American Dollar

[froghunter]

Can some one please put into stupid redneck layman terms what is happening to the American Dollar? I dont need opinions, conspericy theories, or any left wing bull s***. Just the facts in words that i can understand.

Thanks.

[Sparkles]

It's taking a **** because China Russia and Brazil are pushing to make it so that worldwide prices (like barrell of oil) aren't based on the American dollar that and when we can't pay off loans we just print more of it making what was out there worth less.

[awatsonjr]

A dollar is what a quarter was 50 yrs ago

[Tubby]

Answer for the working man's dollar:

supply/demand, inflation, cheaper to make products over seas, putting Americans out of work, overall more expensive product to the consumer...

Buy American, Save America!

[Javelin]

A dollar would buy you a jr bacon cheeseburger at wendy's a year ago but now you have to shell out $10 extra cents

[froghunter]

so what i gather is we are heading towards inflation.
If so what does that mean for poor white trash thats too proud to get help from uncle
sam?

[Tubby]

so what i gather is we are heading towards inflation.
If so what does that mean for poor white trash thats too proud to get help from uncle
sam?

We head towards inflation every day... Ever see a product go down in price without it being a "sale"? Me either...

[Sparkles]

so what i gather is we are heading towards inflation.
If so what does that mean for poor white trash thats too proud to get help from uncle
sam?

Depends on high how inflation goes, but I'll let you know what it means when I found out brother. But for now stock up on dry beans and rice bullion cubes just in case.

[Miki]

And this is what we end up with

[Stuck]

Can some one please put into stupid redneck layman terms what is happening to the American Dollar? I dont need opinions, conspericy theories, or any left wing bull s***. Just the facts in words that i can understand.

Thanks.

We have over extended our credit. The amount of money we borrowed vs. the lowered taxes coming in. If you make $100,000 and $150,000 thousand a year you can either change your life style and decrease your debt or find a way to raise your income. The federal govt. borrows more and prints more. Printing more money may put dollars in the market but it devalues the dollars already there. If you have $1,000,000 for retirement every time more money is printed your savings is worth less. The latest issue is our credit rating has dropped (so we will pay more in interest)because of our spending vs. income and our representatives are unable to come to an agreement on how to lower our debt. which makes the rest of the world (our lenders) nervous. You don't lend money to people who don't have a way of paying you back. That's it in a nutshell.

[Greenheadless]

We have over extended our credit. The amount of money we borrowed vs. the lowered taxes coming in. If you make $100,000 and $150,000 thousand a year you can either change your life style and decrease your debt or find a way to raise your income. The federal govt. borrows more and prints more. Printing more money may put dollars in the market but it devalues the dollars already there. If you have $1,000,000 for retirement every time more money is printed your savings is worth less. The latest issue is our credit rating has dropped (so we will pay more in interest)because of our spending vs. income and our representatives are unable to come to an agreement on how to lower our debt. which makes the rest of the world (our lenders) nervous. You don't lend money to people who don't have a way of paying you back. That's it in a nutshell.

[Shane]

Think of the "value of the dollar" in terms of what a dollar will buy today, or what $100 will buy today.

Inflation is what they call it when stuff costs a little bit more every year.....prices "inflate" over time. There are lots of moving parts and causes of inflation, but basically there are two main causes:

1. When the government prints more money.
When the government prints money, it is adding dollars to the economy. It's like adding water to a pitcher of iced tea. If you don't add any more tea, then by adding water you are watering down the tea. There is less tea in every glass full now. The tea is weaker.......the dollar buys less goods......


2. When too many dollars are chasing too few goods.
Our economy is almost always expanding. It actually shrinks a little during a periodic recession (that's what "recession" means). On average though, about 3 out of every 4 years the economy grows.....more tea is added to the pitcher, and the pitcher gets bigger and bigger over time. When the government prints money faster than the output of the economy grows, then that causes inflation. It's supply and demand. There are more dollars trying to buy fewer things......kinda like when there are a lot of buyers and fewer sellers. When that happens, prices go up......inflation. Again, it's like adding more water to the pitcher than tea.

Ideally, the Fed and the government add dollars to the economy in the same proportion as the economy is expanding. There are so many moving parts to the economy and so many things that have simultaneous and varying effects on the economy though, that NOBODY can control it all perfectly.

[Smell the Glove]

We have over extended our credit. The latest issue is our credit rating has dropped (so we will pay more in interest)because of our spending vs. income and our representatives are unable to come to an agreement on how to lower our debt. which makes the rest of the world (our lenders) nervous. You don't lend money to people who don't have a way of paying you back. That's it in a nutshell.

Our credit rating is still AAA. They lowered the long term Outlook on that rating due to concerns that our current political divisiveness is making an agreement about the debt unlikely.

[Sparkles]

Our credit rating is still AAA. They lowered the long term Outlook on that rating due to concerns that our current political divisiveness is making an agreement about the debt unlikely.

33.3% chance we will lose the AAA rating in 2 years though.

[dragonsdaddy]

if and when the dollar loses its status as the currency of trade, we will be in for a serious spell of terrible economic times. it will make today's issues seem like the good old days and then some.