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What will happen when the US Dollar falls below 80???

 
Francis Bacon
User ID: 179005
United States
07/22/2007 06:30 AM
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What will happen when the US Dollar falls below 80???
Many people are saying that the USD will drop like a rock once it gets past the crucial 80 mark.

When this happens, and the Federal Reserve Note starts to freefall, what will that mean for the ordinary American?

Will all the Fed. Reserve Notes we have become essentially worthless? Will it be like in the Communist countries back in the late 80s in Europe when the old currency became worthless, they brought in a new currency and everyone who exchanged their old currency for the new one get only a few cents of the original value?

Will precious metals like gold and silver keep their value, or go even higher in value?

WHAT IS GOING TO HAPPEN???

We MUST prepare for this. It's good to know what to do.
Anonymous Coward
User ID: 269945
Italy
07/22/2007 06:55 AM
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Re: What will happen when the US Dollar falls below 80???
What happen after every crash, massive devaluation of the currency, which translate in prices of goods going out of the roof, Banks close.

Eg. what was worth 1$ can raise 10 100 times it's price, depend on of severe this crash is, then for the same reason once everything is sold stores will close...no food no oil everything stop.

Look what happened in Argentina a few years ago.
Francis Bacon (OP)
User ID: 179005
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07/22/2007 06:59 AM
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Re: What will happen when the US Dollar falls below 80???
What happen after every crash, massive devaluation of the currency, which translate in prices of goods going out of the roof, Banks close.

Eg. what was worth 1$ can raise 10 100 times it's price, depend on of severe this crash is, then for the same reason once everything is sold stores will close...no food no oil everything stop.

Look what happened in Argentina a few years ago.
 Quoting: Anonymous Coward 269945

In that case, let's say you have several ounces of gold and silver, will you be turning this dire situation into a win-win situation for you? Will it be wise to start buying up and converting as much USDs you have into gold, silver and (possibly) the Euro?
WW RAUPP

User ID: 260308
Netherlands
07/22/2007 07:04 AM
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Re: What will happen when the US Dollar falls below 80???
(...)
 Quoting: Francis Bacon 179005


First of all, the dollar index is all about exchange rates. It says nothing about dollar purchasing power. If the dollar index goes below 80 I suspect nothing will happen to American citizens who pay and earn their dollars. There's no correlation between a drop in the US dollar index, and it should be reverse proportional, ie, the dollar index drops and CPI goes way up. That is not happening.
To shape the world is to become immortal
Anonymous Coward
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United States
07/22/2007 08:29 AM
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Re: What will happen when the US Dollar falls below 80???
the dollars power has been diminishing at home for at least 90 years
Anonymous Coward
User ID: 270533
Australia
07/22/2007 08:32 AM
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Re: What will happen when the US Dollar falls below 80???
(...)

First of all, the dollar index is all about exchange rates. It says nothing about dollar purchasing power. If the dollar index goes below 80 I suspect nothing will happen to American citizens who pay and earn their dollars. There's no correlation between a drop in the US dollar index, and it should be reverse proportional, ie, the dollar index drops and CPI goes way up. That is not happening.
 Quoting: WW RAUPP



"Core inflation is still low"

You joke.
Anonymous Coward
User ID: 203965
United States
07/22/2007 09:14 AM
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Re: What will happen when the US Dollar falls below 80???
it will be 79.9 !!!
Anonymous Coward
User ID: 203965
United States
07/22/2007 09:16 AM
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Re: What will happen when the US Dollar falls below 80???
start looking around and try and find some reasons that it is falling.

then you will get scared, no even want to keep $100 of funny money.

9 trillon in debt!!
DERIVATIVES
housing market (you ain't seen nothing yet)
Anonymous Coward
User ID: 258514
United States
07/22/2007 09:18 AM
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Re: What will happen when the US Dollar falls below 80???
Most people think that since 80 is a multi decade low that the futures traders black box trend following systems will trigger sell stops as the index breaks 80 igniting a wave of selling that will take the dollar sharply lower.

However, the central banks will be there to defend the dollar from speculative selling.
Anonymous Coward
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United Kingdom
07/22/2007 09:18 AM
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Re: What will happen when the US Dollar falls below 80???
In that case, let's say you have several ounces of gold and silver, will you be turning this dire situation into a win-win situation for you? Will it be wise to start buying up and converting as much USDs you have into gold, silver and (possibly) the Euro?
 Quoting: Francis Bacon 179005


In a few weeks I wouldnt swap you a bag of rice for all the gold you had.
Anonymous Coward
User ID: 258514
United States
07/22/2007 09:20 AM
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Re: What will happen when the US Dollar falls below 80???
(...)

First of all, the dollar index is all about exchange rates. It says nothing about dollar purchasing power. If the dollar index goes below 80 I suspect nothing will happen to American citizens who pay and earn their dollars. There's no correlation between a drop in the US dollar index, and it should be reverse proportional, ie, the dollar index drops and CPI goes way up. That is not happening.
 Quoting: WW RAUPP


You have no idea what you're talking about.

It says EVERYTHING about the dollar purchasing power.

The dollar index is the price of the dollar vs a basket of six foreign currencies. As the dollar moves lower, everything Americans buy from overseas gets more expensive. Commodities also move higher because commodities are priced in dollars.
Anonymous Coward
User ID: 258140
United States
07/22/2007 09:22 AM
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Re: What will happen when the US Dollar falls below 80???
Nothing will happen.

IF it falls below 80, life will continue as it always has.
WW RAUPP

User ID: 260308
Netherlands
07/22/2007 09:29 AM
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Re: What will happen when the US Dollar falls below 80???
You have no idea what you're talking about.

It says EVERYTHING about the dollar purchasing power.

The dollar index is the price of the dollar vs a basket of six foreign currencies. As the dollar moves lower, everything Americans buy from overseas gets more expensive. Commodities also move higher because commodities are priced in dollars.
 Quoting: Anonymous Coward 258514


I'm talking domestic consumer prices, vomit barrel. And what do commodity prices matter when all is priced in US dollars? The US dollar cannot crash because other nations won't allow it.

Speaking of which, commodities are overvalued because of emerging market demand. If the world economy "crashes" (extremely unlikely) you believe commodity prices stay high?
To shape the world is to become immortal
Anonymous Coward
User ID: 52612
Netherlands
07/22/2007 09:30 AM
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Re: What will happen when the US Dollar falls below 80???
It would be good to invest in some seeds and prepare your garden for them
Food will become priceless and when you have your own you are like an oil arab, tremendously rich
Anonymous Coward
User ID: 258514
United States
07/22/2007 09:42 AM
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Re: What will happen when the US Dollar falls below 80???
You have no idea what you're talking about.

It says EVERYTHING about the dollar purchasing power.

The dollar index is the price of the dollar vs a basket of six foreign currencies. As the dollar moves lower, everything Americans buy from overseas gets more expensive. Commodities also move higher because commodities are priced in dollars.

I'm talking domestic consumer prices, vomit barrel. And what do commodity prices matter when all is priced in US dollars? The US dollar cannot crash because other nations won't allow it.

Speaking of which, commodities are overvalued because of emerging market demand. If the world economy "crashes" (extremely unlikely) you believe commodity prices stay high?
 Quoting: WW RAUPP



ok Mr know nothing RAUPP...let me give you a quick economics lesson and explain something every trader already knows.

If a commodity is priced in US dollars, and the US dollar is becoming more worthless against other currencies, then obviously the price of that commodity will rise inversely proportional to the dollars fall....which is exactly what has been happening for the past few years.

If you still don't get it, as an example, if the US dollar became worthless...and oil was priced in US dollars, then the price of oil in US dollars would be be what? Infinity because the dollar is worthless. Duh. That's how it works.

I hope this simple economic concept is not too difficult for you to grasp. If it is then read a book on basic macroeconomics.
Anonymous Coward (OP)
User ID: 179005
United States
07/22/2007 09:48 AM
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Re: What will happen when the US Dollar falls below 80???
Nobody answerd my question yet...except for the guy who told me to invest in some seeds
Anonymous Coward
User ID: 258514
United States
07/22/2007 09:53 AM
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Re: What will happen when the US Dollar falls below 80???
Nobody answerd my question yet...except for the guy who told me to invest in some seeds
 Quoting: Anonymous Coward 179005


nothing is going to happen to you immediately. It's simply the multi decade low.

In the longer term, if it continues to decline, it would cause stagflation and even hyperinflation in the US.

If you don't know what any of that means, read up on what happened to Argentina a few years ago when their currency collapsed. You had upper middle class families diving through the dumpsters to find food.

It would be much worse if the US dollar collapsed because the US dollar is currently the worlds reserve currency.
WW RAUPP

User ID: 260308
Netherlands
07/22/2007 09:58 AM
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Re: What will happen when the US Dollar falls below 80???
If a commodity is priced in US dollars, and the US dollar is becoming more worthless against other currencies, then obviously the price of that commodity will rise inversely proportional to the dollars fall....which is exactly what has been happening for the past few years.

If you still don't get it, as an example, if the US dollar became worthless...and oil was priced in US dollars, then the price of oil in US dollars would be be what? Infinity because the dollar is worthless. Duh. That's how it works.
 Quoting: Anonymous Coward 258514


First of all, you are saying oil demand is not driven by a structurally stronger global economy and the rise of emerging markets in Asia and the unprecented economic boom in Africa? All of this is caused by a weaker dollar... Demand has nothing to do with this? So India, being the largest consumer of gold, has nothing to do with a rise in gold prices? All caused by dollars? I heard some egotist dollar blabbering, but this takes the cake.

Now, show me why you think so. The US dollar is far from being worthless. The Reichsmark in 1923 was worthless and the Zimbabwe dollar is worthless. The US dollar is, anno 2007, far from being worthless. It's still #1 world reserve currency, nearly all transactions in commodities are priced in dollars and Asian emerging markets buy into US Treasuries. So much for your worthless argument, in both ways.

Gold rises due to dollar jitters, oil is more dependent on people buying in large quantities than a farfetched and theorized connection with the US dollar. So oil is going to be $1×10²³ a barrel if a hyperinflation happens in the USA and people will pay for it? What are you, insane? Don't you think that's a little... stupid to say? If that was the case, oil producers would switch to euros or yen but so far, no signs of a decisive shift from dollars to... Whatever.

What you're postulating is this: the US dollar will crash despite socio- and economic political situation in the world; still being the worlds reserve currency; global economy still performing strong; no signs of subprime woes going into regular and clean mortgage market.
To shape the world is to become immortal
Francis Bacon (OP)
User ID: 179005
United States
07/22/2007 10:05 AM
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Re: What will happen when the US Dollar falls below 80???
Sounds to me like Raupp is employed by the Federal Reserve private bank.
von Doom
User ID: 270604
United States
07/22/2007 10:18 AM
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Re: What will happen when the US Dollar falls below 80???
One big problem I have with the Gold/Silver crowd is that gold and silver can be easily confiscated and even made illegal.

Therefore, these commodities would probably be relegated to value in a blackmarket situation exclusively.

And forget the Euro. That's being used as the other end of the rubber band against the dollar.

Just my opinions, of course.

And to be honest OP, I'm not sure what the answer is to your question. I would think the best answer is to convert some of your dollars into usable items such as food, medicine, tools, water, etc.
Tox

User ID: 54792
Canada
07/22/2007 10:19 AM
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Re: What will happen when the US Dollar falls below 80???
I wish the freefall doomsayers were right, but they are making the mistake of looking at the current economy though it were a completely rational entity. Countries like Japan and China have inseparably linked their economies to the US and if the US goes down, they go with it. They're not going to let that happen. For a smaller example, look at the Japanese S&L crisis and how foreign countries propped them up to keep their own economies afloat.

Never underestimate the government response (or gall) in situations like this. The government has been playing a few sleight of hand tricks with the figures and such up till now, they haven't even opened the bag of dirty tricks yet. Have you noticed how the markets have been acting strangely when Bernanke or Greenspan open their mouths? This will become standard as more government interference becomes commonplace. Technical analysis will quietly become less and less relevant as money begins to move based on where the governments say it should go.
The free man discovers his potential in service to a commonwealth.
The kept man discovers his aptitude for subverting a commonwealth to his own ends.
von Doom
User ID: 270604
United States
07/22/2007 10:25 AM
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Re: What will happen when the US Dollar falls below 80???
I wish the freefall doomsayers were right, but they are making the mistake of looking at the current economy though it were a completely rational entity. Countries like Japan and China have inseparably linked their economies to the US and if the US goes down, they go with it. They're not going to let that happen. For a smaller example, look at the Japanese S&L crisis and how foreign countries propped them up to keep their own economies afloat.

Never underestimate the government response (or gall) in situations like this. The government has been playing a few sleight of hand tricks with the figures and such up till now, they haven't even opened the bag of dirty tricks yet. Have you noticed how the markets have been acting strangely when Bernanke or Greenspan open their mouths? This will become standard as more government interference becomes commonplace. Technical analysis will quietly become less and less relevant as money begins to move based on where the governments say it should go.
 Quoting: Tox


I agree with half of what you said.

But why do you assume that Japan and China will forever continue to on this path?

Honestly, I do not see this happening long term.

I suspect this is the real reason behind all of the posturing and arm twisting going on the world.
Inanna of Sumeria

User ID: 244059
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07/22/2007 10:26 AM
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Re: What will happen when the US Dollar falls below 80???
(...)

First of all, the dollar index is all about exchange rates. It says nothing about dollar purchasing power. If the dollar index goes below 80 I suspect nothing will happen to American citizens who pay and earn their dollars. There's no correlation between a drop in the US dollar index, and it should be reverse proportional, ie, the dollar index drops and CPI goes way up. That is not happening.
 Quoting: WW RAUPP


Raupp, you haven't traveled the world much, lately?

It has EVERYTHING to do with purchasing power, and foreigners are purchasing US assets.. stealing... such as propping up the high end RE market in Manhattan.

Wake Up for shits sake. And the Gov't CPI is a sham. Buy any bread or gas lately?
Tox

User ID: 54792
Canada
07/22/2007 10:32 AM
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Re: What will happen when the US Dollar falls below 80???
I agree with half of what you said.

But why do you assume that Japan and China will forever continue to on this path?

Honestly, I do not see this happening long term.

I suspect this is the real reason behind all of the posturing and arm twisting going on the world.
 Quoting: von Doom 270604


I didn't say it was sustainable, but since when does that stop a government?
The free man discovers his potential in service to a commonwealth.
The kept man discovers his aptitude for subverting a commonwealth to his own ends.
Francis Bacon (OP)
User ID: 179005
United States
07/22/2007 10:44 AM
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Re: What will happen when the US Dollar falls below 80???
One big problem I have with the Gold/Silver crowd is that gold and silver can be easily confiscated and even made illegal.

Therefore, these commodities would probably be relegated to value in a blackmarket situation exclusively.

And forget the Euro. That's being used as the other end of the rubber band against the dollar.

Just my opinions, of course.

And to be honest OP, I'm not sure what the answer is to your question. I would think the best answer is to convert some of your dollars into usable items such as food, medicine, tools, water, etc.
 Quoting: von Doom 270604

Well first of all, people an buy gold and silver with cash so that the govt does not know they have it.

second of all, the euro is the currency of an entire empire that is rising and still attaining more and more power. i believe the same will happen in america with the Amero and the North American Union but that is still a few years away.

finally, my question is in regards to what should i do in order to not get royally screwed when the dollar really DOES tank. this is the question.

its no use keeping food around because it is perishable. i was thinking the if you had gold/silver/euros and then you'd be appreciating in value in those. i do not 4expect the dolar to fall like a rock in a few weeks or days, but rather see it taking severla months, going slowly down day by day.
Tox

User ID: 54792
Canada
07/22/2007 10:57 AM
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Re: What will happen when the US Dollar falls below 80???
finally, my question is in regards to what should i do in order to not get royally screwed when the dollar really DOES tank. this is the question.
 Quoting: Francis Bacon 179005


Learn a skill or trade. Have some ability/equipment to produce anything worth trading.
The free man discovers his potential in service to a commonwealth.
The kept man discovers his aptitude for subverting a commonwealth to his own ends.
Inanna of Sumeria

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07/22/2007 11:09 AM
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Re: What will happen when the US Dollar falls below 80???
Ron Paul vs Ben Bernanke - July 18th 2007
Discussing the topic of this thread.

Part 1
[link to www.youtube.com]


Part 2
[link to www.youtube.com]
Anonymous Coward
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07/22/2007 11:53 AM
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Re: What will happen when the US Dollar falls below 80???
My two cents:
In our domestic economy:
Lower usd =
LESS worth =
higher interest rates (you get more worth*less usd) =
Gold prices increase,
Foreigners buy up u.s. assets cheaply (r.e., business, etc.),
USA being gutted, sliced up and sold out by the jews in charge.pennywise
Anonymous Coward
User ID: 244370
United States
07/22/2007 12:18 PM
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Re: What will happen when the US Dollar falls below 80???
bump
Anonymous Coward (OP)
User ID: 179005
United States
07/22/2007 12:26 PM
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Re: What will happen when the US Dollar falls below 80???
My two cents:
In our domestic economy:
Lower usd =
LESS worth =
higher interest rates (you get more worth*less usd) =
Gold prices increase,
Foreigners buy up u.s. assets cheaply (r.e., business, etc.),
USA being gutted, sliced up and sold out by the jews in charge.pennywise
 Quoting: Anonymous Coward 269703

you having a large quantity of gold and silver is good then right?>
von Doom
User ID: 270652
United States
07/22/2007 12:30 PM
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Re: What will happen when the US Dollar falls below 80???
If the value of the dollar goes down, how does the value of gold increase?

Curious.

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