The dollar hits a new low against the Euro :(

Didn't gateway just get bought out by chinese

http://www.upi.com/NewsTrack/Business/2007/08/27/gateway_computer_sold_to_taiwans_acer/7767/

 

and what if they don't care?

 

EXACTLY. Currency manipulation be damned, if they do it they do it, and we get stuck with the consequences.

I suppose we could just go blow them up to protect our freedoms or some such.

 

Wow! Gateway Inc. was sold to a Taiwanese company for $710 million

The "lower dollar is good for us" people never really think that the rest of the world doesn't really want to buy American and put their own people out of work. You're going to see a lot of US companies purchased by foreign companies and the have the resulting net capital and technology outflow.

Who is going to export when there are no American companies making anything?

 

Wheat is low due to drought and freak weather in many parts of the world. Australia's wheat crop is very low due to ongoing drought. I think blaming it on Ethanol production is naive. Think of all the Spirits made around the world - no one's bitched about that eating up the corn, wheat or barley crops. I think you will find the alcohol production industry (for human consumption) uses far more grain produce than the tiny ethanol production industry.

Besides which ethanol can be made from sugar (plenty of this around), soya beans, lots of other things than wheat and corn. Hell if Americans halve their sugar consumption they would still be eating too much sugar - imagine what you could do with the spare sugar - run all the SUV's you want instead of growing an expanding waistline.

 

P.S. If the US dollar continues in free fall, America overseas debt grows automatically, import costs soar, inflation will go spastic - the FED will have to raise interest rates whether it likes it or not - America will go into a DEPRESSION.

America's economy is in a catch .22 - needs low interest rates to keep economy drawing breath
- needs high interest rates to combat inflation and keep dollar high.

I predict this October will see the stock market crash - October is the traditional month for bad things on the stock market.

Once the U.S. crashes the rest of the world will follow

China - because the US won't buy there exports (the sole thing causing huge growth in China's economy)
Japan - same reason
Australia - because China won't need our mineral wealth
S.Africa - same deal
India - why continue outsourcing to India when central office went bankrupt
Central and South America - same deal and lost of markets - for coffee, etc
Middle East - who wants your oil when people will be worried about their next meal
Europe - no one left to buy your products

 

I'm not really doomsday person, and kind of doubt it will be mad max out there, but it does seem like we are the verge of some major economic upheavals

 

Don't get me wrong - personally I'm not against having a depression, its not all doomsday so long as you have a job - it brings house prices back to earth, lowers prices, reduces global demand so things become cheaper.

Many people have made fortunes off depressions and recessions, especially smart futures traders - betting on the bear market.

Whenever the oil and gold price has climbed it normally means a recession is just around the corner. For the super rich - they won't give a toss - some who are overstretched will fall, but for most billionaires its an opportunity to buy low, to later sell high.

However for joe blow in debt to his eyeballs on credits card, mortgage, etc it means bankruptcy and loss of a lifetime of work. The masses will demand blood and some radical party will promise them the earth for it.

And yes it is George Bush's fault. He was given a good economy by Bill Clinton and he's totally screwed it, wasting billions on a foreign war, allowed debt to increase, wasted money, sucked on the teat of big business interests. He's allowed America to continue its reliance on overseas oil and so instead of easy medicine - the United States and its citizens will have some foul tasting stuff coming their way.

 

Wow, I think your statement is even dumber than Mia's, and Mia's statement was pretty bad. You know, even though I don't personally know many of the people who are a member of this forum, you can tell a lot about a person by the things they write.

Based on what you wrote, I can see that you know very little about the Great Impression. I also see that you know very little about inflation and economics. Don't be insulted by this, because a lack of knowledge doesn't mean you're a dumb person, it just means you haven't read up on this subject. I break this down for you quickly, because I'm tired, its been a long day, and I'm about to go to sleep.

1. As the dollar continues to lose value, and the price of every day goods goes up, more companies will begin laying off workers. That means, you are very likely to lose your job, as many companies go belly up.

2. If the dollar continues to decline, employers won't know what to pay their employees in. This scares me, because I have employees working for me. The job outlook is not very good in a situation like this.

3. You said in your post that prices become cheaper during a depression. Actually, that is only a deflationary depression, which the Great Depression is a good example of. Unfortunately, even in an deflationary depression, dollars are scarce, so even if the prices are low, you won't have much money to buy things with, because there isn't much money available.

The current situation appears to be what is called a Inflationary Depression. In an Inflationary Depression, it is just the opposite of an Deflationary Depression: The value of your money goes down, because there is too much money in circulation. Once this happens, the prices of food, housing, and energy shoot through the roof, and since many Americans can't afford it, they will end up in poverty.

Now, this Depression that we're headed into is caused by the likes of Greenspan and Ben Bernanke, who have printed too much money. When the economy collapses, a lot of Americans are going to be pissed because their money has been wiped out, an well, you can expect massive riots, especially in the major cities.

To illustrate to you what the future may be like, think Hurricane Katrina on a national scale, without the flooding.......the situation is going to suck.

I don't think bad of you because of the dumb post you made, because like many Americans, you have no idea what it is like to live in a country where your currency has been devalued and destroyed. People in Argentina, Yugoslavia, and Germany understand this perfectly.

But like all Americans, you will soon wake up. By the way, if you have any money saved up, and its all in paper dollars, and the dollar gets wiped out, your entire wealth will be destroyed. I advise you to buy gold and silver to protect it.........

 

Your point?

Poor tesla.. You are confused.. Re-read what I said. Think hard about it. It's a metaphor.

If there is nothing to take, the bank gets nothing.. The bank is in the same position... When debt reaches levels in excess of their own liquidity, they too suffer, and often times go belly up...

Again, you owe the bank 10 grand, they own you.. You owe the bank 1 mil, you own the bank..

Think about that for a moment.

How can anyone be so stupid as to miss a simple and practical metaphoric example? Surely there cannot be more like you?

Not all debt is bad... The key to running a business is to insure that your assets equal your liabilities. From a tax standpoint, debt is good. Debt can be written off. Interest on debt can be deducted, and ultimately, debt can help mitigate tax liability.

Just because you are stupid and in debt is no reason to bash other people who actually work for a living and carry reasonable and practical debt, particularly on assets and real estate...

Take some time off from ranting on DP and get a job, pay down your debt, take some anger management classes and come back refreshed.

What? Again, we live in a global economy now. Everyone needs to be dependent on everyone else. This is what makes the world work. Mutual dependence insures mutual wealth and mutual peace.

I've never seen a more obtuse view of economics.

When they are equally dependent on us there is no danger.

Not true. Today, money is not what gets you a loan. Good credit, bad credit, and or tangible assets gets you a loan. Banks will loan money to anyone. Within reason of course.. Go back 20-30 years, you are correct. Now, it's just not the case.

I'm afraid you have no idea how the financial industry works... The reality is, banks make more money off of people with NO money, and bad credit.

People with money, tend to pay things off.. They tend to borrow money to mitigate tax liability, and for other various reasons, I am afraid would take way too much of my valuable time to explain to you in a remedial manor.

People without money, or high credit risks are the money makers.. Why? Banks can charge them high interest, much higher than those with money. They charge the high interest in the hopes of achieving one of two things or both. One, they hope to collect all the debt, plus the high interest, which means they will make money on they debt. Two, they hope the high interest will force you to default. Then they can collect your debt over time, while seizing the assets secured, thus making even more money.

Banks don't print money. They borrow it at a lower interest rate from their customers and the fed, then resell it at a profit. You my friend astound me with your lack of understanding of the simple concept of reality.

Why? Because credit cards build credit history. Without them, you're going to have a hard time getting a loan when you need it. Good credit and bad credit get loans.. No credit does not.

I find it hard to believe you have any money at all the way you talk sometimes... Anyway, credit cards are not for "borrowing money", they are for conveniently and securely paying for things. I pay everything with a credit card... Absolutely everything. Then I have a complete record of every transaction. Every deduction, and of course, I make money off those purchases by using the card. The key is to pay the card off.. Don't do that, and they make money off you.

Banks are for storing money and borrowing money.
Credit cards are for paying for things with money you have; they are not for loans.

Once you grasp that concept, you'll be closer to understanding what I am talking about.

Talk to any financial adviser, or planner.. They will all tell you what I am about to tell you. If you have money, put it in Roth IRA's, and or Money Markets. If you want to buy something large, or start a business, do that with the banks money... You stand to make more money putting your own money to work for you, while you borrow money from the bank.

Why? While your money is making money off interest with very little if any or no tax liability, the money you borrow can be deducted at tax time to help again, mitigate tax liability.

I've seen some dumb posts in this thread, but the majority appear to be coming from you. My advice? Don't double post.. Take your time, sit back, take a deep breath and try to post your thoughts in once concise and complete post.

Going off half cocked, just because you do not like me, America, Americans, Christians, whatever, is doing nothing for your popularity here.

Also, if you do not know what you are talking about? I'd move on to a subject that is more up your alley. While your posts are comical at best, they are getting to be more and more pathetic, almost sad.

Do I really have to put you back on ignore again?

True, but they are only in hock so long as those whose debt they hold remain able to repay it... Again, if you owe the bank 10 grand, they own you. You owe them 1 mil, you own them...

In other words, there comes a time where the creditor has as much if not more to lose by calling the note than the debtor does. So long as the debtor keeps paying, the creditor remains liquid... If they do not, ie., the debt they carry is larger than even the creditor can handle, they both go down...

In cases of larger debt, both debtor and creditor need each other.

I never said it was a good position. You need to slow down and read the entire thread and each post. It's evident you are simply responding to others responses, not what I said...

"Her"? Again, another ignorant post...

Actually, I do. Running a business is a big part of what influences my opinions here on this subject.

What does charging $50/hr have to do with this conversation? I never said being in debt is good for business... Looks like another sheep following the herd here. Go back, re-read the thread, and read what I said before interjecting comments.

Egad.. where do these people come from?

Yes, Mia is dumb because he disagrees with tesla... I never said that borrowing money and being in debt is the key to becoming financially independent. You just did...

Please re-read my post and this thread... Just because you make it up, does not make it so. You my friend need some serious help if you are seeing purple dinosaurs...

What advice was that? I'm really surprised you've read anything outside of "See Dick Run".

The nice thing though about an internet forum, unlike mass media, is everything is documented and my posts, while misconstrued by ignorance, cannot be manipulated into anything other than what they really are... Unless a mod or admin modifies them, they are what they are, written in stone....

So far, I have seen three people quote me, not out of context, but by quoting things I never said.

Moral of the story here? Drugs are bad...

 

Allow me to simplify for the republicans out there.
Your money is worth less.

 

telsa if you read up on the great depression there was actually deflation at the first half or so of it

Prices rapidly declined due to no one having money or credit to buy anything, demand for everything drops because people are broke, that makes the prices on inventories drop

Which is happening to houses right now.

 

You clearly want the terrorists to win

 

"Inflationary Depression"? Where did you pick that one up? The internet? Out of all the years I've studied economics, I've never come across such a term. The correct term is "stagflation."
The Fed is not "printing" too much money. Greenspan should've kept a closer eye on the expasion of the late 90's. Nonetheless, it is obvious that monetary policy is not to blame.
Why do you think that we have a huge budget deficit? It's an issue of fiscal policy, something that the Fed doesn't control.

 

Umm, I have my own business, and I don't have any debt, so I appreciate the advice, but I think I will pass. Mia, me and a bunch of other people in this thread agree that your "metaphor" was the dumbest financial statement made so far. I don't care about metaphors. The dollar is being devalued, is that a metaphor?

I'm mad about my money being debased....you should be to...........

Well, I just made up a term that is the same as stagflation, but who cares about the name? I got the definition correct didn't I? You guys have no arguments, so you focus on things that are not that important. Stagflation, Inflationary Depression, who cares? There is a different name for it different, languages, so what is your point? You don't have a point....

If you would like to debate me, and this is the best you've got, you better do better. I think Bernie Sanders rips through Alan Greenspan and really spells out the situation with the U.S. economy in this video:http://forums.digitalpoint.com/showthread.php?t=485856

Why you and Mia continue to try to downplay the threat, have you guys got any gold and silver? Gold just went over 735 per ounce, and silver is up as well. You guys are losing. bogart, AGS, and lots of people in this forum see reality for it is. You guys can continue to live in fantasy land and trust Greenspan and Ben Bernanke all you want.

That is a lie. Ron Paul and other economists don't agree with you. Exactly where are your sources coming from? Bernie Sanders, who ripped Greenspan a new hole in the video above, sure doesn't agree with your assumption that the economy is great. Joseph Stigliz, Nobel Prize winning economists, also doesn't agree with you. Paul Craig Roberts, also an economists, doesn't agree with you........

 

it was pulled directly out of his ass, Pretty much like every other word he has written. Especially that "dept is good business" bullshit.

 

I worked at Wells Fargo bank for two years, and we rarely, if ever, gave loans to low income people. You clearly don't know what you're talking about. I remember turning people down all the time because their credit wasn't good enough.

Why on earth would a bank risk lending money to a person who can't pay it back? Is this statement a metaphor to? Your arguments become more and more strange........

Payday loan services exist precisely to tap into the market that most major banks won't deal with: people with bad credit, and who have low incomes. While the bank traditionally doesn't deal with these types of people, Payday loan services will. This is not to say that a large bank "never" gives someone with a bad credit a loan, but your assumption that the banks makes most of its money off these people is absolutely ridiculous.

If I had my own bank, there is no way in hell I would loan more money out to people with bad credit, and low incomes instead of people who have lots of money, or at lease moderate incomes with good credit. Mia, this isn't economics, its common sense..............would you loan money to a person who has a history of not paying it back?

As I sit here and read through posts Mia, I actually find them quite entertaining. I mean, I'm no economist or anything like that, and I don't know it all, but hardly anything you've told me about finance makes any sense with anything I've ever read, and it most certainly doesn't agree with the economists I've looked at.

ROFL!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

That's an appeal to authority. You can get two Nobel Prize winners in economics and they'll disagree on a lot of the economic issues.
Exactly what part of the monetary policy do you have a problem with?
Choose one or more from below, and we'll take it from there:
1) Adjustment of Discount rate
2) Open Market Transactions
3) Adjustment of Required Reserve Ratio

These are the things that the Fed has control over.

 

I don't want to go down this road with you, because I don't have a knowledge of these three terms. Unlike Mia, I won't try to argue about something I don't have a clue about, because I will look foolish.

What I do know is this, and lots of other people in this thread agree with me, along with many economists and government officials:

1. Inflation is an invisible tax. It robs you of your wealth over time, because the paper money assets you hold gradually lose their value, and you have to pay more for goods and services as they increase in price as a result of your paper money being devalued.

2. The Fed controls inflation, because they control the printing of the money, and determine how much money is in circulation.

3. Bogart has already stated with fact that there is approximately $710 billion dollars in circulation. This is way too much for a country of only 300 million people.

4. Our currency isn't backed by Gold or Silver. This means there is no limit to how much money the government can print. There is no where near $710 billion dollars worth of silver or gold in the world.

5. The dollar is being devalued against the Euro. This is the title of the thread.

6. Historically, too much inflation has destroyed economies. A good example of this is Argentina during the 1999 Argentine banking crisis. If the dollar continues to fall, I believe America will go through a similar that is discussed in this article:http://en.wikipedia.org/wiki/Argentine_economic_crisis_(1999-2002)

Middle Class families in Argentina, one of the richest countries in South America, had their wealth wiped out, and many ended up in poverty, and shantytowns were a common sight in the country.

Now, please explain to me why you disagree with any of the things I've posted above.