(edit title) The Future of the US dollar. It may be dead Options

[Rikey]

Take a look http://www.advfn.com/p.php?pid=qkchart&symbol=FX^USDSEK

Given these parameters:

1. The US is in debt abt 13 trillion. Real debt is more like 300 trillion. That is unfunded debt, pensions that must be paid to current workers.

2. Gold was 1300 USD per ounce

3. Repub. will take Congress and will not raise revenue.

What can the US do? They can declare bankruptcy, like Argentina and thus never rule again. They can try to carry debt forward like the past administration. With low interest, that buys time and time only. Or that can trash the dollar and pay back money owed with a weaker dollar. I think that is the best alternative from our side but it will not go down well anywhere. A weak dollar will result in Americans buying less from other countries,. As a result, Europe goes in another recession .A weak dollar makes our goods attractive to you.

The sKr floats between 10 and 6 per USD. The dollar is going straight down now. Today 6.66 per 1USD. It was over 7 a few weeks ago

If the dollar breaks 6 kro., all bets are off as to how far down it will go. Say 4 krs per dollar. There goes my vacation. Both sides lose.The above chart is for 5 years only. I can not find one for say 20 years. That might answer the question.

Am I missing something?

[JLondon]

I'm not an expert in finance, but I still think it will be the reserve currency.

Basically USA will sweep it under the carpet! And then another bubble with pop.

So much for Obama, when his position is up they will have an even bigger deficit!

[Furu]

The US is in debt abt 13 trillion.

Are you talking about deficit? The news said it was $1.3 Trillion.

[Rikey]

13 Trillion. I hate to post this Look out

http://www.usdebtclock.org/

If we weaken our currency, Sweden will have to do the same.

It is ugly deflation. A race down.

[Rikey]

That clock is something. Each person in the US owes 176,149 dollars. Just while posting the debt has grown by 1 million.

It is like China has a gun to our head and we the same.

The figures are like talking about our Universe. They are so high that no one can relate to them.I agree that they will try to bury the numbers. This is one advantage to the internet.

Have a nice vacation in the US next summer.

[Furu]

If we weaken our currency, Sweden will have to do the same. . It is ugly deflation. A race down.

A weakening currency causes inflation.

Why Sweden has to do the same?

[Furu]

13 Trillion. I hate to post this Look out

I mean "Federal Budget Deficit of 1.3 Trillion" in your link.

[Rikey]

If you go to the clock, it lists debt of 54 trillion.

Yes printing money like crazy is thought of as a prelude to inflation. Like Japan. However, the world is in such a mess re deflation that it will have no effect on inflation--at first. Gold will climb to really stupid values, then crash like all bubbles.

Export prices are the key. Who can stay afloat by exporting the most. And to do that you must have cheap money. As has China. It is not that complicated.

Cheap money forces your population to import less, boasting your internal manufacturing. But the US has little the world wants now. Most of the plants have closed.

The Swiz have down the right thing for so long. Swiz frank was 5 to 1 USD. Now it is at par 1 to 1.

[Furu]

The Swiz have down the right thing for so long. Swiz frank was 5 to 1 USD. Now it is at par 1 to 1.

Swiss Bank secrecy will end once the tax treaty with Germany is signed.

http://www.businessweek.com/news/2010-10-0...nk-secrecy.html

[Rikey]

Yes. But the Swiz mark will remain solid.

The important feature of that clock is money taking in is 2.1 trillion. Money owed is 13 trillion.

To fix everything they should balance.

Note that 683 billion is listed as war debt. That was a trick of Bush. He took war debt off book so as to hide it.

[swozzie]

The Swiz mark ? Is that related to the Swiss franc ?

[Rikey]

How dumb of me. And thanks for not shooting me.

I always think mark and add one mark/franc for swiz.

Anyway

[Zoolander428]

I'm with you the dollar will probably sink a bit more... but completely crash? I doubt that though. And it will have to go a lot farther down than just 6:1.

In April 2008, it was 5.89:1, and bounced back to over 9 less than a year later.

http://www.xe.com/currencycharts/?from=USD...SEK&view=5Y

[hjoian]

somethings got to give...the middle east could bankrupt the states just by withdrawing its cash from US banks. Its been a badly run economy by people who cant see beyond their own nose, and who dont give a fkuc anyway. The global crisis was sparked by bad US bank practice, but also highlighted every other countries fiscal weakness. Just like any company, no country is too big to go bankrupt...its just a matter of time...i dont think the rest of the world is quite ready to bail out the US...and they shouldnt have to.

[byke]

From my understanding, one of the biggest reasons for the US invasion of iraq was based on the fact that saddam had started selling oil in euros rather than dollars and there was speculation that others would do so which would weaken the dollar considerably and give the US less borrowing power.