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Old 02-01-2007, 05:03 AM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 13,270,256 times
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Did anyone know that you now need $1.30 for one euro? How about 85 cents for one Canadian dollar(used to be 69 cents) Even in Isreal Shekel one dollar gets just 4.26 Shekels, it used to be like 4.5! For pounds, you need 1.97 dollars to the pound and it could soon be $2 per pound!
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Old 02-01-2007, 06:44 AM
 
Location: Springfield, Missouri
2,815 posts, read 12,301,866 times
Reputation: 2000001358
Quote:
Originally Posted by Need_affordable_home View Post
Did anyone know that you now need $1.30 for one euro? How about 85 cents for one Canadian dollar(used to be 69 cents) Even in Isreal Shekel one dollar gets just 4.26 Shekels, it used to be like 4.5! For pounds, you need 1.97 dollars to the pound and it could soon be $2 per pound!
It's been happening for a long time. The U.S. government used to print a record of the increase to the money supply called the 3M Report. They stopped publishing it over a year ago because it gave economists too easy a view of how the Feds were running the printing presses and throwing out dollars to support their deficit spending.
So far the dollar being the main reserve currency and the main component of foreign reserves, as well as the standard currency of oil transactions has kept it from diving too far, but the truth is that we are hyperinflating our money supply and it will come back to bite. You can't carry an estimated 20+ Trillion debt and pretend your currency is worth anything.
That's why it's a good idea to get out of debt if you can and pay off loans, avoid equity loans, and be frugal with credit card use.
Many people make the connection between housing prices and real dollar inflation. Or, look at what's happened to precious metals and their prices shooting up from approx. $320/ounce for gold in July of 2005 to $657.20 when I just checked on thebulliondesk.com. Is it really just "appreciation"...???? Or.... is the price of gold for instance reflecting the true decline in dollar value since mid 2005?
There's a measurement called the "BigMac Index" which shows how much of a local currency a BigMac costs and the idea behind it is that a BigMac is basically a BigMac wherever and in whichever country it's made. Comparing the cost of a BigMac in China or Japan to one in Germany and/or the USA can give you a current idea of current currency values.
The same with an ounce of gold. Is the increase in dollar value really a "value" increase...or sign of the dollar's loss of value?

Last edited by MoMark; 02-01-2007 at 07:00 AM..
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Old 02-01-2007, 06:55 AM
 
Location: STL
1,093 posts, read 3,570,962 times
Reputation: 576
My friend lives in england and buys her stuff on US ebay because she gets everything dirt cheap.
Our money is useless. Thanks to the government!!!!!
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Old 02-01-2007, 12:42 PM
 
Location: PA
669 posts, read 3,010,762 times
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You're saying this like it's news or something.
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Old 02-01-2007, 01:02 PM
 
Location: Michigan
6 posts, read 21,981 times
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Well, if you manufacture goods and want to sell them to those other countries, a cheaper dollar can help make your products more affordable. It might cost a bit more to fill up an S.U.V. but that's a small price to pay.
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Old 02-01-2007, 01:35 PM
 
Location: Haddington, E. Lothian, Scotland
752 posts, read 657,147 times
Reputation: 175
Quote:
Originally Posted by Need_affordable_home View Post
Did anyone know that you now need $1.30 for one euro? How about 85 cents for one Canadian dollar(used to be 69 cents) Even in Isreal Shekel one dollar gets just 4.26 Shekels, it used to be like 4.5! For pounds, you need 1.97 dollars to the pound and it could soon be $2 per pound!
$2/pound? All I can say is OH YEAAAAH!!
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Old 02-01-2007, 01:41 PM
 
Location: Happy wherever I am - Florida now
3,360 posts, read 11,282,281 times
Reputation: 3850
The Canadian dollar exchange at 85c is closer to what it has traditionally been.

I wanted to add a story here about the budget deficit and our trade imbalance. This happened in the late 60's before we were importing electronics for the most part and before we were importing clothes or many cars -

I was sitting in a Hollywood eatery and couldn't help overhearing the person in the next booth's conversation. He was a writer for one of the leading auto magazines, one of the people who tests and reviews new model year cars and on whom a lot of buyers depend for their slant on things.

Now this was before foreign car sales had become popular in the US and frankly before they were as good as they are now. He was telling his friend how the foreign automakers (non- European) had given him a car to use (temporarily for a few days I'm assuming) so he could make a thorough assessment whereas the US automakers were never as generous in that way. He was very excited and wrote a stellar review.

The immediate ensuing years were pretty much an explosion of foreign car buying in CA and within the next ten years the rest of the US.

This is not to say the gas/oil haven't seriously added to our debt burden and subsequent inflation. It did point out to me though the effect the media can have on our perception and actions, even enmasse.
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