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Does anyone know if the colone is going to continue strengthening against the dollar or will it come back to earth sometime soon.

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Does anyone know if the colone is going to continue strengthening against the dollar or will it come back to earth sometime soon.

 

Thanks to the Obama deficit and all the US debt the Chinese carry (and are trying to dump) the US dollar is fading fast. Expect the colon the continue strengthening over the long term.

 

Steve

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Does anyone know if the colone is going to continue strengthening against the dollar or will it come back to earth sometime soon.

 

If anyone knew that, then they could easily make a lot of money. It is anyones guess really.

 

 

And to say it is Obama's fault is absolutely silly. The chain of events in the financial markets where put in place A LONG TIME before Obama even entered politics. If you want to point fingers... the Nixon admin is your man. Please make sure you understand financial systems before you make such a silly comment.

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If anyone knew that, then they could easily make a lot of money. It is anyones guess really.

 

 

And to say it is Obama's fault is absolutely silly. The chain of events in the financial markets where put in place A LONG TIME before Obama even entered politics. If you want to point fingers... the Nixon admin is your man. Please make sure you understand financial systems before you make such a silly comment.

 

The amount of debt that Obama has incurred is greater than that of FDR. I'm very aware of the financial crisis (and the causes of it ... look into what really went on with Fannie Mae and Freddie Mac). The dollar is losing value rapidly and will continue to do so for the foreseeable future and will only slow down by reducing the speed of the debt increase (Congress just increased the debt limit to $14T). Remember the days when the yen was 360 to the dollar? It's in the low 90s now. When the Canadian dollar was $1.30 to the dollar? It's $1.05 now. To ignore, or deny the dramatic and continuing fall of the dollar is to bury your head in the sand. Sure hope you aren't counting on social security as a primary source of income.

 

Steve

 

 

 

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Steve...there is no denying the dollar is in a decline...and I agree that it has a lot further to go. But the devaluation of the dollar is 100% due to converting to a FIAT currency and abandoning the gold standard. You can only print so much money, and China can only buy so much debt. China is an awakening giant, and the printing of money cannot keep going unless someone is buying the notes. To point the problem to Obama is simply ludicrous and unfounded.

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The amount of debt that Obama has incurred is greater than that of FDR...

Gee, you don't even have to go that far back. Try GWB and his 3 trillion $ war against the middle east, that by they way, was never paid for by raising taxes, like, say FDR did to help pay for WWII.

Just my 10 Colones worth.

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The amount of debt that Obama has incurred is greater than that of FDR...

Gee, you don't even have to go that far back. Try GWB and his 3 trillion $ war against the middle east, that by they way, was never paid for by raising taxes, like, say FDR did to help pay for WWII.

Just my 10 Colones worth.

 

Obama has made Bush look like a miser. I'd be glad to give you links to CBO so you can see for yourself.

 

Steve

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Steve...there is no denying the dollar is in a decline...and I agree that it has a lot further to go. But the devaluation of the dollar is 100% due to converting to a FIAT currency and abandoning the gold standard. You can only print so much money, and China can only buy so much debt. China is an awakening giant, and the printing of money cannot keep going unless someone is buying the notes. To point the problem to Obama is simply ludicrous and unfounded.

 

James

 

When Bush took office, the national debt was $5.73 trillion. When he left, it was $10.7 trillion. That's a difference of $4.97 trillion (in 8 years). The current national debt is $12.4 trillion. Check out the National Debt Clock, which tells you your share of that -- roughly $40,000 per citizen, $113,000 per taxpayer. Since Obama's been in office, as off 23 Feb 2010, the national debt is $12.4 trillion, an increase of $1.7 trillion. Obama signed into law Friday afternoon (Feb 19, 2010) the bill raising the public debt limit from $12.394 trillion to $14.294 trillion. Over a period of 4 years (hopefully that's all he gets) he'll make Bush look like a miser. The problems bring all of this to a head are various, but some of the biggest lead directly back to the Barney Frank in his position as chairman of the Financial Services Committee (various articles I can point you to about this from the NYT, to USNews, to WikiPedia, etc.).

At any rate, this discussion is no longer relevant to the topic of this forum section.

I will agree with you that the beginning of the end occurred in 1933 when the FDR administration outlawed the private ownership of gold and the stake through the heart was when the Nixon administration ended trading of gold at the fixed price of $35 an ounce. At that time, the dollar became backed by nothing but promises. And the current administration is about to promise much more than the US citizen can deliver.

Steve

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So i guess the answer to my question is that the colone will continue to gain ground on the dollar.This is not good for us or for ticos counting on tourist bucks.

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So i guess the answer to my question is that the colone will continue to gain ground on the dollar.This is not good for us or for ticos counting on tourist bucks.

 

There will be some short term fluctuations but long term, unless the US gets a handle on it's debt, it doesn't look good.

 

Steve

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So i guess the answer to my question is that the colone will continue to gain ground on the dollar.This is not good for us or for ticos counting on tourist bucks.

 

Here's some historical data for the last 18 months on the value of the Colon vs the Dollar ...

 

http://www.exchange-rates.org/history/CRC/USD/T

 

About a 9% drop in the value of the dollar.

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So i guess the answer to my question is that the colone will continue to gain ground on the dollar.This is not good for us or for ticos counting on tourist bucks.

 

I think the decline is due more directly to the sagging US economy than it is related to the slight decline in the dollar.

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I think the decline is due more directly to the sagging US economy than it is related to the slight decline in the dollar.

 

I wasn't going to respond ... but I'll try one more time -- it's not nearly as simplistic as you want to make it seem.

 

The value of any currency is due to the supply and demand for that currency. In many quarters there is fear that the US will not be able to sustain its debt load without massive tax increases. This leads people to not want to have their funds tied up in dollars but into some other, more stable currency.

 

Creditor nations believe that the U.S. government is not supporting the value of dollar on purpose. A weaker dollar means that the deficit will not cost the government as much to pay back. As creditor nations realize this, they have been gradually changing their assets to other currencies to stem their losses. You can see this happening if you follow the financial news. Foreign demand for US Treasury securities fell by a record amount in December as China sold $34.2bn in US Treasury securities during the month.

 

But, who knows? It's a crapshoot. The dollar could temporarily rebound because of the pressure on the Euro and the problems the EU faces (particularly Greece). But, unless the US gets its debt under control, the long term view is not a happy one.

 

Steve

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