Euro/Dollar Rate:
http://finance.yahoo.com/currency/convert?from=EUR&to=USD&amt=1&t=1y
The current account deficit:
http://en.wikipedia.org/wiki/List_of_countries_by_current_account_balance
Summary:
Americans are living beyond their means and Asia is currently financing that. But eventually the Asians/Europeans will stop financing the USA and then the bubble will burst. Also check out the 1-minute video which I'm responding to for a quick explanation
Channel: News & Politics Uploaded: September 14, 2007 at 6:27 am Author:GHoeberX
tcmitton(Thursday 8th of January 2009 05:35:44 PM)
I think pat needs to realize the double kicker US faces here or, least come out and deny it exists with supported evidence.
1st,, US$ are no longer traded in mammoth amounts as the only means to accuire oil whick makes the 2nd hit, beacuse of this, huge swaths of US dollars arn't needed to be kept additional in reserve by every nations in the world
Tell me if Euros are allowed (like in Iraq before invasion) why anyone would choose a bankrupt US$ when the Euro can get them that same oil?
tcmitton(Thursday 8th of January 2009 05:26:57 PM)
@Pat you recognize 2/3 of US$'s are kept outside the US and dont see the fragile situation here if US dollar was kept of the world oil trading block?
Reseves are kept by any nation to meet energy demand . How does a nation exist if it can't run in the 21 century ? SOrry whats more important? ..*silence* lol
Please don't try to wrestle from realty son. OIl in Euros has already begun and so coincidently has a shift from US dollar in nations holdings .You know who dire this is, you just said it
tcmitton(Thursday 8th of January 2009 05:22:03 PM)
"They also keep large reserve quantities on hand to peg to it and stabalize their own economies. 2/3 of all USD are held OUTSIDE the USA. "
Truth that supports realty you fail to see. Your talking about HARD currency like the US$ still is today only cuz its still supported by the worlds insatuable need for oil. The Euro is stripping that status bourse by bourse. Currency is made 'hard' by peggin it to oil markets ex:Russia forcing Euro's to be converted to rupees in vast sums to meet gas needs
tcmitton(Thursday 8th of January 2009 05:08:18 PM)
"Wrong again. Foreign nations do not hold USD only to get oil. They hold USD in reserve because of its safety. "
Wait, who says IM wrong, You? lol
They have security (US bills) because they buy oil. Thats it. God, try to take that in. The dollar had a monoply on aquiring oil. NOw its over.
THe reason any money has worth close to US$ tells its in possesion (that nation) of real worth, not a scam set up by Fed through nixon, thats ready to crumble whenever a Euro strengh currency came along.
tcmitton(Thursday 8th of January 2009 08:57:37 AM)
The time it takes nations tied down with US debt load and lucrative human expliotion contracts to make a clean break is lenghty. Here US can try to take out the purps agaist the dollar,those who control oil and gas supply.
Russia,They sell all their oil n gas in US! People say the ruppee is shit but that can change with one policy flip to the ruppee. Euro has no choice but to go along or go in the dark. US must nutralize the threats buy making it hard to switch.Coincidence we see this now?
Satchindra(Wednesday 7th of January 2009 03:59:10 AM)
stupid american assholes, god damn cancer of the earth
what nixon did in 1971 is irrelevant. the gold standard was laden with problems. also, every country in the world runs on fiat currency so unless you plan on moving to the moon you are stuck with it. as far as the euro goes its not strong on its own merits. its current strength is in relation to other countries lowering their i rates. once the eu cuts their rate (they are notoriously slow to act) they will be more in-line. so as the US exits recession, europe will remain in the middle of one.
Tmack1015(Wednesday 7th of January 2009 02:33:50 PM)
I dont think you take into account How far USA is in debt to others and what the effects of this debt being called in for payment will do
You're assuming that everyone will call in their debt at once...which of course will never be the case.
tcmitton(Thursday 8th of January 2009 08:48:23 AM)
I have Cdn$. They are not used in any 'small' way such as US' dollar is used round the world for running every factory, domestic tool, auto etc in are existence today.
The US$ is bought in mammoth clumps to get oil. Its held it huge swaths by every nation only for this reason. Let the Euro in and all the underlying rot of the US system which has not failed to completly suck in all power nations in debt grasp for its monoply to stay as long as possable is exposed.
Nations will shed the US$
