Author Topic: The future of US Dollar  (Read 9100 times)

Offline callme

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The future of US Dollar
« on: September 10, 2009, 09:58:56 AM »
I\'ve heard it before and now they are talking again: The death of US Dollar is near.

The financial bank system collapsed last year. Several banks bankrupted and took others to collapse in the fall.

This is it, I started to think, now we will see the US Dollar drop as a stone in the water.
But no, for every financial institution which collapsed, for every extra Dollar the US national bank Federal Reserve, had to print to make crisis packages for the US president to pump into the system, the stronger the US currency became.

As an example. Right before the crisis started a Norwegian Krone had a value almost like 1NOK = 9PHP, and 1USD = 5NOK
Then the crisis started and suddenly the Norwegian currency dropped to 1NOK = 7PHP
and 1USD = 6,5NOK

Norway has one of the most solid economies in the world, and opposite, USA has an incredible huge debt. So when the economical crisis impact and everybody sells their currency in exchange for US Dollars, then I really starts to wonder.

I read the financial chronicle and got the answer.
When its a storm in the world of finance, and its bear marked at Wall Street, the investors find US Dollar as the only safe harbour, not because its such a good investment, there is just no other option.

My point is, the world economy slowly starts to heal and look what is about to happend.

1NOK = 8,2 PHP, and 1USD = 5,9

And this is just the beginning according the analytics. The US Dollar will continue to fall now that the economies continue to recover.
The US debt will still continue to grow every year and the Federal Reserve continue its 0% interest politics.
Sooner or later the US dollar will loose its position as the world No.1 currency, and Euro or GBP will take over.

What will happend when Federal Reserve no longer can continue to print the same currency as their own debt has as a value? What if China says: \"Pay us in Euro, we don\'t want your Dollar anymore\"?

I have noticed that before, during and after the crisis, the USD to PHP value continue as very stable.
1USD = 48PHP seems to be the rule these days. When the US Dollar rise The Philippine Peso do the same, now when the US Dollar drops, Philippine Peso do the same.

What will happend with the filipino economy if USD become really weak, like 1 EUR = 2USD, or even worst?

What about all the expats living in PH depending on US Dollars?

Offline geno555

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Re: The future of US Dollar
« Reply #1 on: September 10, 2009, 11:26:35 AM »
I wish I knew the answer to your very last statement. In fact I am sure there are many of us living either here or other foreign countries worried over the same thing.

I have some very strong opinions about where any why the US of A is headed, but as this is a site about living retiring in the RP , I will leave my political opinion absent from this post although I wish I could really say what I think ???

Over the years though Living in the Philippines has taught me one thing, well actually it has taught me several but staying Jermaine to this topic the laid back style here, the un-hurried about getting anything done, the understanding if one of your Filipino brother says he will meet you at a certain place at a certain time, he means Filipino time, not American time, so if you say at 12 noon and he shows up at 1:30 pm, just get used to it. It leads to such a less stressful life, in fact so much so that I believe if I had moved over here 20 years ago I would still a healthy man for I firmly believe that stress plays are large part in our physical well being.

Like I have fretted and worried for about a month, about having the electric company approve my pole and it seemed every day there was another excuse, its a legal holiday, the inspector is sick, the general manager is sick, so my wife said to me, why are you killing yourself over somethin you have no power over, and she was right. In the end however I did take the advice of a very good man on here and went to my next door neighbor who has worked for electric company forever and getting ready to retire and is a line supervisor, My friend, I Will keep you supplied in long necks for as often as you need one, if you get my power hooked up, That was last Thursday , today is Thursday and he was here at 7 am hooking up the pole.
C
Clearly not answer you wanted to hear, but living in the RP for the past several several years has taught me one things, well no actually many things, but staying Jermaine to the subject at hand, I have come to learn to think like a \"Filipino\", Life has enough problems for this one day alone why fret over tommorrows problems when they are not even here yet.... :o

Part of adaption for me has been to learn to go with the flow chill out, don\'t worry about the things I have no power of changing...remember the only person you can change is YOURSELF!

IF that don\'t work try the \"Time Pr-oven Tested Theory of my great friend RUFUS   Just have a Redhorse ;D


I\'ve been poor before , but with this large extended family I have They have made it hundreds of years and are still smiling....an isn\'t that what were all here for to retire? ;D ;D ;D

Murf
 

Offline coutts00

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Re: The future of US Dollar
« Reply #2 on: September 10, 2009, 01:30:16 PM »
To my knowledge but Manila Cockney can correct me, the Peso is pegged to the USD and is not a floating currency. Most of the export business for the RP goes to the US, China is fast catching up as a major market. But at the moment the USD is dropping in value like a rock. the AUD has hit .86 per usd where 12 months ago it was .63 per usd. I wish it would return to its previous point, but I do see it happening any time soon.

My 2 cents worth.

Wayne
Wayne  ;D ;D

Offline callme

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Offline callme

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Re: The future of US Dollar
« Reply #4 on: November 10, 2009, 04:33:45 AM »
Today the value of an euro is 1,5usd, and the dollar keeps dropping.
Because of the recovery after the economical crisis the risktakers now sells their US-dollars and look for better investmets.
Gold also seems to be a popular way to get rid of the dollars.
Even the philippine peso have strengthen towards to the dollar: 1USD = 46,88php

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Re: The future of US Dollar
« Reply #5 on: November 10, 2009, 12:54:31 PM »
Something to watch IMO also!

Two Golf Countries has some time ago changed to the Euro for oil payment. One or two more and where\'s the dollar?

A block of 5 Countries meet this year and the topic of a new currency was a topic. China blocked that, for now.

The Asean Countries, (block of 10 Asian Countries), are talking this year about a NEW EU type currency also, and as reported, so they don\'t need to depend on the West.

I\'ve said before, if you want a war without firing a shot, mess with a countries currency.

It looks to me, the dollar is being messed with!!

Foreign Countries are slipping away from the dollar as a reserve from reported 70% to 37% today and the rest in a block of currencies, (including the EU, China and Japan). 
B-Ray

Offline don/dez

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Re: The future of US Dollar
« Reply #6 on: November 12, 2009, 05:47:59 AM »
\"I\'m not the sharpest nail, But I can still be driven\"

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Re: The future of US Dollar
« Reply #7 on: November 12, 2009, 12:33:08 PM »
\"India’s central bank bought gold last month to diversify reserves.\"

200 metric tons of gold and paid $BILLIONS$.

No wonder the price of gold now! 
B-Ray

Down it goes! :(

http://www.bloomberg.com/apps/news?pid=20601082&sid=a6xZX59vB8k0

Offline don/dez

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Re: The future of US Dollar
« Reply #8 on: November 12, 2009, 01:03:03 PM »
\"I\'m not the sharpest nail, But I can still be driven\"

Offline BC Boy

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Re: The future of US Dollar
« Reply #9 on: November 12, 2009, 03:23:50 PM »
I have been considering converting to another currency and only buying physical gold. Having a piece of paper saying i own X amount of gold does not cut it for me.

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Re: The future of US Dollar
« Reply #10 on: November 12, 2009, 08:19:08 PM »
I must admit to not understanding global finance and the importance of gold. Why not have a mythical substance X, give it a value and trade in that? If we must have a physical substance, I propose balut, or perhaps bagaong  ;D ;D ;D ;D

Colin

Offline aerosick

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Re: The future of US Dollar
« Reply #11 on: November 12, 2009, 09:35:14 PM »
There\'s interest gaining in investing in the rare earth elements in the bottom row of the Periodic Table of the Elements:

http://chemistry.about.com/library/blperiodictable.htm

Maybe you can corner that market.

Billy
"We're here to preserve democracy, not practice it."

Gene Hackman: Crimson Tide ~ 1995

Offline GregW

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Re: The future of US Dollar
« Reply #12 on: November 13, 2009, 05:25:18 AM »
Treasury Secretary Timothy Geithner spoke on this just yesterday.

---------------------------

U.S. Treasury Secretary Timothy Geithner said a strong dollar is in the nation’s interest and the government recognizes the importance it plays in the global financial system.

“I believe deeply that it’s very important to the United States, to the economic health of the United States, that we maintain a strong dollar,” Geithner told reporters in Tokyo today.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a6MX.KRaiD18&pos=5

Ako si Goyo.   Amerikano akong lawas pero Bisaya akong kasing-kasing

Offline don/dez

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Re: The future of US Dollar
« Reply #13 on: November 13, 2009, 08:52:43 AM »
Timothy Geithner Ha Ha Ha! let me add Ha Ha Ha! ;D
\"I\'m not the sharpest nail, But I can still be driven\"

Offline coutts00

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Re: The future of US Dollar
« Reply #14 on: November 13, 2009, 12:37:28 PM »
My Hovercraft project is priced in US Dollars, when it began the bidding process we looked to walk away with over 1 mill profit, now we will be lucky if we don\'t owe the customer money... The US Dollar has tanked and will stay flushed for a long time to come....

Wayne   :( :(
Wayne  ;D ;D

 


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