The falling dollar$

[edhopper]

The dollar is falling. It could collapse and result in an economic crisis as bad as the Great Depression. Or do a slow slide and just weaken the country more and more. It's bad either way, but a sharp fall could be catastrophic. While Europe and Asia are keeping the dollar propped up for now, the Administration is doing everything to allow a worsening of the situation. Between extending the tax cuts and borrowing trillions to "reform" social security, every move makes the dollar less attractive.
I think we are in for economic armeggedon. I'd like to hear other's thoughts.

[NMDemDist2]

1. there are a ton of threads here on the dollar

http://www.democraticunderground.com/discuss/duboard.php?az=show_topics&forum=114

[edhopper]

3. Thanks

I guess I'm in the wrong forum. I'll go there.

[papau]

2. at this point there will be no economic armeggedon - if deficts do not get

under control there may be one.

We have had currency swings in the past as large as these swings - but they turned around

I do not see the turn around this time with crazy Bush in charge.

[AntiFascist]

10. There's also the threat that....

Asian banks, which own much of the U.S. debt at the moment, are threatening to dump U.S. securities. Also, the possibility that Iran and others may replace PetroDollars with PetroEuros.

[natrat]

4. combine this with the administrations quest to destroy enviro policy

and it seems they just want to break things. Who knows ,maybe it is as simple as a hidden cult bent on destroying the world as we know it ,just for the sake of it. I also like the headline "US admits battle for hearts and minds of Iraqis now lost" American hearts and minds are in for a beating.

[murray hill farm]

5. In the depression...

money that people had in the banks when they crashed..what happened to it...i remember my grandparents talking about..first not being able to get their money..and then gettin just a percent of it. I know there have been some banking changes since then..but could that happen again? And, if so...what is the best course of action now for every day folks like myself?

[natrat]

6. matress ?

but if inflation keeps up at this pace....

[prairierose]

7. The money that people had in banks...

disappeared along with the banks. In the small town I grew up in; there were 3 banks before the crash, after 0. All the money my great-grandmother had in those banks was gone. My great-grandfa had money somewhere else so that apprantly all of it did not disappear. I do know they had a rough time & were grateful that they could grow their own food. Part of my plan for the near future.

[girl gone mad]

9. The thrift institutions stand to be hurt the most.

(S&Ls, credit unions), but I don't know that your money would be safer elsewhere.

It remains to be seen whether the (people who control the) markets can or will force Bush to reign in the deficits. I think it's a safe bet any solution would come in the form of a tax hike on the working class. Bush clearly has no interest in controlling spending.

[sweetheart]

8. "the economist" headline article is just your point

It points out that the reserve currency status of the dollar is under
threat, and that a serious devaluation would be the largest default
in financial history, but that the dollar would lose reserve currency
status, as well. This would be unwise, but since when has the BFEE
been wise.

http://www.economist.com/finance/displayStory.cfm?story_id=3445928