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US Economy


Kccitystar

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Yahoo is running a story about the state of the American economy:

http://news.yahoo.com/s/uc/20071102/cm_uc_...FBX44p18HOs0NUE

They basically say that Bush is borrowing hundreds of billions of dollars for the wars and that the money is not being backed by gold. Last time I checked the American dollar was worth 97 cents in Canadian currency. Basically the article says that very soon the dollar value will lower so much that other countries that import products to us (basically everything we have comes from China) will demand MORE U.S dollars which in turn means the prices of products we get here will sky rocket upwards. Bush isn't the only one to blame though but you can read about who else is responsible in the article.

Judging by how fast the American dollar fell in just the last past ten years it seems to me like the American economy may very well fold within the next few years. Anyways I was wondering what you guys thought about this article. As an American this is pretty darn scary stuff. If prices skyrocket (gas went up 25 cents within two weeks here) it will mean that Americans can no longer afford to survive. Lots of people are having a hard time as is.

All at the same time the wealthiest Americans are exchanging their dollar currency for gold currency as gold value continues to rise. Basically to me it seems like the wealthy people are intentionally bringing down the American dollar because they get a heck of a lot more for exchanging their money for gold. Just a theory but it certainly seems that way to me.

All at the same time our leaders are trying to push for even more war (Iran) which will costs us much more in which we can not afford since we only borrow money these days and print more that is not backed by gold. Also the Bush administration obviously makes tons of money off of the increasing oil prices and the contract deals in Iraq.

Is the average American being screwed to the point where they will lose everything and they don't even know it yet?

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Great analysis. I feel the same way you do, and while you're right, it's not entirely Bush's fault... a good deal of this falls on his shoulders.

It's been quite scary to see how much the dollar has fallen. What once was a joke around how much more things cost in Canada, in relation to the value of the dollar there, to see where it is now is thought provoking to say the least.

Unfortunately, there is little that you or I could do to solve this issue.

At current conversations, the $1 USD is equal to just over 68 cents in Euro.

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Reminds me of what I was trying to get at here:

http://eamods.com/ForumsPro/viewtopic/t=2259.html

Yahoo is running a story about the state of the American economy:

http://news.yahoo.com/s/uc/20071102/cm_uc_...FBX44p18HOs0NUE

They basically say that Bush is borrowing hundreds of billions of dollars for the wars and that the money is not being backed by gold.

Additionally, prices for stocks and homes are overpriced, in general, for the most part. Which means you need to wait for prices to come down before investing or else you're just buying high.

Employment rate is very good, so it can only go down. If you think abou it.

An article on chronic homelessness being at a low came out yesterday-so maybe that can only go back up as well.

Last time I checked the American dollar was worth 97 cents in Canadian currency. Basically the article says that very soon the dollar value will lower so much that other countries that import products to us (basically everything we have comes from China) will demand MORE U.S dollars which in turn means the prices of products we get here will sky rocket upwards.

And even though it helps that interest rates keep getting cut by the fed, it means more inflation ahead I believe, in the long run. Thus even less value for the dollar, and higher prices when you buy goods off of the shelf.

Bush isn't the only one to blame

Good to throw him a bone because all presidents need it, but at the end of the day, no one is going to want to hear that. Clinton got all of the credit for a good economy. Heck if you can tax as much as him and run a great economy, that rocks because he was able to fund a lot more programs, if I remember right. At the end of the day, when things go sour, people are going to blame Bush or the incoming prez. Depending on when things get bad.

The best thing to do is what Gore and Bush did in 2000. On their campaign trail, they kept mentioning the slowing economy so it didn't look like their fault when either one got into office. Very smart.

Judging by how fast the American dollar fell in just the last past ten years it seems to me like the American economy may very well fold within the next few years.

Hopefully it will cool down slowly. The gov and fed are trying to make it go down slowly, but no one can control it real well. Clinton and the Fed-did they just get lucky with the Tech boom of the 90s?

Anyways I was wondering what you guys thought about this article. As an American this is pretty darn scary stuff.

Since economies are tied closer together thes days, it may be scary for the world. But we should stay positive, carry less debt (or no debt,at all) in our personal finances, and just living below our means.

If prices skyrocket (gas went up 25 cents within two weeks here) it will mean that Americans can no longer afford to survive.

Maybe not so extreme as that but we're all just speculating one way or the other.

Lots of people are having a hard time as is.

see links above. And a book called cashflow quadrant.

All at the same time the wealthiest Americans are exchanging their dollar currency for gold currency as gold value continues to rise. Basically to me it seems like the wealthy people are intentionally bringing down the American dollar because they get a heck of a lot more for exchanging their money for gold. Just a theory but it certainly seems that way to me.

Possible, you can't dispute that, but they could just be protecting their liquid assets by putting them into a commodity that is rising. Gold has been rising for 20 years, and now that the dollar is going down they need to protect themselves. I'd do it too if the $ was there to protect.

Is the average American being screwed to the point where they will lose everything and they don't even know it yet?

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From what i heard last night the canadian dollar is up to 1.17 american dollars, the US economy has been stale for a while and i guess it was only a matter of time before it would collapse. Truly sad, i guess that is what happens when you finance an un-popular war.

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From what i heard last night the canadian dollar is up to 1.17 american dollars, the US economy has been stale for a while and i guess it was only a matter of time before it would collapse. Truly sad, i guess that is what happens when you finance an un-popular war.

So, would it be ok to finance if it was popular?

And, KC had it right. It is wars. Not war. Funding shelled out for Afgh., then more funding for Iraq.

The next war should be Texas vs. The U.S. :o)

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So, would it be ok to finance if it was popular?

And, KC had it right. It is wars. Not war. Funding shelled out for Afgh., then more funding for Iraq.

The next war should be Texas vs. The U.S. :o)

No, i am very against any war, it's just that it is easier to finance such things when you have the bulk of the populous on your side and they are willing to pay higher taxes in order to fund it. And i thought the U.S was out of Afghanistan already, why the F*&k are they still there?

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I know there are facts there and they are to debate, but this did come from Pat Buchanon... that discounts it a lot.

Truth of the matter is that we are in deep and we are suffering. I am in the market to buy a house and make a huge move across the country (again). In just three years we went from leaving behind a dying economy in Ohio for a burgeoning economy in Phoenix. Now it seems like it doesn't matter where you are in the U.S., the economy has gone to pot everywhere.

It scares the living daylights out of me. My wife and I may not have children for fear they will be living in worse conditions.

Lets hope that we do not get caught up in a war elsewhere before Jan. 2009.

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Oh please save us OB Whan Clinton or OB Whan Obama-the higher taxes they are proposing will save us all. If we could just have them now-please step down Bush, let them take over. They are both soooooooo smart they can save us. And put Gore on the team, so we don't burn up-I want to live and I want Pirate to have little pirates

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I'm surprised no one has mentioned the sub-prime mortgage crisis. That is probably the main reason for the cause of the falling economy (along with the war). Last time I checked, sub-prime mortgages in the US were at 20-30% while in Canada they only account for about 7-8% of all mortgages.

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The first long term solution to the economy is to curb spending. The great housing market, which is gone, was a product of low interest rates, which were a product of responsible spending by the Clinton administration. Stop spending so much money, and you'll see good long term effects. As of now, this economy is as hollow as they come. We don't manufacture anything, unemployment is "down" because people are out of benefits, people are losing their houses, and the American dollar is as weak as it's ever been. Radical change needs to happen for us to be the leading power of the world.

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One of the main causes of the great depression was that the top 1% of the country owned something like 25% of all the country's money... sound familiar?

It's not a question of whether the war is popular or not. It's that if it was done correctly (or not done at all for that matter) not only would people be more supportive and more willing to pay higher taxes, but if you did it correctly you wouldn't have to need those funds since you managed the war correctly in the first place (or not have to manage it at all) and didn't mess everything up, causing more conflict and higher funds.

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