Posted on 02/03/2005 8:40:47 AM PST by Paul Ross
If they are truly running from the dollar, then they ought to stop outsourcing their employees to foreign countries, where they will have to pay them more since they must pay in foreign currencies.
So let's start calling in our debts from WWII, and all the relief efforts we've provided aid in since. How about that?
Then why don't you float the Yuan Mr. Yu?
Since the Federal Reserve has complete control over the vaue of a dollar, this expectation means that Fan Gang believes the Federal Reserve will make big mistakes in monetary policy.
I don't think the Fed will make mistakes.
There. Sort of blows up their whole fantasy doomsday scenario whenever you point out that your house, stocks, guns, and cattle all go up in value when the Dollar declines...
It's government spending. The largest deficits in history. It won't be long before inflation takes off in the US and unemployment starts heading higher. These, as well as increased exports, always lag currency devaluations but are certain to follow.
Figures.
These three men, all Democrats, are abandoning their country's currency in time of need.
If they want to make money in currency trading, fine. They should just keep their mouths shut and stop denigrating the very currency which enables them to be millionaires in the first place.
NRST will fix this very quickly.
"There. Sort of blows up their whole fantasy doomsday scenario whenever you point out that your house, stocks, guns, and cattle all go up in value when the Dollar declines..."
Wrong. Their value stays the same while the dollar declines. The problem with this is you still have to pay capital gains taxes on the (apparent) increase when you sell these assets even though their overall absolute value has stayed the same.
Inflation is just another way for the government to steal our money. It is especially bad for people who have large savings.
DEFICITS
RECKLESS SPENDING
TRADE DEFICITS
DEFICITS
RECKLESS SPENDING
TRADE DEFICITS
I believe you are quite mistaken. They have some levers to pull, but hardly anywhere approaching "complete control". The trade imbalance represents a financial Tsunami wiping away U.S. capital assets and reserves. Changing traffic lights on the streets won't stop, let alone change the direction of, the rushing waters.
Yes. And the much preferred level for the dollar when it happens is at or near its historical low.
No, Dear Child. The very definition of "inflation" is that things cost more...that means that things have a higher price...things like your home, guns, stocks, and cattle.
And there is no problem with paying capital gains taxes...such taxes are typically *less* than your income taxes, in fact. Moreover, paying a 20% capital gains tax on a 50% gain with 25% devalued Dollars is hardly going to keep prices static or lose anyone money.
Your problem is that you don't want to adapt. Animals that don't adapt become extinct.
So if you insist on keeping your wealth in the form of cash (which we all know is going to decline in value), then it is your savings that will become extinct.
In contrast, if you invest in assets like stocks and homes, then your wealth will increase instead.
Using money to "store" your wealth is a bad idea. Money is meant for trading, not wealth storage. At least not in the modern era.
Store your wealth in assets. Be smart. Thrive.
Wrong. Government spending has virtually nothing to do with the trade deficit, except when we do stupid things, like use our hard-earned taxpayer dollars to buy foreign-made weapons. Putting our own industry out of business... The Death-Spiral continues, because we are still cursed by having Cato-Hags riding our backs in the U.S. government and media.
Hmmmmmm..............
......A coming creation of an Americas',...."NAFTA" Central Bank and a "NAFTA-Currency".....for all NAFTA Countries?
naw
/Sovereignty and freedom of speech-think?
Can you elaborate on this, this sounds interesting...and slightly Bush-esque.
Call me for a loan when the Euro-weenies suffocate on the socialist sock their choking on..
OHHHH NOOOOO!!!
WE"RE DOOMED!!!
HOW CAN WE SURVIVE PRIME RATES OF 18%?
MORTGAGE RATES OF 16%?
INFLATION OF 14%?
Oh?
What's that?
The Prime Rate is just 5.50%? 30-year mortgages are just 5.19%? Inflation is just 3%?
Never mind....
PS: "Foxey-Loxey" Alert: Mr. Smith seems to want to "help us out" by selling us some of his "gold". LOL
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