Thread: and down will come the dollar.

Sure the stock market has had glimmers of recovery. that is not because of the bail outs but rather because of human nature for people to try to improve and make money. The American way. Now comes the borrowing from the fed and this is where the wheels will fall off.

Treasury needs record $361B April-June borrowing


Treasury needs record $361B April-June borrowing


WASHINGTON – The Treasury Department said Monday it will need to borrow $361 billion in the current April-June quarter, a record amount for that period.
It's the third straight quarter the government's borrowing needs have set records for those periods.
Treasury also estimated it will need to borrow $515 billion in the July-September quarter, down slightly from the $530 billion borrowed during the year-ago period. The all-time high of $569 billion was set in the October-December period.
The huge borrowing needs reflect the soaring costs of the $700 billion financial rescue program and the recession, which is nearing a record as the longest in the post World War II period.
The slump has cut sharply into tax revenue and boosted government spending for benefit programs such as unemployment insurance and food stamps......

Yep, I figure it will collapse this fall, somewhere around sept.

And when it does it will be the fall of failed Socialism...yet again. But the Socialists will be working the spin machine over time to redirrect the blame to the failures of greed and Capitalism. But that will be a lie. All of this stuff that has been bad has been socism. Bush's bail outs and then Obama's bail outs. Bush's drug program and Obama's countless welfare add ons. The very straw that breaks the economies back, bad loans, are the clearest sign of how social engineering is flawed.

I can not say I agree with that. Social programs amount to a drop in the bucket compared to other programs the government has going. No, the real problem is the lack of control over our currency and nothing backing it. Bankers that are allowed to create financial instruments that have no real basis of worth and the bundling of mortgage backed securities.

its interesting how we have to borrow money for the 700 billion bailout, but NOT for the 10 billion a month war on terror. why is that?

I will bet a thousand dollars that the U.S. buck will be fine. You guys don't have a clue what you are talking about. I have made more money lately in trading money then anything else. And its been good. But you go ahead with your delusion because its helpful to me.

You want to make some money? Let me help you out. Buy Aussie dollars. Invest all you can in Aussie dollars. Now you mark my words and write this down. Then you can thank me in a few months.

I'll tell you why. First thing you need to remember is that there is no point in the Chinese or anyone else to devalue the U.S. dollar. That is why the Chinese back our dollar. If it fails so does their economy. Which is growing at 8% this year.
What the Chinese need more then anything right now it raw materials. That is why are largest export to China is scrap metal. What is going on in Aus. is that the Chinese have put in larger orders for Aluminum and copper frok Western Aus. This has caused a boom in Aus. which is sustainable because its not based on a phoney housing market. Its based in actual resources.
Last July the U.S. dollar was about even with the Aussie dollar. Then their economy took a hit because of the global economic downturn. But the fact is that this was mostly a confidence drop based on loses from international banking issues. But not because they were over extended.
I knew this a few months ago when the Aussie dollar dropped for no real reason. So I bought Aussie dollars. I bought them at $1.60. Today they are at about $1.40. It will not only continue to gain to par. It could well surpass the buck slightly.

So if I'm wrong you let me know. But when you make some money you can simply thank me.

Originally Posted by nickcuse

its interesting how we have to borrow money for the 700 billion bailout, but NOT for the 10 billion a month war on terror. why is that?

Is that a question you sould ask the President? Obama now owns the policy.

doink!:dunno:

Originally Posted by justoneman

Is that a question you sould ask the President? Obama now owns the policy.

i don't see obamas name in the article. my point, why does the article say we need to borrow money because of the stimulus? why aren't we in debt because of the iraq war? or defense spending? the article, and the media in general, seems to editorialize that all monies alocated to everything BUT the stimulus are needed and within budget, and only the stimulus package is whats driving the debt.

i fail to see that connection. we have projects in the dod that are hundreds of percent over budget. how is THAT not why we need to borrow more money?

A quick three points:

Virtually everyone on this board prior to the election cited various economic problems as a reason why this term would be a catastrophically failed presidency. This is now starting to happen so why the surprise?

The country is in a liquidity trap as in when you give money away at zero or negative interest rates and no one takes it stimulus does not work. This has been pointed out by many members including some on this thread.

The dollar sinking means China goes politically unstable, US troops will have to be withdrawn from their European and Pacific garrisons as an economy measure and that will escalate political instability worldwide. With multiplier effects NATO costs the US over a trillion dollars a year in foregone GDP. Pulling the troops home may or may not have that sort of stimulus effect on the US but it will have that kind of depressing effect on the EU. A resurgent Japan, a paranoid Russia and a vengeful India with a collapsing China next door. Therefore a collapse of the dollar is unlikely.