Hard Light Productions Forums
Off-Topic Discussion => General Discussion => Topic started by: Tiara on December 17, 2004, 03:52:54 am
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With the Dollar doing quite badly in the global economy and the Euro going very strong, it is a very real possibility that if things continue along this trend, that the world banks will trade in the Dollars and use Euro's as their main currency. The Dollar would most certainly collapse completely because of this and the American economy wouldn't be too far behind.
Any thoughts on the effect on the world?
Before anyone says "They won't trade in the Dollar because America ownz0rz!!!111" or something; please go play hide and f*ck yourself. It is a very real possibility.
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Originally posted by Tiara
With the Dollar doing quite badly in the global economy and the Euro going very strong, it is a very real possibility that if things continue along this trend, that the world banks will trade in the Dollars and use Euro's as their main currency. The Dollar would most certainly collapse completely because of this and the American economy wouldn't be too far behind.
Any thoughts on the effect on the world?
Before anyone says "They won't trade in the Dollar because America ownz0rz!!!111" or something; please go play hide and f*ck yourself. It is a very real possibility.
well.. i can see economies other than america being bolstered, with the US languishing for many a year thereafter.
here, have a look at the US dollar compared to other world currencies.. http://www.xe.com/
hell, one US dollar equals $1.30 AUD, and if that trend keeps up, the Australian dollar is gonna match, then superceed the US dollar.. scary, huh?
then again, as much as the US government likes to think... the world does NOT revolve around the united states of america. :p
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The US needs to take serious measures to reduce trade deficits with her trading partners, stop over-spending the budget and cutback on programs of marginal benefit.
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Agh, I heard an interesting discussion on the dollar just this week, and I can't remember where I found the article...
Basically, there are pros and cons for countries thinking of dumping the dollar. For one thing, it would seriously shake things up in the short term. So it sounds like people want to maintain the status quo for now.
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The dollar is needed for symbolic value if nothing else. People round the world all know dollars, they don't know euros all that well... Hell, I've never even seen a euro. I guess having a strong pound is good for us Brit tourists tho...;)
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Originally posted by Clave
The dollar is needed for symbolic value if nothing else.
Symbolic value my ass. If it isn't worth anything it won't be used. Do you really think that mega-corporation even give a **** about symbolism?
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the low dollar works wonders for my personal economy, at least ;)
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The lower it plunges, the closer I come to buying more imported gadgets. So yeah. Down with the dollar. :p
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Originally posted by Turnsky
hell, one US dollar equals $1.30 AUD, and if that trend keeps up, the Australian dollar is gonna match, then superceed the US dollar.. scary, huh?
Same thing in Canada. The Canadian dollar is doing really well compared to the American one, and its only looking up.
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Any thoughts on the effect on the world?
There would be side effects, like some Companys would have big proplems because they depend on dollar and lot other things.
but then again, i don't care if dollar goes down it or not. In my ersonal level both options are good
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Just a note for you who didn't keep the track of the world economy before:
At the end of the Clinton administration, the dollar's worth on the world market was almost double than it is today.
What's the lesson for all us Europeans? Trade in your Euro's for dollars, and start buying **** off ebay.
REAL cheap.
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Originally posted by Styxx
The lower it plunges, the closer I come to buying more imported gadgets. So yeah. Down with the dollar. :p
What, like an Xbox at last? ;)
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Originally posted by BD
Just a note for you who didn't keep the track of the world economy before:
At the end of the Clinton administration, the dollar's worth on the world market was almost double than it is today.
Two Words:
Internet Bubble
At the end of the Clinton Administration, even though the IB was almost deflated, the economy was still riding on it's effects.
Do that again and you'll be banned from the main forums. I'm getting tired of the constant insults. // Styxx
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This I find to be a bit off, as the dollar is still 3rd. I dont see anyone bashing the yen, rupee or peso.
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Originally posted by Krackers87
This I find to be a bit off, as the dollar is still 3rd. I dont see anyone bashing the yen, rupee or peso.
Eh, this isn't about bashing the dollar you know. This is about simple economic facts. The main international banks and corporations use the strongest currency for international trade. Seeing as the dollar has dropped significantly, it is certainly viable for them to use the Euro since that is now that strongest currency.
This will boost the Euro even further and will end up making the dollar take a crash dive.
Unless the US gets their act together, the dollar is projected to drop even further. And seeing that they are already in the danger-zone, that isn't exactly a favorable situation for the US.
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Of course, it could all all be a conspiracy to undermine the USA's uncontested spot as the foremost power in the world.:drevil:
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I wouldn't say 'uncontested'; if China continues it's growth it'll become the dominant economic superpower (not to mention it's moves to grab control of key oil, etc, sources in Africa).
(of interest? v)
(http://newsimg.bbc.co.uk/media/images/39610000/gif/_39610671_major_currency_203gra.gif)
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Actually, IF Germany and France can work away their deficits and get their act together, Europe stands to be a very large economic powerhouse.
The utterly massive[/u] national treasury deficits of the US will turn them into a third rate economic power behind Europe and China in a decade or so unless they too get their act together. And the way it's going now, the deficit will be so huge, it won't be overcome for another 2 or 3 decades. In the beginning of this year the US budget office projected a $477 BILLION deficit. And the Bush administration isn't helping either.
Consequently, this deficit is the drive behind the rise of the Euro. If the US can't get their deficits under control in the next few years, the Dollar will lose it's place as the main international currency and you can say goodby to the global superpower of the US because without a decent economy, the US is no longer the greatest power in the world due to the inability to support it's own infrastructure.
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Originally posted by Tiara
The utterly massive[/u] national treasury deficits of the US will turn them into a third rate economic power behind Europe and China in a decade or so
...you can say goodby to the global superpower of the US because without a decent economy, the US is no longer the greatest power in the world due to the inability to support it's own infrastructure.
EDIT: after re-reading everything, i must agree with you for the most part.
although i don't think it's going to be the nation's deficit that brings about the fall of the world's only superpower. if it ever happens, i think the economy's going to be part of a domino effect.
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I'm a bit confused here... see, I KNOW Pound Sterling is worth more than any other currency - ATM IIRC It's £1=$2=€1.5, so what is all that stuff about strongest currency? Or is it encompassing the whole thing as opposed to just the exchange rate?
Anyway, I doubt they'll switch away from US$ - The disruption would be ridiculous. And the Euro is a lame arse currency anyway :p
I don't think it's too bad that the Dollar is 'weak' - It just means their exports will be stronger than previously.
It's also good for us Brits because we can import more stuff cheaper :D
Gotta love having the highest-valued currency in the world ;)
'course, our exports are now royally screwed...
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Originally posted by Cyker
I'm a bit confused here... see, I KNOW Pound Sterling is worth more than any other currency - ATM IIRC It's £1=$2=€1.5, so what is all that stuff about strongest currency? Or is it encompassing the whole thing as opposed to just the exchange rate?
Ofcourse it encompassing more then just the exchange rate :p The Dollar and the Euro are the two most widespread currencies around. The Pound is only used in England. I bet that if you ask some random Italian guy on the street if he wants 4 pounds he'll say "Wtf do I want 2 kilo's for?" ;)
Anyway, I doubt they'll switch away from US$ - The disruption would be ridiculous.
:wtf: You obviously don't know much about economy. If the dollar gets weaker, profits go down. If profits go down, corporations freak out and will eventually switch. And when one mega-corp decides to switch it will become a simple domino-effect because intercurrency trade is not prefferable.
And the Euro is a lame arse currency anyway :p
*rips Cyker a new one with Teh Axe for making a useless statement like that*
I don't think it's too bad that the Dollar is 'weak' - It just means their exports will be stronger than previously.
:wtf:
Dollar is weak -> export product become cheap -> less revenue
Dollar is weak -> more expensive import -> higher costs
It's also good for us Brits because we can import more stuff cheaper :D
That's true :p (though that still depends on tax and ****znit)
Gotta love having the highest-valued currency in the world ;)
Actually, that's a double-edged sword you got there.
'course, our exports are now royally screwed...
Exactly :D
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Originally posted by Tiara
Actually, IF Germany and France can work away their deficits and get their act together, Europe stands to be a very large economic powerhouse.
The utterly massive[/u] national treasury deficits of the US will turn them into a third rate economic power behind Europe and China in a decade or so unless they too get their act together. And the way it's going now, the deficit will be so huge, it won't be overcome for another 2 or 3 decades. In the beginning of this year the US budget office projected a $477 BILLION deficit. And the Bush administration isn't helping either.
Consequently, this deficit is the drive behind the rise of the Euro. If the US can't get their deficits under control in the next few years, the Dollar will lose it's place as the main international currency and you can say goodby to the global superpower of the US because without a decent economy, the US is no longer the greatest power in the world due to the inability to support it's own infrastructure.
The problem is that shrubs think that deficit spending is encouraging the economy, or at the very least it has no effect on the economy.
In reality blantant fiscal mismanagement is pinning down what is otherwise a versatile economy.
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Doesn't the "strong euro + weak dollar" equation have some pretty serious consequenses on EU economy? I will now admit that my knowledge of economics is pretty close to nil, so please, educate me.
edit: I mean import economics, which are pretty important to most of EU countries.
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Yay for a budget surplus in Canada. Our politicians aren't quite sure of the numbers but we've got one :D
Canadian dollar hasn't been this high for years...for a very long time. Its ground breaking at the moment actually.
Still, a US economic shakeup would probably have a far reaching effect.
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I know virtually nothing about economoics, and yet, when I hear about all this fun deficit spending I thought something like this might happen.
Sigh.
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Originally posted by Janos
Doesn't the "strong euro + weak dollar" equation have some pretty serious consequenses on EU economy? I will now admit that my knowledge of economics is pretty close to nil, so please, educate me.
edit: I mean import economics, which are pretty important to most of EU countries.
Yeah probably. I've read about Japanese economy but the situation should be similar with Europe.
Car companies (probably the biggest international business Japan has) like the strong dollar because when they do business and get profit in the US they get their profit in dollars. When you take these dollars over to Japan (exchange rate used to be in the 120s, now a scary 104 yen to 1 USD) you get even more profit from the exchange.
If the dollar gets too weak there's a point at which international business in the US gets less profit than selling cars locally in Japan and they lose profit from the exchange.
I think this will be good for European consumers though. More companies will want to do business in Europe. Even if international businesses based in Europe get hurt the increase in foreign business might make up for some of that...
Correct me if I'm wrong, it's been a while since I've read about economy :nervous:
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Actually, while import inmto Europe will be more limited, the domestic economy would grow (as Kami said). All-in-all, while it does have some negative sides, the end result will be a far stronger European economy that will eventually forego the need to import from the US.
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Originally posted by Tiara
The utterly massive[/u] national treasury deficits of the US will turn them into a third rate economic power behind Europe and China in a decade or so unless they too get their act together. And the way it's going now, the deficit will be so huge, it won't be overcome for another 2 or 3 decades. In the beginning of this year the US budget office projected a $477 BILLION deficit. And the Bush administration isn't helping either.
... that's it?
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Originally posted by Tiara
Actually, IF Germany and France can work away their deficits and get their act together
That's not likely to happen in the near future. Not with that teacher for language and history as financial minister...:rolleyes:
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The US Government is actually trying to force down the dollar to encourage exports or something....
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Gordon Brown for control of EU finance ;)
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In case you havent noticed your countrys near recession. Browns not an ideal candidate.
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Originally posted by Liberator
The US needs to take serious measures to reduce trade deficits with her trading partners, stop over-spending the budget and cutback on programs of marginal benefit.
I think you're actually correct. Something that I don't think you or most other people realize is that the neo-cons are overspending on purpose, even during times when it is unneccesary.