Demos Against the Shrub?

[threepeat]

LD, actually the majority of the stocks I own are in U.S. companies because of where I work. That's why I follow currency swings so closely. Despite the devaluation of my stocks, I'm a lot happier with an 85 cent dollar than a 63 cent one. I can take or leave a C$ at par with the US$.

By and large, the Canadian media reports this as a rising of the C$, but more accurately it's a devaluation of the American dollar. The Globe and Mail ran a whole story about this last Saturday. The U.S. dollar has lost 29 per cent against the seven major world currencies in the past 33 months.

If the choice is for the C$ to ride with the U.S. downhill against all other currencies then I'd rather the C$ stayed strong. Think of how many countries have solid currencies and how many, many more have weak ones. Yes, a currency can be too strong, but if having a weak currency is so great, we'd all be buying pesos.

The Globe and Mail article stated that because the U.S. consuming far more than it is saving (ie., they have a huge trade deficit), they must increasingly rely on foreign investment, and this fact was acknowledged by the former chairman of the U.S. Federal Reserve Board, Paul Volcker. The more foreign investment a country has, the less it is able to control its own monetary policy.

Really, I'm pretty happy with the C$ the way it is, at 85 cents U.S. My point is that economically, no country operates in isolation from the rest of the world. It's not that easy to say I'm going to take my ball and go home. Other countries have balls too.

 

[threepeat]

MH, this will be my last post on the subject because I don't want to beat this thing to death.

Yes, the U.S. can always print more money, but that leads to inflation. In large measure, that's why commodity prices like gold and oil are going through the roof. They're valued in U.S. dollars, which are now worth less, so people ask for more of them (in the case of a loan, this means higher interest rates). If a country is consuming more than it is producing, it will have a trade deficit, and it won't matter if that deficit is measured in US$, pork bellies, or blowjobs.

 

[Raging_Geek]

USA people Good - Bush and his war mongers bad

I agree that we must stop weakening our ties with the USA.

However we must maintain our protests against a war that is waged for profit. The lie about weapons of mass destruction no longer washes.

The american people do not deserve our contempt.
We need to focus our protests on the criminal Bush not the american people - after all the american people were cheated out of their votes and have just begun to become cheated out of their democracy and cheated out of their freedom by the Bush gang!

I suggest we protest the Bush war mongers and the businesses behind them who profit from the war. After all they are at the heart of this whole nightmare.

 

[threepeat]

OK, one more post...

I didn't intend the last post thing to be a snub, Mike Hawk, so I'm sorry if you took offence to that. I just don't like to talk too long about anything, it's just not my style.

No harm no foul as far as I'm concerned. I may not have a formal economic eduation like some on the board, but I'm callin' it as I sees it.

 

[stickdoctor]

You forget that the US's debt and the investment of foreigners is DENOMINATED IN U.S. DOLLARS! This provides the US with a substantial advantage that other debtor nations in the world do not have........

But for how much longer? There was a article in the Economist recently that suggested that many in the international community were preparing to shift the fundamental basis of their system from the US dollar to the Euro.

When and if that happens, look out - the US is in the catbird seat now since their control over the dominant currency gives them much more favorable credit and lending terms than their economy would merit. That goes away if the basis for the world economy shifts to the Euro from the US Dollar.

 

[luckydog71]

When and if that happens, look out - the US is in the catbird seat now since their control over the dominant currency gives them much more favorable credit and lending terms than their economy would merit. That goes away if the basis for the world economy shifts to the Euro from the US Dollar.

Be careful what you wish for, you just might get it.

If a major shift occurred and the US did not have economic control then we could restructure ourselves.

We would not need a huge and very expensive armed forces. We would only need sufficient active army to protect ourselves. Right now our troops are deployed all over the world. Why?

The US provides 25% of all of the money going to the UN. Why? It is more than our share. Hell, move the UN headquarters to Beijing.

The US is the policeman to the world. I know lots of people do not like it and in fact most Americans don’t like it. In a power shift we could withdraw our troops and let the new world leader (France????ahahaha) take on that role.

The US has a huge trade deficit. Much of this has come from the US exporting jobs. It is time to stop and work towards a more balanced trade. The devalued US dollar will make this imbalance even worse. If my government would focus on domestic policy (and I think Bush will this term) we can get closer to a balanced trade and if we don’t then it is time to erect trade barriers...

The US finances most of the aid to 3rd world countries. Time for the new world power to step up.

The US has been the world leader since the end of WWII. The rest of the world has slowly come to hate the position the US holds. No super power has ever given up control willingly and I doubt the US will be any different. But I am just an average working guy who just wants to make a decent living, I can still do that with an economic power shift as long as the new world power takes the responsibilities and cost that go with it.

In a power shift Europe would not emerge on top. It would like be China or India.

I do not think a powerful China and a weakened US would improve your economic situation. But I am starting to believe it would improve mine.

 

[dittman]

I first became aware of the balance of trade back in the late sixties, and since that time we have not once been in the black as far as the balance of trade is concerned, as long as I can rememberwe have not been a saver country we are like drunken sailores when it comes to money, this is not the first time that the usd has lost what 29% and not the first time that we have had a budget deficit and yet our economy is still one of the best performing economies in the world. With all of our supposed problems one has to ask why? no 1 is our tax policy. even though we americans think were taxed to death in relative terms we are tax free. There is incentive for us to produce, a chance that if we work hard enough were going up the ladder to success.

By the way the price of oil if you have been paying attention has noting to do with the value of the dollar. The main reason is that china is importing so much more then it use to do and the market is tight.

 

[timec]

If a major shift occurred and the US did not have economic control then we could restructure ourselves.
Right now our troops are deployed all over the world. Why?
Why? Oh my! luckydog – are you OK? You’re asking yourself why? You can’t figure it out either, hey?

The US provides 25% of all of the money going to the UN. Why? It is more than our share. Hell, move the UN headquarters to Beijing.
C’mon luckydog – you’re talking about restructuring and you’re worrying about your percentage of UN funding. That’s mouse nuts – less than mouse nuts - in your big restructuring scheme. But what the hell – take any opportunity you can to rail against the UN. Why not pull out entirely for all your whining about the UN… or is that dittman doing the UN whine thing For years the US was in arrears – have you actually paid your UN dues now?

Here’s a little something something from the US State Department web site: Seems your government pimps for the UN luckydog – what’s up with that?

The United Nations provides the United States with an international forum where we can enhance national security, advance foreign policy objectives, and promote American values. The United States seeks to uphold the U.N.'s founding principles. We share a commitment to foster international peace and security; to fight poverty through development; to eradicate pandemic diseases; and to advance freedom, human rights, and democracy.
U.S. leadership in the U.N. is critical to making the world more secure, more democratic, and more prosperous. At the same time, the United States is committed to ensuring good stewardship of U.N. resources so these universal goals are met effectively and efficiently.


The US is the policeman to the world. I know lots of people do not like it and in fact most Americans don’t like it. In a power shift we could withdraw our troops and let the new world leader (France????ahahaha) take on that role. Do we need a single country grandstanding as the world’s policeman? Go have some freedom fries – just what the fawk is the US fascination with France

 

[dittman]

yeah i would pull out of the un in a heart beat they are worhless and useless, need i mention the oil for food program, the biggest scandal the world has seen, not my words but the liberal press, just to ctch you up the u.s. pays 25%of the uns budget or should i say the u.s. taxpayer.

and as far as us troops all over the world pull them home and let them guard our borders or train on our borders then there goes canadas no. 1 cash crop. Most americans would agree with that.

Thank god timec not everyone is as ignorant and bigoted as you are but still as the saying goes little ole canada needs us more then we need you and that drives you nuts but I love it so take your hate elsewhere