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The Power of the U.S. Dollar since 2008
Without the U.S. dollar, I wonder what us Americans would do? Although the history of the U.S. dollar is relatively short as compared to other currencies, e.g., the British pound, it looks like the past five years has accelerated its apparent decline.
In late 2007- early 2008, Iran stopped accepting the U.S. Dollar in exchange for oil except from India, China, and Japan as the latter three nations had so many U.S. dollars. Towards the end of 2008, Argentina and Brazil dropped the use of the dollar in exchange for bi-laterail trade Towards the end of 2009, Turkey dropped the use of the dollar in exchange for trade with China and Iran Towards the end of 2010, Mexico effectively stopped the dollar in its borders Closer to the end of 2010, China and Russia abandon the dollar for bi-lateral trade In 2011, Libya and now the deceased Omar Kadafi stopped accepting the US dollar for oil and only accepted gold Towards the middle or so, China and Japan stopped trading with each other using US dollars In January 2012, Iran announced it would no longer accept U.S. dollars from India, China, or Japan for its oil and no more dollars with Russia for bi-lateral trade. India now buys its oil from Iran with gold. Towards the middle to end of 2012, Brazil, Russia, India, & China (BRIC) as well as other nations initiated actions to de-throne the US dollar as the world's reserve currency. So, all the debate between the two major political parties seems a little silly if the U.S. Dollar fades away to the dust bin of history. Actually, since the US is printing so many dollars at such an accelerated pace during the past 4-5 years, I wonder what will happen when fewer and fewer transactions accept the US dollar. I know B.O. said we don't have a spending problem. That may be true. The U.S. real problem may be a "buying" problem in that no one will buy our US dollars any more. I wonder what a 17 trillion dollar US debt will be worth then? |
#2
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I guess I don't know enough about the world of high finance to understand why this is a big deal. For many years the British Pound was the hot set-up, yet during the 1930's there were a lot of countries that did not want to accept it in payment.
I never did this, but I talking to some of the old-timers when I first started working and they said that almost all dealing in cargos of crude oil was done in gold. Even US companies were allowed by the US to deal in gold when it came to trade with other countries. At least ours was. After WW 2 the US Dollar was the only currency anyone wanted because the US was just about the only real first world country left on Earth that could back up it's currency. Trading goods for goods is also something that has never stopped. We traded a new refinery for a few million bbls of oil that was still in the ground, PepsiCo. traded Pepsi to the Russians for Vodka back in the 70's or 80's. For all I know they are still doing it. When currencies were allowed to float against each other it no longer made any difference what currency you were trading in as long as you could find another country to take it. |
#3
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There you go blowing these liberals minds by stuffing them with facts. They will be refuting this in all kinds of different ways while they sit in denial while quietly typing away.
It's amazing that people do not recognize that the devaluing of the dollar as the warning sign that it is.
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2001 SLK 320 six speed manual 2014 Porsche Cayenne six speed manual Annoy a Liberal, Read the Constitution |
#4
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#5
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So, maybe I am the only person here who does not understand all the above ominous sounding things....actually none of it sounds omonious to me....in all my ignorance. Can someone explain what all the above means please?...you know so I can get myself all worked up over it.
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[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.[SIGPIC] ..I also have a 427 Cobra replica with an aluminum chassis. |
#6
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I chalk it up to another conspiracy inspired thread from watching/listening to too much of kooks like Glenn Beck, and Alex whateverhisfruitcakename is from Austin, TX.
It seems to me that they're out there making a fringe audience on the airways for themselves to make a buck off of. I don't believe any of these doom and gloom predictions that never, ever come to pass. Ha! Last edited by Skid Row Joe; 03-28-2013 at 07:16 PM. |
#7
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There's no denying that the value of the dollar sucks now in comparison to a few years ago. Perhaps it might be time for some folks to wake up and realize that we're no longer competitive in a global market in many many ways.
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TC Current stable: - 2004 Mazda RALLYWANKEL - 2007 Saturn sky redline - 2004 Explorer...under surgery. Past: 135i, GTI, 300E, 300SD, 300SD, Stealth |
#8
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The low US $ is making it much easier for the US to export all sorts of things like food & cars. Imports in the US just become more expensive. The OP has used a very short time frame in his rant. My interest is in the $US to $AU exchange. around 25 years ago it got to the point that $AU 1.00 was worth about $US 0.50 , Recently $AU1.00 is worth about $US 1.05 .
To put it in simple terms for some, a $AU 1,000.00 item 25 years ago would cost about $US 500.00 at the time. Recently a $AU1,000.00 item would cost about $US1050.00 . At the moment over here US new cars are relatively cheap. Japanese cars are expensive, European cars are also relatively cheap. With the low $US your government should not need all the export subsidies that are being paid to producers, The low $US is creating a wind fall for US exporters.
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Grumpy Old Diesel Owners Club group I no longer question authority, I annoy authority. More effect, less effort.... 1967 230-6 auto parts car. rust bucket. 1980 300D now parts car 800k miles 1984 300D 500k miles 1987 250td 160k miles English import 2001 jeep turbo diesel 130k miles 1998 jeep tdi ~ followed me home. Needs a turbo. 1968 Ford F750 truck. 6-354 diesel conversion. Other toys ~J.D.,Cat & GM ~ mainly earth moving |
#9
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Thank goodness Mercedes Benz made it through the tough times
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Jim |
#10
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Well, it's not a rant as someone called it. It lays out facts. I intentionally did not draw any conclusions from it nor did I put a "spin" on it. As for it being omnius, it certainly does sound that way. I left it open to the reader to draw their own inferences and conclusions. Some even said it was a conspiracy. All of this is very interesting to me. What it most likely signals that in a short period of less than 5 years, the US dollar as the reserve currency of the world as well as the flagship if you will among the world currencies is rapidly declining to the point where countries are abandoning it as a medium of exchange. Maybe it's because of our policies where we placed sanctions or embargos on other countries. That possibility is really not plausible, however. I suspect as we reached a point where we were converging on doubling our national debt and printed money like it was going out of style during the last 4-5 years is the main reason why folks throughout the world no longer percieve our currency as the cats pajamas it used to be. It was even seriously debated that the executive office would mint a 1 trillion dollar coin to temporaily resolve our fiscal issues less than a year ago. For those in the "middle", my guess is that it all means nothing. For those on the far right, it evidences that B.O. is helping to dismantle our society and world standing. For those on the far left, it must signal exceptional stewardship of our national economy.
I perceive and interpet these facts and developments as not something in the middle. |
#11
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Bilateral Trade Definition | Investopedia But whether agreements simply expired and/or for what reason is probably the bigger question.
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TC Current stable: - 2004 Mazda RALLYWANKEL - 2007 Saturn sky redline - 2004 Explorer...under surgery. Past: 135i, GTI, 300E, 300SD, 300SD, Stealth |
#12
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The fear of a weaker dollar is an emotional one; fear of losing face. I'm far for an economist but what I understand is that a weaker dollar is good for us and is what we need at the moment. With the US not investing enough in it self and government and consumers tapped out, a weaker dollar makes it for foreign consumers and investors more interesting and profitable to put money in to the US economy.
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1979 Black on Black, 300CD (sold), 1990 Black 300SE, Silver 1989 Volvo 780, 1988 300CE (vanished by the hands of a girlfriend), 1992 300CE (Rescue). |
#13
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#14
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Then Reagan took over and with-in six months the US went into a recession that destroyed a number of our heavy industry producers. What Nixon started Reagan finished. Then Reagan deregulated the Savings and Loans and that led to a few million folks being wiped out. Neil Bush, G. W.'s brother did OK with Silverado Savings and Loan since he left the country with $500,000,000 the government had to come up with to bail out the bank, but he was about the only one. Things were going from bad to worse until right about 1998 when the budget was finally under control and the US national debt was Zero. Yup, no one understand how to destroy an economy like Conservatives do. You would think they would know how to build an economy as well, but history proves, with the crash of 2008, they are still trying to figure this out. |
#15
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A weak dollar is something everyone who makes stuff wants. And, as the original posting points out, a lot of oil is not denominated in dollars anymore so the price spikes in oil that normally come with a weaker dollar are not showing up this time. I can understand why Conservatives are freaking out over this, though, since a weaker dollar will increase our exports and put more people to work. A dropping unemployment rate is the last thing the Republicans want right now, and nothing worries them more than the fact that the economy is getting better every month. So I expect to hear a lot of this sort of thing in the months to come as Conservatives try to convince people that up is down and green is blue. |
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