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Home >> World-issues >> Pearl Harbor without the war

12.11.2007, 12:17 quote

Anonymous

As you have noticed, the US dollar gets weaker and weaker every day. It has lost 50% of its value since the introduction of the Euro.

The USA used to be a great exporter..but now they only import goods from other countries.

US economy needs about 1,8 billion dollars of capital from abroad every day to keep up the current level of consumption.

The only reason why they had this consumption was, because people spent more money then they had...using credit cards.

The economy of the USA is extremely instable and the only reason why there has not been an economic crash yet, is because other countries keep on / kept on investing in US dollar.

China holds about 500 billion US dollars, primarily in government bonds....so even if they only sold half of their dollar reserves, the dollar would plummet immediately and be almost worthless.

So the USA depeneds on China and the Chinese government can do whatever they like to do with the USA .

Additionally the USA has problems because of the real-estate bubble - so property will loose in value a lot quite soon - less and less people will be able to afford to pay their mortgages - and if they do they spend more money on the mortgage then on renting (similiar to the UK and Spain).

Also the oil prices go up and the costs for cereal etc....there will be a big economic disaster in the USA soon....I predict!

There is almost no diffetence to 1941 when the Japanese attack was estimated as "unlikely" - although people pointed it out....nobody believed they could attack the USA from a distance of 8000 kilometers. In the end it happend - and while they were sleeping. US politicians are also "sleeping".

With all the anti-terror frenzy and war against Iraq, George W. Bush forgot the "real" politics. The USA urgently needs to rebuild its industrial basis...stop importing and start to export. The consumption of the government and the populaton needs to be throttled....the economic growth is only short-term. A smaller growth would definitely be better in the long-term.

 

12.11.2007, 12:26 quote

Anonymous

Hhhhhmmm I'm no economist and I don't pretend to understand much of this. But I was talking to a friend yesterday who reckons China just has to flood the world market with dollars and.......crash.
It sounds like you are most probably right what you say makes sense to me.
I spoke with my old dad last night - he's been retired from the UN since 1984 and has always been paid his pension in american dollars. (lives here in the uk). Once upon a time he had a good income but now each month he is poorer and poorer. It's very worrying.

 

12.11.2007, 12:39 quote

Anonymous

If you receive an US dollar income as a pensioner the best thing would be to retire in South America, the Virgin Islands or somewhere....

In South America things are a lot cheaper and you can live on 500 dollars per month..and you do not have to convert it to Euros/pounds.

In the past the US dollar could always be exchanged for gold...and the government had lots of gold in Fort Knox.

Since 1969, you can not exchange the US dollar to gold anymore as there was not enough gold to guarantuee the exchange.

So now, the US dollar only is a matter of trust in the government and you have no security that your dollar is worth anything anymore.

The value of the dollar is also determined by offer and demand. If there is 500 billion more dollars on the market, it would of course loose considerably....

p.s.: China does not own 500 billion US dollars but 1430 billion US dollars!!!

 

12.11.2007, 13:41 quote

Anonymous

Yeah you're right but back in the early 80's my dad just wanted to live near his family having spent 30 yrs in africa. He was very ill and got good medical care here. Now he's nearly 80 and just has an 86 yrs old sister and a 90 yrs old brother and me and my sister, so I guess for him family means more than money. He'd never be happy uprooting to south america all alone. And back when he retired here, it was a *good* idea at the time, the dollar was strong, medical care here was good, his family was here etc.

But away from my family side of things, I think anyone with half a brain cell needs to keep an eye on this current global 'situation'.

 

21.11.2007, 16:01 quote

Anonymous

War will always hurt the econmy, no matter who's in charge. The US only has its own trading policies to blame for this. Can't say I'm bothered much by it. It makes trips over to the US much cheaper. The EU was suppassing the US in most trading markets before 9/11 even happened so this isn't somethign thats entirly down to President Bush. Remember the Dollor was at and all time high during the Clinton administration, it was gonna to come crashing down eventually.

 
 
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