Comments on: The Demise of the Dollar

By: Talen

Talen — Thu, 18 Nov 2010 13:45:53 +0000

Thanks Rick…and completely understandable …there is a lot to be distracted by

By: SiamRick

SiamRick — Thu, 18 Nov 2010 13:20:50 +0000

Whoa! Fantastic post, Talen. (Sorry, I’m so far behind but newly living in BKK has, uh, distracted me.)
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By: Talen

Talen — Mon, 08 Nov 2010 13:34:55 +0000

Tony, unfortunately the average American is far more worried about who will win American Idol than their government screwing them over.

By: Talen

Talen — Mon, 08 Nov 2010 13:33:36 +0000

Tony, I see runaway inflation starting next year and the FED will continue to feed the system with worthless money creating trillions in more debt. The U.S. economy is in shambles but the powers that be keep saying we are in a growth phase although more companies are laying people off. The job numbers just released are a farce as they neither count people who fell off the unemployment roles or the millions of people that have had to take part time jobs .

By: Lloyd

Lloyd — Mon, 08 Nov 2010 13:15:45 +0000

Talen I have never said that the governments of nearly every country involved in the current ‘recession’ are not at least partially responsible for the sovereign debts current and past Governments have accumulated with little or no regard to just how and when they will reduce sovereign debts. However they cannot be blamed for the trillions of ‘dollars’ of debt their citizens accumulated due to poor fiscal responsibility, it is this debt that is primarily effecting current global markets equally as much as government policy. Simply look at the forex markets and just just how little the ‘major’ currency pairs have actually moved following recent government or FRB decisions.

It doesn’t take much research to see that the USD has been in a pretty steady decline against the Thai Baht for pretty much the last 10 years. http://www.xe.com/currencycharts/?from=USD&to=THB&view=10Y

Chukwow’s comment pretty much covers it, its not so much that the USD or GBP are weak but that the actual cost of living in Thailand has risen, just as it has in every developing country, and there is no longer a free ride for expats.

By: Tony

Tony — Mon, 08 Nov 2010 13:10:54 +0000

Talen what do you see for the future of the US dollar and economy? Do you think the US will default or will Helicopter Ben just keep printing money and we’ll see run away inflation?

A US default would be a pretty large shock to the world financial system but it might be just what the rest of the world needs to wake up and start decoupling themselves from the dollar.
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By: Tony

Tony — Mon, 08 Nov 2010 13:07:15 +0000

I also think most American have no clue as to what is really going on with their finances. As long as their TV still works that’s all the “education” they need and according to the propaganda, er commercials, everything is fine.

By: Talen

Talen — Mon, 08 Nov 2010 07:24:38 +0000

Chuck, I think the dollar to baht exchange will probably stay where it is for a while then rise slightly…might even be 31-32 by the new year. Fortunately for us Thailand is backing the U.S. and doing what it can to keep the exchange rate reasonable. Unfortunately the dollar has been on the decline for some time and it’s never going to stop unless the dollar is once again pegged to gold.

By: Talen

Talen — Mon, 08 Nov 2010 07:21:38 +0000

Lloyd, if you actually believe the American people brought down the economy you are sadly deluded. Yes, many Americans have spent above their means and just look at the programs you site. Home Loans and Cars…two areas where the government and the banks lied to the American people and pushed saying it will all be fine.

Yes, many stupid American bought into it and tried to keep up with the neighbors but they didn’t bring down the economy.

If you actually think the Federal Reserve is not the problem then how exactly do you see the buying of over 600 billion in treasury bonds by the Fed…that is buying bad debt with false money which will mean more debt? I guess the Chinese and other countries who have bought American debt on a large scale are wrong for being highly upset at this move.

By: Lloyd

Lloyd — Mon, 08 Nov 2010 06:25:16 +0000

Thats funny, you can actually believe that unemployed or “common” people took out home loans and bought new cars, tv’s and the like that they could never afford because the government told them too? Just too funny!

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