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 RandalFlagg
Stranger
Registered: 06/15/02
Posts: 15,608
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 What are your opinions of the U.S. dollar's decline? 
#3910284 - 03/13/05 01:43 AM (19 years, 1 month ago) |
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I think the Bush Administration is trying to cause inflation(the drop of the value of our money). An easy way to cause inflation is to weaken the faith in the currency. I think the Bush administration likes big deficits because they do this.
There are two reasons why I think the Bush administration is trying to cause inflation:
The first is to even out our trade imbalance(we are importing more than we export). By making our money worth less, we make foreign stuff more expensive. By making foreign stuff more expensive, we are more likely to import less and rely more on American manufacturers(which will create more American jobs). Unfortunately, this strategy has a big drawback; China has their currency pegged to the American dollar.
The second reason is that by causing inflation and increasing the money supply, we make our debt worth less. It is a strange and novel way of cutting the federal debt. This does have side effects though, such as personal savings being worth less.
Does anybody have any more theories or guesses?
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Psychoactive1984
PositiveCynicist
Registered: 02/06/05
Posts: 3,546
Loc: California, Monterey Coun...
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Re: What are your opinions of the U.S. dollar's decline? [Re: RandalFlagg]
#3910297 - 03/13/05 01:55 AM (19 years, 1 month ago) |
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Just reading about this actually, here's an article.
http://www.circuitree.com/CDA/ArticleInformation/features/BNP__Features__Item/0,2133,102636,00.html
Edit:
All true, but afaik those in charge don't seem to give a rats ass about the little guy 
Remember... Oil is thicker then blood (to those who seek it)
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"Their is one overriding question that concerns us all: How can we get out of the fatal groove we are in, the one that is leading towards the brink?" Albert Szent-Gyorgyi
"We may not be capable of eradicating the corruption of reason, but we must nevertheless counter it at every instance and with every means." Dan Agin
"Politics is the best religion and politicians are the worst followers."
-It's ok to trip as long as you don't fall.
-Substance over Style.
-Common sense is uncommon.
Edited by Psychoactive1984 (03/13/05 02:17 AM)
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RandalFlagg
Stranger
Registered: 06/15/02
Posts: 15,608
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Re: What are your opinions of the U.S. dollar's decline? [Re: Psychoactive1984]
#3910317 - 03/13/05 02:08 AM (19 years, 1 month ago) |
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Your link isn't working.
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Psychoactive1984
PositiveCynicist
Registered: 02/06/05
Posts: 3,546
Loc: California, Monterey Coun...
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Re: What are your opinions of the U.S. dollar's decline? [Re: RandalFlagg]
#3910336 - 03/13/05 02:17 AM (19 years, 1 month ago) |
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Fixed.
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"Their is one overriding question that concerns us all: How can we get out of the fatal groove we are in, the one that is leading towards the brink?" Albert Szent-Gyorgyi
"We may not be capable of eradicating the corruption of reason, but we must nevertheless counter it at every instance and with every means." Dan Agin
"Politics is the best religion and politicians are the worst followers."
-It's ok to trip as long as you don't fall.
-Substance over Style.
-Common sense is uncommon.
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Annapurna1
liberal pussy
 
Registered: 05/21/02
Posts: 5,646
Loc: innsmouth..MA
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Re: What are your opinions of the U.S. dollar's decline? [Re: RandalFlagg]
#3911570 - 03/13/05 01:27 PM (19 years, 1 month ago) |
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i wouldnt go so far as to say that bush is trying to push inflation..and IMNSHO..he might be trying to do the opposite...either way..if the dollar goes low enough for the feces to reach the turbines..the GOP will spin the crisis to their advantage..as such securing a landslide victory in the next election..and paving the way for an even more radical policy...
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"anchor blocks counteract the process of pontiprobation..while omalean globes regulize the pressure"...
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Noetical
Flip Horrorshow
Registered: 11/28/04
Posts: 9,230
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Re: What are your opinions of the U.S. dollar's decline? [Re: Annapurna1]
#3913976 - 03/13/05 10:29 PM (19 years, 1 month ago) |
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You're thinking way to hard.
Korea sad they were going to diversify their reserve holdings (which are like 80% USD).
Translation: We are going to sell several billion US dollars
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 DoctorJ
Registered: 06/30/03
Posts: 8,846
Loc: space
Last seen: 1 year, 5 months
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Re: What are your opinions of the U.S. dollar's decline? [Re: RandalFlagg]
#3914031 - 03/13/05 10:41 PM (19 years, 1 month ago) |
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once on fox news I saw this blurb about how deflation was causing the price of a lot of things (like consumer electronics) to go way down relative to the pay scale.
Then Fox News tried to say that this was a bad thing...  Jesus, talk about doublethink. Its very clear whose interests Fox is protecting
but really I think the whole concept of money is about to undergo a radical change in the coming decades.
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Saladin
Follower of theTruth
Registered: 06/30/04
Posts: 68
Last seen: 18 years, 2 months
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Re: What are your opinions of the U.S. dollar's decline? [Re: DoctorJ]
#3914041 - 03/13/05 10:44 PM (19 years, 1 month ago) |
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Nobody wants the US dollar because they know the US is practically gone as a super power.
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Allahu Akbar
Free Hasan Akbar!
Viva La France!
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Silversoul
Rhizome
Registered: 01/01/05
Posts: 23,576
Loc: The Barricades
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Re: What are your opinions of the U.S. dollar's decline? [Re: DoctorJ]
#3914156 - 03/13/05 11:07 PM (19 years, 1 month ago) |
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Quote:
DoctorJ said:
once on fox news I saw this blurb about how deflation was causing the price of a lot of things (like consumer electronics) to go way down relative to the pay scale.
Then Fox News tried to say that this was a bad thing... Jesus, talk about doublethink. Its very clear whose interests Fox is protecting
It's not as ridiculous as you'd think. Deflation reduces profits, which is bad for business, and increases unemployment. Both inflation and deflation are bad news if there's too much of either.
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RandalFlagg
Stranger
Registered: 06/15/02
Posts: 15,608
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Re: What are your opinions of the U.S. dollar's decline? [Re: Silversoul]
#3914170 - 03/13/05 11:09 PM (19 years, 1 month ago) |
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Hi Paradigm,
This is Clay Aiken. I heard that you've been talking shit on me. You wanna fight?
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Silversoul
Rhizome
Registered: 01/01/05
Posts: 23,576
Loc: The Barricades
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Re: What are your opinions of the U.S. dollar's decline? [Re: RandalFlagg]
#3914195 - 03/13/05 11:14 PM (19 years, 1 month ago) |
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Let's go, biotch! 
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DoctorJ
Registered: 06/30/03
Posts: 8,846
Loc: space
Last seen: 1 year, 5 months
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Re: What are your opinions of the U.S. dollar's decline? [Re: Silversoul]
#3915512 - 03/14/05 08:09 AM (19 years, 1 month ago) |
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Quote:
Paradigm said:
Quote:
DoctorJ said:
once on fox news I saw this blurb about how deflation was causing the price of a lot of things (like consumer electronics) to go way down relative to the pay scale.
Then Fox News tried to say that this was a bad thing... Jesus, talk about doublethink. Its very clear whose interests Fox is protecting
It's not as ridiculous as you'd think. Deflation reduces profits, which is bad for business, and increases unemployment. Both inflation and deflation are bad news if there's too much of either.
well, yeah, of course I understand that. But there's been runaway inflation for years and years, and the second that there is a miniscule reversal in this trend, Fox News calls it 'bad'...  I'm tellin you, those people are evil.
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Phred
Fred's son
Registered: 10/18/00
Posts: 12,949
Loc: Dominican Republic
Last seen: 9 years, 3 months
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Re: What are your opinions of the U.S. dollar's decline? [Re: DoctorJ]
#3915668 - 03/14/05 09:48 AM (19 years, 1 month ago) |
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"Runaway" inflation? Good grief.
You young whippersnappers would never have made it in the Jimmy Carter years with gas prices around $3.00 a gallon (in terms of 2005 dollars) and inflation in high double digits. Hell, for a while the best mortgage rates you could find were near 18%.
DoctorJ, why don't you tell us the last year inflation in the US was over 3% annually?
Phred
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infidelGOD
illusion
Registered: 04/18/02
Posts: 3,040
Loc: there
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Re: What are your opinions of the U.S. dollar's decline? [Re: Phred]
#3915834 - 03/14/05 10:48 AM (19 years, 1 month ago) |
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dude that's ridiculous. you don't adjust for inflation to prove that there is no inflation now: "it was worse back then. gas was $3.00"
think about it. how much was the $3 worth back then? how many gallons of gas could you get? 5 gallons or more? the fact that you had to adjust for 30 years of inflation proves doctorj's point.
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infidelGOD
illusion
Registered: 04/18/02
Posts: 3,040
Loc: there
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Re: What are your opinions of the U.S. dollar's decline? [Re: infidelGOD]
#3915943 - 03/14/05 11:11 AM (19 years, 1 month ago) |
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actually when he said "years and years" he was probably referring to the last few decades, including the energy crisis.
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Phred
Fred's son
Registered: 10/18/00
Posts: 12,949
Loc: Dominican Republic
Last seen: 9 years, 3 months
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Re: What are your opinions of the U.S. dollar's decline? [Re: infidelGOD]
#3916276 - 03/14/05 12:29 PM (19 years, 1 month ago) |
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Dude, the gas price was just an indicator of how bad the cost of living was in those days.
The fact remains that in the US the inflation rate has been under 3% annually since Bush became pres. In fairness to Clinton, it was under 3% for every year of his reign as well except 2000.
Anyone who thinks inflation under 3% annually is "runaway" has a pretty extreme view of what "runaway" is.
Phred
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infidelGOD
illusion
Registered: 04/18/02
Posts: 3,040
Loc: there
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Re: What are your opinions of the U.S. dollar's decline? [Re: Phred]
#3916438 - 03/14/05 01:14 PM (19 years, 1 month ago) |
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I don't think he was just referring to the bush or clinton years.
and besides, those numbers don't mean jack. there is always inflation. sometimes there's hidden inflation when the government overspends. its not reflected in the numbers, but the effect is the same.
also if you look at just cost-of-living items, like housing, energy prices, etc. the figure would be higher. globalization has put tremendous downward price pressures on many consumer goods but these are moslty luxury items like electronics. some would say inflation has been kept artificially low.
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infidelGOD
illusion
Registered: 04/18/02
Posts: 3,040
Loc: there
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Re: What are your opinions of the U.S. dollar's decline? [Re: RandalFlagg]
#3916448 - 03/14/05 01:17 PM (19 years, 1 month ago) |
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Quote:
The second reason is that by causing inflation and increasing the money supply, we make our debt worth less.
would that really work, or would we just end up paying more in interest?
I wonder if the interest on the debt is tied to inflation.
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Noetical
Flip Horrorshow
Registered: 11/28/04
Posts: 9,230
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Re: What are your opinions of the U.S. dollar's decline? [Re: infidelGOD]
#3916649 - 03/14/05 02:26 PM (19 years, 1 month ago) |
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Nominal Interest Rates = Real Interest Rate + Rate of Inflation
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Noetical
Flip Horrorshow
Registered: 11/28/04
Posts: 9,230
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 Re: What are your opinions of the U.S. dollar's decline? [Re: Noetical]
#3916686 - 03/14/05 02:34 PM (19 years, 1 month ago) |
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Thats called the Fisher effect;
And inflation isn't being caused to bring down the debt, thats just silly.
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