F**K Me! How many of you Yanks knew this?

Discussion in 'Economy' started by Dr Grump, Oct 6, 2009.

  1. Dr Grump
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    Dr Grump Gold Member

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  2. Si modo
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    Si modo Diamond Member

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    Saddam Hussein was already moving away from the USD before the invasion and that certainly was a consideration.

    We have the inaction of the UN in Darfur while China rapes the area for oil. Then we have the fuck-ups of regulations leading to more fuck-ups in the bond markets with few regulations combined with wasteful spending to save industries with sucking chest wounds, it all comes as more nails for the coffin of the USD in international markets.

    IMHO.
     
  3. jillian
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    jillian Princess Supporting Member

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    i'm really ignorant about some of these issues. But there was talk that one of the reasons that saddam was deposed was because he was starting a move to dump the dollar as the currency of oil in favor of the euro.

    and while i understand there may be certain benefits to the devaluation of the dollar, i'm thinking there are huge potential downsides.
     
  4. JakeStarkey
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    JakeStarkey Diamond Member Supporting Member

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    If the international currency for oil is not the devalued dollar but in inflated euros, guess who is going to pay more, a lot more, for gasoline, Jillian? Yep, you, me, and every last American citizen.
     
  5. jillian
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    that was kind of what i was thinking.
     
  6. Annie
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    Annie Diamond Member

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    Seriously, knowing this will keep the US from continuing dominance, it is deserved. US no longer is a leader. In hock to beyond eyeballs. Started with Bush, escalated steroid like with Obama. It's time for US to be second rate country, letting others lead.
     
  7. Si modo
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    Si modo Diamond Member

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    IMO, a significant portion of the motivation for the invasion of Iraq was to prevent the USD from losing its dominance. And, it was a good idea with respect to the USD to prevent that. Sadly, Rumsfeld messed up, we spent more than we needed on that war because of that, then the homefront was mismanaged. And, now, we have even more mismanagement. I am not surprised and the sad thing is that subsequent mismanagement and inaction elsewhere has ensured that one of those (speculated) motivations for the invasion was in vain, IMHO.
     
  8. Dr Grump
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    Dr Grump Gold Member

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    Jake/Jillian

    However, it will allow you to pay off your debt quicker and increase manufacturing due to more exports. People outside of the US will buy its products if the price is right. If I was asked to pay $50 for a Chinese-made item or $50 for the exact same item but manufactured in the US, I'd take the US item due to quality issues.
     
  9. jillian
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    jillian Princess Supporting Member

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    That's fine in terms of overall economic health. But if people can't afford to pay for gas or pay their oil bills, that could be a mess. Also, if the cost of energy increases at that level, then the cost of goods would increase proportionately, no?
     
  10. Dr Grump
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    Dr Grump Gold Member

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    There's increases and then there's increases. Nuclear power I say!
     
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