The US Dollar

**Big Smoothy** · 11-16-2007, 11:25 PM

I'm interested in hearing Americans' opinion on the recent decline of the US dollar. Are people discussing it? Do Americans care?

The decline of the Greenback will most likely be long term. Many countries are quietly moving portions of their currency reserves out of the dollar and into other currencies. There is also the Oil Bourse/Oil Money issue for OPEC countries.

Below is an article. More articles and youtube to follow.

What's your take?

The dollar's decline: from symbol of hegemony to shunned currency
By Andy McSmith
17 November 2007

The decline of the dollar, symbol of US global hegemony for the best part of a century, may have become so entrenched that some experts now fear it is irreversible.

After months of huge and sustained turmoil on the money markets, lack of confidence in the world's totemic currency has become so widespread that an increasing number of international traders are transferring their wealth to stronger currencies such as the euro, which recently hit its highest level against the dollar.

....Its plight was made still worse by a jarring signal from China that it was switching to other currencies. Cheng Siwei, vice-chairman of the Standing Committee of the National People's Congress, told a conference in Beijing: "We will favour stronger currencies over weaker ones, and will readjust accordingly."

The warning was reinforced by a Chinese central bank vice-director, Xu Jian, who said the dollar was "losing its status as the world currency".

China has stockpiled £700bn worth of foreign currency, and has only to decided to slow its accumulation of dollars to weaken the currency further. Last month, in a humiliating turn of events, the central bank in Iraq, four years after the United States invaded, stated that it wished to diversify reserves from a reliance on dollars.

Link and Entire: The dollar's decline: from symbol of hegemony to shunned currency - Independent Online Edition > Americas

**vortrit** · 11-17-2007, 01:51 AM

Hmmm.... The U.S Dollar is declining. Maybe you should think about moving.

**vortrit** · 11-17-2007, 01:54 AM

Seriously. Pack your shit!

**tucker01** · 11-17-2007, 05:09 AM

I am hoping the strength of our economy can survive the shit valuation of your dollar. Unfortunately a good chunk of our business relies on the Exports to the US, so your shitty dollar fucks that up royally. So far so good, but it is only a matter of time.

We hit an all-time high the other week of $1.07, and there have been talks of it reaching $1.20. Pretty scary for our industry considering just over 2-3 years ago our dollar was value at $0.60.

Guess we will have to wait and see, and see if that disgustingly large debt is going to continue to fuck up the the US value.

**DOMS** · 11-17-2007, 09:14 AM

Originally Posted by IainDaniel

I am hoping the strength of our economy can survive the shit valuation of your dollar. Unfortunately a good chunk of our business relies on the Exports to the US, so your shitty dollar fucks that up royally. So far so good, but it is only a matter of time.

We hit an all-time high the other week of $1.07, and there have been talks of it reaching $1.20. Pretty scary for our industry considering just over 2-3 years ago our dollar was value at $0.60.

Guess we will have to wait and see, and see if that disgustingly large debt is going to continue to fuck up the the US value.

I'm happy that the USD has lost so much value. Only pain will make the US change its spending habits.

I'm also looking forward to a recession. We've been too hot for too long. We need a good cooling down period.

**DOMS** · 11-17-2007, 09:16 AM

Originally Posted by vortrit

Seriously. Pack your shit!

Supposedly, he lives in South-East Asia. He's only brining it up because he has a hate-on for America.

**danzik17** · 11-17-2007, 10:14 AM

Originally Posted by DOMS

I'm happy that the USD has lost so much value. Only pain will make the US change its spending habits.

I'm also looking forward to a recession. We've been too hot for too long. We need a good cooling down period.

That might be true, but neither do I like seeing my money lose 30% of its value in under 3 years.

I should probably move it to another currency or metals as storage, but that will have to wait until I graduate.

**vortrit** · 11-17-2007, 12:53 PM

Originally Posted by DOMS

Supposedly, he lives in South-East Asia. He's only brining it up because he has a hate-on for America.

**vortrit** · 11-17-2007, 12:54 PM

Originally Posted by DOMS

I'm happy that the USD has lost so much value. Only pain will make the US change its spending habits.

I'm also looking forward to a recession. We've been too hot for too long. We need a good cooling down period.

Agreed.

**vortrit** · 11-17-2007, 12:56 PM

Originally Posted by DOMS

?

Because I don't think he lives in southeast asia.

**DOMS** · 11-17-2007, 12:56 PM

Originally Posted by vortrit

Agreed.

Plus, it's easier for people to become rich in a depressed economy.

**vortrit** · 11-17-2007, 12:58 PM

Originally Posted by DOMS

Plus, it's easier for people to become rich in a depressed economy.

That's is true. Look at how many people got rich in during the like depression like Swift, etc.

**DOMS** · 11-17-2007, 01:00 PM

Originally Posted by vortrit

That's is true. Look at how many people got rich in during the like depression like Swift, etc.

The weak minded will bitch about how bad it is, but the strong minded will buy when things are cheap.

**vortrit** · 11-17-2007, 01:04 PM

Originally Posted by DOMS

The weak minded will bitch about how bad it is, but the strong minded will buy when things are cheap.

Very true. A lot of those people who got rich during that time were not people who were born with money.

**danzik17** · 11-17-2007, 01:35 PM

Originally Posted by DOMS

The weak minded will bitch about how bad it is, but the strong minded will buy when things are cheap.

Maybe, but it still hurts for existing savings. That and considering within a year I'm going to have student loans to pay for, the deflation associated with a depression can seriously hurt.

**DOMS** · 11-17-2007, 01:42 PM

Originally Posted by danzik17

Maybe, but it still hurts for existing savings. That and considering within a year I'm going to have student loans to pay for, the deflation associated with a depression can seriously hurt.

If you saw that your investment was taking a hit, why didn't you move it to another vehicle or convert to cash?

**danzik17** · 11-17-2007, 01:49 PM

Oh the majority of my money IS cash sitting in a high yield savings account. I only have around 2k invested because I couldn't justify the risk to my savings knowing I might potentially need that money in a year.

The US dollar itself is spiraling downwards though - although it's temporarily halted, I believe it's going to go down much much more. No I don't have hard proof of this, but with our reckless war spending and other countries beginning to dump the dollar, I don't see it playing out any other way.

**NordicNacho** · 11-17-2007, 01:51 PM

Originally Posted by vortrit

Hmmm.... The U.S Dollar is declining. Maybe you should think about moving.

You would want to leave when the dollar is high not low funny guy.

the weak dollar is great for us when it comes to exports

**danzik17** · 11-17-2007, 01:51 PM

I actually did jump out of the market at its peak from the majority of my investment. I re-invested that money when it began to drop majorly, and I'm waiting to see if it pays off. I took by far the largest hit on EMC and VMC though, I can't believe they dropped that much - way more than I expected.

**DOMS** · 11-17-2007, 02:00 PM

Originally Posted by danzik17

Oh the majority of my money IS cash sitting in a high yield savings account. I only have around 2k invested because I couldn't justify the risk to my savings knowing I might potentially need that money in a year.

The US dollar itself is spiraling downwards though - although it's temporarily halted, I believe it's going to go down much much more. No I don't have hard proof of this, but with our reckless war spending and other countries beginning to dump the dollar, I don't see it playing out any other way.

So you're not really losing money. You're just not getting as good a return. You need to figure out how to make your money work better for you or simply let it sit.

In six months or less, I'm going to start trading options. Long after the shit has started to hit the fan. But this is good for me. I have some friends, and business associates, who expressed an interest in investing with me. Now that their other investments, those tied to the interest rate, aren't paying off as good, they want me to invest more of their money with me.

I agree with you, things are going to keep getting worse for a long time. But, again, I'm okay with that.

**Witchblade** · 11-17-2007, 03:58 PM

It's unbelievable how cheap buying gadgets and hardware from the US now is. Before the decline of the dollar, PCs and cellphones were already at 75% of the cost in Europe, but now they're below 50%.

Just thought I'd share that with you guys. :x

**BoneCrusher** · 11-17-2007, 04:18 PM

Originally Posted by DOMS

So you're not really losing money. You're just not getting as good a return. You need to figure out how to make your money work better for you or simply let it sit.

In six months or less, I'm going to start trading options. Long after the shit has started to hit the fan. But this is good for me. I have some friends, and business associates, who expressed an interest in investing with me. Now that their other investments, those tied to the interest rate, aren't paying off as good, they want me to invest more of their money with me.

I agree with you, things are going to keep getting worse for a long time. But, again, I'm okay with that.

What is the minimum investment you're looking at per person?

**DOMS** · 11-17-2007, 04:23 PM

Originally Posted by BoneCrusher

What is the minimum investment you're looking at per person?

I don't have one. I didn't plan on investing for other people, people just started asking.

**BoneCrusher** · 11-17-2007, 04:36 PM

Can I play too?

Also how soon will you get this up and running?

**DOMS** · 11-17-2007, 04:43 PM

Originally Posted by BoneCrusher

Can I play too?

Also how soon will you get this up and running?

Sure you can. I figure I'll be trading in 6 months or less. PM your info when you're ready and we can play.

**BoneCrusher** · 11-17-2007, 04:45 PM

Originally Posted by DOMS

Sure you can. I figure I'll be trading in 6 months or less. PM your info when you're ready and we can play.

I'll be outta touch for 4-6 months but I'd put in $10K if it looks like it will be worth messing with. What info do you want from me and can we do that by phone?

**danzik17** · 11-17-2007, 05:23 PM

Originally Posted by DOMS

Sure you can. I figure I'll be trading in 6 months or less. PM your info when you're ready and we can play.

I'm not going to have the cash to do anything at that time, but stocks and options are an area that I am very interested in.

Is there any chance of getting rundowns of what moves you make and why at times?

**KentDog** · 11-17-2007, 05:30 PM

Kind of scary what can happen if everyone sells out their dollar reserves to back them with other currencies. For the first time ever, the dollar is weaker than the Canadian dollar. Analysts believe it won't change any time soon either (the declining dollar), with favorable news (such as lower than expected unemployment announced) making no positive impact on the USD. The only plus side to a weakening dollar against other major currencies is that it makes us more competitive in the global economy, therefore will increase exports, as someone had previously said.

**Pound for Pound** · 11-17-2007, 06:02 PM

I can't wait for the market to tank

Recession

**danzik17** · 11-17-2007, 06:09 PM

Originally Posted by KentDog

Kind of scary what can happen if everyone sells out their dollar reserves to back them with other currencies. For the first time ever, the dollar is weaker than the Canadian dollar. Analysts believe it won't change any time soon either (the declining dollar), with favorable news (such as lower than expected unemployment announced) making no positive impact on the USD. The only plus side to a weakening dollar against other major currencies is that it makes us more competitive in the global economy, therefore will increase exports, as someone had previously said.

Not entirely true - I believe the Canadian dollar was also valued higher than the USD back in the 70's or 80's at some point, though I might be mistaken.

Unfortunately, we have also basically sold our country to the Chinese and others. They don't need to drop a single bomb; all they need to do is dump the trillion dollars they have in reserve, and we won't even be able to afford to run our country anymore.

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