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Many here are having a tough time making ends meet inspite
of extra income and severe cost cutting measures. What folk's
might not understand it that the dollar really doesn't buy what
it used to even one year ago.

This is just one of the forces eroding the dollars buying power.

This story deals with the devalued dollar buying power..........

Sinking Currency, Sinking Country
Pat Buchanan Fri Nov 2, 3:00 AM ET

The euro, worth 83 cents in the early George W. Bush years, is at $1.45.

The British pound is back up over $2, the highest level since the Carter era. The Canadian dollar, which used to be worth 65 cents, is worth more than the U.S. dollar for the first time in half a century.

Oil is over $90 a barrel. Gold, down to $260 an ounce not so long ago, has hit $800.

Have gold, silver, oil, the euro, the pound and the Canadian dollar all suddenly soared in value in just a few years?

Nope. The dollar has plummeted in value, more so in Bush's term than during any comparable period of U.S. history. Indeed, Bush is presiding over a worldwide abandonment of the American dollar.

Is it all Bush's fault? Nope.

The dollar is plunging because America has been living beyond her means, borrowing $2 billion a day from foreign nations to maintain her standard of living and to sustain the American Imperium.

The prime suspect in the death of the dollar is the massive trade deficits America has run up, some $5 trillion in total since the passage of NAFTA and the creation of the World Trade Organization in 1994.

In 2006, that U.S. trade deficit hit $764 billion. The current account deficit, which includes the trade deficit, plus the net outflow of interest, dividends, capital gains and foreign aid, hit $857 billion, 6.5 percent of GDP. As some of us have been writing for years, such deficits are unsustainable and must lead to a decline of the dollar.

A sinking dollar means a poorer nation, and a sinking currency has historically been the mark of a sinking country. And a superpower with a sinking currency is a contradiction in terms.

What does this mean for America and Americans?

As nations realize that the dollars they are being paid for their products cannot buy in the world markets what they once did, they will demand more dollars for those goods. This will mean rising prices for the imports on which America has become more dependent than we have been since before the Civil War.

U.S. tourists traveling to the countries whence their ancestors came will find that the money they saved up does not go as far as they thought.

U.S. soldiers stationed overseas will find the cost of rent, gasoline, food, clothing and dining out takes larger and larger bites out of their paychecks. The people those U.S. soldiers defend will be demanding more and more of their money.

U.S. diplomats stationed overseas, students and businessmen are already facing tougher times.

U.S. foreign aid does not go as far as it did. And there is an element of comedy in seeing the United States going to Beijing to borrow dollars, thus putting our children deeper in debt, to send still more foreign aid to African despots who routinely vote the Chinese line at the United Nations.

The Chinese, whose currency is tied to the dollar, and Japan will continue, as long as they can, to keep their currencies low against the dollar. For the Asians think long term, and their goals are strategic.

China — growing at 10 percent a year for two decades and now growing at close to 12 percent — is willing to take losses in the value of the dollars it holds to keep the U.S. technology, factories and jobs pouring in, as their exports capture America's markets from U.S. producers.

The Japanese will take some loss in the value of their dollar hoard to take down Chrysler, Ford and GM, and capture the U.S. auto market as they captured our TV, camera and computer chip markets.

Asians understand that what is important is not who consumes the apples, but who owns the orchard.

Other nations that have kept cash reserves in U.S. Treasury bonds and T-bills are watching the value of these assets sink. Not fools, they will begin, as many already have, to divest and diversify, taking in fewer dollars and more euros and yen. As more nations abandon the dollar, its decline will continue.

The oil-producing and exporting nations, with trade surpluses, like China, have also begun to take the stash of dollars they have and stuff them into sovereign wealth funds, and use these immense and growing funds to buy up real assets in the United States — investment banks and American companies.

Nor is there any end in sight to the sinking of the dollar. For, as foreigners demand more dollars for the oil and goods they sell us, the trade deficit will not fall. And as the U.S. government prints more and more dollars to cover the budget deficits that stretch out — with the coming retirement of the baby boomers — all the way to the horizon, the value of the dollar will fall. And as Ben Bernanke at the Fed tries to keep interest rates low, to keep the U.S. economy from sputtering out in the credit crunch, the value of the dollar will fall.

The chickens of free trade are coming home to roost.


:coffee:
 

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The post you just made is a fundamentalist christian rant and IMHO has no place on here. I don't really care what you believe, but I resent the fact that I clicked on this thread and the cr** was on here.
 

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The post you just made is a fundamentalist christian rant and IMHO has no place on here. I don't really care what you believe, but I resent the fact that I clicked on this thread and the cr** was on here.
Huh? I didn't see God mentioned anywhere in the post. I'm confused.
 

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I don't see how it's a Fun Christian rant either...
 

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Fundamentalist Christian rant? Seemed like simple economics to me. But the fact remains that the President in office is where the bucks stops, so he gets the blame. His policies, and those of his father and (dare I say) the Clinton administration on international trade has allowed this to happen. We are selling our soul to China and India. The powerful are getting richer, but it's killing us.

This will all change. It's happened before, and it will happen again. It's called a recession...although this one is damned near a depression...and it's an economic cycle.

No doubt, the policies of this last administration set the momentum of the downhill spiral in motion, but the stage was set long before Dubyah took office.
 

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The post you just made is a fundamentalist christian rant and IMHO has no place on here. I don't really care what you believe, but I resent the fact that I clicked on this thread and the cr** was on here.
Can you not just click out and go on to another posting? Some may find it interesting and informative. Take what you can use, and discard anything else. I think there is always something for everyone here at FV.
 

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I thought the article was interesting. The dollar has dropped in value in comparsion to the euro. Personally I feel the US imports too many goods (safety issues this year w/pet food & toys) & sending too many jobs overseas (how many times do you get India when you call customer service).

Unsure of the exact cause of all this, maybe its just a business/economic cycle. Seems there were many errors made by more than just one in power. Time for someone to make a few good decisions to get the US back on track. What those decisions should be... I'm not sure, but Washington needs a reality check.
 

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If you don't like what was posted (which I fail to see how it is a fund. Christian rant) then don't click on the debates forum.

I personally enjoyed the article.
 

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I definately feel the weakening dollar since I live in England. When we first arrived 3 years ago, $1.70 bought one pound sterling. Now it cost me about $2.05 to buy one pound sterling. Then I'll be feeling the weakened dollar in Germany too. I just wanted to add that for sterling, it usually goes a little above $2 right before Christmas each year.

For servicemembers, we do get a little stipend to help cover extra costs, but it's piddly.

I know a lot of Brits that regularly go to the U.S. on holiday because it's so cheap to them. Even going to New York City just to do Christmas shopping!

I don't really follow politics or government, so I'm not sure why it's happening. Just wanted to share how the weakening dollar affects me personally.
 

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I thought the article interesting. It's refreshing to read an article that doesn't blame Bush for all our nation's problems.
The prime suspect in the death of the dollar is the massive trade deficits America has run up, some $5 trillion in total since the passage of NAFTA and the creation of the World Trade Organization in 1994.
Anyone want to take a guess as to who was behind those two lovely pieces of work?
 

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I think it's interesting too and the dollar has dropped in value and it's important to consider the reasons the economy is the way it is.
 

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Anyone want to take a guess as to who was behind those two lovely pieces of work?
NAFTA was in the works for years before it was enacted. Clinton wasn't responsible for it. It was enacted during his presidency, but who was controlling congress? Yep, the other side.

Nothing that big is done without the cooperation of both parties.
 

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Great informative article which shows the trend of what IS, like it or not happening with our dollar, pricing, as well as our nation!!! Don't get me wrong, I do love our Nation, however it is time for a revamp of sorts in the economic department!!Katy
 

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It's quite an omission that this article does not mention the TRILLIONS of dollars that have been borrowed to sustain wars in Iraq and Afganistan. When the government goes to the private sector to borrow, that money is no longer available for home mortgages, business loans etc. And look at the debt our children will be saddled with! No wonder this administration vetoed extending child health benefits. I do feel our country is slipping. We all feel the pinch with gas prices, health care, rising food costs etc. But the money is there. It's just misallocated.
 

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Interesting article...thanks for sharing. Sad what the dollar value has dwindled to...hopefully we'll recover from this recession as the country recovered from the Great Depression back in the '30's.
 

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Interesting read. I am no fan of Pat Buchanan, but he has written what my collegues and family have been discussing for the past year. He is correct in that foreign governments and foreign individuals are buying up American real estate like crazy, and buying controlling shares in US companies. There is no one person, one president, or one group that is responsible for all of this -- the people with power and money have been focused on how to make more for themselves and have been doing so at our expense.
 
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