Well, first, I should have said "dollar that is weaker compared to other currencies," though I think you know that (just making sure).
The reason that we might want it is because it decreases imports (because they are now more expensive for us) and increases exports (because they are now cheaper for everybody else). It also means that these companies that have outsourced production to China and Mexico have a chunk taken out of their profits because their US dollars now buy them less in those countries, which just satisfies me on a personal level.
CIT tapped a 7 billion dollar credit line yesterday, and 17 major institutions have began tapping the feds short term credit line to help keep liquid. It sickens me to think how the fed will take toxic paper as security for these short loans.
Sometimes you need to let the chips fall where they may to get the system back to where it needs to be.
If you have to continue to prop it up with BS to keep it going, thats like borrowing from Peter to pay Paul.
I hate fractional banking, its only a matter of time where the US will be forced to restructure its economy.
What has happened to other fiat currency nations in the past? You allow enough manipulation with paper money and your system will start a wobble until it crashes.
__________________
"There are no problems only solutions."
What has happened to other fiat currency nations in the past? You allow enough manipulation with paper money and your system will start a wobble until it crashes.
EXACTLY!! Glad I'm not the only one who realizes this. Marlinspike, I understand your point and a weak dollar may help our trade imbalance in the short term, but the long term result is exactly what First300COwner said. It's just that we may be nearing the end of that "long term" right now.
EXACTLY!! Glad I'm not the only one who realizes this. Marlinspike, I understand your point and a weak dollar may help our trade imbalance in the short term, but the long term result is exactly what First300COwner said. It's just that we may be nearing the end of that "long term" right now.
It's possible, I'll admit, and I suppose it's ill-advised to take this kind of gamble, but I think the long term result is that in the face of currecy instability companies will be forced to return production to the US.
It'd be pretty easy to the value back up and cut inflation btw - just jacked up the interest rates, they're already low - but we're too afraid of collapsing the market of people who pay for stuff with money they don't have.
.... but we're too afraid of collapsing the market of people who pay for stuff with money they don't have.
Well I agree with you on that; I have no sympathy whatsoever for those people either, by the way.
What about people who have been responsible, worked hard, saved and invested for the future - - and are now seeing the nest egg they have built being eroded away daily by the ravages of inflation? Shouldn't we be more concerned with them than the morons who signed adjustable rate mortgages that they couldn't afford and the irresponsible lenders who made loans to un-creditworthy borrowers?
All I know about this is check to see what a loaf of bread or any baked goods are costing you this week. You might just be surprised.
Bernie
At the place I buy my bread, it was actually cheaper than normal - 2 loafs of garlic bread for $3 instead of $4 (and safeway charges damn near $4 for the exact same bread)..
Safeway is for lazy people, costco is for gullible people *RUNS*
Bread prices are driven up by the demand for corn/wheat in ethanol production, a lot of bread is made here of well, things that have their origins here, so it would seem that their prices would remain relevant with the value of our dollar.
AutoForums.com is the premier network of enthusiast-owned
enthusiast-operated automotive communities.
We operate more than 100 automotive forums where our users consult peers for shopping information and advice, and share
experiences and opinions as a community.
Linear Mode
