The Shrinking Dollar

[Cap'n Jib]

The 40% devaluation should occur ‘naturally’ at the end of 2011. The current rate of inflation is 10.2%, so in four years time, the dollar will be worth 40% less. Everyone knows that things cost more today than a few years ago, however, the government has chosen to submit sham numbers (core CPI) instead of the old method of tracking inflation. John Williams’ at Shadow Government Statistics maintains the statistics as they were constructed in the past.. http://www.shadowstats.com/cgi-bin/sgs?


The $7 figure for gasoline is based on the value of ‘today’s’ dollar. You are correct that using inflation on inflation calculations the number would be closer to $12.

Unfortunately, the U.S. can not afford a strong dollar any time in the foreseeable future (15 years). We just do not have sufficient income (taxes and the like) to pay off current government debt. We ”borrow” almost 2 Billion dollars each month from the Chinese and Japanese to ‘fund’ our government obligations. If we can not pay for our current expenses now, a stronger dollar (less of them in existence and printed) will put the U.S. in a position of not having enough money on hand to physically pay off interest owed each month on debt.

[LastLion]

Dude; Clinton had us on our way out of debt! It can be done again. Although I do not like to ignore problems, I feel sometimes people inflate them and talk about what is going to happen if we continue like we are, rather than what can happen if we do this or that instead. I find some of these insights to be of actually the perpetuators of DOOM!!

Rather than the instigators of Success!!

Just 2 cents, Don't get caught up in the hype, just do whats right!

Get us Out of Iraq, down with bush!!!!!!!!

[Lostagain]

"Get us Out of Iraq, down with bush!!!!!!!!"
"Unfortunately we have the worst fricken President in HISTORY and some wussies in office. They are destroying our economy!!!!"

Dang, Lastlion, I wish you'd stop being so equivocal about things and come out and state your opinion with the strength of your convictions and emotions.

My personal feeling is that if we can get rid of the neocons and have a little more sophisticated group running the show in our national government, we have a real chance to deal with a lot of the issues that can drag us down in the coming decades. Unfortunately, the ignorance and doctrinaire simpletons who inhabit the our current executive and judicial branches of government are steeped in the politics of a 13 year old bully with raging hormones fighting on the playground of his school.

Eventually, we are going to have to recognize that the nation-state as we know it is becoming an outmoded institution no longer capable of dealing with the multi-national companies, stateless religious terrorists, and a single world economy, not to mention the borderless ecosystem of the world. It is time to begin to consider national borders as irrelevant artifacts of a past age.

[HonkyTonk]

I have a good idea. Why don't we start GringoTalk MiddleEast?

[LastLion]

Originally Posted by HonkyTonk

I have a good idea. Why don't we start GringoTalk MiddleEast?

Whatever!!!!!!!!!!

Unfortunately our govenrment and its policies do 2 things that really impact our journeys in LAM. One is what this thread is all about "OUR DOLLAR" the other really big thing is how we and our country is perceived when we travel. If you don't think Bush and his policies affect us when in "JUST ABOUT EVERY COUNTRY IN THE WORLD," in a negative way!!! Well just think about it!!

As a result our dollar is over 25% less to the colombian, than when I travelled there last year! It will get worse for us before it gets better.

[El Capitan]

It's nice to think that we can make our "Dollar" stretch further in LAm, but should it be the focal point of why we go there?

If it is, then we're going for the wrong reasons.

And as far as the current ding-a-ling at 1600 Pennsylvania Ave., he may not be staining any dresses, but he's damn sure giving us a black eye around the world.

The problem is, I'm afraid, is that we've so denigrated the position, that no one worth their salt would dream of occupying that position. He'd rather be chasing dollars at the CEO level in Corporate America, which unlike the Federal Government, has managed to go global in its thinking. We're still trying to figure out how to protect positions that don't exist anymore. Why do you think Daimler bailed out of Chrysler...at a huge loss? It wasn't because their incapable of producing a quality automobile...maybe it was because it was cheaper than dealing with the UAW, and being held hostage to an out of control benefit and pension package that it provides it's members.

There we go again...the dollar thing keeps cropping up....

Maybe we should contract out the White House Position, and headhunt for a CEO instead. At least the board could fire him at will then, instead of going the impeachment route.

Is the alarm clock ringing yet?

[Lostagain]

Does that mean when we kick him out as CEO that we have to give him billions of dollars in stock options and a golden parachute worth ungodly sums of money no matter what his performance? I think I'd prefer the old fashioned coup de ta.

[El Capitan]

Originally Posted by lostagain

Does that mean when we kick him out as CEO that we have to give him billions of dollars in stock options and a golden parachute worth ungodly sums of money no matter what his performance? I think I'd prefer the old fashioned coup de ta.

LA...you're much more charitable than I had anticipated ...I was thinking of a coup as well, but more along the line of a good old fashioned coup de grâce to put the poor little lamed duck out of it's misery.

Pâté de foie gras, anyone ?

[Bueller]

Originally Posted by Cap'n Jib

Somewhere around the years 2010 and 2013 the U.S. dollar will be ‘merged’ with Canada and Mexico to be tentatively called the Amero. This will have the effect of ‘reducing’ both the U.S. labor costs as well as pegging a ‘new’ currency to compete with the Euro and the one to be formed by the Asian nations.

I swear, I looked for this on snopes.com, thinking that surely it must be just an internet rumor. Apparently it's not. WHAT THE...? Are they insane?

[LastLion]

I like the Idea of a coup!!! That would shake things up a bit. Personally I don't feel like my dollar is meant to exploit anyone. My concern about the shrinking dollar is that it is shrinking in every market, not just LAM!!!

Of course if we have a universal north american dollar, it will hurt for awhile but in the long run it will be worth it. Just my to red american cents!!!