenges.

    This massive spending, is equal to all the world's military spending 400 times.

    They tell you that the credit crisis is to blame but its not. its the military spending that broke the back of the economy.

    Interestingly enough, that is how the Roman Empire collapsed, if you read history.

    My $0.02

  • User profile image
    phreaks

    SecretSoftware wrote:
    
    phreaks wrote:
    

    It's sinking for a number of reasons.

    Federal defecit, low interest rates, credit crisis,  CDO/CDS debt backed securities trend, real-estate bubble, oil prices.

    Combine all of those issues which each in itself can become a problem if not managed properly and you have a really big problem.

    Current Outlook:  Stormy.



    NO. Its sinking because the Military, namely the Pentagon, spend all of that money on "Star wars" like equipment, that costs trillions of dollars.

    The stuff you sight would not have lead to the collapse of the dollar, rather it is the massive military spending, that  Rumsfield did to transformed the Armed forces of the USA to the 21 century challenges.

    This massive spending, is equal to all the world's military spending 400 times.

    They tell you that the credit crisis is to blame but its not. its the military spending that broke the back of the economy.

    Interestingly enough, that is how the Roman Empire collapsed, if you read history.

    My $0.02


    Ok, whatever you say. You obviously have a Harvard MBA in economics and are savvy enough to make the call that the others simply aren't seeing.

    You must be a financial genius.

    If I were allowed to hold stocks, I would certainly want you managing my money!

  • User profile image
    cheong

    SecretSoftware wrote:
    NO. Its sinking because the Military, namely the Pentagon, spend all of that money on "Star wars" like equipment, that costs trillions of dollars.

    Sorry, but doesn't "a government willing to spend money" favours economy?

    When the governemt "pours money" to the local citizens, they get more income and then 1) more willing to spend money on other things 2) get more money means more income tax to the government. It was said to be a way to initate a positive monetary influrance to the country.

    Although I agree there'd be better effect if money is spent on other things closely related to the public.

    Recent Achievement unlocked: Code Avenger Tier 4/6: You see dead program. A lot!
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  • User profile image
    Secret​Software

    phreaks wrote:
    
    SecretSoftware wrote:
    
    phreaks wrote:
    

    It's sinking for a number of reasons.

    Federal defecit, low interest rates, credit crisis,  CDO/CDS debt backed securities trend, real-estate bubble, oil prices.

    Combine all of those issues which each in itself can become a problem if not managed properly and you have a really big problem.

    Current Outlook:  Stormy.



    NO. Its sinking because the Military, namely the Pentagon, spend all of that money on "Star wars" like equipment, that costs trillions of dollars.

    The stuff you sight would not have lead to the collapse of the dollar, rather it is the massive military spending, that  Rumsfield did to transformed the Armed forces of the USA to the 21 century challenges.

    This massive spending, is equal to all the world's military spending 400 times.

    They tell you that the credit crisis is to blame but its not. its the military spending that broke the back of the economy.

    Interestingly enough, that is how the Roman Empire collapsed, if you read history.

    My $0.02


    Ok, whatever you say. You obviously have a Harvard MBA in economics and are savvy enough to make the call that the others simply aren't seeing.

    You must be a financial genius.

    If I were allowed to hold stocks, I would certainly want you managing my money!


    I am just giving people what I see and what I hear. I don't want anyone to loose their financial assets because of the lunacy and bad choices that Bush Admin Made.

    Be safe, Be smart, Be adaptable to market changes.

    Interestingly , please see  this YT video. It talks about PUT options.

    Invest your money in Chinese and Asian Markets, or Europe. Because China will be the financial center of the world, for the years to come.

  • User profile image
    Secret​Software

    cheong wrote:
    
    SecretSoftware wrote:
    NO. Its sinking because the Military, namely the Pentagon, spend all of that money on "Star wars" like equipment, that costs trillions of dollars.

    Sorry, but doesn't "a government willing to spend money" favours economy?

    When the governemt "pours money" to the local citizens, they get more income and then 1) more willing to spend money on other things 2) get more money means more income tax to the government. It was said to be a way to initate a positive monetary influrance to the country.

    Although I agree there'd be better effect if money is spent on other things closely related to the public.


    Well, if you pour money, and liquidity is high, the value of the dollar will be less, because its abundant.

    Its a sword with 2 edges. Tax cuts can be good, but if not employed in a good way it can destroy an economy, and break the system, like what we have seen.

  • User profile image
    phreaks

    http://seekingalpha.com/

    Hint: The go-to site for financial & economic opinion.

  • User profile image
    Secret​Software

    phreaks wrote:
    http://seekingalpha.com/

    Hint: The go-to site for financial & economic opinion.


    Thanks.

    Here is an updated openion on what is happening:

    Fiscal Crisis 2007 - The dollar slips away -Nov 19 2007

    It does not look very good.

  • User profile image
    magicalclick

    Nah, it is just a natural economic cycle. It is hard to agree on this. But a professor of mine once said that that the economic success is not done by President; he is only lucky to be on the growing cycle.

     

    Anyway, you can’t have a saturated currency or saturated stock market. And lower currency is actually lower international debt if the amount is based on US dollar. And currency inflation also lowers the actual federal debt. Just that you can’t do that too much because people will lose faith in currency and economy.

    Leaving WM on 5/2018 if no apps, no dedicated billboards where I drive, no Store name.
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  • User profile image
    DCMonkey

    It appears that even rappers are abandoning the Dollar for the Euro as their official "bling" currency (though a friend suggests it is more likely due to drug traffickers preferring the higher denomination Euros for ease of transport, than to any sort of political protest or economic stability factor).

    http://news.independent.co.uk/world/americas/article3169653.ece

  • User profile image
    evildictait​or

    Tensor wrote:
    That it is a deliberate plan by the US[citation needed] to get rid of the current massive deficit.

    Also has nice spin-offs for US industry as all those cheap imports cease being cheap.

    The biggest loser is like to be China[citation needed], I would think.


    Ping wrote:
    yeah, don't put all eggs in one basket, a country should have different countrie's currency.


    They do.

  • User profile image
    evildictait​or

    ScanIAm wrote:
    Gold Standard, Silver Standard, Oil Standard, or Pokemon standard, having your money depend on a supply of stuff is pointless until the entire rest of the world does the same.

    That's what the Gold standard was. Everyone traded items for Gold, so Gold was the universal currency.[/quote]

    ScanIAm wrote:
    Further, what happens when you discover a huge cache of Gold?  Is all the currency suddenly worth less?  or more?

    Then you suddenly get a great deal richer, but it causes inflation. That's what inflation is.


    ScanIAm wrote:
    The underlying bargain of currency is labor and so when countries are willing to trade their labor for less, they sell more of that labor.  Westernized economies act like they are removed from this process because we get paid by managing the labor of others, but ultimately the world runs on labor.

    Not all labour is equivilent in value. That is why we use a unified currency system (currently the dollar, previously gold).

    ScanIAm wrote:
    I propose a new world monetary standard called the "kilocalorie"

    It's called a manhour and is used internally quite a lot.

  • User profile image
    YearOfThe​LinuxDesktop

    Ping wrote:
    

    what do you think? People in EU and US?



    that this is the perfect time to invest in chocolate dollars!

  • User profile image
    Dr Herbie

    ScanIAm wrote:
    
    Yes, but most people don't realize that this is how it works.  They think that a 5 dollar stepstool at Walmart is a value.  It's actually 5 dollars worth of labor from someone.



    Getting off topic a little, but:

    No, no, no.  First rule of sales : the price of something is unrelated to the cost of it's production, it is set at the value customers are willing to pay.

    Herbie

  • User profile image
    ScanIAm

    evildictaitor wrote:
    
    ScanIAm wrote:
    Gold Standard, Silver Standard, Oil Standard, or Pokemon standard, having your money depend on a supply of stuff is pointless until the entire rest of the world does the same.

    That's what the Gold standard was. Everyone traded items for Gold, so Gold was the universal currency.


    Really?  I didn't realize that's what the gold standard referred to.

    Actually, I did.
    evildictaitor"
    ScanIAm wrote:
    Further, what happens when you discover a huge cache of Gold?  Is all the currency suddenly worth less? or more?

    Then you suddenly get a great deal richer, but it causes inflation. That's what inflation is.

    [/quote]
    Again, I learn infinite amounts of new knowledge from your links.

    Seriously, I wasn't just pulling this out of my a$$.
    [quote user="evildictaitor wrote:


    ScanIAm wrote:
    The underlying bargain of currency is labor and so when countries are willing to trade their labor for less, they sell more of that labor.  Westernized economies act like they are removed from this process because we get paid by managing the labor of others, but ultimately the world runs on labor.

    Not all labour is equivilent in value. That is why we use a unified currency system (currently the dollar, previously gold).


    You missed the point.  Gold is just a way to hold the labor of the past in a compressed form.  Resources are worthless, by themselves.  It is the effort it takes to harvest them that makes them worth something.  Precious metals and stones are given an artificial value based on the desire of wealthy people to desire them, but the value they give to those items comes from money that was created, again, by labor.

    Money is the physical manifestation of labor.
    evildictaitor wrote:

    ScanIAm wrote:
    I propose a new world monetary standard called the "kilocalorie"

    It's called a manhour and is used internally quite a lot.


    Yes, but most people don't realize that this is how it works.  They think that a 5 dollar stepstool at Walmart is a value.  It's actually 5 dollars worth of labor from someone.

    Edit: C9 editing is so f*cked up that I gave up trying to figure out why this post didn't format correctly.

    Perhaps it would be better if you didn't try to interpret the quoting, but instead, just placed it on the post directly.  Seriously, the quote icons aren't helping anyone, and they are apparently screwing up the formatting.

  • User profile image
    phreaks

    Dr Herbie wrote:
    
    ScanIAm wrote:
    
    Yes, but most people don't realize that this is how it works.  They think that a 5 dollar stepstool at Walmart is a value.  It's actually 5 dollars worth of labor from someone.



    Getting off topic a little, but:

    No, no, no.  First rule of sales : the price of something is unrelated to the cost of it's production, it is set at the value customers are willing to pay.

    Herbie


    true dat

  • User profile image
    ScanIAm

    Dr Herbie wrote:
    
    ScanIAm wrote:
    
    Yes, but most people don't realize that this is how it works.  They think that a 5 dollar stepstool at Walmart is a value.  It's actually 5 dollars worth of labor from someone.



    Getting off topic a little, but:

    No, no, no.  First rule of sales : the price of something is unrelated to the cost of it's production, it is set at the value customers are willing to pay.

    Herbie


    The product costs x amount based on what the manufacturer pays to make it plus the markup.  If the retailer sells it for more, then the difference is the labor of the sales dept, marketing, etc.

    It's all labor, but labor is defined by each step along the way until you purchase it.

  • User profile image
    phreaks

    ScanIAm wrote:
    
    Dr Herbie wrote:
    
    ScanIAm wrote:
    
    Yes, but most people don't realize that this is how it works.  They think that a 5 dollar stepstool at Walmart is a value.  It's actually 5 dollars worth of labor from someone.



    Getting off topic a little, but:

    No, no, no.  First rule of sales : the price of something is unrelated to the cost of it's production, it is set at the value customers are willing to pay.

    Herbie


    The product costs x amount based on what the manufacturer pays to make it plus the markup.  If the retailer sells it for more, then the difference is the labor of the sales dept, marketing, etc.

    It's all labor, but labor is defined by each step along the way until you purchase it.


    Not exactly, but anyway
    .. And Services.... ?

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