Is the dollar doomed?

I depend on the dollar/euro exchange rate daily. All of my dollars are converted into euro.

Of course I am very concerned, of course at the exchange rate, there are a couple of things to note:

1) The 2002 price is artificial. The euro was finding its footing. No one though those days would last. When the euro was introduced the price was about $1.16 to the euro. That would be a better base point.

2) I theorise that the Fed is keeping the dollar low for a different reason. In a globalised market it makes sense to keep the dollar weak so that the world is tempted to buy American. A weak dollar makes American products appealing.

The European Central Bank is not strong enough yet to control the world market.

HOWEVER, there is a real danger here for the dollar. If oil were to priced in euro the dollar would lose huge appeal and plummet to a point where the Fed could do nothing about it and America could lose her power to control the world economy.

The Fed are walking a fine line here.

 

Spiraling US Federal Debt Triggers Decline of Dollar

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I understand the PRC has around 200 million skip-tracers.

 

With the decline of the dollar...along with the upcoming amero...and the growing strength of the euro...we are getting closer to the one world currency.

"Even so, come Lord Jesus"

*edited to not offend C4K

 

Well said, although there is a #3 on the opposite side: Foreign banks have traditionally relied upon the stability of the American dollar to use as their reserve currency (that's part of the reason why Reagan was able to run such large deficits, since the money simply left the country and was taken out of circulation). With the development and stabilization of the euro, banks began to diversify their holdings, thereby driving its value up further and lowering the dollar as well. The only reason the dollar isn't already lower is China, who have been buying up those excess dollars because it gives them economic (and therefore also political) leverage in the US.

 

BTW folks "euro" is NOT capitalised any more than "dollar" is and the plural for "euro" is "euro".

Sorry. just a pet peeve

 

Duly noted and corrected.

 

Snipped:

http://www.richardheinberg.com/museletter/149

 

Euro soars as fears of U.S. slump intensify

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Notice too, this quote...

Compare that to, this quote from another thread...

 

This news seems relevant...

 

This is kind off topic, but I saw this quote and thought of all my friends in the News Forum at the Baptist Board:

"Thanks to TV and for the convenience of TV, you can only be one of two kinds of human beings, either a liberal or a conservative."
- Kurt Vonnegut

 

Notice this quote out of what I linked above:

Why does our government (as a whole) bow to Arab nations and play footsy with them and pretend they are our friends (in spite of human rights violations)?

Because should OPEC decide to no longer export their oil for US dollars, the US economy will implode. And, since much of our industrial base has been exported and offshored, and we have the largest trade imbalance and deficit in the history of our nation, yes, I see the day the dollar is doomed. What little bit of gold jewelry I own may end up buying bread one day, at least enough for one day. Hmmmm kinda reminds me of that passage in Biblical prophecy where it says it will take a day's wages to buy a loaf of bread.....hmmmm.....

 

The world wants America to be strong, financially, and for now won't allow a collapse of any kind. I wonder if we are being groomed to convert to a different one world currency, like say, the euro.

 

I think in the long run it would be in our best interest to convert to the euro.

 

Do you mean as believers, or as americans? As a believer, I say AMEN, as that means Christ's return is getting closer and closer!

As an american I say NO WAY. We left there 200 years ago to break free from them. I would not want to go back to depending on them!