Lyric
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Sun Dec-17-06 10:45 PM
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Pondering all the panic about the deflating dollar |
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Everyone seems to be panicking because the dollar is "nosediving" in value against other currencies. I've heard comments to the effect of "It's only bad news for the USA. The rest of the world doesn't care." But I don't understand how that can be true. If Americans get hit with massive inflation because of a devalued dollar, we'll be hurting financially. That means we will all be buying less, especially in the way of luxuries and convenience products--which means the Great Consumer Nation will no longer be consuming, which (following the logic here) means that countries who depend on us to buy their products (like China, India, Japan, Canada, hell most of the world) will take a severe economic blow when we aren't buying things anymore. I don't think those nations can simply switch markets, either. You can't lose a consumer base of 300 million relatively well-off people and expect to replace it.
So it would seem to me that the other nations of the world would be trying to do everything they can prevent such a thing from happening--for the sake of protecting their export market, among other reasons.
Am I wrong here? There are people talking about stockpiling canned goods and buying up gold. Is it really that dire?...
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liontamer
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Sun Dec-17-06 10:48 PM
Response to Original message |
1. we aren't the only consumers in the world. so if we stop other countries become the dominant force |
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also, we don't produce as much as we used to so we won't have the boost of increased exports that we used to have.
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Lyric
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Sun Dec-17-06 10:57 PM
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4. No, we aren't the only consumers in the world. |
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But I'd bet we're a pretty huge chunk of said consumer market.
Seriously--what will China do when Americans suffering under inflation can't afford to buy Chinese goods? What will Japan do when Americans can't afford new laptops and automobiles? There are plenty of other *people* in the world, but how many of them are well-off enough to be able to take our place if our economy gets smashed by inflation?
If I had to guess, I'd say that the dollar will decrease--but slowly, in a controlled manner, due to joint efforts by many nations who can't afford to have warehouses full of unpurchased exports and empty factories.
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Deja Q
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Sun Dec-17-06 10:59 PM
Response to Reply #4 |
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Globalization will ultimately level out the world's class and consumer base.
I am being optimistic as there are so many viewpoints to look at, but pessimism won't do any good and I've got a few things going for me right now. :)
But with H1Bs and IBM and Sun and others "nourishing" other countries, within 5 years things could take a real tumble if said companies don't come back to nourish America. (they both have used the N-word about India... And America is feeling left out. And when somebody feels left out, what do they do? Get depressed. :( )
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bridgit
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Sun Dec-17-06 10:49 PM
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2. oh, it's getting dire, america is in the process of a cosmic comeupance... |
Deja Q
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Sun Dec-17-06 10:57 PM
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5. That cartoon needs to be locked in a padded cell... |
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Which I am hoping is the artist's mindset.
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bridgit
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Sun Dec-17-06 11:10 PM
Response to Reply #5 |
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:bounce: :hi: :hug: :loveya:
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hickman
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Sun Dec-17-06 11:00 PM
Response to Reply #2 |
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For what? The average American is the child of immigrants. What did we do so wrong?
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Deja Q
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Sun Dec-17-06 11:07 PM
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8. Slavery, piracy, being mean toward others... |
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Basically what people native to those other countries also do... Irony is weird.
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bridgit
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Sun Dec-17-06 11:09 PM
Response to Reply #7 |
9. dude i'm serious read the newspapers, america is falling flat onto her face |
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on the world stage, sheesh, there's a rush to the euro just to get out from under the shit america is in the process of fucking up all sideways every which way but loose even bush's poppy is crying about in public as it is common knowledge
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Deja Q
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Sun Dec-17-06 10:55 PM
Response to Original message |
3. Switching currencies, the talk of the increasing middle classes over there, H1Bs... |
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is it all really to the benefit of America, this babble of "temporary workers"?
or is somebody thinking peak oil and noting the US uses the most oil -- so take the US out of the picture, and voila - problem temporarily reduced for a few decades?
It is :tinfoilhat: fodder as so many other things are going on that seem to contradict it, but who knows where reality is. All we can do is wait.
Still, I will say this: If the tinfoil is real and we end up gone (which I doubt), the corporate elite will not be able to maintain their bloated incomes (nor do I think they'd be welcomed in these other countries; they're still Americans first and foremost). The profit margins they get out of the US are far higher than other countries, partly due to the cost and wage imbalance. (globalization, in the end it's also possible we'll be earning less but the cost of living will go back to where it belongs too...)
Of course, if offshoring didn't take place, more people would be able to BUY the goods at the high prices the corporate elite wants.
Symbiosis. One cannot escape it.
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hickman
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Sun Dec-17-06 11:35 PM
Response to Reply #3 |
11. The corporate elite will only stay American |
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as long as they can reap hugh profits. Their allegiance is to wealth. As third world countries produce more educated people able to take management positions with the poor still willing to work for peanuts, the corporations will relocate.
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Sat May 04th 2024, 06:18 AM
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