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U.S. Govt. Reveals New $3 Coin


MedicSN6
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The weakening dollar is good for the US and bad for Europe, The pound, dollar and euro are all in a poor state. Only a few months ago people were forecasting the collapse of the euro. Britain and America have massive national and personal debt and several countries in the eurozone are equally weak. Over the months the focus will shift from one area to another and the traders will sell that currency. The dollar has taken a hit because its on a watchlist to lose its AAA rating for treasuries. Also these levels are not far off of the pre financial markets crash levels. In the world of foreign exchange its all relative.

 

Anyway the only reason the colonial armies won was because the french helped them. I know it must be true I saw it in the Patriot (Mel Gibson not Steven Seagull).

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The Euro is not pegged to the dollar, its a free floating currency. Since its inception it has been both weaker than and stronger than the dollar. I dont believe either currency is going to devalue. The US has enormous debt requirements, if it were devalued the ie 3 old dollars equal one new dollar, it is true that the debt would be reduced by a third, on the other hand good luck borrowing any new funds. I am sure they will all try to slowly inflate there way out of this as well as cutting public spending.

 

The biggest problem for the US is if it stops being a reference currency. Then it will be difficult to borrow in dollars exclusively and oil and other commodities will be priced off of other currencies which would be more expensive in the US. But I honestly dont know if that will happen, since the Euro has so many problems and there arent that many freely traded currencies that can meet the volumes required of a reference currency.

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Zeno is correct the French of who we Americans like to make fun of blocked the bay and helped us to force the submission of the limeys.

 

As for the dollar all I know is meat, milk and fuel continues to rise but my pay stays the same..... Cabbage stew anyone?

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Sadly coinciding with the tail end of the recession has been a giant rise in the price of basics, such as wheat and oil. The knock on effect is huge.

 

But commodities are trading off as many traders and investors are trying to take their profits, I read OBLs death sparked off the sale but it has turned into a liquidation. Hopefully this trend will continue and expand taking some of the strain away from your wallet.

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As I said the traders would move from selling one currency to another

 

Now there are rumours of Greece pulling out of the Euro so traders are selling Euros and buying dollars. I think its highly unlikely, but thats how FX works, traders have to anticipate the sentiment of the market.

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