America is on the Verge of a Financial Collapse!

LOL explain to me why European investors would want to spend dear dollars to only get cheap ones back. Explain how buying a one year treasury note that pays 1% interest to only see it take a 28% hit in exchange rate will make them want to repeat the process. They lose 27% of their investment when reconverted to Euros. Who is going to do that?

Can you whisper this in some Republican way that denies that the truth of this statment implies inflation at home. If you get $300 back on your taxes but lose 28% of the purchase power of your cash....how is that a gain?

????????? Anytime I hear someone use the word Commie, or pinko....the hair stands up on the back of my neck. I've never been impressed with those kinds of people. I know what a communist is, in theory and in reality. I've studied them since I was in the 3rd grade and 'The Naked Communist' was a best seller. I've never known a person that used the word 'Commie' to actually know what the word means. It is a trigger word! It alerts me to the ignorance of the user. I stand well back, for these kinds often spit tobacco over themselves and all in their path.

Randy R. Cox

Would you rather trade for a currency where you could get ten percent return on it in a bank, or for a currency where you could get only two percent?

Doesn't the fed determine short term interest rates?

So doesn't that determine what traders will pay for currency, at least in part?

With a fed lending at one percent, you can't do much better with dollars.

Were the fed to be lending at four percent, you would get a higher return on dollars.

Why wouldn't that influence currency traders?

- Tom

Also, the Fed has the printing presses working overtime, and are flooding the markets with inflated dollars.

If that is true, then why haven't prices in the US risen at a fast

How about home prices, gold prices, the new stock market bubble? So far that's where all the money is going.

Why would an inflationary increase in the money supply pick some targets for inflation, but not others?

Wow. I didn't realized that you had no concept of how our various markets work.

People buy an item when they speculate that the value of the item will go higher, and sell when they speculate that the price of the item will go lower.

Inflation is where everything goes up - wages as well as products. In this case, the cost of imports goes up, while the cost of domestic products stay the same. When the cost of producing something domestically is equal to the cost of imported item raises to the cost of producing it domestically, then the item will be produced domestically, by Americans. This means that more Americans will be employed.

The inflationary effect is minimal. Inflation is where rising wages cause an increase cost of goods cause a demand for rising wages.

Does it scare you when you realize someone has your number, huh commiecrat?

The simple fact is, the Democrats are socialist if not out and out communist. They want to nationalize most everything, dictate how companies must be run, and dispise the capitialist

Take Econ 101. The very fact that you're asking these questions proves you know nothing about how non-Commie economics works.

You didn't answer the question, for obvious reasons.>

You didn't answer the question, for obvious reasons.

For one thing, productivity is up among those who are job scared. There is a limit to how fast a worker can work, how many breaks he can skip, and how much vacation time he can donate. We buy a lot from other markets....as the dollar goes down those prices will go up. It will have some effect on domestic jobs, but only in areas we are already competitive. We don't have jobs in areas we weren't competitive in. Inflation is coming! Stock up now!

Randy R. Cox