miaheatlvr
Active Member
Are we printing to many dollars? or what? and what needs to happen to turn it around? It is really affecting me buying some land overseas! Regards!
Can someone tell me in leymans terms WHY the US DOLLAR is in the TANK?
- Thread starter miaheatlvr
- Start date
michaeltx
Moderator
basically its looseing value because instead of investing in the US and US companies our dollar is going overseas and strengthing the moeny of other coutries. as our gold and silver supplies are sent over seas we have less and less money to back our currency meaning our dollar is almost not worth the paper its printed on.
My take anyway
Mike
My take anyway
Mike
miaheatlvr
Active Member
Originally Posted by bigarn
it's because our economy is "in the tank" right now.
Yes, but im always hearing BOOMING ECONOMY and JOB GROWTH besides recent losses DOW JONES at all time high! I just dont get it.. This is slightly encouraging at least!! http://www.bloomberg.com/apps/news?p...rld_currencies
it's because our economy is "in the tank" right now.
Yes, but im always hearing BOOMING ECONOMY and JOB GROWTH besides recent losses DOW JONES at all time high! I just dont get it.. This is slightly encouraging at least!! http://www.bloomberg.com/apps/news?p...rld_currencies
michaeltx
Moderator
the dow and all can be going up but its what backs our currency that matters. you have big growth and add new jobs etc.
think of it this way you have 100$ and 100 pounds of silver to back 1$=1 pound. now you have a booming economy and now you have $200 but still only have 100pounds of silver to back it up that means the worth of your dollar just got cut in half. even though the numbers look good.
same thing is going on now most of the states silver and gold are going out of the country that back our money but we still have it all in circulation hence our dollar value is going down.
Mike
think of it this way you have 100$ and 100 pounds of silver to back 1$=1 pound. now you have a booming economy and now you have $200 but still only have 100pounds of silver to back it up that means the worth of your dollar just got cut in half. even though the numbers look good.
same thing is going on now most of the states silver and gold are going out of the country that back our money but we still have it all in circulation hence our dollar value is going down.
Mike
renogaw
Active Member
look at the pennies. it costs about 2.5 cents to make 1 penny (last i read).
our dollar is also so soft because we import more than we export. No one wants our products. China is buying all of our scrap copper and steel, melting it down, making product out of it, and shipping it back to us for cheaper than what americans can make the product for. the problem is americans truly get paid too much to make a cheap enough product to compete in the world. by importing so much, america has less leverage out there in the markets, and our dollar tanks.
our dollar is also so soft because we import more than we export. No one wants our products. China is buying all of our scrap copper and steel, melting it down, making product out of it, and shipping it back to us for cheaper than what americans can make the product for. the problem is americans truly get paid too much to make a cheap enough product to compete in the world. by importing so much, america has less leverage out there in the markets, and our dollar tanks.
1journeyman
Active Member
I wish I had paid more attention in college during my economics courses. I'd love to know this as well.
grumpygils
Active Member
Originally Posted by bigarn
Let me add the credit crunch,housing market, and the price of oil. They say the fed is going to have to make another interest rate cut soon even if they don't want to.
If you think oil prices are bad now, wait until they base it on the pound and not the dollar. 20% increase over night.
Mc
Let me add the credit crunch,housing market, and the price of oil. They say the fed is going to have to make another interest rate cut soon even if they don't want to.
If you think oil prices are bad now, wait until they base it on the pound and not the dollar. 20% increase over night.
Mc
lovethesea
Active Member
Originally Posted by grumpygils
If you think oil prices are bad now, wait until they base it on the pound and not the dollar. 20% increase over night.
Mc
why would this be based upon the pound??
If you think oil prices are bad now, wait until they base it on the pound and not the dollar. 20% increase over night.
Mc
why would this be based upon the pound??
scgator
Member
MichaelTX - Unfortunately the dollar is not on the "Gold Standard" anymore (like the Pound Sterling or our old "Silverback" dollars). If it were tied directly to precious metal then we wouldn't see such volatile swings.
The dollar's value is relative to the value of other currencies. There are many factors that go into currency valuation. Inflation, deficit (trade and otherwise), relative health of the economy overall, percieved strength of government, etc. The price of precious metals DOES play a part in valuation, but not as much as most think. If we were still on the gold standard the dollar would have a strong backing and would be less effected by economic fluctuations.
The job figures are very misleading. ALL jobs factor into the equation. If you look at the career index (ie jobs people have that are capable of supporting themselves) the numbers are much more glum. If a retired senior gets a job a Wal-Mart as a greeter that adds to the overal job index, but does nothing to help the career index. The unemployment rate for professional positions is still relatively high. My stats professor proved to us that you can use statistics to say (lie) whatever you want. It's all in the sample you choose.
The dollar's value is relative to the value of other currencies. There are many factors that go into currency valuation. Inflation, deficit (trade and otherwise), relative health of the economy overall, percieved strength of government, etc. The price of precious metals DOES play a part in valuation, but not as much as most think. If we were still on the gold standard the dollar would have a strong backing and would be less effected by economic fluctuations.
The job figures are very misleading. ALL jobs factor into the equation. If you look at the career index (ie jobs people have that are capable of supporting themselves) the numbers are much more glum. If a retired senior gets a job a Wal-Mart as a greeter that adds to the overal job index, but does nothing to help the career index. The unemployment rate for professional positions is still relatively high. My stats professor proved to us that you can use statistics to say (lie) whatever you want. It's all in the sample you choose.
scgator
Member
It also doesn't help that the dollar is no longer the preferred trade currency in Europe. It used to be that transactions where done in the American dollar when between foreign entities (companies, governments, etc). Now that Europe has a strong standard currency (Euro) those transctions are being done without the dollar. This makes the dollar less in demand ie worth less.
Don't forget that the dollar is a currency, but on the world market it is also a commodity. As a currency it is worth $1 to us. As a commodity it may only be worth $.75 to an investor. This is another factor that adds to the dollar's declining value relative to the world.
Don't forget that the dollar is a currency, but on the world market it is also a commodity. As a currency it is worth $1 to us. As a commodity it may only be worth $.75 to an investor. This is another factor that adds to the dollar's declining value relative to the world.
grumpygils
Active Member
Originally Posted by lovethesea
why would this be based upon the pound??
It was on Fox the other day. It appears they want to get away from the volitility of the dollar? I think there is more consistancy in the pound? Who knows, but they said it was coming to the oil world and it would not be good for us?
Mc
why would this be based upon the pound??
It was on Fox the other day. It appears they want to get away from the volitility of the dollar? I think there is more consistancy in the pound? Who knows, but they said it was coming to the oil world and it would not be good for us?
Mc
natemd
Member
Originally Posted by grumpygils
It was on Fox the other day. It appears they want to get away from the volitility of the dollar? I think there is more consistancy in the pound? Who knows, but they said it was coming to the oil world and it would not be good for us?
Mc
I'm not sure that it would effect the price of oil to us so much. A good portion of the current price run up has been because of speclative buying. The state of oil reserves goes through natural cycles every year, however now that oil was already at $80 there was a massive amount of large firms investing in oil as chance to make money rather than to use it. Also as the dollar is devalued against other currency the price of oil will rise for the US because our dollar can now buy less foreign oil. So there is a hope for a sharp decline in the price eventually!
It was on Fox the other day. It appears they want to get away from the volitility of the dollar? I think there is more consistancy in the pound? Who knows, but they said it was coming to the oil world and it would not be good for us?
Mc
I'm not sure that it would effect the price of oil to us so much. A good portion of the current price run up has been because of speclative buying. The state of oil reserves goes through natural cycles every year, however now that oil was already at $80 there was a massive amount of large firms investing in oil as chance to make money rather than to use it. Also as the dollar is devalued against other currency the price of oil will rise for the US because our dollar can now buy less foreign oil. So there is a hope for a sharp decline in the price eventually!
miaheatlvr
Active Member
Originally Posted by MiaHeatLvr
Yes, but im always hearing BOOMING ECONOMY and JOB GROWTH besides recent losses DOW JONES at all time high! I just dont get it.. This is slightly encouraging at least!! http://www.bloomberg.com/apps/news?p...rld_currencies
The DOLLAR will STILL be the OVERALL currency of choice for the next 20yrs at least, see my link. But why does that have to end? perplexing!
Yes, but im always hearing BOOMING ECONOMY and JOB GROWTH besides recent losses DOW JONES at all time high! I just dont get it.. This is slightly encouraging at least!! http://www.bloomberg.com/apps/news?p...rld_currencies
The DOLLAR will STILL be the OVERALL currency of choice for the next 20yrs at least, see my link. But why does that have to end? perplexing!
fishyfrenzy
Member
You see, the dollar is rapidly being printed, for things like the war, and to pay off interest on our debt. The more dollars in circulation, the less that the dollar is worth.
Here's an example.
You decide that you can make this AMAZING invention idea. Everyone wants it. People will pay you anything to get it.
So you spread the idea as quickly as you can.
Think you can sell it for as much as you used to be able to?
Nope, because more people have it.
They will spread it on, and more people will know about your idea.
Kind of like that. In a nutshell.
Here's an example.
You decide that you can make this AMAZING invention idea. Everyone wants it. People will pay you anything to get it.
So you spread the idea as quickly as you can.
Think you can sell it for as much as you used to be able to?
Nope, because more people have it.
They will spread it on, and more people will know about your idea.
Kind of like that. In a nutshell.
fishyfrenzy
Member
Originally Posted by MiaHeatLvr
The DOLLAR will STILL be the OVERALL currency of choice for the next 20yrs at least, see my link. But why does that have to end? perplexing!
I HIGHLY disagree.
I believe the euro or pound will be the preferred currency.
That's coming from a personal financial planner and economist.
The DOLLAR will STILL be the OVERALL currency of choice for the next 20yrs at least, see my link. But why does that have to end? perplexing!
I HIGHLY disagree.
I believe the euro or pound will be the preferred currency.
That's coming from a personal financial planner and economist.
sign guy
Active Member
Originally Posted by MichaelTX
the dow and all can be going up but its what backs our currency that matters. you have big growth and add new jobs etc.
think of it this way you have 100$ and 100 pounds of silver to back 1$=1 pound. now you have a booming economy and now you have $200 but still only have 100pounds of silver to back it up that means the worth of your dollar just got cut in half. even though the numbers look good.
same thing is going on now most of the states silver and gold are going out of the country that back our money but we still have it all in circulation hence our dollar value is going down.
Mike
if im not mistaken the dollar was pulled off of silver and gold in 1973
the dow and all can be going up but its what backs our currency that matters. you have big growth and add new jobs etc.
think of it this way you have 100$ and 100 pounds of silver to back 1$=1 pound. now you have a booming economy and now you have $200 but still only have 100pounds of silver to back it up that means the worth of your dollar just got cut in half. even though the numbers look good.
same thing is going on now most of the states silver and gold are going out of the country that back our money but we still have it all in circulation hence our dollar value is going down.
Mike
if im not mistaken the dollar was pulled off of silver and gold in 1973