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72% of the dollar's purchasing power was destroyed in just four episodes

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Re: 72% of the dollar's purchasing power was destroyed in just four episodes

#121

Post by bloppe »

unstatusthequo wrote: post #27
znnajdla wrote: post #13

This supports my hunch that the current Iran war creates a lethal trifecta that could potentially cause a dollar collapse. 1. Massive military overspend. 2. Petrodollar squeeze (Strait of Hormuz). 3. Allies pulling out: Europe and the Gulf diversifying both their investments and defense purchases. #1 creates oversupply of dollars and #2 and #3 lower demand. This study supports the idea that wars can indeed destroy pu…

I think the idea is crash the stock market to force interest rate drop to refinance the massive debt.

That's not how bonds work

Re: 72% of the dollar's purchasing power was destroyed in just four episodes

#122

Post by znnajdla »

raincole wrote: post #96
znnajdla wrote: post #13

This supports my hunch that the current Iran war creates a lethal trifecta that could potentially cause a dollar collapse. 1. Massive military overspend. 2. Petrodollar squeeze (Strait of Hormuz). 3. Allies pulling out: Europe and the Gulf diversifying both their investments and defense purchases. #1 creates oversupply of dollars and #2 and #3 lower demand. This study supports the idea that wars can indeed destroy pu…

You should check your hunch against the reality, at least periodically. The US dollar has strengthened since the current US-Iran conflict started.

I have checked. It’s too early to tell but anyway relative price is not what matters. What matters is purchasing power. EUR purchasing power was better and improving compared to USD. And check out interest rate derivatives — the euro has actually overtaken the dollar as the #1 currency in this massive market.

Re: 72% of the dollar's purchasing power was destroyed in just four episodes

#124

Post by vkou »

skywhopper wrote: post #61
leche wrote: post #50

Earlier quoted context omitted.

One of the goals of the Heritage Foundation is a weak dollar. They believe they can bring manufacturing back to the US this way. I don't think they're right. I do think they will continue weakening the dollar.

The bigger question is, why is that even the primary goal?

It's not, they don't give two shits about workers, and their masters don't care how they make their money, just that they make it.

Manufacturing is just their preferred lie to get otherwise intelligent people to support their insanity.

Re: 72% of the dollar's purchasing power was destroyed in just four episodes

#126

Post by joshuaissac »

dboreham wrote: post #59
znnajdla wrote: post #34

Earlier quoted context omitted.

That would be a double whammy for America then: a devalued dollar and higher oil prices. Both cause inflation. China doesn’t seem to be squeezed when they seem to have a deal with Iran to buy in yuan.

Quick note that "devalued dollar" is inflation, not a cause of inflation.

Inflation is about what goes on inside the country. So you can have inflation internally while the domestic currency strengthens against foreign currencies, and vice versa.

If your currency is falling against foreign currencies but prices are also dropping domestically, you get deflation. This was happening in China a couple of years ago, and they were exporting this deflation to other countries.

Re: 72% of the dollar's purchasing power was destroyed in just four episodes

#127

Post by amelius »

cheema33 wrote: post #95
leche wrote: post #50

Earlier quoted context omitted.

One of the goals of the Heritage Foundation is a weak dollar. They believe they can bring manufacturing back to the US this way. I don't think they're right. I do think they will continue weakening the dollar.

> One of the goals of the Heritage Foundation is a weak dollar. They believe they can bring manufacturing back to the US this way. Only cheap labor can bring manufacturing back to the US. Are Americans willing to work in factories for the same wages as the Chinese and Indians? I don't see it happening.

With a weak dollar, those wages will be more equal.

Re: 72% of the dollar's purchasing power was destroyed in just four episodes

#128

Post by gadflyinyoureye »

skywhopper wrote: post #61
leche wrote: post #50

Earlier quoted context omitted.

One of the goals of the Heritage Foundation is a weak dollar. They believe they can bring manufacturing back to the US this way. I don't think they're right. I do think they will continue weakening the dollar.

The bigger question is, why is that even the primary goal?

The United States is current getting the base material for its entire economy from a country that is openly at war with it: China. If the US attacked East Tiawan because East Tiawan attacked Taiwan, East Tiawan would simply stop exporting rare earths, silver, steel, and electronics to the US. As a result the US needs to manufacture at home. So too does the EU.

Re: 72% of the dollar's purchasing power was destroyed in just four episodes

#129

Post by margalabargala »

cheema33 wrote: post #95
leche wrote: post #50

Earlier quoted context omitted.

One of the goals of the Heritage Foundation is a weak dollar. They believe they can bring manufacturing back to the US this way. I don't think they're right. I do think they will continue weakening the dollar.

> One of the goals of the Heritage Foundation is a weak dollar. They believe they can bring manufacturing back to the US this way. Only cheap labor can bring manufacturing back to the US. Are Americans willing to work in factories for the same wages as the Chinese and Indians? I don't see it happening.

> Are Americans willing to work in factories for the same wages as the Chinese and Indians? I don't see it happening.

Create enough poverty and soon people will be willing to do an awful lot of things.

Re: 72% of the dollar's purchasing power was destroyed in just four episodes

#130

Post by delusional »

cheema33 wrote: post #95
leche wrote: post #50

Earlier quoted context omitted.

One of the goals of the Heritage Foundation is a weak dollar. They believe they can bring manufacturing back to the US this way. I don't think they're right. I do think they will continue weakening the dollar.

> One of the goals of the Heritage Foundation is a weak dollar. They believe they can bring manufacturing back to the US this way. Only cheap labor can bring manufacturing back to the US. Are Americans willing to work in factories for the same wages as the Chinese and Indians? I don't see it happening.

I don't think they are going to ask.
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