Is the US dollar the next bubble to burst?

[Pliny]

I see no valid economic reason for the strength of the US dollar on the world market. Economists talk of "fleeing to the safety of the US dollar". The Euro has hit hard times but is the US dollar safe?

[Guest American Woman]

I see no valid economic reason for the strength of the US dollar on the world market. Economists talk of "fleeing to the safety of the US dollar". The Euro has hit hard times but is the US dollar safe?

The US dollar certainly has more history than the Euro does; for that reason alone, I'd say it's "safer" than the Euro, which really has no history to back up it's strength. I would say that is a "valid economic reason" to support the US dollar on the world market. The Euro hit a high as the U.S. dollar hit a low, and that may be the only "strength" it has to date to back up it's "safety."

What currency do you think is "valid" and/or "safe?" And why?

[Oleg Bach]

If you have not notice there is a move afoot to buy up all the gold. "Bring us your broken and unwanted gold, we pay top price" - which they don't. This retraction of personal gold reserves took place just prior to the collapse in 1929..someone is smelting the stuff and stock piling it - and about to print more useless paper and plastic money...there is something terribly wrong going on as far as currency..and the fact that Obama is acting real tough on the bail out pay back is hypocritical - he knows that most of the money will never be recovered and put back into the public purse - We have just been robbed by the rich one more time - and we take it up the ass like compliant slaves.

[Pliny]

The US dollar certainly has more history than the Euro does; for that reason alone, I'd say it's "safer" than the Euro, which really has no history to back up it's strength. I would say that is a "valid economic reason" to support the US dollar on the world market. The Euro hit a high as the U.S. dollar hit a low, and that may be the only "strength" it has to date to back up it's "safety."

What currency do you think is "valid" and/or "safe?" And why?

The US dollar certainly has more history than the Euro. I think what gives the US currency it's strength is a confidence in the American people themselves and that is the only reason I could possibly think of to explain any "safety" perceived in it.

The European Union itself is shaky so I don't see it overtaking the US dollar ever but a North American currency may be in the works.

As far as a "valid" currency goes. A government fiat paper currency eventually becomes destroyed by the government itself through devaluation and over creation. A valid currency, in my view, needs to be commodity backed not government enforced.

[Sir Bandelot]

I see no valid economic reason for the strength of the US dollar on the world market. Economists talk of "fleeing to the safety of the US dollar". The Euro has hit hard times but is the US dollar safe?

Simple answer: Might makes Right. But explain more your premise that the strength of the US dollar stems from confidence in the people. Do you mean the debt-strapped, over-mortgaged, unemployed, newly homeless who have outsourced their childrens futures to India and China? You think maybe they all have a stockpile of gold in the basement, or what.

[Pliny]

If you have not notice there is a move afoot to buy up all the gold. "Bring us your broken and unwanted gold, we pay top price" - which they don't. This retraction of personal gold reserves took place just prior to the collapse in 1929..someone is smelting the stuff and stock piling it - and about to print more useless paper and plastic money...there is something terribly wrong going on as far as currency..and the fact that Obama is acting real tough on the bail out pay back is hypocritical - he knows that most of the money will never be recovered and put back into the public purse - We have just been robbed by the rich one more time - and we take it up the ass like compliant slaves.

I haven't seen anywhere that the retraction of personal gold reserves took placejust prior to the collapse in 1929. FDR in 1933 made it illegal for Americans to own gold privately and that law stood until the mid-seventies.

You so see some private interests buying up gold but I think that is just opportunism and a belief the gold price will reach even higher levels.

In my view, Obama demonstrates what I have come to realize is the socialist lack of any economic consideration in the concept of their policies and political direction.

Both Republicans and Democrats have to "Buy" their way into power and that is the raod to a progressively bigger government no matter if it is left or right. Favour and privilege once won will not be easily retracted.

I think the tea party movement is a grassroots movement that may reverse the trend but ideologues like Obama, Pelosi and Reid will force as much centralization of federal power through legislation as they can. Obama likes to say he isn't an ideologue, my jaw dropped when I heard him say that.

The rich aren't robbing anyone, Oleg. Robbery is illegal and if you have evidence of robbery then present it to the proper authorities. You have a bit of a conspiratorial bent to the power structure but there is no conspiracy. Everything is out in the open for you to view. The truth is unbeleivably dull so some think there must be a secret cabal or man behind the curtain pulling all the strings. And it even goes so far as believing alien reptilian races are behind it all. We aren't doing anything different today than we have been doing since our inception - just trying to get a leg up on things and generally, when the competition gets serious, we think someone is working against us. Really, you and I are not that important and the competition down here isn't as serious. Don't get me wrong, I am not naive enough to think there aren't people that will sell you down the river. We will all have run ins with those kinds of people in our lives. The biggest job is to recognize them and not wind up with a distaste for all of humanity once we have suffered some setbacks and been shipped down the river a few times. Once in awhile we run into people who restore our sense of perspective on the whole thing and we can have some faith in ourselves again. I do see a general unsettling in the population, a lack of trust and confidence in our leaders and sadly, the general populace. It is just a sign we are becoming less secure in ourselves. Terrorists are a threat but our own government's are portrayed as lying to us and wanting to lead us to some kind of Hitlerian or Communist totalitarian state.

I think we have to learn not to be dependent upon government but many are making demands for government to step into all aspects of our own and other people's lives to save them from themselves. Power must remain with the people in order to avoid Hitlerian and Stalinistic centralized power structures, which I believe most people in North America would like to avoid. Europe seems to be a lost cause.....and there I have made a point for the safety of the American dollar.

[eyeball]

If you have not notice there is a move afoot to buy up all the gold. "Bring us your broken and unwanted gold, we pay top price" - which they don't.

Notice they don't do this anymore either. "Give me your tired, your poor, your huddled masses yearning to breathe free" - now America goes to them.

[Pliny]

Simple answer: Might makes Right. But explain more your premise that the strength of the US dollar stems from confidence in the people. Do you mean the debt-strapped, over-mortgaged, unemployed, newly homeless who have outsourced their childrens futures to India and China? You think maybe they all have a stockpile of gold in the basement, or what.

Simply said they can still produce wealth through co-operation because they can put politics aside and have at least a modicum of power over their government, something long lost in Europe.

It is the direction of their government that has left them cash-strapped but they are no different than any other first world nation. We've all mortgaged our future. We did it when we bought our politicians to give us privilege and benefit.

[Sir Bandelot]

We did it when we bought our politicians to give us privilege and benefit.

WE? How many people voted for, or even just supported the idea of outsourcing and importing almost every product we now buy. I don't believe that "We" ever did. I think "they" (the politicians over which "We" have this "modicum" you claim) were bought out by big business interests who are far more powerful than the displaced ordinary citizens. Money moves around the globe for a reason, because it benefits somebody but not us.

But the fools who are in charge don't have a long term view, that would require someone who truly cares about the future of the country and its citizens. When someone wants to make a fast buck, they just grab the cash and run, tomorrow be damned. Well tomorrow does come, and will come. When the most stable safe currency will be the Yen.

[Pliny]

WE? How many people voted for, or even just supported the idea of outsourcing and importing almost every product we now buy. I don't believe that "We" ever did. I think "they" (the politicians over which "We" have this "modicum" you claim) were bought out by big business interests who are far more powerful than the displaced ordinary citizens. Money moves around the globe for a reason, because it benefits somebody but not us.

But the fools who are in charge don't have a long term view, that would require someone who truly cares about the future of the country and its citizens. When someone wants to make a fast buck, they just grab the cash and run, tomorrow be damned. Well tomorrow does come, and will come. When the most stable safe currency will be the Yen.

Yes - WE! You can try and distance yourself from any responsibility or blame someone else if you like but that only makes you more at the effect of what goes on around you. It is you who settles for the status quo and by denying any responsibility gives all the responsibility to the politicians. Unfortunately, we demand our politicians promise us things that come out of our pocket. Both the left and the right are guilty of demanding their own special favours and if one gets something then the other wants something too. What a child's game. All borne out of good intentions of course. If we are going to act like children that's how we will be treated - Incapable, irresponsible and ignorant.

Under such circumstance the State must provide. The nanny state will prevail, and will prevail until the economy buckles under it's strain, if it is allowed to come to that.

The yen will never be a stable, safe currency with the type of government they have.

[Sir Bandelot]

Yes - WE! You can try and distance yourself from any responsibility or blame someone else if you like but that only makes you more at the effect of what goes on around you. It is you who settles for the status quo and by denying any responsibility gives all the responsibility to the politicians.

Yeah ok, maybe I will make a trip to China and negotiate some business deals. It is me and everyoe else like me that can only do one thing, vote. And that may seem fine to you but remember I can only vote for what is presented to me.

Both the left and the right are guilty of demanding their own special favours and if one gets something then the other wants something too. What a child's game.

Exactly, hence the reason I and others like me can do little about the mess we are in.

All borne out of good intentions of course.

Do I detect a note of sarcasm here?

The yen will never be a stable, safe currency with the type of government they have.

Not if might makes right.

[Pliny]

Yeah ok, maybe I will make a trip to China and negotiate some business deals. It is me and everyoe else like me that can only do one thing, vote. And that may seem fine to you but remember I can only vote for what is presented to me.

I bet you voted for something your preferred party was offering? The other party was offering something you didn't particularly care about. How about begginthem to not offer any more they are already in our pockets for too much. The right one and the left one.

Exactly, hence the reason I and others like me can do little about the mess we are in.

You are doing all you can with just a vote? Well, do you have one hand tied behind your back?

Do I detect a note of sarcasm here?

I would say you had your sniffer on.

Not if might makes right.

Might is not always wrong it depends upon the purpose it is used for. If it is simply a matter of crushing opposition and being oppressive it will be, from an historic perspective, rather short-lived. Truth will prevail.

[Sir Bandelot]

I bet you voted for something your preferred party was offering? The other party was offering something you didn't particularly care about. How about begginthem to not offer any more they are already in our pockets for too much. The right one and the left one.

Not to derail your thread, but at the present time I do not vote, because I feel it's a waste of time. I despise the corruption. I try to be an honest person in everything I do and will not sign my name in support of the conceited liars.

[Michael Hardner]

Not to derail your thread, but at the present time I do not vote, because I feel it's a waste of time. I despise the corruption. I try to be an honest person in everything I do and will not sign my name in support of the conceited liars.

If you don't agree with the system, and you're conscientious then please work within it somehow - spoil your ballot or refuse it, or run yourself.

[eyeball]

If you don't agree with the system, and you're conscientious then please work within it somehow - spoil your ballot or refuse it, or run yourself.

Are we allowed to refuse our ballot in Federal elections yet? I looked around the Elections Canada site and couldn't find any mention of it.

[maple_leafs182]

Yes the dollar will come down.

What determines the value of the currency is the amount in circulation.

They are flooding the market with trillions of dollars, inflation is inevitable.

If it looses too much value nations will drop it as the world reserve currency because they would be loosing too much money holding on to the dollar. This will lead to hyperinflation, the market will be flooded with dollars that nobody wants.

Man, I hated paying $1.40/L for gas, what the hell is going to happen when it hits $3/L or more.

[M.Dancer]

Yes the dollar will come down.

What determines the value of the currency is the amount in circulation.

Wrong. it is the balance of buyers and sellers.

[Machjo]

The US dollar certainly has more history than the Euro does; for that reason alone, I'd say it's "safer" than the Euro, which really has no history to back up it's strength. I would say that is a "valid economic reason" to support the US dollar on the world market. The Euro hit a high as the U.S. dollar hit a low, and that may be the only "strength" it has to date to back up it's "safety."

What currency do you think is "valid" and/or "safe?" And why?

What has history got to do with it? You can have a thousand year old currency and ruin it in a month by printing at full throttle. Inversely, you could have a relatively new currency managed conservatively. Really, what does history got to do with it?

[bush_cheney2004]

What has history got to do with it? You can have a thousand year old currency and ruin it in a month by printing at full throttle. Inversely, you could have a relatively new currency managed conservatively. Really, what does history got to do with it?

I don't think "history" is intended in such a narrow context. Another way to answer the question is to ask why no other currency, new or old has displaced the US dollar since it's designation as anchor in the Bretton Woods System (and subsequent termination of gold convertibility). "History" has a lot to with why the US dollar was so designated and remains a safe haven (real or imagined), and it will take yet more "history" to displace the dollars standing.

[maple_leafs182]

What currency do you think is "valid" and/or "safe?" And why?

None, buy precious medals, gold and silver. They will shoot up when the dollar comes down.

This is why gold has been going up the passed few years, the dollar has been going down.

Wrong. it is the balance of buyers and sellers.

I guess it's a combination of both, supply and demand.

But the more you more you put into circulation the more you dilute the value, I'm not wrong.

It will take yet more "history" to displace the dollars standing.

True, but the printing press will be the demise of the dollar.

[bush_cheney2004]

...True, but the printing press will be the demise of the dollar.

Not true to date...dollar hegemony has existed all this time with the presses going on multiple shifts. It remains the world's most important reserve currency.

[maple_leafs182]

Not true to date...dollar hegemony has existed all this time with the presses going on multiple shifts. It remains the world's most important reserve currency.

Since the Federal Reserve came into play, the dollar has lost 95% of its value.

Inflation.

The more they put out, the less it will be worth.

Countries won't continue to hold dollars if the dollar keeps losing value, that would be stupid for them, they would lose too much money holding on to them.

http://dollardaze.org/blog/posts/00751/mb.png

If they continue to print this money to try and avoid a depression that is unavoidable at this point, the dollar will just continue to lose value. As of right now, it doesn't seem like they have any plans on shutting down the printing press.

This isn't good, hyperinflation can and by the looks of it will be a reality in America.

[bush_cheney2004]

Since the Federal Reserve came into play, the dollar has lost 95% of its value.

Inflation.

Completely irrelvant....it is the world's reserve currency for different reasons.

The more they put out, the less it will be worth.

Countries won't continue to hold dollars if the dollar keeps losing value, that would be stupid for them, they would lose too much money holding on to them.

75% of something is worth more than 100% of nothing. The US dollar is actually on a rebound against the euro right now....is that because somebody is printing too many euros? (Hint: No)

If they continue to print this money to try and avoid a depression that is unavoidable at this point, the dollar will just continue to lose value. As of right now, it doesn't seem like they have any plans on shutting down the printing press.

Nope...in fact, Obama will likely continue a weak dollar policy because the advantages outweigh the disadvantages with respect to debt and US exports.

This isn't good, hyperinflation can and by the looks of it will be a reality in America.

Sure...if you say so. Why do you care....because a rising loonie will hurt the Canadian economy much more.

[Oleg Bach]

Artifice or artifical power structures attempt to create wealth out of nothing. The whole system is against natural law - in time what is artifical will disapate. YOU CAN NOT CONTINUE TO MAKE SOMETHING OUT OF NOTHING FOR EVER. The so-called super rich and elite are poor managers of the system. It is time that we stop covering for them. REVOLUTION. Not the nasty kind but a kinder sort of mythical murder...IF - they can not handle the job let them all step down and appoint those that are qualified at this point in history. In other words retire and get the funk out of the way. Let the brilliant young blood save the world before the old blood instigates the gagerine.

[Oleg Bach]

Looks like the Federal Rerserve, which is misleading in it's title..seeing it is not really a pubic coffer but a huge private on - Is about to make some bold moves that will make the bailout stimulas stuff look civlized. You would think that the powers that be have either lost their minds or they are intentionally destroying the economic system wanting to replace it with something else.. It would be sweet if we could put these guys on welfare for a year or so to give them a sense of reality.