U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
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 12-22-2008, 02:52 PM
 
Location: Sitting on a bar stool. Guinness in hand.
4,429 posts, read 5,803,226 times
Reputation: 1708

Advertisements

Quote:
Originally Posted by jimhcom View Post
The one thing no one takes into consideration is the reason why the Dollar is gaining value despite worsening fundamentals. It is because of the strength of the US military. When things really get desperate worldwide, it will be military force that will decide who is left standing, and who gets their butts kicked and their lunch eaten.
Ah no. The problems is now that the big powers all have tactical nuclear weapons so warfare for money is rather meaningless. But if you wish to test this theory out let us attack china and see what happens. Something tells me that pretty much every currency will be pretty much worthless..............Well except for Humaniod's pezs and I perhaps Peeps. Yes. I think the trade in peeps would go up.

Reply With Quote Quick reply to this message

 
Old 12-22-2008, 03:02 PM
 
19,084 posts, read 20,640,162 times
Reputation: 8353
The dollar is only as much as the person who covets it.... what if anything has "value", its all in the mind... society dictated that the dollar is worth something and that created a bargaining system to trade for goods (usually vital stuff like food, water, shelter, etc) and then it grew to bartering junk and services... the dollar is backed by the U.S. government as is each currency backed by each of the nation's government... knowing Zimbabwe is hurting something fierce, and that it is REAL currency, would you trade a loaf of bread for Zimbabwe dollars? The answer is no because nobody believes Zimbabwe will survive... Is the American currency (i.e. the American government) as strong as it was before? That is based on what each foreign government believes and as it is now, its still okay... BUT! If the hundreds of billions of TARP money and bailouts are left unpaid... you can bet the government will fall and so will the dollar with it... the government is GAMBLING the survival of our country on corporations remaining viable.. a risky endeavor indeed... who do we blame IF it goes bad?
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 03:23 PM
 
Location: Great State of Texas
86,068 posts, read 74,672,087 times
Reputation: 27602
The problem with gambling on the corporations is that there will be no one to buy their stuff if we are all broke and unemployed.
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 03:27 PM
 
Location: southern california
57,826 posts, read 76,796,090 times
Reputation: 51158
it could definitely fall down but not to zero. traditionally other countries have gotten out of debt by devaluing their currency. they then could pay the debt with near worthless money.
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 03:51 PM
 
Location: occupied east coast
884 posts, read 2,019,110 times
Reputation: 1873
Actually the comparison to gold is right on point.

Up until the 1960's the price of gold was fixed in the area of $32.00 per ounce. Today's rate was something over $800.00/Oz.

This simple fact relates to an approx. 25 fold increase in the price of gold, therefor each Dollar is worth that much less.

Stated another way, it now takes 800.00 of the reduced value Dollars to buy what used to be purchased for $32.00.
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 05:33 PM
 
Location: Murphy, TX
649 posts, read 2,729,644 times
Reputation: 445
Quote:
Originally Posted by Huckleberry3911948 View Post
it could definitely fall down but not to zero. traditionally other countries have gotten out of debt by devaluing their currency. they then could pay the debt with near worthless money.
That does make sense. I think the Fed could print $10 or $20 trillion and pay off the debts, though value of USD would fall greatly.
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 05:56 PM
 
Location: San Diego California
6,797 posts, read 6,478,185 times
Reputation: 5180
Quote:
Originally Posted by baystater View Post
Ah no. The problems is now that the big powers all have tactical nuclear weapons so warfare for money is rather meaningless. But if you wish to test this theory out let us attack china and see what happens. Something tells me that pretty much every currency will be pretty much worthless..............Well except for Humaniod's pezs and I perhaps Peeps. Yes. I think the trade in peeps would go up.
Wow, really, I did not realize the big powers all had tactical nukes. Gooleee! Wise up when push comes to shove World Powers take what they need. They may not go against each other but there are plenty of smaller fish in the pond to be exploited. What do you think is going on now in Iraq, peace keeping? We are monopolizing the oil supplies. Do you think China likes that? Of course not, but there is really nothing they can do about it. Believe it, if things get bad enough we will take what we need by force. We have done it before.
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 06:18 PM
 
Location: Great State of Texas
86,068 posts, read 74,672,087 times
Reputation: 27602
We may have gotten Iraq for the oil, but China is cozying up to Russia and Iran; both oil producing nations.
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 09:34 PM
 
Location: Sitting on a bar stool. Guinness in hand.
4,429 posts, read 5,803,226 times
Reputation: 1708
Quote:
Originally Posted by jimhcom View Post
Wow, really, I did not realize the big powers all had tactical nukes. Gooleee! Wise up when push comes to shove World Powers take what they need. They may not go against each other but there are plenty of smaller fish in the pond to be exploited. What do you think is going on now in Iraq, peace keeping? We are monopolizing the oil supplies. Do you think China likes that? Of course not, but there is really nothing they can do about it. Believe it, if things get bad enough we will take what we need by force. We have done it before.
Number One. This answer is fitting of the P & C Board. Perhaps even, it would be considered enlighten on that forum. But...that simplistic answer ain't going to fly here.

Number Two. If we are monopolizing so much of the oil then why were oil price so high for the last couple of years.

Number Three. We took Iraqi by force and what did we get for it. Pretty much of nothing. I don't see tons of Iraqi oil flooding our streets, I don't see a longterm commitment by the Iraqis to say close to the U.S. I see nothing that indicates that we aren't just packing up and leaving and hoping that Iran doesn't get it hooks deep in to the Iraqi political system. The only good thing this that it seems the the average Iraqi seems to hates Al-Qaeda as much as they hate the U.S. for fooking up there country.

Number Four: Did China have any problems getting oil at anytime? I don't believe so.


Number Five. Please see HappyTexan's post below.

Quote:
Originally Posted by HappyTexan View Post
We may have gotten Iraq for the oil, but China is cozying up to Russia and Iran; both oil producing nations.

Number Six. Let me ask you. Who are the smaller fish we are going to fry? Venezuela? Brazil? Uzbekistan? Georgia? South Jersey? Who? Who's lives are we going to fook up this time? And how many of our boys/girls is it going to cost? How much our blood will be let this time? Most importantly how much of my tax money are war mongering Jackasses going to waste of fruitless endeavors?

Last edited by baystater; 12-22-2008 at 10:10 PM..
Reply With Quote Quick reply to this message
 
Old 12-22-2008, 10:47 PM
 
Location: Keller, TX
5,670 posts, read 5,364,671 times
Reputation: 4083
Worth nothing? It would take catastrophes several orders of magnitude worse than what we're facing right now for that to happen.

It's possible. See oil crisis circa 2030 and debt/Medicare/SS obligations circa 2030.

The Coming Oil Train Wreck
The Spending Trend is Not Sustainable (http://perotcharts.com/category/budget-deficit-charts/page/12/ - broken link)

As others have mentioned, however, a devaluing (worth less) is quite probable, and way before 2030...
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
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - 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 - Top