is this the beggining of the end

Discussion in 'The Guru's Pub' started by centurie, Nov 8, 2007.

  1. centurie

    centurie Master Guru

    Messages:
    261
    Likes Received:
    0
    GPU:
    n/a
    there was once a saying that whenever americs sneezed the world cought a cold.........everyone outside america knows that the only reason america stays at the top is because the world banks allow them too,
    americans are great buyers,they love to spend money, so if americans have no money they can't buy european or world goods,
    but due to china and indiana and to some exstent russia....the world does not need americas money any more...........

    the iraq war is funded by NOT american money by loans from china india and saudi arabia.........it will be up to futer americans to pay off this debt.

    so what does this mean now for america

    The U.S. dollar remains the world's reserve currency (for now), with central banks holding 2/3rds of their reserves in dollars. But, according to recent news, the dollar's status as the world's reserve currency is changing. The dollar is being challenged by the euro, which is now five years old.

    For the first time ever, the value of all euro notes in circulation exceeded the value of all dollars in circulation. The total dollar value of all euros in circulation (at the end of 2006) was $828 billion, compared to $753 billion worth of dollars.

    Even more ominous is the fact that many countries are diversifying away from dollars into euros (or threatening to do so).
    Russia has threatened to price its huge oil and gas exports in euros instead of dollars as part of a strategic shift to forge closer ties with the European Union, and to hedge against the falling dollar. Russia is the world's second largest oil exporter.

    Sweden has cut its dollar holdings, from 37 percent of central bank reserves to 20 percent, with the euro's share rising to 50 percent.

    UAE Converts Dollars to Euros - The declining U.S. dollar has caused the United Arab Emirates, a close U.S. ally, to convert eight percent of its $25 billion foreign exchange reserves into euros. Kuwait and Qatar have indicated that they plan to make similar moves.

    Other countries, including Russia, Venezuela, Indonesia and Iran also have decided to cut their dollar reserves or, in Iran's case, start pricing oil in euros. Iraq has priced its oil in euros since 2000.

    Fred Bergsten, director of The Peterson Institute for International Economics, predicts that within 2 to 5 years, half of all global finance could be conducted in euros…

    The euro is the first currency in 100 years that can really compete with the dollar on a global level. The U.S. dollar has been the dominant currency because it's had no competition. The creation of the euro changes all that.”

    The U.S. is the world's largest net debtor, and the world's largest net borrower. What is not commonly known is that the main financiers of the U.S. deficits are not U.S. allies such as Japan and Europe, but rather competitors such as China, Russia, and Middle East nations. In fact, China holds 20 percent of all foreign reserves (roughly $1 trillion), which could create a sticky political situation, given China's growing economic power and its status as a massive exporter.


    as you can see today the dollor is falling americans will get poorer while europe china will get richer................i guess it was all good while it lasted.
     
    Last edited: Nov 8, 2007
  2. llerenaprincipe

    llerenaprincipe Ancient Guru

    Messages:
    7,505
    Likes Received:
    0
    GPU:
    DIAMOND X1950XTX 512MB, 650/2000Mhz
    this was already predicted :dave:
     
  3. bcoupland

    bcoupland Master Guru

    Messages:
    932
    Likes Received:
    0
    GPU:
    9300 onboard
    Move aside yankees, China is the new super power.

    all empires crumble, the USA has had it's turn, let someone else have a go.
     
  4. Woodmasterfox

    Woodmasterfox Ancient Guru

    Messages:
    3,067
    Likes Received:
    0
    GPU:
    ATI Mobility Radeon 9200
    I love the anti-american sentiment on this forum...its only been like this for the last few years. Every time I pop in and see whats going on I see somebody saying something negative about the USA. Fun stuff...
     

  5. Solinari

    Solinari Ancient Guru

    Messages:
    3,234
    Likes Received:
    5
    GPU:
    MSI N560GTX-Ti Twin Frozr
    I don't know much about these things, but i am sure the US will never allow oil to be sold in anything but dollars.
     
  6. llerenaprincipe

    llerenaprincipe Ancient Guru

    Messages:
    7,505
    Likes Received:
    0
    GPU:
    DIAMOND X1950XTX 512MB, 650/2000Mhz
    we're not being anti americans

    i'm just saying the truth
    we can't lie can we?
     
  7. eRa`

    eRa` Ancient Guru

    Messages:
    1,825
    Likes Received:
    0
    GPU:
    Palit GeForce GTX 570
    China still holds 1300 billion dollar devices for export reasons (though they announced recently to reduce them). If for some reason the dollar breaks in more drastically we can wave goodbye to
    "Made in China". Concerning the Euro, this was just a matter of time, the European Central Bank just looks after the cash value and not, like the FED, after the economic growth, which are two pretty diametric goals. Thus the Euro is more stable, also I'd call the political situation in Europe (at least inside the EU) the most stable a world region had, ever.
     
    Last edited: Nov 8, 2007
  8. JACK4HIRE

    JACK4HIRE Ancient Guru

    Messages:
    3,497
    Likes Received:
    0
    GPU:
    ATI Mobility Radeon 5870
    What you have said is only half the story. The US can do plenty to protect itself and its currency on the world market.
     
  9. scipio

    scipio Ancient Guru

    Messages:
    4,636
    Likes Received:
    8
    GPU:
    Evga 1080 gaming
    If we go down so does China.
     
  10. wiskerbizkit

    wiskerbizkit Master Guru

    Messages:
    806
    Likes Received:
    0
    GPU:
    Sapphire 5850
    I have this arguement all th time with my british friends. if my money is so ****ty howcome for example i pay $230 for a video card that a brit pays the equivalent of $350-500 for? its kind of silly that my money is worth so much less but my friend pays twice the price for stuff. i've been through alot of things with him from cars to computer parts and he always winds up paying more for less.
     
    Last edited: Nov 8, 2007

  11. arnie

    arnie Maha Guru

    Messages:
    1,386
    Likes Received:
    1
    GPU:
    Radeon x1800xt 256mb
    Because European economies are more mixed, with less focus on pure free-marketism and more redistribution, achieved through higher tax rates. Basically.
     
  12. allesclar

    allesclar Ancient Guru

    Messages:
    5,632
    Likes Received:
    87
    GPU:
    GeForce GTX 1070
    its because the value of our currency is far higher atm. You would not be able to get holiday in england and get a load of cheap meals coming from america compared to if you went on holiday to america and you were from england.
     
  13. DES_MX

    DES_MX Master Guru

    Messages:
    770
    Likes Received:
    1
    GPU:
    GTX480 850/4400 1.075v
    Ah come now, you don't have to have a PhD in economics to say US of A is going down, and they finance everything on loans. The trade balance is way out of order and btw loans have a funny thing as interest. Unless their GDP increases more than proportional to loans + interests... thei're ****d. However, let's not forget about the NX (netto exports) which can increase due to lower value of dollar.
    So even if you consider the classic macro economic model
    Y = C + I(r) + G + NX
    and
    NX = Y – (C + I + G)
    the picture isn't that complicated, is it?
     
  14. DES_MX

    DES_MX Master Guru

    Messages:
    770
    Likes Received:
    1
    GPU:
    GTX480 850/4400 1.075v
    VAT is different in UK. HAS NOTHING TO DO WITH "YOUR" CURRENCY. Or more like your s****y currency, like you said yourself.
    On top of that the cards are imported into UK, they are not produced there. Something else to ponder on.
     
  15. Dustpuppy

    Dustpuppy Ancient Guru

    Messages:
    4,146
    Likes Received:
    0
    GPU:
    integrated - fffffffuuuuu
    Do you guys even know a single bloody thing about the Chinese economy? Their stock market has a bubble in it that rivals the NASDAQ in 1997-8. I give them 3 maybe 5 years before they have a crash that makes the Japanese & American Corrections/recessions look like a total joke. Combine that with a totalitarian government and you have a recipe for civil disaster and gross exploitation.

    Why should we worry about the fact that we owe our debts to our enemies rather than our allies? All this means is that if our enemies ever try anything they loose all their cash. I mean seriously China is a competitor to the USA if they break off trade with us it will hurt them FAR FAR more than it will hurt us.

    You guys are in desperate need of a clue. Stop listening to people who make you feel good by putting you "in the know" about how the worlds greatest power is collapsing. That's a recipe for delusion.

    America will lose its status as the only superpower over the next century most likely, but it's still going to be one heck of a place to live. This is due to other countries growing, not it declining.
     

  16. Sparx

    Sparx Maha Guru

    Messages:
    1,346
    Likes Received:
    0
    GPU:
    Asus HD 6950 OC 2GB
    Higher tax rates and VAT..
     
  17. Sash

    Sash Ancient Guru

    Messages:
    6,963
    Likes Received:
    0
    GPU:
    video
    once the oil in the middle east dries out, the dollar's value will drop, not only that but also euro and pound but the dollar will be more affected that's my opinion

    (notice i did not bash americans SO GIVE ME A BREAK!!!!! )
     
  18. Solinari

    Solinari Ancient Guru

    Messages:
    3,234
    Likes Received:
    5
    GPU:
    MSI N560GTX-Ti Twin Frozr
    The thing about video cards seeming to cost about 50% more in the UK or even Europe, i wouldn't say that's true. In terms of currency like dollar for pound then yes, i suppose it does but in terms of cost of living, i imagine it's about the same.

    I would of thought someone earning $50,000 a year would be about the same as someone earning £50,000. The cost of petrol is much lower in the US, as are other things like goods and services (maybe not MUCH lower), so it's all relative. Even although £50,000 is $100,000, i really don't think this means the person in the UK earning £50,000 is better off than someone earning $50,000 in the US.

    That said, i don't know the cost of living in the US or if a $50,000 a year salary is considered a decent salary but i would of thought a 1000 a week of pounds or dollars, is a fair amount of money.
     
  19. lmimmfn

    lmimmfn Ancient Guru

    Messages:
    10,366
    Likes Received:
    63
    GPU:
    AorusXtreme 1080Ti
    Higher taxes and vat in european countries provide free healthcare, social welfare benefits etc. which im personally all for

    The US economy is in a bit of a jock now with the sub primes, China's inflation is very high( over 6% last i heard which is massive when there are so many poor ) and their bubble could burst, but if it does it wont happen for a long time, hell they have so many people its cheaper to use people instead of buying more efficient machines
     
  20. wiskerbizkit

    wiskerbizkit Master Guru

    Messages:
    806
    Likes Received:
    0
    GPU:
    Sapphire 5850
    guys lol taxes or whatever the reason you're still paying more. see what i mean? it all evens out as far as im concerned. now you can try to flame me or make me angry, but its not gonna happen. i know its the hip thing to do on the internet is make fun of America but i'm not gonna do it. Also i'm not trying to flame anybody. I'm more concerned that the canadian dollar is worth more.

    It doesn't really matter what happens to the value of american money, People talk like America will disappear or something, it will be the same as it is now, just look different on paper.

    I don't have a very good job, i work 36 hours a week as a security guard. where i live i make enough to have a 2 bedroom house, cable with all the pay channels, a good net connection and brand new Hyundai in the driveway. so i guess none of this really affects me too much.
     

Share This Page