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How scary is this!!?

Oct. 12 (Bloomberg) -- Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades.

Answer Question

Asked by Anonymous at 11:47 AM on Oct. 12, 2009 in Politics & Current Events

Answers (8)
  • Anonymous

    Answer by Anonymous at 11:48 AM on Oct. 12, 2009

  • Wow. Hope everyone is stocking up.

    Answer by Anonymous at 11:54 AM on Oct. 12, 2009

  • They have been hinting at this for a few monts but Obama doesn't seem to be listening, or he just doest care. His crazy printing and borrowing money has done nothing but bring the value of our dollar down. The Chinese have said they don't want to finance our debt any longer and the UN wants a single currency(and it won't be the dollar) We are now buying our own debt which anyone with half a brain should know that is not good. They try to hide it but those treasury bills they are selling are for the most part being bought by our own Fed. Lovely. People you need to look into this because what you don't know CAN hurt you.

    Answer by itsmesteph11 at 11:58 AM on Oct. 12, 2009

  • I'm curious, as the value of a dollar plummets, how does that balance against stock market gains? I mean, if the stock market is up say 25%, but the value of the dollar has fallen 40%, wouldn't that mean you actually have less money than you started with?

    In that case, any "yahoo the economy is getting better" claims would be false math, wouldn't it?

    Answer by mancosmomma at 12:12 PM on Oct. 12, 2009

  • I think we all know the economy is not getting better and we are getting closer to a one world currency.


    Answer by Anonymous at 12:24 PM on Oct. 12, 2009

  • It's not new. Several famous people have been requesting payment in euros instead of dollars.

    Answer by Anonymous at 12:33 PM on Oct. 12, 2009

  • Understand this - when more dollars are printed, or are invented by computerized credit gimmickry, then this creates "inflation", a word that means every dollar buys less. You know: bread goes from $2.50 a loaf to $5.75 a loaf.

    Now, if you BORROW money during inflation, then it works very much to your advantage. Say you borrow $500 which would buy 200 loaves of $2.50 bread. If inflation runs at 7%, then in five years the $500 you PAY BACK would only be worth 142 loaves of bread.

    Get it? Those who have BORROWED huge amounts of money (our gov't folks) do not mind if inflation skyrockets because that'll make it easier to pay off the loans. And hmmm .... who is it that makes inflation skyrocket or decrease? Oh that's right - the gov't.

    Do you get the picture now? Some of it might be unintended, just financial controllers doing what is best for THEMSELVES.

    Meanwhile, WE get the fun of runaway inflation from their deeds

    Answer by waldorfmom at 5:20 PM on Oct. 12, 2009

  • And financial controllers in OTHER countries are not stupid. They would be idiots to deal in the dollar when the dollar is going to buy less next year, in the way of oil or products, than the currency of some other country which is NOT spending money it doesn't have and creating high inflation for itself.

    Is it scary? You BET !!

    The consequences of the dollar losing its standing as a world-class currency are HUGE!

    Answer by waldorfmom at 5:26 PM on Oct. 12, 2009

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