Hypothetical situation regarding dollar vs peso

[BlahBlah]

But the lower dollar has helped the US of becoming a more competive export country and the imports are minimal(other then crude oil, which is cheap now) so it helped them slowing the effects of the recession

It's the same Argentina is trying to do and that's why the dollar and the peso are pretty much in the same league.

 

[igor]

The American Dollar is another case in point and it certainly in Obamas best interests to weaken its value due to the incredible debts incurred by the USA state.

Actually, as long as they can print dollars, the amount of debt is irrelevant.

But Argentine Peso as a safe haven? Do you really believe that at some point there may be more trust in Argentine government than in USA government?

People who bet on complete collapse of the financial system as we know it, in my opinion, should diversify between shotgun cartridges and canned stewed meat instead of buying pesos.

 

[Bianca]

But the lower dollar has helped the US of becoming a more competive export country and the imports are minimal(other then crude oil, which is cheap now) so it helped them slowing the effects of the recession

It's the same Argentina is trying to do and that's why the dollar and the peso are pretty much in the same league.

The chances of a weaker dollar leading to a sharp reduction in America's trade deficit is highly unlikely since 40% of the current balance is due to oil imports that are denominated in U.S. dollars. An additional 20% is due to trade with China, which is, of course, controlling the value of its own currency. Excerpt from: A Weak Dollar Is Bad For America by Carl Delfeld

 

[BlahBlah]

The trade deficit now is definitly lower then in 2007-2008

Spending is up, which will someday come back to haunt the US

 

[BlahBlah]

This are the latest figures I could find and that will tell you that atleast in the short term a lower dollar is good for the USA. Export is more competitive, imports more expensive. For Argentina it's actually similar as well.

http://www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm

 

[harpo]

A weakened dollar/peso cuts both ways; more competitive exports, more expensive imports.
The temptation for the US is to inflate its way out of debt; a plummeting dollar will be part of that fun ride - hold onto your hats folks!

 

[bigbadwolf]

The temptation for the US is to inflate its way out of debt; a plummeting dollar will be part of that fun ride - hold onto your hats folks!

The inflation will be an unwelcome corollary of "quantitative easing" as the US government is forced to buy its own treasuries with money it prints itself. The plummeting dollar will also follow as other countries start to lose faith in the US because of its reckless deficits and the amount of money it is printing. I assume people here are following the ongoing SCO conference in Yekaterinburg (Russia) with the same absorbed interest I am. A couple of relevant links:

http://www.globalresearch.ca/index.php?context=va&aid=13969

http://www.atimes.com/atimes/China_Business/KF16Cb01.html

The following may also be of interest (and is easier to read than the above two):

http://www.globalresearch.ca/index.php?context=va&aid=13997

As ye sow, so shall ye reap.

 

[bigbadwolf]

People who bet on complete collapse of the financial system as we know it, in my opinion, should diversify between shotgun cartridges and canned stewed meat instead of buying pesos.

The US-dominated financial system is under stress right now and what's been on the cards for a long time -- the jettisoning of the dollar as de facto global reserve -- is now beginning to occur (I think). Your advice on stocking up on bullets and tinned food is not so outlandish for people living in the US, where this is already occurring. I like the following blog myself:
http://survivalblog.com/

 

[harpo]

I never viewed Mad Max as a documentary before.

 

[bigbadwolf]

I never viewed Mad Max as a documentary before.

You may not believe it but I was going to mention it. My favorite is #3. Right in the beginning, when Max opens a tin of dog food and devours most of it. When the aviator brings out his long wooden spoon, the dog snarls at him.

Here's from a recent piece by Barbara Ehrenreich in the NYT:

And for those who like their meat fresh, there’s the option of urban hunting. In Racine, Wis., a 51-year-old laid-off mechanic told me he’s supplementing his diet by “shooting squirrels and rabbits and eating them stewed, baked and grilled.” In Detroit, where the wildlife population has mounted as the human population ebbs, a retired truck driver is doing a brisk business in raccoon carcasses, which he recommends marinating with vinegar and spices.