Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
US Dollar So Sad.....
Old 05-02-2006, 07:44 AM   #1
Thinks s/he gets paid by the post
 
Join Date: Jun 2003
Location: Historic Florida
Posts: 1,647
US Dollar So Sad.....

Soon the Greenback will be worth nothing anywhere other than the USA. In the last 5 years the currency has lost approximately 50% of it's value. It does not seem to bother the government. But I suppose they just keep printing Money. But for us who are USED to be FIRED it makes a big dent when travelling and paying for foreign goods.

Am I the only person this effects? I hear very few complaints here.

SWR
__________________

__________________
"Arguing with an Engineer is like rolling in the mud with a pig. Just remember that the pig likes it."
ShokWaveRider is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: US Dollar So Sad.....
Old 05-02-2006, 07:59 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Apr 2006
Posts: 1,487
Re: US Dollar So Sad.....

all coins have two sides ... declining value of the $ will increase demand for US exports and lessen our demand for imports, thus improving our "net exports" situation.
__________________

__________________
d is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 08:01 AM   #3
Recycles dryer sheets
Robert the Red's Avatar
 
Join Date: Aug 2005
Posts: 325
Re: US Dollar So Sad.....

It's got a ways yet to go on the downward path -- another 20-40%, I'd guess. *Annoying? *Yes. *That's why about 50% of my equity allocation is international now. *As for travel, places like Thailand will still be inexpensive by US standards. *Just don't dream of Paris in the springtime.
__________________
Robert the Red is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 08:03 AM   #4
Recycles dryer sheets
 
Join Date: Nov 2003
Posts: 92
Re: US Dollar So Sad.....

It's not over yet either, expect the dollar to continue losing more of it's value.

Not to revive the Gold argument, but it's one of the reasons why Gold has been blowing through the roof.
__________________
John L. White, author of: My JOB SUCKS and I Can't Take it Anymore! HELP !http://www.amazon.com/exec/obidos/AS...indebove40w-20
johnlw is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 08:04 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: US Dollar So Sad.....

I've certainly felt it, but hedging with investments in commodities, non-US stock, and foreign bonds has helped a lot.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 08:06 AM   #6
Full time employment: Posting here.
 
Join Date: Dec 2004
Posts: 714
Re: US Dollar So Sad.....

Yeah, but inflation is only running 3.6% annually ... :
__________________
Craig is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 08:07 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,409
Re: US Dollar So Sad.....

Nope - that's why I'm looking hard at American mutli national growth stocks - with the falling dollar - I'd rather own Budweiser than cash.

heh heh heh heh heh - a little tongue in cheek!
__________________
unclemick is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 09:02 AM   #8
Thinks s/he gets paid by the post
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,803
Re: US Dollar So Sad.....

Quote:
Originally Posted by unclemick2
- I'd rather own Budweiser than cash.

You never really own beer.....you just rent it.


__________________
Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 10:54 AM   #9
Recycles dryer sheets
 
Join Date: Jul 2002
Posts: 420
Re: US Dollar So Sad.....

For a FIREe like me not being from the US but using US-based products (ETFs/funds - you guys are SOO spoiled compared to the rest of the world!) it is even more important to ensure to diversify away the risk by owning lots of foreign/un hedged/commodities Etc. Even my fixed income part (30%) is 20% foreign bonds (PFUIX/PLMIX). Cheers!
__________________
preben is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 12:13 PM   #10
Recycles dryer sheets
 
Join Date: Jun 2005
Posts: 126
Re: US Dollar So Sad.....

Has the dollar really lost 50% of its value? It's down less than 30% against the Euro and was clearly over valued at its peak.
__________________
jerryo is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 12:27 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: US Dollar So Sad.....

Quote:
Originally Posted by ben
For a FIREe like me not being from the US but using US-based products (ETFs/funds - you guys are SOO spoiled compared to the rest of the world!) it is even more important to ensure to diversify away the risk by owning lots of foreign/un hedged/commodities Etc. Even my fixed income part (30%) is 20% foreign bonds (PFUIX/PLMIX). Cheers!
Ben, it looks like PFUIX and PLMIX are holding a lot of USD cash? I'm looking for a substitute for GIM in case it goes to a significant premium to NAV. Any odeas would be appreciated.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 01:00 PM   #12
Recycles dryer sheets
 
Join Date: Jul 2002
Posts: 420
Re: US Dollar So Sad.....

Brewer; Well, both are fairly new funds so I guess they are loading up daily so the data at Morningstar Etc. is probably very old for these funds. (I also wonder whether some of that cash is held in high paying foreign currency interest accounts/MM products - if anybody could do it it is Pimco) - so maybe it is cash but held in foreign currency too.
Cheers!
__________________
preben is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 01:04 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: US Dollar So Sad.....

Quote:
Originally Posted by ben
Brewer; Well, both are fairly new funds so I guess they are loading up daily so the data at Morningstar Etc. is probably very old for these funds. (I also wonder whether some of that cash is held in high paying foreign currency interest accounts/MM products - if anybody could do it it is Pimco) - so maybe it is cash but held in foreign currency too.
Cheers!
Nope, there are the 12/31/05 data on Bloomberg. They show a breakdown by geography and both funds were ~50% US.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 04:43 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Jun 2003
Location: Historic Florida
Posts: 1,647
Re: US Dollar So Sad.....

Quote:
Originally Posted by jerryo
Has the dollar really lost 50% of its value? It's down less than 30% against the Euro and was clearly over valued at its peak.
When I checked, the Euro was 85 cents now it is 1.26 That is 33%, but against the Canadian Dollar which was $1.60 and is not $1.10 that is 38%.

OK I exaggerated a little, but I was making a point. I still think it is sad because the government does nothing about it or any other issue. What is the point of having them

Could this also have anything to do with the price of oil. If I were trading on the world market today, I would not want to touch the US dollar at all. I would deal in Euros, pounds or Deuchmarks. With that attitude, it will only get worse. It is as if the whole world, not just Al Queda has a vendetta to paralize the US. What did we do to deserve it? Stick our nose in everyone elses business', probably. Iran is next. Why don't we pull our troops out of Bagdad and move them to Tehran? Not too far away.

If we spent more time Money looking after our own people and not so much everyone else perhaps we could fix health care, immigration and other important items currently in the news but on the back burner government wise.

Worried about Iran bombing us with Nukes? Then use our early detection technology (which we have) to blow the things up before it get's here, or turn it around. Let other countries worry about themselves.

Look after No 1 is what I think we should start doing before it is too late.

SWR
__________________
"Arguing with an Engineer is like rolling in the mud with a pig. Just remember that the pig likes it."
ShokWaveRider is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 04:48 PM   #15
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 569
Re: US Dollar So Sad.....

The declining value of the greenback makes US Manafacturers more competitive.

The $CDN has crossed $ 0.90, now they are predicting par or even more than its' $US Counterpart.

A strong $ is not good for our Auto Manafacturers, jobs will move from Ontario to Michigan, our Manafacturers will have a tougher time competing.

Canadians will once again start shopping across the border which hurts our own Stores, and travelling to the US just got cheaper.

Many of us own US Stocks, our portfolio's will decline as now they are worth less $ CDN.

We have a small Factory in our town, the company has another factory in the U.S.., being a U.S. company I would not be surprised to see ours' closed and the US one expanded.

__________________
Maximillion is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 04:49 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: US Dollar So Sad.....

Quote:
Originally Posted by ShokWaveRider
orried about Iran bombing us with Nukes? Then use our early detection technology (which we have) to blow the things up before it get's here, or turn it around. Let other countries worry about themselves.

Look after No 1 is what I think we should start doing before it is too late.

SWR
Uhoh, I feel a sermon coming on the need for C rations, firearms and underground bunkers as part of a diversified portfolio...
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 06:03 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Re: US Dollar So Sad.....

Although I love hate being a kill-joy on these types of issues, I can't help but throw a wet blanket of facts over things like this.

The truth is that the USD has not declined by 50%.* It may be down against some currencies by ~30% or more from peak to troth, but it has been generally stable over many decades.* The Euro debuted in 1998 at something like 1.16 / $ and now it has risen back to 1.26 / $ after falling to something like .8 / $.

Here is a graph of the British Pound since 1971.




The image is difficult to read, but the GBP was at 2.4 / $ in 1971 and is at 1.84 / $ as of the end of April 2006.
__________________
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 06:28 PM   #18
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 569
Re: US Dollar So Sad.....

3 years, at one point the Euro was 0.90 US, the trend has not finsihed it is continuing, the condition of your economy is just sinking in.

Currencies can, and do , move fast, the Greenback will be hammered, Japanese and Chinese are raising rates, U.S. Treasuries are less attractive, the control of the US $ is in the hands of Foreigners.

Gold is not going up, it just takes more pieces of paper with Dead Guy's faces to buy an ounce.
__________________
Maximillion is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 06:35 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Re: US Dollar So Sad.....

Quote:
Originally Posted by Maximillion
3 years, at one point the Euro was 0.90 US
And before that it was 1.16 . . . so what.
__________________
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
Re: US Dollar So Sad.....
Old 05-02-2006, 06:40 PM   #20
Dryer sheet aficionado
 
Join Date: Apr 2006
Posts: 32
Re: US Dollar So Sad.....

Quote:
Originally Posted by Maximillion
Many of us own US Stocks, our portfolio's will decline as now they are worth less $ CDN.
Interesting point. Do you think people outside the US who hold US stocks will be inclined to sell them and move into something else?
__________________

__________________
Focu$ed is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
The Declining Dollar Erodes Personal Savings camberiu FIRE and Money 45 05-17-2006 08:05 AM
Calculating pension dollar figure... FedOut@56 FIRE and Money 13 02-09-2006 03:17 PM
Tax compliance costs 22c for every dollar collected cute fuzzy bunny Other topics 15 01-19-2006 03:36 AM
Dollar rises, profits fall...? Caroline FIRE and Money 2 06-14-2005 05:57 PM
How does the Low US Dollar Affect Your Retirement? ShokWaveRider FIRE and Money 9 08-15-2004 07:24 AM

 

 
All times are GMT -6. The time now is 12:55 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.