Reading Politics

Dec 04, 2003 13:19 # 17580

null posts about...

US facing economical collapse?

97% | 3

Read this a few days ago on a discussion board:

It's all very scary.

http://finance.lycos.com/qc/stocks/quotes.aspx?symbols=CEC:DX03Z

Book mark that link and keep tabs on it every few days to see where it's at. It used to be at 140 Before Bush started squatting in the whitehouse, now it's at 90.28.

This is the deffinite scenario:

If it edges down below 80, Asia will initiate a huge sell-off on all US assets, that will cause the decline in the dollar to accelerate as the EU does the same, as it falls even faster OPEC will freak and stop trading in dollars, it will then slide faster, Gold will spike to $1000 and that will accelerate the decline even more, then private investors such as the ones in the US will also sell until the US dollar is worthless. The stock market will crash, commodity prices will either shoot through the roof or be traded in Euro's (which we wouldn't be able to afford).

This can all happen within a few days, someone who I trust told me that it will happen next week. It will take a quarter or so for all the industrys to shut down.

Go down to your local supermarket and buy a thousand cans of spam!

It will cost $500 for a six pack, yesiree!

The story about the dollar index losing about 45% of its initial value since Bush took office is true. I'm also sure that if he is re-elected(?), it wouldn't cost him any effort to bring that number below 80. I'm not sure about the rest, so it'd be nice if somebody with more economical knowledge could enlighten me (us?).

I've also been told that the main reason the US dollar is so strong is that it's some kind of a world currency (and used by the OPEC). Fort Knox alone would never justify the value of the dollar, the gold backing is far below average. Rumour has it that some OPEC countries would like to jump ship and trade in Euros or something, which would be the coup de grāce to the American economy, so to speak.

What do you think?

When life hands you a lemon, that's 40% of your RDA of vitamin C taken care of.

Dec 04, 2003 19:52 # 17583

zen *** replies...

Re: US facing economics?

This is an interesting topic. I won't even pretend to know a damn thing about it.

However, my mom is a Partner at a valuations firm in NYC, and she has a Masters level in financing. I e-mailed her with the question "What does that CEC index/number tell one?" Figured that was the most basic question I could think of. I told her to be as detailed or simple as she'd like.

Personally, I don't think a collapse of the US economy is immanent anytime soon. Theres too much at stake for the world if our economy goes belly-up. It's kinda like the icecaps melting. It COULD happen, but will it?

I'll let all know when mom answers.

Once Fred Neitszche declared God is Dead, f*ck became the most important word in the English languag

Dec 04, 2003 20:54 # 17586

null rants...

Re: US facing economics?

?% | 1

Theres too much at stake for the world if our economy goes belly-up.

To be honest, I can't think of many people who would sympathize with the USA. We've also got our own economies, after all, and I guess even if the US went belly-up life would go on over here. Politically, it might even be a good thing if Bush went into history as the President Who Ruined America. But all in all I'd be terribly sorry for the people, who aren't the ones to blame but had to face the music.

I'll let all know when mom answers.

Thanks!

I also think the part about the collapse happening next (i.e. this) week is a bit exaggerated. Well, it's no secret that the US economy has seen better times, and that Bush is one godawful finance minister. (At least he decided to avoid one economic disaster by repealing the penal duties on steel imports at the very last minute.) But who can tell what will happen next?

Well, let's see what your mom says! :-)

When life hands you a lemon, that's 40% of your RDA of vitamin C taken care of.

This post was edited by null on Dec 04, 2003.

Dec 05, 2003 03:44 # 17596

zen *** replies...

Re: US facing economics?

92% | 2

Just for clarification, I just wanted to "rebut." The analogy to the polar caps, I think works for the following reason. Everyone hates the cold, especially THAT kind of cold. However, it is useful, in the same way the deserts are useful. They regular the temperature of the planet earth.

Many countries hate the US. That's no surprise to anyone except President Bush. Not many tears would be shed around the globe if America went the way of Atlantis, former continent. However, it really is NOT about liking of disliking us, its about economic stability. I think the prevailing logic on Wall Street is that the our place in the world economy is too valuable for other countries to NOT help us if we need it. And I'm not convinced that we need it; despite what the mystery index might say.

If we go by crackpot theories, I was listening to a guest on the Art Bell show last year. He was talking about prophecy, and how it relates to the Book of Revelation <insert="strategically placed sigh">. Seriously, this cat was saying that the US economy is due for a major break-up, and the other world powers will draw and quarter, and feed upon the dead, bloated carcass...very soon.

Do I believe this? Not really, but I do have to wonder, looking at history, where this country is headed. Look at Rome, Greece, Britain, Spain, Babylonia, Sumeria, Persia, and a host of others too long to list. Am I being too vague? The fact is: it is now OUR time in the sun. And the point is: All of those mentioned were WORLD empires. (In the 1800's it's said the sun never set on the British Empire.) The question isn't HOW we'll meet our end. It's WHEN.

Once Fred Neitszche declared God is Dead, f*ck became the most important word in the English languag

Dec 05, 2003 09:56 # 17603

null rants...

Re: US facing economics?

92% | 2

Seriously, this cat was saying that the US economy is due for a major break-up, and the other world powers will draw and quarter, and feed upon the dead, bloated carcass...very soon.

So much about prophecy. :-P

Many countries hate the US. That's no surprise to anyone except President Bush. Not many tears would be shed around the globe if America went the way of Atlantis, former continent.

Weeell, NAO is hosted on a US server, so most regular NAO users would probably be sad about the outage.
;-)

Seriously. I must say my own anti-americanism is causing me a bit of an inner struggle. There's so much crap coming from there that I wouldn't be sad if the USA suffered a major collapse and in the process would become a bit more humble and dump that "we're #1, we're the world police, everybody wants to be like us" crap, because honest, I can't hear it anymore. Not all that glitters is gold, especially not in the US.
On the other hand I would be terribly sorry for the vast majority of the American people if they had to experience this, just because they happen to live in a country with a bad reputation (to which they did not contribute). How do you punish* a country without punishing its people?

One of my English teachers (she's American) said something like "the American people don't know they're wrong. They're ignorant but kindhearted. They think they're doing the right thing."
While I don't think that this applies to everyone in the US, I'm pretty positive it applies to many.

See, this is becoming another political discussion, and once more I'm to blame. It seems that somehow I just can't help it. :-P



---
* My English vocabulary is limited and I can't think of a better word.

When life hands you a lemon, that's 40% of your RDA of vitamin C taken care of.

This post was edited by null on Dec 05, 2003.

Dec 05, 2003 00:44 # 17593

wizz *** throws in his two cents...

Re: US facing economical collapse?

I'm not sure what this index is about, but the weakness of the dollar is - as far as I know - at least partly intended for economic reasons. It makes exporting goods more profitable for American companies.

About the OPEC switching to the petro-euro: I remember having read that the US actually is rather afraid of this. And on a sidnote: as reported here, there was a country in the middle east that did switch: Iraq.

'Repent, Harlequin!' said the Ticktockman. 'Get stuffed!' the Harlequin replied, sneering.

Dec 05, 2003 09:24 # 17599

null replies...

Re: US facing economical collapse?

I'm not sure what this index is about,

All I've heard one person say is that it measures the value of the dollar compared to other 'big' currencies. How this is done (or whether this is the whole truth) remains a mystery to me.

as reported here, there was a country in the middle east that did switch: Iraq.

Yeah, I've heard this too but didn't bring it up because I didn't want this to become yet another US-bashing thread started my me. ;-P

When life hands you a lemon, that's 40% of your RDA of vitamin C taken care of.

Dec 08, 2003 15:45 # 17666

jbooker ** has all the information you need...

Re: US facing economical collapse?

?% | 1

All I've heard one person say is that it measures the value of the dollar compared to other 'big' currencies. How this is done (or whether this is the whole truth) remains a mystery to me.

As far as I am aware, the OPEC thing or whatever it is called is a system of measuring the relative worth of currencies around the world in relation to each other by giving them a value based on the price of pure gold.

However, I may be wrong :)

They will never forget you 'til somebody new comes along... - The Eagles, "New Kid in Town"

Dec 09, 2003 01:17 # 17679

baexcell *** replies...

Re: US facing economical collapse?

85% | 2

Actually, OPEC is not an organization for valuing (sp?) different world currencies compared to pure gold. OPEC is a conglomeration of the major oil-producing countries of the world, who set standards among themselves about what to sell oil for and how much to pump a day. If they were to convert their standard currency to euros, the downside for the US would be that our cost of oil (and in turn all petroleum products) would likely have much higher fluctuation from day to day.


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