April 28, 2008 9:17PM
Save the Dollar!
By Cheryl Casone
I am starting a campaign, it begins Tuesday on the show, and I need your help. What can be done to prop up the battered down, beaten down, saggy. droopy United States greenback?
We are waiting on Helicopter Ben, who most likely will be cutting the overnight lending rate another 1/4 point. The poor dollar. It was just getting it’s legs back, it was just peaking its little folds above the pool of water it is drowning in. But Wednesday, Mister Ben and the gang will probably dunk the dollar back below the water. Let’s help the dollar breathe!
So let’s think about this. What can be done to save the dollar? Because if it doesn’t show some strength we are going into rough waters as consumers. Food prices are higher, gasoline is at “I can’t even speak about it” levels, and crude just keeps on chugging, all on the back of the Greenback, and all while our purchasing power diminishes.
Even if you don’t travel overseas, you are seeing the effects of the weak dollar here. Our currency is still the most desirable. But what if foreign investors decide the pound or the euro is a safer bet? Also, I am a little concerned about corporate earnings. So far, about of the S and P 500 has reported, and the results have been good. However, many companies are reporting a bulk of their profits from overseas sales and operations. I know, you think I am nuts. But, I’m worried that companies will shift energy, resources, even jobs to their overseas operations, and then when the dollar does recover, we will have lost valuable real estate and human capital here in the U.S. All of a sudden, the company decides since they’ve moved the bulk of business overseas, why not just move overseas all together?
So, let’s figure out a way to Save the Dollar! Leave your thoughts ok?
CC
Comment by Matt
Apr 29th, 2008 at 10:25 am
Wow, that Save the Dollar segment was CHEESY!
I agree that It would be nice to see the dollar strengthen, but this this segment was very contrived and unfunny.
Comment by K. Stephenson
Apr 29th, 2008 at 11:00 am
Lets back the dollar with silver and not the credit and reliability of the USA.
Comment by Eric
Apr 29th, 2008 at 12:01 pm
GREEEED!!!!!!!!!!! I have never been so disgusted with the irresponsable behavior of our leaders in both our corporations and our government in all my life. However, the blame does not rest solely on their shoulders. We as citizens have the duty to police ourselves with respect to our family finances as well as our communities. As Americans we feel we can do pretty much whatever we want and when we want irregardless of economic priorities in our lives.
This looming economic disaster is a procuct of our own greed. Can you imagine our leaders telling us they are sending money to people to stimulate the economy and encouraging them to go out and spend it. It’s a bit like giving crack to an addict don’t you think?
Save the Dollar???????
GOD HELP OUR CHILDREN!!!!!!!!!!!!!!!
Eric in Hamburg, NY
Comment by Don
Apr 29th, 2008 at 12:30 pm
Boycott chineese goods, all of our good paying jobs are being shipped over sea’s mostly to china and how do the expect us to buy anything when we have no good paying jobs beside we have nothing to sell back which weakens our currency. Everythings made oversea’s and we wonder why our economy is declinning. America it’s about time we wake up and take a look at what is really going and stand up to companies who out source jobs to increase there already robust profits we need to start by not purchasing any goods from these companies and oversea’s markets they have unfair trade therefore unfair advatage in the markey place how can you compete with a communist country in a free market: answer you can’t they have no unions to protest for their workers and if you speak up there 15 just like you waiting for a job all they do is take you out back and boom! problem solved.
Ok now oil prices ok let ship all of the manufacturing jobs out and build up the largest population on the planet so they want to start consuming energy like we did and wonder why energy prices went up. HELLO when the hell are we going to wake up our stupidity is stagering it simple if we quit buy over seas goods they will have no capital to purchase oil then we will still require these goods and begin making them in the USA again keep our money here then our wages will increase and we will be able to afford everything just as we did years ago and decreasing oil prices because once again we will be the major consumer with the money to buy all the oil we desire thats just my $ .02
Comment by Christopher E. Hill
Apr 29th, 2008 at 12:44 pm
I hate to be a party-pooper, Cheryl, but Washington doesn’t want to fix the dollar (different reasons for this). I have to agree with legendary investor Jim Rogers, who said back on March 17:
I find it outrageous that the Federal Reserve is just throwing the dollar out the window. I happen to be an American citizen and they are signaling to the whole world that they have given up on the dollar. They’ve been signaling for months. Anybody watching or listening to this show should get out of this dollar because the Fed has given up.
“Jim Rogers Says Get Out Of Dollar, Get Into Sound Currencies, Commodities”
http://www.investorazzi.com/2008/03/17/jim-rogers-says-get-out-of-dollar-get-into-sound-currencies-commodities/
Comment by Mike Kristiansen
Apr 29th, 2008 at 2:18 pm
The value of the dollar and the demand on world resources. I don’t think US businesses would move overseas altogether, regardless of the dollar. If the dollar was allowed to devalue past a point of no return, the US companies ownership ‘makeup’ would change…not in our best long term interests either. Once the Fed decides how much debt is reasonable to pay back with cheaper dollars, the Fed will put a brake on discounting. The dollar starts holding value, oil, gold will level off. Hopefully an orderly reversal in commodoties follows. With China, India middleclass rising, demand on resources affects American purchasing power. Will work,investment and measured risktaking be a past American ethic because a dollar has become a nickel? Nah. Will the American people decide to develop our own energy resources? In the 80’s we were set to develop a hundred synthetic oil plants, one got built- OPEC destroyed our budding commitment to independence in energy by dropping from $38 to $8 per barrel and we loved that. I don’t think that market clout over American energy independence is possible now…thanks to demand in China and India and foreign oil profits finding diversified investments. America will land on its feet, regardless of spent blood and treasure on wars fought in the name of national security and democracy building…maybe because we do stand for something more than a current weak dollar strategy. Our ingenuity is being applied to cleaner, homegrown energy development and we are looking at how other countries have freed themselves from energy dependence. The American dollar will continue being judged whether it’s worth every penny or not. So inflation and devaluation will find its new balance and purchasing power will determine how less or better off we are in a given period of time. Let’s see to it we develop the economic infrastructure that earns us the income to keep prices relative to a constant rise in living standards ….and we continue earning the respect of being the country of choice to invest in. For each and every American, let’s be sure to invest in it ourselves too…..
Comment by Chase
Apr 29th, 2008 at 2:25 pm
Stop buying products made from China! American jobs and money is being shipped to that country everytime you purchase those cheap and substandard products.
Let’s all go back to being more frugal and save more. Our consumerist tendency and penchant for using credit to buy things we cannot afford has to stop now.
God Bless America!
Comment by Norm
Apr 29th, 2008 at 2:28 pm
If people in the states want to save the dollar they should adopt better spending habits. I know that right now we need to spend spend spend our way out of this recession but in reality as long as we spend more than we earn ad the government does the same, there is no reason for overseas investors to take the dollar seriously. all it’s based on is debt and budget deficits the magnitude of which has reached the ‘I just can’t speak about it’ levels.
Norm
an ex-pat…
Comment by Dan
Apr 29th, 2008 at 3:20 pm
Our monetary policy for the last several years has been laughable to say the least. As a CPA i have seen folks get loans that had no business getting loans of any kind, much less car and mortgage loans. The era of easy money needs to end and we need to revert back to the Volker days. He had said many times inflation is the key to disturbing the US economy. I live in a town that the major employer is ConocoPhillips, with several other oil related manufacturing companies in town. The economy here is great, and i do feel bad for the folks around the country that are not as fortunate. I would be all for keeping jobs in America but we have so many lazy people that don’t want to work, you could pay them $35 or $7 per hour and you get the same crappy effort. I realize many will say lots of folks work hard and would love to work hard for a company but look at the younger generation behind us. Their folks never instilled hard work and they are a group of collective bums. I am sure the Chinese and Indians can out work this bunch.
Comment by Art
Apr 29th, 2008 at 5:05 pm
Stop buying stuff from China! Relish that ridiculous thought as you type your comments on your Asian-built PC.
Comment by Doug L
Apr 29th, 2008 at 5:39 pm
It’s simple: Stop printing money. The decline of the dollar is due to massive deficit spending. If you compare the price of oil and gold, they are about on par for the past eight years. Both have gotten more expensive when priced in Euro’s and Dollars - it’s just that the increase has been less with Euros because they’ve printed fewer of those than we have printed dollars.
This is classic inflation (which is the same as devaluing currency) Too many dollars chasing too few goods. Since we can’t produce more goods (and can’t export services), the only option is to reduce the money supply (exactly the opposite of what Buzzsaw and his Fed compatriots are doing.)
Comment by Rob
Apr 29th, 2008 at 10:01 pm
In five years or less, the dollar will be strong again.
Comment by adrian
Apr 30th, 2008 at 12:10 am
The devaluation of the dollar is stark, back in the 1960 you could buy a coke for a dime, a gallon of fuel for .29 . the devalued dollar has been on a downward trend for over 25 years, subtil but not too subtle for those who have been around, we are in trouble in this country, Jobs continue to dissapear, deficits at an all time high, and a bunch of crummy politicians that lack leadership in this country to do anything about it, but play grid lock, we need leadership in this country before we loose what our forfather built for us, the greatest country in the world. GOD BLESS AMERICA
Comment by Darren
Apr 30th, 2008 at 11:28 am
How about stopping the government from printing money? Every time they lower the interest rate that’s what they are doing. The government is printing money so they can pay off the debts with smaller dollars. Does that help you?
How about a tax revolt? Let’s all call in sick one day a month until they lower our taxes . I feel like I am trapped in my job and my house, I am really. Don’t you feel that way too? How about the first Monday of every month? Let’s call it Blue Monday…
Comment by Art
Apr 30th, 2008 at 3:11 pm
The Fed is likely finished with its campaign to bolster the financial system and economy. Everyone wants a strong dollar. The rate cuts were not intended to destroy the dollar. It’s a balance. We can’t have a strong dollar amidst a recession.
I see a lot of Ron Paulers bring up the point of what the dollar could buy in the 50s or 60s. What I never here is the other side of the coin. How much did you make in the 50s vs. now? I’m just betting that your standard of living is quite a bit higher today.
Now it turns out our economy grew .6% in Q1, ‘08 and we didn’t dip into negative territory. At least until the revised #s come out. That puts the Recession that the media and masses want out even further into the year. Maybe the Fed is having a positive impact?
A growing economy cures all ills. Pays off the debt, provides the services we all enjoy, and lifts all boats (mostly). Not to mention creates Jobs and all the wonderful Goods us Americans love to spend our money on. I think the Fed was right on target. The economy is first.
By the way, when the economy is chugging along and spending is controlled, deficits lowered, that dollar will be a lot stronger. We’ll have both. And that’s the goal.