Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 07-05-2010, 03:03 PM
 
Location: Fairfield, CT
6,981 posts, read 10,920,404 times
Reputation: 8822

Advertisements

Quote:
Originally Posted by hilgi View Post
Very true. An interesting argument I have heard about why the dollar is increasing in value against other currencies is because most world debt is denominated in dollars and the more trouble people have in paying back debts the more dollars are needed.
Yes, our position in holding the world's de facto universal reserve currency has shielded us from the consequences of our dysfunctional policies, and allowed us to get away with things that we've been taught you can't do without consequences.

But it can't continue forever. Right now, the dollar is doing OK largely because (1) the Chinese are intervening in the markets to keep the dollar so that their own exports to the US remain cheap (and US exports are more expensive); and (2) other regions or countries, such as Europe, are perceived as doing worse, so the dollar is a safer choice, even under the bad policies that we have.

But our bad policies have effectively given others the ability to control our economy, to a large degree. Decisions on the value of the dollar relative to other currencies are made in Beijing and Riyadh and places like that, as opposed to Washington. That's one of the prices of our use of ever increasing debt to avoid hard choices.
Reply With Quote Quick reply to this message

 
Old 07-05-2010, 03:07 PM
 
Location: South Jordan, Utah
8,182 posts, read 9,190,745 times
Reputation: 3632
Quote:
Originally Posted by dazzleman View Post
Yes, our position in holding the world's de facto universal reserve currency has shielded us from the consequences of our dysfunctional policies, and allowed us to get away with things that we've been taught you can't do without consequences.

But it can't continue forever. Right now, the dollar is doing OK largely because (1) the Chinese are intervening in the markets to keep the dollar so that their own exports to the US remain cheap (and US exports are more expensive); and (2) other regions or countries, such as Europe, are perceived as doing worse, so the dollar is a safer choice, even under the bad policies that we have.

But our bad policies have effectively given others the ability to control our economy, to a large degree. Decisions on the value of the dollar relative to other currencies are made in Beijing and Riyadh and places like that, as opposed to Washington. That's one of the prices of our use of ever increasing debt to avoid hard choices.
Amen to that, it is going to be an interesting decade. I prefer reading about history, not living through it. :-)
Reply With Quote Quick reply to this message
 
Old 07-05-2010, 10:31 PM
 
48,505 posts, read 96,682,701 times
Reputation: 18304
Quote:
Originally Posted by las vegas drunk View Post
Actually, it is the opposite. As soon as the stimulus runs out later this year the collapse is imminent.
You seem as ceretain as the people who said Y2K ends it all. I'll pass .
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics

All times are GMT -6. The time now is 01:20 AM.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top