The U.S. Dollar Heading for Collapse

Discussion in 'Politics, Religion, Social Issues' started by Merkava_4, Oct 7, 2012.

  1. Jackintosh, Oct 7, 2012
    Last edited: Oct 7, 2012

    Jackintosh macrumors 6502a

    Jackintosh

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    #2
    I never understood this fear, mostly circulated in conspiratorial circles and off-the-wall websites. I think it's a non-issue.

    So what that many countries don't want to base their international trade in USD rather than another currency. Unless we want to be a world empire, what right do we have to insist that everyone else must trade in USD?

    In any event, a weaker USD (which these people fear) would make our goods cheaper overseas, and more attractive to buy. It should have nothing to do with domestic buying power, which the conspiracy types confuse this with.
     
  2. noisycats macrumors 6502a

    noisycats

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    #3
    Name one alternative to the USD.

    The Euro was a strong competitor at one point ...
     
  3. FrankieTDouglas macrumors 65816

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    #4
    Emmm... the Pound?
     
  4. noisycats macrumors 6502a

    noisycats

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    #5
    So bring it...

    Bring on the Pound. Not a loyalist, just wondering what is the next universal currency?

    If the pound were so attractive, big business would be jumping at it. There is no law saying universal transactions must be valued in USD.
     
  5. Thomas Veil macrumors 68020

    Thomas Veil

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    #6
  6. fox10078 macrumors 6502

    fox10078

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  7. Merkava_4 thread starter macrumors 6502a

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    #8
    I hope you're correct, but this following link has got me pretty scared:

    LINK
     
  8. Chundles macrumors G4

    Chundles

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    #9
    Aussie dollar. It's very strong. Made out of plastic you know, doesn't go soggy in the wash.

    And we back it up with tonnes and tonnes and tonnes of coal, uranium and aluminium.
     
  9. jnpy!$4g3cwk macrumors 65816

    jnpy!$4g3cwk

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    #10
    First question. Are Aussies willing to pay (enough) taxes -- "enough" meaning enough to keep deficits low and debt low?

    Second question: What level of private debt is there (relative to GDP)?

    Third question: Why is the Aussie dollar so high? Prices there seem outrageous to non-Aussies.
     
  10. Merkava_4 thread starter macrumors 6502a

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    #11
    Our U.S. Dollar isn't backed by anything other than it's the official currency to buy oil with. But a lot of countries (including Russia and China) are saying they'd rather use their own currency to buy oil with, and when that happens, nobody's gonna need dollars anymore; hence, the dollar becomes worthless in a matter of days...

    When Saddam Hussein said he was gonna start selling his oil for Euros, the United States (under the pretext of weapons of mass destruction) invaded his country and killed him off. But how do we invade Russia and China? They have nuclear weapons...
     
  11. flopticalcube macrumors G4

    flopticalcube

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    #12
    Looking bad for the Pig. I give it another year above 72, max. World will move to SDRs or something based on a basket of currencies along with gold and perhaps silver. Fiat currencies are, and have always been, a dead-end road.
     
  12. Chundles macrumors G4

    Chundles

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    #13
    Our taxes are WAAAYY higher than US taxes.

    Dunno.

    We earn much more than you guys so prices are pretty much equal.
     
  13. Eraserhead macrumors G4

    Eraserhead

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    #14
    Or the Yuan.
     
  14. fox10078 macrumors 6502

    fox10078

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  15. VulchR macrumors 68020

    VulchR

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    #16
    Actually this could be important. The US is the only country that has the luxury of paying its debts with its own currency. In an economic emergency that makes the cost of borrowing cheaper, because more money can be printed to pay debts. I guess we'll have to see how this plays out - a cheaper dollar might mean that the US will be able export more.
     
  16. itcheroni, Oct 8, 2012
    Last edited: Oct 8, 2012

    itcheroni macrumors 6502a

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    #17
    Gas prices just passed $5 here in California. I think it's also at an all time high in the rest of the country. At what point will you believe the USD is losing value? When gas is $10/gallon? $20? Or would it not matter how much gas costs as long as the CPI is low?

    Take a trip to the supermarket. I don't know about where you are but everything seems to be costing more and more. Fortunately, the Fed is buying $40 billion in mortgage backed securities every month, which will cause unemployment to go down.
     
  17. Rodimus Prime macrumors G4

    Rodimus Prime

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    #18
    I would say I have been seeing stuff like this since 2001 so I would just not pay much attention to it.
     
  18. iJohnHenry macrumors P6

    iJohnHenry

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    #19
    Ah, but it does, when a lot of your durable goods are made off-shore.
     
  19. flopticalcube macrumors G4

    flopticalcube

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    #20
    The frog boils and thinks he is cozy and warm. I doubt more than a handful can see it.
     
  20. eric/ Guest

    eric/

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    #21
    joke?
     
  21. Dmunjal macrumors 65816

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  22. splitpea macrumors 6502a

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    #23
    Which is painful in the short-term but in the medium to long term (along with the improved overseas market) provides an incentive to bring manufacturing back onshore.
     
  23. flopticalcube macrumors G4

    flopticalcube

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    #24
    Cost of labor is marginal compared to cost of raw materials these days. Raw material costs are priced on a worldwide basis (currently using the US $). If the dollar falls, the costs rise. At any rate, I doubt Americans would be willing to work any where near Chinese wage levels until things really got horrific.
     
  24. Thomas Veil macrumors 68020

    Thomas Veil

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    #25
    The current gas price spike is a result of refineries out of operation, not QE.
     

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