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Sinking Currency, Sinking Country
World Net Daily ^ | 11/02/07 | Pat Buchanan

Posted on 11/02/2007 5:23:12 AM PDT by Thorin

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.

(Excerpt) Read more at worldnetdaily.com ...


TOPICS: Business/Economy
KEYWORDS: alasandalack; democrat; depression; despair; doom; dustbowl; economicignorance; economictreason; freetrade; fretradefolly; mercantilism; patbuchanan; pitchforkpat; sackclothandashes; woeisme
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To: Alberta's Child
In the meantime, he's getting a 35% "discount" on his European taxes, too -- since the 4% he's earning is being reported on his tax return in Euros, not dollars (even if he never exchanges these dollars into Euros this year).

The $400 annual payment is worth 260 Euros. This is an incentive to buy the "discounted" bond? LOL!

It gets really complex,

A 4% coupon is a 4% coupon. Not that complex.

421 posted on 11/02/2007 2:23:28 PM PDT by Toddsterpatriot (What came first, the bad math or the goldbuggery?)
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To: Toddsterpatriot
The $400 annual payment is worth 260 Euros. This is an incentive to buy the "discounted" bond? LOL!

It's REPORTED as income of 260 Euros. If it never gets converted from dollars to Euros, it's still $400 to the bond holder (at least for now).

Remember -- a European investor today is not making decisions based on the assumption that the U.S. dollar is (or ever will be) completely worthless . . . he's betting that the U.S. dollar is going to go up, down, up, down, etc. over different intervals in the future. And he's making investment decisions accordingly.

422 posted on 11/02/2007 2:58:13 PM PDT by Alberta's Child (I'm out on the outskirts of nowhere . . . with ghosts on my trail, chasing me there.)
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To: Alberta's Child
It's REPORTED as income of 260 Euros. If it never gets converted from dollars to Euros, it's still $400 to the bond holder (at least for now).

At least for now, 260 Euros is equal to $400 dollars. So what? No benefit to the bond holder.

Remember -- a European investor today is not making decisions based on the assumption that the U.S. dollar is (or ever will be) completely worthless . . . he's betting that the U.S. dollar is going to go up, down, up, down, etc. over different intervals in the future. And he's making investment decisions accordingly.

Agreed. And that's why the discounted bond, isn't.

423 posted on 11/02/2007 3:06:04 PM PDT by Toddsterpatriot (What came first, the bad math or the goldbuggery?)
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To: Cringing Negativism Network
Sure: Peoples. Republic. of China. Any questions?

what? this is your answer? what does this mean to you?

424 posted on 11/02/2007 3:17:15 PM PDT by the invisib1e hand (keep the heat on the hillary.)
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To: newgeezer
Soon, we'll both know who's naive.

Perhaps. In the meantime, you still have all the water and canned goods you stashed for y2K, right?

425 posted on 11/02/2007 3:18:07 PM PDT by the invisib1e hand (keep the heat on the hillary.)
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To: dennisw
My Polish friend tells me the Zloty is rising against the dollar

It is and has been, I just checked. It was over four to a dollar three years ago, three to a dollar a year ago, two and a half today.

426 posted on 11/02/2007 3:21:16 PM PDT by Revolting cat! (We all need someone we can bleed on...)
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To: Alberta's Child
Why do YOU think the U.S. dollar has declined against every other major currency in the last few years?

Lower demand.

427 posted on 11/02/2007 3:21:27 PM PDT by JPJones
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To: Thorin
In related news today, a White House press release (October 2007 Marks Record 50th Consecutive Month of Job Growth In Longest Continuous Months Of Job Growth On Record) reads:


428 posted on 11/02/2007 3:58:15 PM PDT by 1rudeboy
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To: Cringing Negativism Network

Please see my comment above. That’s a lot of pizza you need to begin demagoguing right away.


429 posted on 11/02/2007 3:59:34 PM PDT by 1rudeboy
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To: Thorin

We are getting ready to repeat the economic fallout and eventual, but slow, recovery of the Vietnam war years.

The similarities are striking - skyrocketing energy costs, precious metal prices rising precipitously, huge jumps in food prices.
The current low inflation rate published by the federal government is laughably inaccurate as anyone who has to purchase energy and food can see.

Keeping interest rates artificially low masks the true impact of this spending and only postpones the recovery.
Even America cannot spend hundreds and hundreds of billions of borrowed money on a multi-year war without any economic repercussions.
We did it in the Vietnam era and it took years after the war ended for the economy to recover and we are doing it again.

this is not criticism or argument about the war it is just an observation of the economic impact of overspending without any corresponding belt tightening on the home front.


430 posted on 11/02/2007 4:03:51 PM PDT by Iron Munro (Suppose you were an idiot, and suppose you were a member of Congress; but I repeat myself.)
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To: Iron Munro
this is not criticism or argument about the war it is just an observation of the economic impact of overspending

Overspending 1.2% of GDP, not exactly the 2.9% of GDP at the height of Vietnam or the 6.0% of GDP during Reagan's defense buildup.

431 posted on 11/02/2007 4:14:18 PM PDT by Toddsterpatriot (What came first, the bad math or the goldbuggery?)
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To: RSmithOpt

The fed reserve has money/prints money. They give say $10 billion to citi for ‘mortage back securities’ at 5% interest for 30 days. At 30 days later, Citi pays back the $10 billion cash + 5% interest on 30 days. While it is a temporary monetary injection, it’s removed in 30 days or less. It’s usually 7 days or less but the Fed increased it to 30 in August when the sh!t hit the fan.


432 posted on 11/02/2007 5:58:31 PM PDT by rb22982
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To: am452
Higher income people like Buffett or Gates will skewer the median net worth figures up.

Median net worth is not skewed by people like Bill Gates. Median net worth is more skewed by the people that live off the gov't dole to the negative. MEAN net worth is skewed by Buffett/Gates.
Back to math class for you.

433 posted on 11/02/2007 6:00:27 PM PDT by rb22982
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To: the invisib1e hand
like Martin Luther did

Whaaat I lived in 1500 AD, you must mean the other one.
434 posted on 11/02/2007 6:10:12 PM PDT by modican
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To: rb22982
Like most doomers, math really isn’t his strong suit.
435 posted on 11/02/2007 6:10:41 PM PDT by Toddsterpatriot (What came first, the bad math or the goldbuggery?)
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To: MNJohnnie; Alberta's Child; RSmithOpt
Another know nothing hysteric myth without the slightest base in fact. Pat is almost a stupid as Ron Paul. $2 billion a day would be a federal deficit of 730 billion a year. Our actual Fed Deficit this year is around $190 billion.

The 2007 Budget Deficit is running at $190 billion.

The 2007 Trade Deficit is running at $760 billion.

Learn the difference and maybe you won't make a fool of yourself again, at least not in exactly the same manner.

436 posted on 11/02/2007 6:52:52 PM PDT by Pelham
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To: Pelham
The 2007 Trade Deficit is running at $760 billion.

Do you think we need to borrow to "finance" the trade deficit?

437 posted on 11/02/2007 7:34:42 PM PDT by Toddsterpatriot (What came first, the bad math or the goldbuggery?)
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To: Toddsterpatriot

Yep, sad how the public schools have failed us when it mattered—not that I expect anything less. I know I personally learned far more while I homeschooled than I did while I was in public school.


438 posted on 11/02/2007 7:44:22 PM PDT by rb22982
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To: Toddsterpatriot

Only to the degree that US debt is balancing the equation. Like mortgage debt that fueled the ‘nonexistent’ bubble.


439 posted on 11/02/2007 7:48:21 PM PDT by Pelham
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To: Pelham
Only to the degree that US debt is balancing the equation.

Budget debt or private debt?

440 posted on 11/02/2007 7:52:05 PM PDT by Toddsterpatriot (What came first, the bad math or the goldbuggery?)
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