A World Recession

[preciousjeni]

Originally Posted by Educatingblue

As our national debt increases in addition to the recent mortgage crisis and now some Federal loan programs being discontinued, I wonder if European Union or Japan will surpass the U.S.

The dollar is exceedingly weak right now globally.

[KSig RC]

Originally Posted by preciousjeni

The dollar is exceedingly weak right now globally.

Context is important here - it's weak compared to its historical strength, but it's not like Lira in 1995 or anything.

[preciousjeni]

Originally Posted by KSig RC

Context is important here - it's weak compared to its historical strength, but it's not like Lira in 1995 or anything.

I don't anticipate the dollar reaching that level of worthlessness, but it is certainly sliding. Things are going to get worse for us, but we have safeguards in place to avoid another severe depression. Let's hope we, as a country, wise up and learn how to sacrifice and practice self-discipline.

Now's the time to do whatever possible to get out of debt and start saving money. I recently heard that we're about to start experiencing massive auto repos (kinda like the house foreclosures). People need to open their eyes and stop lying to themselves.

[cheerfulgreek]

Originally Posted by preciousjeni

The dollar is exceedingly weak right now globally.

And a weak dollar will make matters worse. Already, the economic slowdown in the United States and the Fed's interest rate cuts have caused the value of the dollar to drop relative to many floating currencies such as the Euro and the Yen. The weaker dollar may stimulate U.S. export competitiveness, because those countries will be able to buy more for less. But like I was saying before, it's still bad news for other countries who rely heavily on their own exports to the United States.

China in particular is at risk, because so much of its double digit anual growth have relied on the exports to the United States, and since Americans are the worlds biggest consumers, and China one of the world's largest exporters, if Americans are reluctant to buy, where would Chinese goods go?