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#532 - 09/21/07 11:00 AM $20.00 bread, and $10.00 oranges?
MCSA TEK Offline
pledge


Registered: 09/13/07
Posts: 97
Loc: Orlando Fl USA
The US Dollar was valuable because it was used as the main medium for buying and selling oil. Thats not the case anymore as more and more countries trade using Euros. Now the Dollar is becoming worthless at an alarming rate. Unless this stops, you could need over a thousand dollars to buy basic groceries.

Story

Snippet

There is this joke circulating in financial circles that the once “almighty US dollar,” is fast turning into the “new American peso.” Since 2001 the dollar has lost more than half its value against the euro. It now costs nearly $1.40 to buy one euro. And it isn’t just the euro that seems to be growing stronger against the US dollar. It has declined against many other major world currencies, and even including minor ones like our peso, reflecting the dollar’s loss of purchasing power.

As the Los Angeles Times reported, “in much of the world — from Brazil to Poland to Thailand — one dollar buys less than it did a year ago, and far less than it did four years ago. On Friday, the US currency hit a 30-year low against its Canadian peer.”

There isn’t a single explanation for why currencies rise and fall, the LA Times explains, but many experts believe that the sliding dollar is largely a function of the nation’s borrowing binge of the last two decades. That has left the US with a yawning trade deficit and the fact that it is deep in debt to foreigners.

Alan Greenspan, the former chairman of the US Federal Reserve, blames President George W. Bush for America’s current economic problems. Greenspan says Bush pays too little attention to financial discipline. In a book to be published this week, In The Age of Turbulence: Adventures in a New World, Mr. Greenspan says Mr. Bush ignored his advice to veto “out-of-control” bills that sent the US deeper into deficit.

In theory, a currency is supposed to reflect to some extent, the underlying health of the economy that stands behind it. “The basic thing is, we have been living beyond our means,” Ted Truman, a senior fellow at the Peterson Institute for International Economics in Washington told the LA Times.
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#567 - 09/22/07 08:54 PM Re: $20.00 bread, and $10.00 oranges? [Re: MCSA TEK]
97and107 Offline
member


Registered: 09/04/07
Posts: 267
Loc: New Mexico
This is a little extreme sounding, MCSA, I think we have little to worry about with the dollar, since we are, after all, in the middle of a huge war in Iraq. Do you seriously think Bush wants to drive the U.S. into the ground? He's a well-rehearsed idiot, but he has advisors, and they know what they are doing. I know that's not the popular opinion, but it is a good guess. Then again, a decadent civilization can only decline, it is inevitable...

and by Satan we are decadent...

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#570 - 09/22/07 10:16 PM Re: $20.00 bread, and $10.00 oranges? [Re: 97and107]
MCSA TEK Offline
pledge


Registered: 09/13/07
Posts: 97
Loc: Orlando Fl USA
These aren't my articles or opinions.

These articles are written by economists, investors, and others in the financial sector. Even Greenspan is warning of massive losses in the markets.

http://www.boston.com/business/globe/articles/2007/03/16/greenspan_sees_trouble_spreading/

http://www.bloggingstocks.com/2007/09/21/greenspan-expects-deep-trouble-fo-housing/

What benefit do you get from ignoring the danger signs? If you prepare and nothing happens, your still ahead.

Chris
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#583 - 09/23/07 12:56 AM Re: $20.00 bread, and $10.00 oranges? [Re: MCSA TEK]
97and107 Offline
member


Registered: 09/04/07
Posts: 267
Loc: New Mexico
Alright I'll buy it. So how do you think we are supposed to prepare MCSA? Move to Japan? Sell our stocks? I hope you're not going to tell me to stockpile food. If it gets to that I may as well start raiding supermarkets with the other rampaging mobs...
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#592 - 09/23/07 01:07 PM Re: $20.00 bread, and $10.00 oranges? [Re: MCSA TEK]
Asmedious Moderator Offline
Moderator
senior member


Registered: 09/02/07
Posts: 1725
Loc: New York
This isn’t news to me. I don’t even have to read articles, or hear the opinions of Economists.

All I have to do, is go grocery shopping. When I try to watch what I buy, so as to not over spend, on average, my bill at the store comes to about $140.00. That’s for only ONE person, and a cat. The groceries last about ten days, before I have to go shopping again.
Ten years ago, the same things would cost me maybe half that amount.

If I don’t care how much it costs, and I just buy what ever I fancy, the bill goes way over $200.00.

It’s a good thing, that I learned my lesson years ago, about how bad it can be, to buy things on credit, and to live beyond ones means. I find that a “minimalist” life style is much more satisfying.
Going off topic here a bit, I know.
Buy anyway, it’s a good feeling that when one cashes a paycheck, there aren’t any credit card bills waiting to eat it all away.

I really don’t know how people with big families, or even small ones get by these days.

According to national figures I make about what the median income for my state is. I live in one of the least expensive places in the country, yet, it’s always a struggle financially; and as I stated earlier, I am only responsible for myself. One of the main reasons is, that although my paycheck may look good on paper, for the area that I live in, I only get maybe half of it. The rest goes to deductions, taxes, and all sorts of other things. Every time I turn around, some entity has it’s paws in my pockets, demanding, begging, or claiming some kind of right to my funds.

I see people bust their ass working two jobs, and they cannot get ahead.

So one does not have to spend hours researching the economy, to figure out how bad a shape ours is in.

Usually, I try to stay away from world and even U.S politics, because I get very frustrated about how little power we truly have over how our government abuses it’s middle class, and how they constantly seem to be looking out for big corporations, people in foreign lands, and expect us, the average chump to finance their idiocy, while we struggle daily just to live slightly above the poverty level.
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#633 - 09/25/07 11:42 AM Re: $20.00 bread, and $10.00 oranges? [Re: Asmedious]
MCSA TEK Offline
pledge


Registered: 09/13/07
Posts: 97
Loc: Orlando Fl USA
Instead of adding another tedious thread, Ill place this here. After all, its along the same lines.

This is a fantastic read. For those who truly wants to know whats going on.

SECOND GREAT DEPRESSION

LINK


SNIPPET


"Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920's, and the extensive stock market speculation that took place during the latter part that same decade".

The same factors are at work today except that the speculation is in real estate rather than stocks. Just as in the 1920’s the equity bubble was not created by wages keeping pace with productivity (the healthy formula for growth) but by the expansion of personal debt. Also, one could buy stocks without the money to purchase them, just as one can buy a $600,000 or $700,000 house today with zero-down and no monthly payment on the principle for years to come. The current account deficit ($800 billion) could also weigh heavily in any economic shake-up that may be forthcoming. Bob Chapman of The International Forecaster made this shocking calculation about America’s out-of-control trade deficit:

"US debt was up 10.1% to $4.085 trillion and accounts for 58.8% of all the credit issued globally last year. That means the US expanded credit at a much faster rate than the economy grew. This was borrowing to maintain a higher standard of living and attempt to pay for it tomorrow."

Think about that; the US sucked up nearly 60% of ALL GLOBAL CREDIT in one year alone. That is truly astonishing.

END



Chris
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