General discussion


The US dollar is sinking, is it time to sound the alarm?

By Fregeus ·
I know this is very off topic and i apologize for this, but i am getting worried about the sinking US dollar and would like to know if others are too.

Great consequences will come if this is not curtained in the near future. The US and Canadian economy could suffer greatly.

Canada's greatest business partner is the US. If the difference in value of our currency is not stabilized soon, our economy could start to suffer greatly. Being the second greatest trading partner with the US, the US economy would feel the effects of that decline.

The price of crude is rising and with the lowering of the value of the US dollar, the price at the pump will rise significantly in the US. That will surely put the brakes on an already fragile US economy. On the good side, if foreign goods and services become too expensive, will this boost the manufacture of US goods and in the process, create jobs?

Are we heading into a downward spiral into a recession or, even worst, a depression? I wonder, I really do. What do you guys think? Are you worried about the fallout of the decline of the US dollar and other economical factors?

This conversation is currently closed to new comments.

Thread display: Collapse - | Expand +

All Comments

Collapse -

The outlook is not good

by NickNielsen In reply to The US dollar is sinking, ...

The US government is facing a fiscal meltdown in the next two or three decades, when the first baby boomers retire and start drawing Social Security. Unfortunately, every time the subject comes up in a Presidential election year, the candidate who addresses it is eliminated in the early primaries. The American people seem not to want to hear the truth, nor do they seem to want the problem addressed.

I, personally, am facing a double whammy. By the time the problem is addressed, the situation may be so dire that I will lose both my military retirement AND my social security.

Collapse -

One truly sees how low the dollar has fallen when traveling abroad

by Big Ole Jack In reply to The outlook is not good

I was in Western Europe on vacation this past summer, Czech Republic and Germany to be exact, and I truly saw how our dollar wasn't worth squat when it came to converting it to Euros and Czech Korunas. I used to laugh at the Soviet Ruble because it was as worthless as toilet paper, but I am starting to see that our own greenback is heading in that direction. It truly is saddening and depressing when our dollars can't buy the same amount of goods ands services it once did. What's our country coming to?

Collapse -

Bogus to say that just 'sinking value' hurts US economy

by Dr Dij In reply to The US dollar is sinking, ...

will increase exports.

However the reasons the US $ is sinking are very real and will destroy the US economy:

Printing of vast new amounts of money via the Fed lending money that doesn't exist to banks.

Since raising taxes is unpopular and the US Govt can't say no to a spending program, the only way to deal with this is to hyperinflate the money supply to pay for all the programs.

Inflation hit 20% or so in the '80s, most people don't remember it but they even tried price controls, with the end result that companies would simply stop making a controlled product and make a new one in dift package at a higher price. People got smart and told the fed to NOT increase the money supply, and whoa, inflation mystimagically stopped. Deflation can even be GOOD, e.g. 1955 where inflation was minus .5% as companies improved efficiencies and prices dropped.

This is where those horrible bogus rebates started also: mfgrs would come out with new models, price them higher and give a rebate, that could be taken away without 'raising prices'. They also hit paydirt here as if they made the rebates mail-in they could depend on many not mailing them in and even more could be cheated out of rebates by delaying or 'losing' the paperwork, which still goes on today.

The sad part is that inflating the money supply in the US encourages our trading partners to inflate their money supply and hence increase their govt and distort their economies so that their money is on par with the US$.

Another effect is that poor and retired people on fixed incomes and those who don't have the power of unions to get raises suffer. The pricing pressures also encourage companies to merge and create monopolies and to cut personnel, stagnating the economy even further.

The govt is doing its best to hide this by lying about inflation and jobs figures. If they didn't lie about inflation they'd have to give raises to employees, social security recipients (who are now getting a small raise that doesn't match the real inflation), welfare recipients.

And the percent of productive people is dropping as liars, cheats collect bogus disability, welfare while having six figure incomes dealing drugs, etc. (that happend here in Riverside, CA) all collect govt handouts.

Part of the fall of the Roman empire was that they kept a permanent 'welfare class' in the cities to back the politicians. Finally they had printed so much coinage that it didn't buy anything and farmers refused to bring grain to the cities as wasn't worth their while. I fear we're headed down the same path.

What is needed is a computerized system of barter that can replace company payroll and other everyday transactions. This would bypass ANY currency, and could be used in any country. This would prevent govt hyperinflation, like that in Turkey, Argentina, Zimbabwe, etc and strange as it sounds likely be a unifying aspect for the world's people.

Example: Chilean grape farmers and other exporters were complaining that exports to the US now cost the US people more because Chilean currency was higher (they didn't dilute it like companies selling more stock shares). Why should all the people of Chile suffer by inflating Chile's currency so that farmers can export to the US at same price? Instead a direct barter method would bypass national currencies.

I see the start of this in some international companies where they will, for a specific project trade x tons of steel for lumber for coal at a third company in multi-way deals.

Related Discussions

Related Forums