The U.S dollar is killing me

The dollar has nowhere to go but down at the moment it seems. Bad economic times for the US.Cube_of_MooN

The dollar has nowhere to go but down at the moment it seems. Bad economic times for the US.Cube_of_MooN

I know its painful.

I'm scared to be quite honest with you guys. The prices of everything is going up, and I don't know when it's going to stop. :(

I want the dollar to rebound soon, otherwise it'll be $4 a gallon gas and beyond... though getting there will be a matter of when at most.

you should see what it's doing to my dad, he owns a foreign exchange company :?Pearl_of_Egypt

[QUOTE="Cube_of_MooN"]The dollar has nowhere to go but down at the moment it seems. Bad economic times for the US.helium_flash

With the economy growing worse and worse I see it only going down further. But hey, I'm no economist.

[QUOTE="helium_flash"][QUOTE="Cube_of_MooN"]The dollar has nowhere to go but down at the moment it seems. Bad economic times for the US.Cube_of_MooN

With the economy growing worse and worse I see it only going down further. But hey, I'm no economist.

Asia won't let it happen, although I wish they would.

it was 2$ to every pound once.clyde46

It's not the trade defecit as much as the cutting of interest rates.sonicare

Yea and were getting another cut very soon. :evil:

[QUOTE="sonicare"]It's not the trade defecit as much as the cutting of interest rates.KillaHalo2o9

Yea and were getting another cut very soon. :evil:

It's a double edged sword, they cut to stimulate the economy but it devalues the dollar.

[QUOTE="Cube_of_MooN"]

[QUOTE="helium_flash"][QUOTE="Cube_of_MooN"]The dollar has nowhere to go but down at the moment it seems. Bad economic times for the US.LukeAF24

With the economy growing worse and worse I see it only going down further. But hey, I'm no economist.

Asia won't let it happen, although I wish they would.

How is that? By buying more UST bonds?

[QUOTE="KillaHalo2o9"]

[QUOTE="sonicare"]It's not the trade defecit as much as the cutting of interest rates.sonicare

Yea and were getting another cut very soon. :evil:

It's a double edged sword, they cut to stimulate the economy but it devalues the dollar.

I know, but the economy needs to re-correct itself sooner or later, so there is no point in cuts and also inflation becomes a risk.

Why?

Do you needs Euros for some reason?

The dollar has nowhere to go but down at the moment it seems. Bad economic times for the US.Cube_of_MooN

Unless you export from the U.S. then it is good news.

[QUOTE="Cube_of_MooN"]The dollar has nowhere to go but down at the moment it seems. Bad economic times for the US.duxup

Unless you export from the U.S. then it is good news.

This is true.

Why?

Do you needs Euros for some reason?

duxup

To hold the value of my money.

How is that? By buying more UST bonds?

KillaHalo2o9

No, they do it by pegging the value of their own currency.

[QUOTE="KillaHalo2o9"]

How is that? By buying more UST bonds?

LukeAF24

No, they do it by pegging the value of their own currency.

I don't know exactly how they do it, but China is doing that to keep their currency's value low. They want their goods to be cheap to the US so that trade slides in their favor. They buy up US currency or something like that.

[QUOTE="KillaHalo2o9"]

How is that? By buying more UST bonds?

LukeAF24

No, they do it by pegging the value of their own currency.

Yea and here comes inflation.

Saudis already showing signs of breaking the peg.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/19/bcnsaudi119.xml

[QUOTE="duxup"]

Why?

Do you needs Euros for some reason?

KillaHalo2o9

To hold the value of my money.

And you plan to change it back when the big signs come out and they say "the dollar has it the bottom quick buy dollars again!"?

Unless you think you know when the currencies are going to swing back this idea strikes me as silly.

[QUOTE="Pearl_of_Egypt"]you should see what it's doing to my dad, he owns a foreign exchange company :?quiglythegreat

no, we're in Canada. every time he buys American money to sell, it loses its value and he loses more money. not to mention how American tourism has dropped so much here because of our stronger dollar and the weak American economy.

all the foreign exchange companies here are having problems.

[QUOTE="KillaHalo2o9"][QUOTE="duxup"]

Why?

Do you needs Euros for some reason?

duxup

To hold the value of my money.

And you plan to change it back when the big signs come out and they say "the dollar has it the bottom quick buy dollars again!"?

Unless you think you know when the currencies are going to swing back this idea strikes me as silly.

We will now when the dollar starts to rebound, but for the last three years the U.S dollar has been going down.

inflation inflation

Good job Federal Reserve

[QUOTE="LukeAF24"][QUOTE="KillaHalo2o9"]

How is that? By buying more UST bonds?

sonicare

No, they do it by pegging the value of their own currency.

I don't know exactly how they do it, but China is doing that to keep their currency's value low. They want their goods to be cheap to the US so that trade slides in their favor. They buy up US currency or something like that.

You are pretty much correct, Sonicare. China is buying US debt and assets like crazy. Do you know what that means people? US currency obviously has a decreasing value, but our assets neccesarily don't. China stands to make additional money from owning US assets. Also, if China owns most of our debts, who is the US answerable to when we've defaulted on them? It's similar to what happens when you default on your house or auto loan...if you are unable to make those payments, the bank takes back what you signed over to it. Likewise, China will take back what the US has signed over to it...it's just that the stakes are much, much higher.