← Autodidact Archive · Original Dissent · il ragno
Thread ID: 19806 | Posts: 1 | Started: 2005-08-24
2005-08-24 11:48 | User Profile
Way to go Dubya! Somebody tell Gabrielle to get the party hats and noisemakers ready! We're all dressed down..... with NOWHERE to go!
[QUOTE][url]http://mwhodges.home.att.net/exchange_rate.htm[/url]
[SIZE=4]2001 Warning [/SIZE]
In its August 2001 annual assessment of the world's largest economy, the International Monetary Fund (IMF) said "the yawning current account deficit raised the risk of a sharp depreciation in the U.S. currency."
so - - [B]what happened in 2002 to 2004?[/B] [I]Answer: a sharp depreciation of the U.S. currency.[/I]
The US dollar is down [B]42.6% [/B] vs. the Euro during the last several years to Nov. 2004, and also down against many others incl. 35.5% vs. the swiss franc. Regardless of the impact of U.S. stock, bond, real estate or commodity markets in the end most Americans think of their assets in terms of dollars, yet few recognize that a huge international depreciation (write-down) of those assets [B]is again in progress [/B] - - and there is little most know what to do to protect themselves. Just think, [B]for every 100 thousand dollars of a citizen's assets the international buying power dropped $42,607 the past several years vs. the Euro.[/B] Not only does that wipe-out incentive for foreigners to invest in dollar assets to help finance America's savings-short, deficit economy, it negatively impacts the store of value of U.S. citizen savings and effectively casues a huge decrease in the international value of U.S. wages.
In the past several years many average citizens experienced large decreases in the dollar value of their stock market assets, due to huge market declines of a bubble economy that was pumped-up by soaring debt and erroneous claims. Many more conservative citizens, who stayed away from the market pounding to protect their savings, at least came out with their assets intact [B]but were later horrified to witness interest earnings on their assets chopped 60%+ during 2001-2004 as the Federal Reserve, trying to promote even more debt in the debt-laden economy, forced interest rates to record low levels[/B]. On top of this comes the huge depreciation of all dollar assets in terms of its international-value, as the dollar dramatically falls.
All of this leaves the too few US savers (incl. a lot of seniors) vulnerable and devastated, wondering who represents them and [B]why are powers-to-be making war on savers instead of on debtors.[/B]
Additionally in 2002-2004, the 2- web page Trade Report shows many data graphics that help tell the trade story, as [U]deficits soared to even higher records[/U]. [B]In the year to Nov. 2004 the U.S. had a total merchandise trade deficit of $653.8 billion, while Japan & Germany scored a cumulative trade surplus of $325 billion($132+$193 bill). That's a whopping $979 billion worse performance for the U.S. in JUST ONE YEAR - - and that's just against 2 nations - - and this occurred despite the fact the exchange rate of the dollar fell vs. the currency of Japan and German. [/B] That same Trade Report includes graphics showing U.S. trade deficits with other Asian nations, such as China, are even higher.[/QUOTE]