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(USA Today)   Weak dollar raises prospect of another round of inane articles about "alternative world currency," like this one   (usatoday.com) divider line 147
    More: Stupid, world currency, International Monetary Fund, R-Minn, dollar raises, University of California-Berkeley, Michele Bachmann, reserve currency, President Carter  
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5218 clicks; posted to Main » on 22 Oct 2009 at 2:04 PM (4 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2009-10-22 12:35:23 PM  
Yes, because foreigners will continue to have faith in the dollar no matter how much purchasing power it looses. Pay no attention to China buying dips in gold prices and diverting a large portion of it's domestic gold production.

Before Brenton Woods the reserves were gold, up until 1971 the reserve was the dollar being backed by gold, this 40 year experiment with that of fiat has ran longer than most attempts, bit it will eventually fall off the tracks like every other fiat currency before it.

Eventually the world is going to cut us off and take their losses. Just like the .com stocks, housing, etc Then when they start sending their dollar reserve back to the US, we get to feel 20+ years of inflation. The only question has been when will this finally happen.

The idea that China and the rest of the world will continue to lend us indefinably in the face of increasing deficits is just as crazy as the idea that housing prices would always rise and that the .com era was a "new era" and old fashion valuation tools weren't valid. Eventually the robotic bureaucratic inertia of central bankers is going to run out. No matter how much you have invested, at some point people are going to stop throwing good money after bad.

Not to mention they aren't getting any interest on their t-bills. I can go to Canada and get well run investments paying near 10% cash dividends. Once they take their losses and move on they will be better off. To think that the Asians have to under-consume so we can over-consume is an arrogance that is hard to comprehend. The Chinese want all the products that they are making and shipping to us, their government is simply suppressing their wages to prop up their exporters.
 
2009-10-22 12:41:18 PM  
We must move to a llama-based currency.
 
2009-10-22 02:07:38 PM  
End the fed.
 
2009-10-22 02:08:15 PM  
Inanely ridiculing the prospect of a new currency won't save the US dollar from being a worthless piece of cottn paper.
 
2009-10-22 02:08:32 PM  
Crosshair: Yes, because foreigners will continue to have faith in the dollar no matter how much purchasing power it looses. Pay no attention to China buying dips in gold prices and diverting a large portion of it's domestic gold production.

Before Brenton Woods the reserves were gold, up until 1971 the reserve was the dollar being backed by gold, this 40 year experiment with that of fiat has ran longer than most attempts, bit it will eventually fall off the tracks like every other fiat currency before it.

Eventually the world is going to cut us off and take their losses. Just like the .com stocks, housing, etc Then when they start sending their dollar reserve back to the US, we get to feel 20+ years of inflation. The only question has been when will this finally happen.

The idea that China and the rest of the world will continue to lend us indefinably in the face of increasing deficits is just as crazy as the idea that housing prices would always rise and that the .com era was a "new era" and old fashion valuation tools weren't valid. Eventually the robotic bureaucratic inertia of central bankers is going to run out. No matter how much you have invested, at some point people are going to stop throwing good money after bad.

Not to mention they aren't getting any interest on their t-bills. I can go to Canada and get well run investments paying near 10% cash dividends. Once they take their losses and move on they will be better off. To think that the Asians have to under-consume so we can over-consume is an arrogance that is hard to comprehend. The Chinese want all the products that they are making and shipping to us, their government is simply suppressing their wages to prop up their exporters.


The problem is that China has such a large stake in its dollar reserves that they cannot afford to cut their losses. That does not mean it cannot diversify.

 
2009-10-22 02:08:39 PM  
Pocket Ninja: We must move to a llama-based currency.

Then I would be broke
no way
 
2009-10-22 02:09:11 PM  
Hookers and Blow Law. The more hookers one has, the less blow he can retain.
 
2009-10-22 02:09:12 PM  
i121.photobucket.com
 
2009-10-22 02:09:15 PM  
Pocket Ninja: We must move to a llama-based currency.


I prefer a basket of ungulates.
 
2009-10-22 02:10:16 PM  
Crosshair: bit it will eventually fall off the tracks like every other fiat currency before it.

Such as?
 
2009-10-22 02:11:01 PM  
Pocket Ninja: We must move to a llama-based currency.

They sure as hell will get you into a snack machine quicker than a wrinkled up dollar.
 
2009-10-22 02:11:49 PM  
I keep trying to use my D&B Power Card at Friday's but they won't take it. Do you know of any that will?
 
2009-10-22 02:12:10 PM  
Extreme parity we Canadian dollar also!
 
2009-10-22 02:12:18 PM  
Honestly, whatever it takes to get rid of the Federal Reserve Bank is pretty much fine with me. Best business model ever - loan the government its own money for a vig. Crooks.
 
2009-10-22 02:14:32 PM  
Nah, just a conspiracahhhh!!
 
2009-10-22 02:16:05 PM  
"alternative world currency"? Personally, I don't think any Earthican should be using currencies from other planets.
 
2009-10-22 02:16:07 PM  
The new world currency should be cooters. Traded and sold on the open market just like a commodity. Then we could have currency based on the value of cooters. Tight asian cooters would be more, while sloppy southern cooters would be less (much less). Bundle them into Camel Toes to sell.
 
2009-10-22 02:16:22 PM  
All this talk is just killing time until the Wombats rise up and take over the world.
 
2009-10-22 02:17:22 PM  
BigMevy: All this talk is just killing time until the Wombats rise up and take over the world.

Aaaalmost right.

/he knows too much.
 
2009-10-22 02:18:17 PM  
Well written and explained Crosshair. Are you sure you're actually from fark? No silly pictures, no graphs, no name calling, just a calm rational explanation. I almost feel cheated.
 
2009-10-22 02:21:10 PM  
Maxout623: Extreme parity we Canadian dollar also!

That's loonie!
 
2009-10-22 02:23:11 PM  
You people need to INVEST IN GOLD! There's no better time to invest in gold than right now! Gold has appreciated nearly 3 fold in the last 5 years and if these trends continue... well my friend you'll be sitting pretty. Gold always goes up. They're not making any more of it. It's different this time!

Operators are standing by.
 
2009-10-22 02:23:36 PM  
img34.imageshack.us
 
2009-10-22 02:24:44 PM  
Crosshair: Yes, ..... their wages to prop up their exporters.

Crosshair [TotalFark] (favorite: Understands Inflation)

I assigned you that favorite status over a year ago. Your posts always reinforce that action.
 
2009-10-22 02:24:47 PM  
In before RON PAUL
 
2009-10-22 02:25:57 PM  
Penis Coins
http://tinyurl.com/yjvdh8v
(copy and paste)
 
2009-10-22 02:26:25 PM  
I prefer the Zimbabwean dollar myself
 
2009-10-22 02:26:29 PM  
Maxout623: Extreme parity we Canadian dollar also!

Not unless you've invested in Canadian Tire money also, Yankee. We've got better than gold reserves up here!
 
2009-10-22 02:28:08 PM  
de_Selby: Crosshair: Yes, because foreigners will continue to have faith in the dollar no matter how much purchasing power it looses. Pay no attention to China buying dips in gold prices and diverting a large portion of it's domestic gold production.

Before Brenton Woods the reserves were gold, up until 1971 the reserve was the dollar being backed by gold, this 40 year experiment with that of fiat has ran longer than most attempts, bit it will eventually fall off the tracks like every other fiat currency before it.

Eventually the world is going to cut us off and take their losses. Just like the .com stocks, housing, etc Then when they start sending their dollar reserve back to the US, we get to feel 20+ years of inflation. The only question has been when will this finally happen.

The idea that China and the rest of the world will continue to lend us indefinably in the face of increasing deficits is just as crazy as the idea that housing prices would always rise and that the .com era was a "new era" and old fashion valuation tools weren't valid. Eventually the robotic bureaucratic inertia of central bankers is going to run out. No matter how much you have invested, at some point people are going to stop throwing good money after bad.

Not to mention they aren't getting any interest on their t-bills. I can go to Canada and get well run investments paying near 10% cash dividends. Once they take their losses and move on they will be better off. To think that the Asians have to under-consume so we can over-consume is an arrogance that is hard to comprehend. The Chinese want all the products that they are making and shipping to us, their government is simply suppressing their wages to prop up their exporters.

The problem is that China has such a large stake in its dollar reserves that they cannot afford to cut their losses. That does not mean it cannot diversify.


Too big to fail?
 
2009-10-22 02:29:25 PM  
This is what happens when we let women vote.
 
2009-10-22 02:29:40 PM  
Crosshair: To think that the Asians have to under-consume so we can over-consume is an arrogance that is hard to comprehend.

Not really
China's gdp per capita: $3,259
United States GDP per capita: $47,440

/they have a lot of ground to catch up before they will free-float the yuan
 
2009-10-22 02:30:22 PM  
katghoti: The new world currency should be cooters. Traded and sold on the open market just like a commodity. Then we could have currency based on the value of cooters. Tight asian cooters would be more, while sloppy southern cooters would be less (much less). Bundle them into Camel Toes to sell.

Your newsletter please.
 
2009-10-22 02:31:23 PM  
Lets hope China does fail. And dies in a fire, like it makes its property^Wpeople do.
 
2009-10-22 02:32:05 PM  
There is too much money tied up in currency trading. It'll take a world war AND someone left standing at the end with enough manpower and other resources to rebuild the destroyed infrastructure to enforce one currency on the world.
 
2009-10-22 02:34:15 PM  
Spare change?
www.financialsense.com
/shut yer Yap you
 
2009-10-22 02:36:39 PM  
Thinks we should all invest in Shute bucks
 
2009-10-22 02:37:23 PM  
mr lawson: Crosshair: To think that the Asians have to under-consume so we can over-consume is an arrogance that is hard to comprehend.

Not really
China's gdp per capita: $3,259
United States GDP per capita: $47,440

/they have a lot of ground to catch up before they will free-float the yuan



Wow!
 
2009-10-22 02:38:59 PM  
katghoti: The new world currency should be cooters. Traded and sold on the open market just like a commodity. Then we could have currency based on the value of cooters. Tight asian cooters would be more, while sloppy southern cooters would be less (much less). Bundle them into Camel Toes to sell.

It's all well and good until you get the tranny into the equation with their penis tucked way back where and then what do you got.

/Counterfeit cooters

JC
 
2009-10-22 02:39:01 PM  
indarwinsshadow: Well written and explained Crosshair. Are you sure you're actually from fark? No silly pictures, no graphs, no name calling, just a calm rational explanation. I almost feel cheated.

Well he's right - but I think only up to a point. Unless you spiral into runaway hyperinflation there is a definite upside (theoretically) to a bit of currency devaluation on our part.

What we lose: The ability to buy unlimited amounts of energy and cheap crap from China.

What we gain: A reduction on our foreign debt already incured based solely on the fact that we have more "money" to pay off that debt. If only 2 dollars exist and I owe you one I'm in trouble. If I turn on a printing press and print 10 more - now I can pay you. Of course you're never gonna loan me money again but the benefit has already been had.

We produce enough food, we have the technological if not the current industrial capacity to produce any manufactured good on the planet. We have fairly decent raw material capabilities and if you want to include coal we even have capable energy reserves.

Assuming we don't kick off a civil war or utterly devalue the currency (think a dollar worth what a current penny will buy) then a bit of devaluation will drive some manufacturing back to this country - exactly the type of thing the props a countries currency back up.

It's not good if you want to tour Europe of buy a BMW, but (again baring hyperinflation) its hardly the end of the world.
 
2009-10-22 02:43:03 PM  
Fizpez: Unless you spiral into runaway hyperinflation there is a definite upside (theoretically) to a bit of currency devaluation on our part.

You allude to this, but the US has had a huge trade deficit with China in the last two decades. This will decrease, which is good, in the long-run.
 
2009-10-22 02:44:47 PM  
mr lawson: Crosshair: To think that the Asians have to under-consume so we can over-consume is an arrogance that is hard to comprehend.

Not really
China's gdp per capita: $3,259
United States GDP per capita: $47,440

/they have a lot of ground to catch up before they will free-float the yuan


Even that is a bit misleading. We have insanely rich people in the US, but even a "poor" family generally makes at least $1000/mo. There are hundreds of millions of Chinese who get buy on $300-$500 per family PER YEAR - somewhere in the neighborhood of $100 per person. I was in the Chinese country side 10 years ago and asked my manager (herself a Chinese national) what would happen if I handed someone a 100 Yuan note (about $11 US at the time)... she said it would change their whole year. I think I discreetly gave away about 1000 Yuan on that trip.
 
2009-10-22 02:48:32 PM  
Of course the dollar is declining. the only reason it was the world currency in the first place is because the rest of the world was blown the fark up in WWI and WWII. Now the other countries arent so blown up anymore, naturally there is a shift away from the dollar. there are 2 choices Obama has, raise rates (which he can't) or kill the dollar.

Deflation to hyperinflation on two


ready, break!
 
2009-10-22 02:48:42 PM  
Crosshair:

No, not really.

If China wants to keep the Yuan pegged to USD they WILL keep buying Treasuries.

And for all the talk of our deficits, we still have the best debt/GDP of the major currencies.

And even though politicians and pundits talk of USD losing reserve status, when a financial panic strikes like last year, financial professionals know exactly where they're going to park their funds, good ol' USD.
 
2009-10-22 02:48:53 PM  
Fizpez: If I turn on a printing press and print 10 more - now I can pay you. Of course you're never gonna loan me money again but the benefit has already been had.

Nice in principle, but we're a very, very, very very very long way from having a budget that we can cover ourselves.
 
2009-10-22 02:50:14 PM  
Keep holding those dollars, submitter. We'll see who is stupid.
 
2009-10-22 02:51:39 PM  
Fizpez: Even that is a bit misleading.

lol i know, right? It always amuses me people who "want" a very strong dollar. So long as a country has low unemployment, low inflation...you want a weaker dollar.

The dollar is not gonna be replaced anytime soon as the reserve currency.
 
2009-10-22 02:52:53 PM  
the dollar is not gonna be replaced anytime soon as the reserve currency

you care to bet on that?

Russia
India
China will own half the world economy in 10 years.
 
2009-10-22 02:54:32 PM  
mr lawson: It always amuses me people who "want" a very strong dollar.

Well, some of us like to summer on the French Riviera. If the dollar is weak against the Euro, I may have to cut back to only two footmen assisting my butler next year.
 
2009-10-22 02:54:46 PM  
Ima10urin8: you care to bet on that?

lol...i place my bets everyday
/currency trader
 
2009-10-22 02:55:19 PM  
A "Weak" dollar makes our goods cheaper to sell.
And it allows more foreigners to visit as tourists.

Panic over the weak dollar is silly.
When it gets strong again, there will be claims of "Oh noes, our exports are not competitive anymore due to the global economy!"

Change in any direction of ANY economic metric will have a positive on SOME part of population.

That is all.
 
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