Down goes the Dollar

The US dollar continues its downward trend. Today the euro stands at $1.58 against the dollar and seems to be climbing higher and higher as the dollar continues to fall. Since 2001, the US dollar has lost almost half its value on the world market. Personally, I think the depreciation of the dollar has a lot to do with the war in Iraq and the billions and billions of dollars of debt the US government has attained as a result. Also resposible for the dollar's decline is the "credit crunch" and that is the result of people overextending themselves and not being able to pay for items they bought on credit. Part of the problem is that credit is too easily availible in the US. I've heard stories of banks making loans without any income varification and it's possible to obtain a credit card very easily. In fact, the average American household has something like 15 or 18 credit cards and more than $10,000 in debt on those cards. I can understand having a credit card or two for traveling, emergencies, shopping online, ect. but 15-18 cards for one household is outrageous. I think getting out of Iraq and more responsible use of credit could help slow and (hopefully) reverse the dollar's decline.

I actually don't think that getting out of Iraq is the answer to halting a recession, although the credit issue I totally can agree with. Until just a few years ago in Korea no one could get credit for anything; people saved. In order to boost the economy, the govenment and big banks worked together to create a credit card industry, with cards going out all over the place, and not only do they not have the resources to pay, they have no experience with managing credit. They now have bankruptcy rates and never did before, as well as an alarming suicide rate.
I truly, really hope that the world is going to get its act in gear on Iraq (we have many of the same issues in Canada surrounding Afghanistan - smaller scale but BIG mess). The thing is that once you're in there, you've got to see it through for the people there as well as your military.
I think the biggest impact on the dollar has to do with a lot of people with great influence over money, oil, drugs, and a tremendous capacity for greed. Oops, did I actually type that? Well, I guess it'll have to stay in there now...

I have to agree with Gordon that the value of the dollar is tied to the war in Iraq. The cost of the war placed our country in debt - a huge debt. To pay for things, they printed more money and that hasn't stopped. On top of that, we are borrowing heavily and the cost of that worsens the situation.
America's economy affects the world economies - just as does the NY Stock Exchange. It has a domino affect.
I personally feel the impact of the Dollar -vs- the Euro. When I came to Europe (2001) the dollar was on par with the euro. My pension is in dollars which means I began losing money each month as the dollar declined in value. Today I receive more than 50% less when it is converted to Euro. That is just one example of how the weakened dollar affects people and business.
My loss is nothing compared to the loss of life caused by the war. That has and should be our focus. Stop the War! Stop the Killing!

I certainly hear what you are saying about money Abe. When the US dollar started dropping, the Canadian dollar reached par, which if you are Canadian and want to shop in the US is a great thing. However, the other effects of that are the number of US based businesses that were here because it was less expensive for them to operate, and are now pulling up stakes because they can no longer survive here. Many of them were establish ed themselves in little communities that were vastly underemployed and had few other options (used to be fishing and mining)...and now leave those communities, once again, unemployed. It really is a global marketplace that we find ourselves in.
I'm not saying don't stop the war - I think it's an outdated, stupid way to operate and, truthfully, I'd just like to see all my friends safely back home. And it is a huge black hole of a money pit. I just don't think it's going to be an easy transition, for anyone, and now that it's been started must be carefully deconstructed -but that's likely a whole different conversation.

I truly feel that the powers that be are aiming at a global economy. I think that all the 'out sourcing' is a way to accomplish it. One must wonder how much the people in other countries are being paid to do jobs that have been sent elsewhere because it is cheaper.

There are just so many people out of work everywhere in the world, it is a shame. Some jobs have been created in other countries, but as you say Pam, when it is no longer highly profitable, the jobs are yanked out from under people.

I have heard more than once that the US is actually owned not by those of us who live here, but by every other country that has had the money to purchase us!!

Perhaps we will all wind up on farms raising our own commodities, as it was so very long ago. Back to the horse and buggy, either figuratively or literally. Ah, the simpler times gone by don't seem so far off now.

I think I will go plant some more tomatoes and spinach!!

One Euro = $1.60

One Canadian dollar = 1.00US this morning
Good for Canadian cross border shopping. Not so great for our American friends, nor Abe way across the ocean.

On another note, Zada, about growing vegetables. We are looking at ways here to encourage local food operations (not pot, but actually farming) because of the cost of transportation. We are calcualting the actual cost of the food on a "per mile" basis to demonstrate what the actual cost is. I've seen them do this with bottled water and it is fascinating to see the negative impact we create by shipping food all over the place. Somewhere, sometime I suppose when gas seemed cheap and it was okay to ship tomatoes a gazillion miles, we truly lost site of growing things locally. We buy produce from all over the place and plow local farms under to build golf courses. We spend $$$ on transporting food, waste gas and pollute the environment to make sure that we have strawberries for about three quarters of the year. Sadly, those strawberries we ship from Mexico or California in February taste nothing like the local ones that are ready in August. Time to get back to the earth. I think I am turning into a hippie...

Pam,
much has to do with the locality. I remember when I was in the Canadian west, they calculated how many acres was needed to support a cow. In the States, they calculated how many cows could be grazed per acre.
Areas within North America vary as it does around the world. Too often rationalizations are made without considering how applicable it is from area to area. In North America there is still space that has not been tilled or inhabitated.
Where I live, the areas designated for agriculture are fully used. There are areas that are strictly for forests and that is preserved. Building can only be done in areas prescribed for that. Conservation of land/space and the ability to provide services are part of the strategy. It is a different culture and the needs must be evaluated separately. Space is an important factor. Preserving the environment becomes even more important with each passing year.

I agree preservation as a goal Abe, and you are right Abe, in how much it varies from one region to another. Although there is space here that has not been farmed, it is pretty much because it is so inhospitable to farm (short growing season in the northern regions, mountains, rock and so on) and plenty of good farmland in west and central Canada is now under roads and housing. Despite that, there is plenty of space here should people choose to, and I think they would choose to if they could make a living and have decent places to school their kids. If they (whoever they are) planned better, we could easily sustain our population, but that is tough to do if you are trying to farm muskeg. Weirdly though, from my home province we export about 80% of what we grow, then truck other stuff in to replace.Just doesn`t work for me.
I have decided that once I am raking in oodles of money from my books, I will establish a wee grow op of my own and raise vegetables and critters for the local folks and thier B &Bs. You can all come visit and spend a day at the farm. There is even really good wine made around here, in case anyone needs a little encouraging (jeez, here I am now encouraging tourism -- you`d think I worked for the government or something).

"I have decided that once I am raking in oodles of money from my books..."

Pam,
let me know what kind of rake you use. I could use something like that especially with the Euro/Dollar thing.

When we all take you up on your invitation (of course that comes after you've been using that special rake) I'll bring some wine with me in case you run out.

Abe that'd be great! I quite enjoy German wine, and it's always good to have balance in our lives.
As for the type of rake, I am thinking of one of those fan shaped ones, with a good long handle and a nice wide spread. I'll let you know how it works out!

Oh yes, a rake with lots of fans. I'll buy one of those!

Abe F. March wrote:

One Euro = $1.60

Unfortunately, I think it could go a lot higher than that. I think it's highly possible that the euro will top $1.75 before the end of this year.

Gordon,
It is sunday. It was my day of rest. I was unpissed. Now you've changed all that.

Have a small glass of wine, Abe. Maybe that will help!

Abe you seem as touchy as me today! Have a little schnapps in your evening coffee perhaps...but try and stick to decaf.

I just finished reading the following:

If America wanted to pay off it debt to china today, it would cost every American $4,000.
China continues to be subsidized as a developing country and continues to get "favored nation status" for imports. How much more insane can we get?

Well, once you reach that borderline between sane and insane it's really hard for people to tell. I had no idea the US would be indebted to China. What were they thinking?
Then again perhaps I should watch me mouth...and see if Canada is too.
No wonder my kids don't want kids. What kind of a world are we leaving behind us?

Well, even with the dollar going down, tonight the May Pole goes up. Yes, we will celebrate the pole going up with Wine, Bier, Bratwurst & Soft Pretzels. Tomorrow some will try to climb the pole. I fear some may go down just like the dollar.

I've always gone mildly nuts every time I think about a brutal totaliarian regime that exports things made with slave labor as "most favored nation".

Yet it's illegal for Americans to buy a postcard in Cuba. Which country is more dangerous?

Lin,
nothing seems to make sense anymore.
We support dictators who can do us favors.
We press for democracy, yet when someone is democratically elected that doesn't agree with us, we refuse to recognize them.
Our credibility has gone down the tubes. We profess to be an honest broker but our actions don't back that up.
What has happened to America?

Abe F. March wrote:

I just finished reading the following:

If America wanted to pay off it debt to china today, it would cost every American $4,000.
China continues to be subsidized as a developing country and continues to get "favored nation status" for imports. How much more insane can we get?

And unfortunately, the Iraq war will only make the situation worse. In large part, the war is funded on credit, and China is the one of America's largest creditors. The interesting question is what happens when China wants its money back and the US is so far in debt it cannot afford to pay off the loans.

lin wrote:

I've always gone mildly nuts every time I think about a brutal totaliarian regime that exports things made with slave labor as "most favored nation".

Yet it's illegal for Americans to buy a postcard in Cuba. Which country is more dangerous?

I'd have to say China is definately the more dangerous country. China has over 450 atomic bombs, whereas Cuba has zero. China also has an army of 200 million troops, many times Cuba's entire population. In addition China has one of the world's worst human rights records (not that cuba is much better), but few places are worse (except mayby North Korea, Saudi Arabia, and Iran).

Careful, some of those are allies. Or were or will be or something.

Everything is insane these days. I think I'll find a cave to reside in somewhere and live off the flora and fauna. But with my luck, I would probably have to fend off an old mama bear!!