[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.

[Turnsky]

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.

[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.

[Goober5000]

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.

[Clave]

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...

[Tiara]

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?

[kode]

the low dollar works wonders for my personal economy, at least

[Styxx]

The lower it plunges, the closer I come to buying more imported gadgets. So yeah. Down with the dollar.

[Rictor]

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.

[Gloriano]

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

[BlackDove]

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.

[Setekh]

Originally posted by Styxx
The lower it plunges, the closer I come to buying more imported gadgets. So yeah. Down with the dollar.

What, like an Xbox at last?

[Liberator]

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

[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.

[Tiara]

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.

[Liberator]

Of course, it could all all be a conspiracy to undermine the USA's uncontested spot as the foremost power in the world.

[aldo_14]

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)

[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.

[Stealth]

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.

[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?

Anyway, I doubt they'll switch away from US$ - The disruption would be ridiculous. And the Euro is a lame arse currency anyway

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
Gotta love having the highest-valued currency in the world

'course, our exports are now royally screwed...