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American Capital Agency Corp. Message Board

  • raybans2 raybans2 Feb 19, 2013 12:55 PM Flag

    Debasing the dollar

    It is going to happen whether you like it or not. Those who come out the least demaged are those who understand it and respond wisely.

    Sciff chimes in. See link below.

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    • As the US debases the dollar relative to other currencies we will all see a decline in our purchasing power and thus there will be less demand for any company's products. Unfortunately this is necessary if we are to compete against countries that have lower labor rates than ours. Of course Obama is not debasing the dollar to fight a trade war, as some might like to think, because he would be doing it anyway, even if it hurt our trade position. He just wants to keep spending. The spill over to our trade competitiveness is just something that happened to work out in his favor. Of course he isn't going to inform people that their spending power will be lower in the future which is the truth. He is more likely to say something that is just the opposite. But we all knew that.

      There is a fixed sized resource pie in the world and we have taught the third world how to take a piece of it. So obviously we have to take less of it. Fortunately the supply of Chinese workers from the farms is starting to reach a limit and is no longer inexhaustible. Other third world countries are starting to join the fray but I doubt the impact will be as big as the impact China had basically for the simple fact that they are not Chinese. The Chinese are more industrious than most other people. At least now they are. And they have one on the highest average IQs on the planet. This makes them a formidable competitor. Most other countries cannot make similar boasts. Many can supply cheap labor but not so much the engineering know how.

      We here in the US, on the other hand, are in the process of having our work force decline to a less skilled and less capable level and of course this has a social cost and it hurts our long term competitiveness. It is just one more thing that will lower our average standard of living here in the US. But allowing this to happen to us is OK in the minds of many, so it seems. Hopefully these people will tire of flagellating themselves over past sins before there is little left to salvage.

      • 1 Reply to raybans2
      • You continue to ignore the fact that an advisor stated on McLaughin that it is 'Os' policy to help reduce the trade deficit. I quess you just ignore maybe because it does not fit your skew.

        But really what are you trying to accomplish with continually posting suppositions about what Os intentions are. I mean really unless you are sharing pillow talk, how would you know?

        Why don't you just move to the Govt and Politics msg board. Can't stand the heat there??

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