Is the dollar REALLY in this much trouble?

[miraclefan]

http://www.telegraph.co.uk/finance/economics/5586543/Is-this-the-death-of-the-dollar.html I'd like to think that sense there is no real alternative to the dollar right now, it's still going to be in pretty good shape for a little while longer.

 

[Welshie]

Yes, it is. Also, if Europe manages to come out of its recession faster than the US (making the Euro appealing again), or Russia and the various other large powers finally manage to get backing for that world currency they've wanted for some time now (to avoid fluctuations caused by any one country's domestic/economic troubles) then the dollar's going to be in a hell of a lot more trouble in the future.

 

[Kommander]

According to www.xe.com, US$1 equals... 362.18 Zimbabwe dollars. Shit, we are in trouble.

Oh wait, Zimbabwe revalued their currency in February... that would be 326 Trillion in the old dollars.

Ok, so we're not totally screwed.

 

[DiSiLLUSiON]

Yes, it is. Also, if Europe manages to come out of its recession faster than the US (making the Euro appealing again).

As far as I can tell, Europe is indeed quite on its way to come out of the recession, while the United States is lagging far behind.

 

[Scout101]

According to www.xe.com, US$1 equals... 362.18 Zimbabwe dollars. Shit, we are in trouble.

Oh wait, Zimbabwe revalued their currency in February... that would be 326 Trillion in the old dollars.

Ok, so we're not totally screwed.

You know you're in bad shape when all of your money is worth 1 trillionth of what it was worth before. If you had a million bucks, it's statistically worthless!

 

[Kommander]

^Yeah. Turkish Lira used to be the fail currency, but Zimbabwe overtook them exponentially. When Turkey revalued their currency a few years ago, it was only 1,000,000 Lira to 1 New Lira.

I think Zimbabwe revalued theirs a few times recently, so it's actually probably well into the quadrillions, if not quintillions.

EDIT: Zimbabwe dollars have been revalued three times. the first time is was $1k=$1.00, the second time is was $1G=$1.00, the third time $1T=$1.00; so... the current US dollar would be worth $362.18Y. So I was wrong. It's not quintillions, it's SEPTILLIONS!!!

Another edit: I'm not sure if those abbreviations are correct. I know $1k means $1,000 (or kilodollar, presumably) and $1M means $1,000,000 (or megadollar), so I assume $1 billion would be a gigadollar, $1 trillion would be a teradollar, and $1 septillion would be a yottadollar.

 

[Scout101]

How does that work, in reality? Can't have been people running around with septillions of dollars in their currency, could there? And if you have to have that much to end up with a single dollar, how much would you have to have to be "just getting by"?

Can't even have a decent turn-in program at that rate, so does just everyone burn their money and start over? How does the government issue the new money to start trading in, if no one has enough of the old money to even trade in for a single dollar?

 

[Kommander]

^ Yeah, pretty much. Before the most recent revalue, 100 Billion would buy three eggs. As inflation would rise, they'd print higher denominations.

So, yeah. When the government is like "turn in $1 Trillion for one new dollar", people actually have trillions of dollars on hand.

http://en.wikipedia.org/wiki/Zimbabwean_dollar

 

[Holdfast]

How does that work, in reality? Can't have been people running around with septillions of dollars in their currency, could there? And if you have to have that much to end up with a single dollar, how much would you have to have to be "just getting by"?

Can't even have a decent turn-in program at that rate, so does just everyone burn their money and start over? How does the government issue the new money to start trading in, if no one has enough of the old money to even trade in for a single dollar?

Zimbabwe has been running on a bizarro-world version on economics for some time now.

Essentially nobody within Zimbabwe uses Zimbabwe currency. Everyone uses USD or South African Rand. Government agencies theoretically pay in Zimbabwe dollars, but since they never actually pay anyone, it's not really an issue...

... hyperinflation is no joke. Internal currency has basically ceased circulation. I think they're slowly beginning to turn the supertanker around but it will take a LONG time to get that inflation rate under control (which is the reason their currency beyond a joke).

The USA is a paragon of macro stability by contrast. Only by contrast. Most of the West, including the US and the UK, has been indulging in an embryonic version of Zimbabwenomics over the past year or so. USD is still the default reserve currency though, due mainly to the US' economic size and existing foreign reserves.

 

[Kommander]

Essentially nobody within Zimbabwe uses Zimbabwe currency.

And there's that too.

I'm going to buy a 100 Trillion Zimbabwe dollars note off eBay. $6.95 seems like a rip-off, but it would be awesome to have.

I think the US should revalue its currency. Then comic books would cost 25 cents, bottle of Coke 5 cents, and my dad would finally shut the hell up about the subject.

 

[Holdfast]

Essentially nobody within Zimbabwe uses Zimbabwe currency.

And there's that too.

I'm going to buy a 100 Trillion Zimbabwe dollars note off eBay. $6.95 seems like a rip-off, but it would be awesome to have.

I think the US should revalue its currency. Then comic books would cost 25 cents, bottle of Coke 5 cents, and my dad would finally shut the hell up about the subject.

Simple, isn't it! Ah, the magic of fiat money...

 

[Mr Awe]

Yes, it is. Also, if Europe manages to come out of its recession faster than the US (making the Euro appealing again).

As far as I can tell, Europe is indeed quite on its way to come out of the recession, while the United States is lagging far behind.

I don't know, the numbers here are looking up actually.

Mr Awe

 

[Plecostomus]

No they aren't. Not by a long shot.

When we stop bleeding jobs to China and India THEN things will be "looking up."

 

[miraclefan]

When we stop bleeding jobs to China and India THEN things will be "looking up."

Right, like that will ever happen! at least not with all them blasted unions demanding EVERYTHING under the sun.

 

[Tim]

When we stop bleeding jobs to China and India THEN things will be "looking up."

Right, like that will ever happen! at least not with all them blasted unions demanding EVERYTHING under the sun.

Yeah, trying to return to the glory days of the US economy being based on heavy industry and manufacturing is pure fantasy. Further, Asia (particularly China) has a vested interest in not seeing the dollar tank (which it hasn't done, yet, anyway).

 

[wew]

I have an entire set of Zimbabwean curreny from 5 million up through 100 trillion. Its 15 separate bills, so I've been a millionaire, billionaire, and a trillionaire. Of course, can't really buy anything with it. Of course it is a great conversation piece.

Actually, most people argue that the economy is improving, just that unemployment will lag behind for some time.

 

[Scout101]

hmm, now i kinda want some of the Zimbabwe currency

 

[Garrovick]

I read some where that if the U.S. actually devalued the dollar ten percent, 80 percent of the world's economy would be gone.

Looks like the sovereign nation of E.U. is the last hope.

The Canadian dollar is about 87.3 cents US.

 

[Shikarnov]

When we stop bleeding jobs to China and India THEN things will be "looking up."

Right, like that will ever happen! at least not with all them blasted unions demanding EVERYTHING under the sun.

Yeah, trying to return to the glory days of the US economy being based on heavy industry and manufacturing is pure fantasy. Further, Asia (particularly China) has a vested interest in not seeing the dollar tank (which it hasn't done, yet, anyway).

I think it's time to realize that globalization was wrong-headed. The West did quite nicely for a long time until we decided to compete "equally" with countries and people what work for slave wages. Instead of building up the world, we broke ourselves by exporting jobs as well as money. It was nice for a while, as companies made fortunes on the backs of $0.25/day workers, and we bought cheap warez in the stores, but those days are done. It's not about the unions, it's about taking back what's ours -- if we can.

We should leave the Russians and the Chinese and the Indians to their own devices. Let them build their own damned economies.

 

[Tim]

Right, like that will ever happen! at least not with all them blasted unions demanding EVERYTHING under the sun.

Yeah, trying to return to the glory days of the US economy being based on heavy industry and manufacturing is pure fantasy. Further, Asia (particularly China) has a vested interest in not seeing the dollar tank (which it hasn't done, yet, anyway).

I think it's time to realize that globalization was wrong-headed. The West did quite nicely for a long time until we decided to compete "equally" with countries and people what work for slave wages. Instead of building up the world, we broke ourselves by exporting jobs as well as money. It was nice for a while, as companies made fortunes on the backs of $0.25/day workers, and we bought cheap warez in the stores, but those days are done. It's not about the unions, it's about taking back what's ours -- if we can.

We should leave the Russians and the Chinese and the Indians to their own devices. Let them build their own damned economies.

Well, the globalization train has already left the station, and I don't see some variety of xenophobic protectionism being practical--or possible. We must adapt to the changing times; clinging to an outmoded economic model will simply hasten the decline.