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A Question to my American Neighbours
RockinInCanada
Posts: 2,016
How do you currently feel about your slumping economy and the weakening dollar?
I am curious to gauge some reaction, as I never hear anything worthwhile on American news and I want to ask the people. The reason I bring this up is my Canadian dollar (and I know that it is strongly reliant on the price of oil/natural gas/various other resources) has climbed above $1.08 American (leaving the American dollar sitting at less than $0.91 Canadian).
I my know my countries economy is blooming right now but I honestly do believe the rise of our dollar is directly related to how crappy the American dollar really is.
Curious to see if some people are concerned, what is causing the further weaking of the dollar, and honestly when do you think it will stop?
I am not hear to gloat or rub it in (although I seriously believe the worst is yet to come for the green-back), I have not posted in this forum for ages and have done my best to consult American news outlets and I find nothing of significanace about this. Which leads me to believe that they are ignoring it or the majority of people are unaware of how bad the American economy looks right now.
Would like some insightful conversation on the matter, thanks.
I am curious to gauge some reaction, as I never hear anything worthwhile on American news and I want to ask the people. The reason I bring this up is my Canadian dollar (and I know that it is strongly reliant on the price of oil/natural gas/various other resources) has climbed above $1.08 American (leaving the American dollar sitting at less than $0.91 Canadian).
I my know my countries economy is blooming right now but I honestly do believe the rise of our dollar is directly related to how crappy the American dollar really is.
Curious to see if some people are concerned, what is causing the further weaking of the dollar, and honestly when do you think it will stop?
I am not hear to gloat or rub it in (although I seriously believe the worst is yet to come for the green-back), I have not posted in this forum for ages and have done my best to consult American news outlets and I find nothing of significanace about this. Which leads me to believe that they are ignoring it or the majority of people are unaware of how bad the American economy looks right now.
Would like some insightful conversation on the matter, thanks.
Post edited by Unknown User on
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Keep in mind that the "Rise" of your dollar is really only an illusion created by the REAL DECLINE of OUR dollar.
I mean, your economy may be "booming" and "strong", but it is probably not DEflating.
On the other hand, the Fed in America has pumped over 300 billion in to the system recently just to clear the credit market of woes (not working, btw) ...
that equals real inflation .... more money, same goods, equals higher prices for goods ...
it also means that any money we are comparing our dollar to will raise in value vs. ours.
:(
So don't get to excited.
Yes we are PISSED that our dollar is being devalued.
:rolleyes:
The american people probably wont stand up in the streets until they cant buy breakfast the next day.
:( :( :(
If I opened it now would you not understand?
Also it's weak position means some people want to get paid in other currencies rather than $
http://news.bbc.co.uk/1/hi/business/7078612.stm
As to the economy, I've heard it's slumping but my investments have netted about 12% this year so far.
...are those who've helped us.
Right 'round the corner could be bigger than ourselves.
Well that speaks to your investing...not the economy as an entity.
Dollars value mean nothing to you? Why?
(I will assume you are debt free for you to think that way)
hi rockin. it sounds like you want an honest answer so i'm going to give you one. the american "authorities" are not telling the public what's going to happen because they're afraid of panic. as i told drifting in his/her thread; the tundra and perma frost are about to melt and that percentage of canadian land will dissapear into the ocean. when the effects of global warming finally hit north america; i think people will finally wake up. those smart enough to look at what's happening around the world are holding back.
just a bit of o'l cowboy advice; the higher something goes; the farther it has to fall. back in the 70's i believe; gold reached about $700 USD and when everyone invested; it dropped to about $250 USD. these are numbers from memory so they're not exact; but they're close.
i don't loan or borrow money so i am debt free; but the value does mean something to me. it shows that more people are waking up to the coming crisis. when wall street is flooded; the majority of people will wake up.
dollar value really doesnt have too much to do with public awareness.
It has more to do with what the Fed has done in terms of putting cash in to the system.
It MAY have something to do with "public awareness" in terms of foreign creditors ditching their dollar investments ... if oversees big money is selling stocks on the NYSE and trading their dollars back for Euros, or pulling out of US Banks and exchanging currencies, that IS causing more money to be put in to OUR system.
That could be what you are talking about.
As inflated as our money supply is, the saving grace is that much of those dollars are around the world, and not flooding OUR economy ... however if those shitty bills come home to roost ... if foreign investors cash out ... then our dollar could go through the floor pretty quick.
Is that what you're getting at?
Because i don't see how public perception plays a roll otherwise. Unless you are talking about chumps like me ditching their savings accounts for lock boxes full of gold.
If I opened it now would you not understand?
We're 9 trillion dollars in debt as a country and all we seemingly notice that pisses us off are the prices at the gas pumps. Even then, we don't see gas prices as a result of our economy being in a slump or a weak dollar. We see it as corporate greed, we see it as the fault of SUVs, we see it as being dependent on foreign oil or we see it as not having an alternative fuel source.
We know our economy is in a slump and the dollar is weak against the market, but, as long as we can buy the same things, even at a higher price, the slumping economy and the weakening dollar doesn't really sink in. We suck it up because we know that the American buying power is so intertwined with the world economy that they can't afford for the U.S. to faultier for too long, so things will get better, simply because the world economy needs America's buying, trading and investment power. Plus, a weak dollar means you will come to America to play and spend your money.
So, unless China and Japan get pissed and start selling off the dollar, I don't see our market hitting rock bottom. Its a good time for short term commodities investing.
I'm debt free except for my house...and I have a lot of equity in that.
...are those who've helped us.
Right 'round the corner could be bigger than ourselves.
I never am able to understand how people in general aren't outraged year after year that the US federal government can't seem to run a balanced budget. Have people just given up and figured that not running a deficit is never going to happen, and all that money is never going to be paid back anyways?
Also I think some of the lack of response to the low American dollar is the fact that there is a large portion of Americans who will probably live their whole lives without setting foot outside of their country. Sure a weak dollar still has an effect on them, but unless you are buying something and paying even more because your dollar is worth even less it might be hard to really see it.
dollar value has everything to do with dollar public awareness. the public controls dollar value through investments. look at the 1929 stock market crash.
if the public thinks everything is fine and doing well; they spend money which increases the economy and dollar value goes up. when the public becomes scared and stops spending; dollar value goes down.
now; the key to the whole problem here is in the past; when the public spent money; it was for american goods. american money stayed in america and the american economy flourished. but now we spend money on foreign products and the money goes to enrich those countries. look at how japan's economy has grown. why? because we sent them the money to do it.
we screwed ourselves.
but; when the waters rise; the boats can get to the ports; but there's a distance of shallow water that stands between the boats and the shore so the boats won't be able to offload their goods. that will be interesting. small boats can float in shallow water but can't hold the weight of the cargo. americans will have to rely on americans.
I think its funny how people in the U.S. think that sound finincial management is the exclusive domain of the Republicans. In recent memory, its not the Democrats who are running up the deficits, its the fucking Rep's. And yes, you're right, where is the outrage ? Canada is kicking ass right now, in part, because it has spent the last 10 years or more being serious about debt reduction and balanced budgets. Its not just high-priced natural commodities that are pushing the Cdn. dollar.
but; if your house is in the wake of global warming; ie: flooding; that equity is worthless. you'll be leaving your house and it's equity to seek higher ground. if you do have any money; who will take it? the 1929 stock market crash made money worthless. it's only paper.
if the countries we lent money to would pay us back as agreed; the debt would be paid many times over.
I don't think this is really too acurate at all.
a. The stock market crash of 1929 was just that, a STOCK MARKET crash. I thought about that a while ago and did the research because i wanted to know what effect it had on the dollar. The truth is that the stock market crash did NOT devalue the dollar!
The dollar did NOT GO DOWN BECAUSE THE FED CUT THE MONEY SUPPLY -- Look at the charts here! ...
THIS IS WHAT THEY SHOULD BE DOING NOW.
Yeah, it SUCKS.
When the money supply goes down, the economy nose dives.
BUT THE ALTERNATIVE IS POST WAR GERMANY WHERE THE CURRENCY BECOMES WALLPAPER!
B. You cant enter a recession by cutting rates, raising the money supply, AND bailing out big banks (also raising the money supply!) ...
THAT IS A RECIPE FOR WORTHLESS MONEY!
Your second paragraph about consumers buying or spending regulating the dollar value has VERY LITTLE truth to it.
The dollars "value" is regulated by the NUMBER OF DOLLARS IN CIRCULATION ... if the people have the dollars, they are in circulation and are already acounted for in the dollars value ... it is when THE FED prints or destroys dollars that the value rises or falls. Or when FOREIGN investors sell their dollars back to us!
If I opened it now would you not understand?
pppfffttt.