Global Economy Crisis Chatroom

[HappySqurriel]

theprof00 said:

HappySqurriel said:

theprof00 said:

HappySqurriel said:

theprof00 said:
This thread is hilarious. US currency dropping like a stone.

I'll see you here in two years, then. And I'll bet you 1000$ dollars that you're wrong.

Yeah, that's such a good bet based on the past ... After all, the Australian Dollar, Canadian Dollar, Yen, and Swiss Franc have performed so poorly against the American dollar for the past decade; and the fact that the only currencies performing as poorly as the American Dollar (Euro and British Pound) represent regions that are in dire economic straights is not a bad sign for the American Dollar.

Declining? Yes. I can see that happening a little for a few years to come. But the armageddon-style bottoming out going on in this thread is laughable.

America isn't going to just collapse. Be reasonable.

Lots of countries have gone through what America will likely face, but it is not a pretty picture ... Argentian's economic crisis of 1999 to 2002 is probably the best parallel.

You use the word likely. Care to explain? I'm interested to hear your thoughts on this.

America has a lot of cost cutting it could be doing. There is a lot of fat to trim (literally. Half our medicare and medicaid costs are likely weight related illness).

For a wide variety of political reasons, the cuts that are needed to reduce the deficit of the federal government are not likely to be made in the near future; which pretty much means that you can expect $1+ Trillion deficits until 2016 at the earliest. There are many countries that are in as bad or worse shape than the United States of America and, while you will see many large institutions kick the can down the road, many of them will (probably) default on their debt in the next few years. This will result in a massive re-evaluation of the risk associated with government debt, and the prices will shift. In order for the United States to maintain their spending levels the federal reserve will be forced to engage in quantitive easing (printing money to buy government debt) resulting in rampant inflation.