so that whole dollar-situation
 

is anyone worried about a global crisis yet?

(i know this thread sucks, but i wont put any great effort into writing somthing before i know someone starts some kind of discussion on the subject.)

Re: so that whole dollar-situation
 

What wouls happen in case of a global crisis? I really can't see the problem with all this. Dollar collapsing, Euro exploding, American stuff becoming piss cheap, European export to the US stagnating, resulting in high supply, low demand situations for native products, consumer prices for native products dropping as a result of this, so a few companies go bankrupt.

I know nearly nothing about economics, so what I wrote is probably bollocks, but I can't really see how this is going to affect me in a negative way.
Outline this crisis stuff for me in a way I can understand it.

Re: so that whole dollar-situation
 

dollar falls -> exports from rest of the world to usa fall -> usa most important market for the rest of the world -> rest of the world in recession because they can't sell their shit -> rest of the world stops investing money in the us -> interest rates and inflation in the us rise -> us in depression -> exports from the rest of the world to the usa fall -> etc.

Re: so that whole dollar-situation
 

etc -> companies have too many products in stock -> companies offering their products for dump prices -> more crap for us to buy -> me getting a new computer for a silly low price -> me getting a new digital camera for a low price -> me importing a neat car from the US for a low price

Really, why shouldn't --> I <-- be happy about the US economy collapsing? That's my question.

Re: so that whole dollar-situation
 

companies being low on cash -> companies firing people -> you getting laid off -> you not being able to find a new job -> you having to spend your money just on food and rent -> you not even being able to buy shit at dump prices -> etc

Re: so that whole dollar-situation
 

the problem is that you don't buy a new computer or a new digicam if you lost your job :/

edit: off now to buy cheap electronics with the money i got for christmas \o/

Re: so that whole dollar-situation
 

Oh... yeah... that would be kind of crap. :(

Re: so that whole dollar-situation
 

as long as i can buy things cheaper then i dont care if the dollar crashes into oblivion

BRING ON TEH $2:£1!

Re: so that whole dollar-situation
 

GD: Ignoring basic economic theory since 2000.

Re: so that whole dollar-situation
 

D_M ignoring time since the stone age

Re: so that whole dollar-situation
 

China is not ready to have their currency out on the open market free to influences to changes in value, they don't have the infrastructure yet in place to handle it.

The US will happily sit on brazil and china to support their massive trade deficit.

Of course this would possibly not be a problem if we didn't artificially bouy the Euro at the start of the millenium...

Re: so that whole dollar-situation
 

damnit DM :(

Re: so that whole dollar-situation
 

Do you mean that china and brazil are supporting the US trade deficit now or that they will in future?

Re: so that whole dollar-situation
 

China does, they have to because thats the only way to keep their currency pegged to the dollar. i doubt theyll do that forever though. they already have currency reserves of $600 bn. (The Federal Reserve has about $40 bn + some gold and some SDRs)
About Brazil, i don't know, never heared about them messing around with the market and with their small share in world trade i don't think they could make much of a difference anyway.

Re: so that whole dollar-situation
 

Do you seriously think this all was caused by a small intervention 4 years ago?

Re: so that whole dollar-situation
 

brazil has the eighth largest economy in the world and i tend to doubt that it's heavily internal. but china's contribution is far more significant in terms of size and potential consequences.

Re: so that whole dollar-situation
 

i only had a quick look at the world fact book and it said that brazil exports goods worth something around 80bn a year and imports something around 40.
The us exports goods worth 600-700 bn and imports goods for more than a trillion. i doubt Brazil makes much of a difference for the dollar.

Re: so that whole dollar-situation
 

I could do it again for New Year if that'd help any...?

Re: so that whole dollar-situation
 

by 'new' you mean 'all of next', right?

Re: so that whole dollar-situation
 

I'm pretty sure I posted this before in answer to sunday spouting the same drivel at a previous moment in time but Brazil really doesn't have any bearing on the US trade deficit. Anyways it's clearly all about Japan guys.


This also amused me.

Re: so that whole dollar-situation
 

Only if my hand were to TOTALLY BY ACCIDENT OH YES INDEED slip when I was making the selection on the ban period...

Re: so that whole dollar-situation
 

Hey guys, stop beliving in the money and banks and live free :cool:

ps smash your local bank now anarchy now!

Re: so that whole dollar-situation
 

Yes, yes I do, cause I think it's set the pattern for the US to behave how they want about their currency atm knowing that the EU won't force their hand on the issue ultimately.

Re: so that whole dollar-situation
 

I doubt Bush WANTS the dollar to fall, he just realised that there isn't much he can do about it, so he's coming up with all that crap about boosting exports, reducing imports and so on. Not even the Federal Reseve could do much with its small reserves in foreign currencies.
The only ones who could support the dollars short term are foreign central banks. The ECB for example could easily buy as many dollars for euro as it wants. Obviously this would have a negative influence on inflation, but its still better than a global crisis.

Re: so that whole dollar-situation
 

most economists disagree with you on this subject.

Re: so that whole dollar-situation
 

i don't really care.
I am, however, worrying about if there's finanical gains here to be made that i'm not seeing, as it's $2 for £1 etc...

Re: so that whole dollar-situation
 

Dollar falls -> US national debt worth naff all -> US escapes complete bankruptcy.

Quite clever really, I doubt Bush thought it up though.

Personally, I'm in a really strong position at work so I like the weak dollar. Means I can buy stuff cheap from the US and feel like I'm doing charity work ;)

Re: so that whole dollar-situation
 

But it also means a lower standard of living in the US, its going to be hard to explain this to the voters (ok, he probably doesn't have to worry about that, but anyway).

Re: so that whole dollar-situation
 

If someone starves to death in the United States, it will mean that person was too lazy to beg for food. Or did you mean too poor to buy pirated copies of the latest movies?

Re: so that whole dollar-situation
 

no, just a lower standrad of living, like in less goods for your money.

happy new year, btw.