ScootyPuffSr said:not going to happen. If anything, corporations will send even more jobs oversea to reduce labor costs.

Except that a "cheaper" dollar and a more expensive foreign currency is only going to make outsourcing more expensive and reduce marginal benefit to doing it.

If anything a falling dollar should reduce the outsourcing you are talking about.

when there is wage parity between US workers and Chinese/Indian/Korean/Others workers, you will be correct.

Milk is at 5/gallon. What do you think a gallon of milk will cost when parity takes place?

ifyouhavetoask said:agentpt5 said:frankm said:


Stagflation -- this one is gonna be a killer.

Stagflation in the 70's was an interesting experience.

However, back then everyone wasn't walking around with $10,000 of credit card debt, and a second mortgage on the upside down house, and $30,000 in student loans.

The Federal Reserve will try to print us out of this current mess. Will it work? It might, if China plays ball.

If it doesn't work, the collapse will bring the world to its knees.

Those who aren't concerned about the dollar, obviously haven't looked at how far out of line things have gotten in the past couple of years. The 2010's might end up making the 30's look like the 90's.</blockquote>THE SKY IS FALLING!!! THE SKY IS FALLING!!!</blockquote>

ifyouhavetoask said:If it doesn't work, the collapse will bring the world to its knees.

Those who aren't concerned about the dollar, obviously haven't looked at how far out of line things have gotten in the past couple of years. The 2010's might end up making the 30's look like the 90's.I'm not worried...I bought tons of gold, so when the global economy collapses, I can wave my gold bars in everyone's face and gloat that I'm super wealthy!

kmith said:ifyouhavetoask said:... The Federal Reserve will try to print us out of this current mess. Will it work? It might, if China plays ball.

If it doesn't work, the collapse will bring the world to its knees...
This is a great discussion, but I don't understand it.

If the dollar falls, then holders of dollar-denominated assets (bonds) lose.
Why would that bring the world to its knees?

Because the dollar is the reserve currency of the world. Lots of commpanies own dollar-denominated assets and debt instruments (bonds). And if the U.S. economy tanks, the whole world economy comes crashing down with it. It's a global economy now, and the U.S. is the biggest pillar - still the biggest producer, purchaser, etc. in the world.

As for inflation, as a saver, it bothers me that the Federal Reserve can take away the value of my savings with a hidden tax just by printing more money whenever they want. If, every time they printed money, your bank account went from $100,000 to $90,000 or you had to write a check to the IRS, there would be a revolution. But they do the same thing through inflation and 90% of the people think there's no problem because the numbers in their account are going up (even while purchasing power is going down).

Are there any good investing strategies other than investing in foregin companies? What about trading currency.