does anyone remember 20yrs. ago when some south american country had a falling currency. the loans did not get revalued for there consumers. it is a catch 22. bgp
i respectfully disagree with those who are saying a dying dollar won't affect the U.S. population. nobody is buying u.s. treasuries. in december for example there was an outflow of treausries. so in order to remain in business the treasury printed off 150 billion and lent it to the fed. this will lead to two things not good for the US consumer 1.) Inflation. there is now another 150 billion floating around the economy created out of thin air. a guy making 40k a year is now buying a 10$ loaf of bread and 2.) Rising interest rates. Eventually the US has to bring in as much as it is spending. Imagine what a 20% interest rate would do to the business climate and housing market? was only in the 80s that this happened previously.
Not sure if you were responding to me, but I never claimed there would be no effect to the US consumer. I just said that the burden would be felt across the board - everywhere. We are simply that connected at this stage in the game.
I agree. A declining $US is something to worry about. Otherwise, why not just print the dollar like crazy and be happy and merry. It just does not work like that. The CPI numbers are probably massaged to look decent, but the seat of the pants feel in paying rent, mortgage, grocery, gas, healthcare, tuition, etc. says otherwise. The average Joe and Mary have already been affected by the declining dollar / purchasing power.
least everyone knows now that if you want to make money through savings, England is the place to be :\
Brazil has the highest real interest in the world, still after about 4 years and you can not beat the appreciation against the dollar of the Brazilian real - took 4 of them in 2002 to buy a dollar, and now only 2 will buy a dollar.