Dollar getting weaker ;_;;;/

[Dix Princesse]

In accordance to what MonoChromeSerpent said, the Iraq war is actually helping the economy because it's being stimulated.

Yeah,thats true.It stimulates the Oil and Fuel-Price to rise skyhigh.
But never mind that...lets have some more Wars so that you brilliant Americans can profit more....you make me sick!

Just because wars stimulate the economy doesn't mean we're in favor of wars. I personally hate wars and believe there is no reason for troops to be in Iraq.

 

[flowersofnight]

In accordance to what MonoChromeSerpent said, the Iraq war is actually helping the economy because it's being stimulated.

Yeah,thats true.It stimulates the Oil and Fuel-Price to rise skyhigh.
But never mind that...lets have some more Wars so that you brilliant Americans can profit more....you make me sick!

This is a thread about economics, not politics. We can discuss the economic impact of wars without getting into whether the actual war itself is right or wrong. I've already posted my opinion of the war's economic impact above.

More to the point, we don't need this kind of venom dropped into what was a perfectly fine topic of discussion. Political discussions are against board rules now in case you didn't notice the new rule; please don't make me lock this thread.

-flowersofnight, moderator


EDIT: PS Dix Princesse, I'll reply to your post later

 

[Radical Dreamer]

In accordance to what MonoChromeSerpent said, the Iraq war is actually helping the economy because it's being stimulated.

Yeah,thats true.It stimulates the Oil and Fuel-Price to rise skyhigh.
But never mind that...lets have some more Wars so that you brilliant Americans can profit more....you make me sick!

Just because wars stimulate the economy doesn't mean we're in favor of wars. I personally hate wars and believe there is no reason for troops to be in Iraq.

I know it is against the Board-Rules,but this Way of thinking is so disgusting.

 

[Dix Princesse]

EDIT: PS Dix Princesse, I'll reply to your post later

Okie dokies, that is if you don't lock this thread by then. >_<;;

 

[LejuN]

I know it is against the Board-Rules,but this Way of thinking is so disgusting.

I agree. But first of all, let us not get into it again. We are talking economics here. Nothing else. That statement above was a tad uncalled for.

I am getting fed up with being targeted or bashed under blanket statements by the rest of the outside world about Americans. Not everyone here agrees about what is taking place with this country and as you should note, the presidential election was very close, which would show you that there are a lot of people who may not agree with what the current president is doing. On top of that, their are Bush supporters who may not even agree with certain things he is doing...

Please end the blanket statements. You for example are from Germany. Would it be fair for me to state that you are an elitist warmongering genocidal person as your country has demonstrated in recent history? No it wouldn't. And the sad fact is, a lot of people still look at Germany in this light. And I feel bad for you if people prejudged you for you because you seem to be a cool person ne?

And to be fair, I know you probably were not directing it at anyone specifically (well, I think you were not including some of us Americans on this board at least), but I just wish people would think about the things they throw around a little bit more.

+LejuN+

 

[Radical Dreamer]

I am sorry for insulting anyone.But what Monochrome said,makes me real mad.I know that half of America does not follow Bush and i should have stated that in the first Place.
Even in Germany there are still People who think that Hitler was a good Man,who gave 9 Million unemployed People work....its sad.
But Bush-Fans should start to think,before they post something as well,shouldn´t they?

So back to Topic then...

 

[Illaparatzo-sama]

Oh NAFTA, OH NAFTA, when will you go awaay~~?

 

[flowersofnight]

Yes indeed, back on topic now...

Hehe well that's just the thing. The government makes sure that inflation occurs, and it is beneficial to them because they will be paying back the same amount they already owe with cheaper dollars because down the line that amount of money isn't worth as much.

Actually it's the exact opposite: the government (or to be precise, the Federal Reserve) works to prevent inflation and deflation as much as possible. You might want to check out:

http://www.federalreserve.gov/pf/pf.htm
Chapters 2 and 4 are the most relevant to what we've been talking about.
Anyway, you're right that in the short term a government can pay off its existing debts easier in the presence of high inflation. But in the long term, for new debt it will either have to raise interest rates to compensate, or not sell as much debt... so inflation won't get you anywhere in the long run. At best it will have a neutral effect, and at worst decrease investors' confidence in your currency and willingness to finance debt.

And about the US money in the system thing, what I meant was that if people buy imported products, their US dollars will be going to that country instead of staying in the US, which is not what we want. We want to be able to keep our US dollars flowing in the US.

Again I think this comes back to the issue of balance of trade. As long as there are dollars flowing into US companies, does it really matter whether they come from here or from overseas? The problem (if you choose to define it as such) is that more money flows out than in - at least as far as physical goods are concerned. I don't know how much there is we can do about it in the short term though, or if it should be a priority to do so.


On preview: Illaparatzo: what specifically about NAFTA don't you like?

 

[Dix Princesse]

Yes indeed, back on topic now...

Actually it's the exact opposite: the government (or to be precise, the Federal Reserve) works to prevent inflation and deflation as much as possible. You might want to check out:

http://www.federalreserve.gov/pf/pf.htm
Chapters 2 and 4 are the most relevant to what we've been talking about.

Ah I see, that sheds some light on that. Thank you for pointing that out.

Anyway, you're right that in the short term a government can pay off its existing debts easier in the presence of high inflation. But in the long term, for new debt it will either have to raise interest rates to compensate, or not sell as much debt... so inflation won't get you anywhere in the long run. At best it will have a neutral effect, and at worst decrease investors' confidence in your currency and willingness to finance debt.

Right, I agree. I just wanted to point out that inflation is not as people think and say it is. And deflation is definately something to keep away from.

Again I think this comes back to the issue of balance of trade. As long as there are dollars flowing into US companies, does it really matter whether they come from here or from overseas? The problem (if you choose to define it as such) is that more money flows out than in - at least as far as physical goods are concerned. I don't know how much there is we can do about it in the short term though, or if it should be a priority to do so.

Exactly, that's what I meant. As long as there is money coming into the US businesses then the economy will benefit from the increase of money in the circular flow.

 

[LejuN]

But Bush-Fans should start to think,before they post something as well,shouldn´t they?

So back to Topic then...

Of course they should. And I will say something if I feel someone else is out of line as well. This topic is not personal. We are already looking past the fact that the war is going on. We are now discussing the ramifications good or bad. We can't deny what is happening in the world at its affect on things no matter how much we want to.

But again, nothing personal. I know this is a sensitve subject for many of us.

Sorry guys... no more from us o-o; Carry on o-o/

+LejuN+

 

[Radical Dreamer]

And where is SUPER-TETSU to save the World of Inflation?

 

[Illaparatzo-sama]

Yes indeed, back on topic now...
On preview: Illaparatzo: what specifically about NAFTA don't you like?

All of it. Since that was signed, the economy has taken a dive. Tariffs are the way to go, it keeps everything in check.