Dropping dollars (1 Viewer)

[danarhea]

The dollar not only continues its slide, but is now is rapidly going to hell in a handbasket.

In 2001, a dollar was worth 0.7 British pounds. Now it’s worth .55 pounds, over a 21% drop. In 2001, a dollar was worth 1.1 euros. Now it’s worth just 0.8 euros, over a 27% drop. In 2001, a dollar was worth 1.5 Canadian dollars. Now it’s worth just 1.14 Canadian dollars, a 24% drop.

Against the Australian dollar, down 30% from 1.9 to 1.33.

Against the Swiss franc, down 26% from 1.7 to 1.25.

Against the New Zealand dollar, down 36% from 2.5 to 1.6.

Against the Korean won, down 26% from 1300 to 953.

I have said it before, and I will say it again. A fiat currency with only debt to back it is a recipe for disaster.

 

[Kandahar]

The dollar not only continues its slide, but is now is rapidly going to hell in a handbasket.



I have said it before, and I will say it again. A fiat currency with only debt to back it is a recipe for disaster.

Unless you care to explain why the declining value of the dollar relative to other currencies is a completely bad thing, your statistics are absolutely meaningless.

 

[AndrewC]

Unless you care to explain why the declining value of the dollar relative to other currencies is a completely bad thing, your statistics are absolutely meaningless.

A strong dollar means strong foreign investment. Foreign investment is propping up our economy right now. if the dollar continues to slide, we will get a good look at the TRUE value of our economy. We may not like what we see, but it will be good for us in the end.

 

[Stace]

Source, danarhea?

 

[danarhea]

Source, danarhea?

Oops, didnt list the source, and I forgot where I got the article. Go ahead and lock this thread. I will look for the source this weekend, and repost if I find it.

Didnt mean to, but I broke the rules here, so time for me to pay the piper.

Mods. Lock this one up.

 

[Deegan]

Oops, didnt list the source, and I forgot where I got the article. Go ahead and lock this thread. I will look for the source this weekend, and repost if I find it.

Didnt mean to, but I broke the rules here, so time for me to pay the piper.

Mods. Lock this one up.

No, leave it open, I quite often need a good laugh!:lol:

The dollar is just fine, we just no longer use paper as much, we use electronic transfer, and that has much to do with this decline. But by all means, count us out, and invest abroad, lol, let us all know how that works for you!

 

[Kandahar]

A strong dollar means strong foreign investment. Foreign investment is propping up our economy right now. if the dollar continues to slide, we will get a good look at the TRUE value of our economy. We may not like what we see, but it will be good for us in the end.

A weak dollar means a smaller trade deficit. Shrinking the trade deficit means we won't NEED as much foreign investment to prop up the economy.

 

[Iriemon]

No, leave it open, I quite often need a good laugh!:lol:

The dollar is just fine, we just no longer use paper as much, we use electronic transfer, and that has much to do with this decline. But by all means, count us out, and invest abroad, lol, let us all know how that works for you!

How does electronic transfer affect the value of one currency against another?

 

[Stace]

Oops, didnt list the source, and I forgot where I got the article. Go ahead and lock this thread. I will look for the source this weekend, and repost if I find it.

Didnt mean to, but I broke the rules here, so time for me to pay the piper.

Mods. Lock this one up.

Nah, it's cool, I'm just gonna move it down to Economics.

 

[Iriemon]

A weak dollar means a smaller trade deficit. Shrinking the trade deficit means we won't NEED as much foreign investment to prop up the economy.

True, on the theory that US goods are relatively cheaper to foreign purchasers and foreign goods are relatively more expensive to US purchasers.

The fear I have about a falling dollar against other major currency is our addiction to debt. When foreign governments or individuals lend US dollars to the Govt, they are doing so not only for the interest and based upon the security of the US Govt, but on the soundness of the dollar. If the dollar drops in value compared to all other currencies, the value of the dollar lent is less when repaid, compared to all other currencies. While that may have some benefit to the loan repayor (ie the US Govt); a lender who has concern about the long term stregnth of the dollar is going to demand a higher yield on the investment -- we may already be seeing this reflected in US Govt debt interest rates, T-Bill interest rates have increased significantly over the past two years. Higher interest rates affect the interest the Govt pays on its debt almost $200 billion last year (excluding interest owed to intragovt loans like SS) and probably more than that this year.