An Open letter to President Bush (End run vs. Outsourcing)

Me | Me

[Havoc]

Dropping the value of our dollar and halving our income levels will dramatically impare our ability to carry debt load. Do you guys have any idea what the hell you are talking about - NO. It doesn't take a rocket scientist to see you guys are trying to destroy this economy by turning us into a third world country and multiplying our debt load. If the money is devalued and people earn less of it, that translates into an efective multiplying of our debt load because it then takes longer to pay it down.

For cryin out loud a kid with a 5th grade education can see that and you guys spout like this is utopia in the makings.
You don't have a clue what you're doing - that or you do and you're just the traitors everyone says you are.

[Havoc]

Sounds about right.

Much as I hate to say it, the more I look at the impact of this on our country, I can't see an option but to vote against my own party or find an alternative candidate that isn't trying to destroy our economy. Anyone think Rudy would run this time around for the nomination? What's his stand on this issue?

[1rudeboy]

But, but . . . I thought you care about jobs. [laughter]

[1rudeboy]

If the money is devalued and people earn less of it, that translates into an efective multiplying of our debt load because it then takes longer to pay it down.

Oh really? Wouldn't the debt be, devalued? If you loan me $100, and I devalue the dollar by half, then I simply need to pay you the equivalent of $50 to clear the book. No one but you thinks that the $100 debt magically expands to $200.

[XBob]

263 - "But, but . . . I thought you care about jobs. [laughter]"

Not free traitor jobs. I wish to unemploy all of them, outsource them, and leave the jobs here for free patriots.

[Southack]

"Dropping the value of our dollar and halving our income levels will dramatically impare our ability to carry debt load. Do you guys have any idea what the hell you are talking about - NO. It doesn't take a rocket scientist to see you guys are trying to destroy this economy by turning us into a third world country and multiplying our debt load. If the money is devalued and people earn less of it, that translates into an efective multiplying of our debt load because it then takes longer to pay it down."

You've got it precisely backwards. If the Dollar loses value, then old debt is easier to repay, not harder...and new debt is easier to afford, not more expensive.

Dropping the value of the Dollar hurts bankers and those who hold mortgage notes. They made those loans back when the Dollar was worth more, after all, and now you are paying them back with Dollars that are worth less.

[1rudeboy]

Fine recipe. The over-paid willfully over-paying. To the barricades!

[Havoc]

Bunk.

If my personal debt is $5000 and I go from earning 30k a year to 11k a year, my debt is still 5k. You can devalue the dollar and it is still 5k. The only thing that has changed is my ability to pay. Do you guys think about this stuff at all. Ask any average American put out of work by this crap if their debt load decreased as a result of their drop in pay. Who in hell are you trying to kid and who do you think your kidding!!!

[XBob]

So, you want what happened to Russia, to happen here.

Great - devalue the dollar to make it worth 2cents, and then you don't have to pay it back, and no one will loan your money, and what money you have won't buy anything.

Dumb Dumb Dumb

[1rudeboy]

The difference being, of course that in your example you are a victim of currency-devaluation. In the case of the Federal Government, it is doing the devaluating. Huge difference.

[Havoc]

Sorry for my language folks. But the more of this stuff I hear the more absolutely enraged it makes me.

[1rudeboy]

How do you know what I want? [hoot]

[Euro-American Scum]

Bump for future reading.

[Dat]

You mean Marxists, don't you?

[Havoc]

It translates to the same thing. Whether it's 5k or 5trillion. If you reduce income levels the debt doesn't stop being 5trillion. The ability to pay is impared and the debt stays the same. You're pulling the wool trying to hide that simple fact apparently. And from my chair, you only lie to a person about their debt load and ability to pay if you're trying to scuttle them. And if I had a TV studio to put you guys in for two hours in front of the American people to repeat all this stuff, I'd drag every last one of you in there in chains if I had to and force you to repeat it so the People could see your tripe for what it is.

[ARCADIA]

If you loan me $100, and I devalue the dollar by half, then I simply need to pay you the equivalent of $50 to clear the book.

That will only hold true so long as you have the market demand to adjust your wages for inflation. Otherwise you will still owe $100, you will earn the same, however imported goods (especially fuel) will cost 200% as much. You will have fewer disposable dollars with which to chase your debt.

If we really screw it up the US economy will lack the strength to maintain its GDP; so you may find yourself out of a job rather then getting debt relief. Free traders will tell us that additional manufacturing will be attracted by the lower dollars; but, that presumes that you have an expandable manufacturing base. As we have seen with Argentina and Mexico, currency devaluation does not always result in a manufacturing boom. No one wants to invest into an unstable political mess.

[1rudeboy]

That's funny. Could I bring props? We could enact your loan scenario in a matter of moments. And it would only take a minute for your viewers to understand that you don't know what the heck you're talking about.

[Dat]

Dropping the dollar's international exchange value would inflate the prices of foreign goods and hence contribute to inflation, but some of the slack would be taken up by domestic production, so the value of ratio of inflation rate to the devaluation rate would likely be much less than one to one. The victim would be consumers and the winner would be domestic producers, but without detailed information it would be hard to know what it would be.

[Iscool]

Likely a lot of these FReepers are small, self-employed businessfolk who are making a killing off selling us this cheap Chinese junk for American made prices and they can't stand the thought of anyone being pro-America enough to question their un-American business practices...

People are waking up...You can't be pro globalist and pro American at the same time...And there's still a lot of Americans out there...

[XBob]

you aren't only rude, you are really stupid - read your own post, or are you so ignorant you are unaware of what happened to Russia?