Dollar Sinks to Record Low for Third Day

Reuters ^ | Thu Nov 25, 2004 | Katie Hunt

[thoughtomator]

Keep shorting... I wouldn't be surprised to see the euro cost $2.50 in a few years. And that's good for us, and really bad for European Nazis.

[jb6]

Really? Try buying oil. As the dollar become more worthless, everything we import becomes more expensive. The problem is, not only is oil expensive, but all those shiny factories we sent to China, well the news is, they're not coming back. So all the Wallyworld crap gets more expensive too. As oil goes up so does your cost in gasoline, heating, delivery charges, fruits and vegetables (petroleum based fertilizers) and all the plastics that are in everything.

On top of this, the government consumes $2.5 billion more each and every day then it collects. It does this by sucking up 80% of the worlds savings (Japan is paying off it's social security off of the interest the US pays on its debt). So, to keep investments coming, interest must go up rapidly, guess what happens then and who pays for all those bankruptcies.

[onyx]

Gold is up.
Morning quote was $452.00 yesterday.

[clee1]

Excellent news.

Glad I bought alot when it was $355 an ounce.

[onyx]

Yep.
My smart husband was buying all he could when it was
between $265-$300. I am getting a lot happier. :)

[pete anderson]

The falling dollar is not good. It may actually be devastating for our economy with increased interest rates and inflation.

However, if the dollar continues to fall OPEC will begin demanding payment in Euros forcing Americans to Buy Euros in order to buy oil. This will cause our currency to even fall further.

Can you say $5.00 a gallon gas?

[pete anderson]

My smart husband was buying all he could when it was between $265-$300. I am getting a lot happier. :)

Your gold may become more valuable but the value of your home as well as your cash and investments dwindle.

[pete anderson]

Congratulations, you are apparently one of the few Freepers that understands economics.

Good job not falling asleep in that 8:00 Macro Economics class.

[pete anderson]

Apparently some of these people like the idea of America being owned by the Saudis and Chinese.

[jb6]

Oh and i feel definitly like a Cassandra. No one will listen. Watching all these idiots running up their credit cards (I've got school debt and debt that built up thanks to unemployment ... aka outsourcing) to buy crap they don't need, just makes me shake my head.

[clee1]

Yep, I also got out of the stock market for a while right before the dot bomb. Saved a bundle when everyone else was losing $$$ hand over fist. I warned people but nobody listened.

[onyx]

Not my house.
We're in Mississippi.
No real estate boom here.

[onyx]

GOOD for you!

[jb6]

Wait till the Cali bubble bursts. Their houses are hitting median $500K

[onyx]

I know.
Used to own real property in San Diego.
The prices are ridiculous.
The folks buying are FOOLS!

[clee1]

Uh huh. And when the bubble bursts, it'll be time for some sharp operators to swoop in and pick up some bargains in the forclosure market.

[eluminate]

hopefully dollar hits 2 to 1 dollar per euro and stays there for 10 years. This will kill the European Union basicly. It will also kill the deficit more or less by creating an inflation rate that will eat away at the money other countries use to peg their currency by using treasuries and create a negative bond sort of like when the people bought warbonds during ww2 knowing when they mature the money will be semi-worthless.

[pete anderson]

I have been comparing conditions to January 1974 when oil was at $11.65 barrel. Adjusted for inflation, that same bucket of oil costs $51.00. We are at the same place we were in 1974 with the cost of oil and with government debt.

Welcome back to the 1970's

I remember the 70's and it was no fun.

[durasell]

People who lose their homes will be very, very annoyed. They may be annoyed enough to ask the gov't to step in.