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  1. #1
    Atomic Punk
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    12.11.17 @ 04:37 PM
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    Sinking Currency, Sinking Country

    by Patrick Buchanan

    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.
    "Watch what people are cynical about, and one can often discover what they lack.” -- Gen. George S. Patton

  2. #2
    Eruption Kevy5150's Avatar
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    07.12.08 @ 04:41 PM
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    It was bound to happen. Depression here we come...
    Respects.

  3. #3
    Baluchitherium loveevhsince79's Avatar
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    10.23.15 @ 04:49 PM
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    I don't know about depression but we are headed for a big time recession.

  4. #4
    Forum Frontman It's Mike's Avatar
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    12.11.17 @ 04:15 PM
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    and it doesn't look like it's gonna get better soon. The only happy people I know about this are the border cities who are seeing thousands of Canadians heading down to shop. It look hours to cross back into Canada after the Bills game yesterday. The Canadian retail sector is getting a shakeup as people are expecting dramatic price drops on everything.

  5. #5
    Baluchitherium loveevhsince79's Avatar
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    10.23.15 @ 04:49 PM
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    Quote Originally Posted by voivod View Post
    by Patrick Buchanan

    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.
    This little portion really gets me to thinking. Why are we borrowing money to give away? Not that I don't want to help needy nations but you help when you have help to give.

  6. #6
    Forum Frontman It's Mike's Avatar
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    12.11.17 @ 04:15 PM
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    Quote Originally Posted by loveevhsince79 View Post
    This little portion really gets me to thinking. Why are we borrowing money to give away? Not that I don't want to help needy nations but you help when you have help to give.
    the greatest issue with governments all over the world is this. Government should never borrow to maintain what they have, only to build for the future. This is the same problem regular people have. U should borrow to buy a home and that's about it in my opinion. The day you borrow to ensure that the lights stay on is the day that you admit failure and should rethink what the hell you're doing.

  7. #7
    Sinner's Swing! csm5150's Avatar
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    11.25.14 @ 09:53 PM
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    And what does our commander in chief do? He runs around spending money like a drunken whore using a stolen credit card at a mall. Maybe he should worry about this instead of steroids in baseball or stalling on passing the child health act. Freaking idiot. How much longer is this goober in office for? What more damage can he do before he leaves?
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  8. #8
    Sinner's Swing! graeme's Avatar
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    11.19.17 @ 09:41 AM
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    Currently the price of oil is in dollars.

    Many countries are debating switching to counting in Euros instead.

    watch this space....................
    A man could lose himself in a country like this.

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  9. #9
    Atomic Punk Dave's Dreidel's Avatar
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    12.11.17 @ 05:07 PM
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    I think most foreign aid is just throwing money out the window. Read in the paper this weekend that since 2001 we have gieven $10 billion to Pakistan. What the fuck for?
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