What if China goes to the Euro????

[DBlack]

If China switched to the Euro, that would be devastating to the US dollar. The economics is quite simple; as the single currency system grows in cross-country usage/acceptance, so does it's stability, buying power and and value.

It immediately drive down the value of a dollar, thereby increasing the cost of everything we import and export to Euro based economies. And where there's money, there's power.

[dlang]

Originally Posted by DBlack

If China switched to the Euro, that would be devastating to the US dollar. The economics is quite simple; as the single currency system grows in cross-country usage/acceptance, so does it's stability, buying power and and value.

It immediately drive down the value of a dollar, thereby increasing the cost of everything we import and export to Euro based economies. And where there's money, there's power.

Possibly, but then again perhaps not. Most countries realize that the US is still the biggest market for their wares at this point in time (yeah, I know China's huge population makes it a viable market in the future but it's not there yet). Euro based countries may want to talk a good game but they don't want to get into any kind of a trade war that could threaten what currently is their bread and butter market.

[DBlack]

Originally Posted by dlang

Possibly, but then again perhaps not. Most countries realize that the US is still the biggest market for their wares at this point in time (yeah, I know China's huge population makes it a viable market in the future but it's not there yet). Euro based countries may want to talk a good game but they don't want to get into any kind of a trade war that could threaten what currently is their bread and butter market.

It's real simpe:

More consumers spending the same currency means more buying power for them. Buying power means your dollar is stronger. If my dollar is stronger, I can buy technology and improvements I cannot afford to engineer from scratch. That translates into other powers.

[dlang]

Originally Posted by DBlack

It's real simpe:

More consumers spending the same currency means more buying power for them. Buying power means your dollar is stronger. If my dollar is stronger, I can buy technology and improvements I cannot afford to engineer from scratch. That translates into other powers.

Not sure I totally understand your point brotha DBlack. First, the world is moving to a global government and currency anyway. That movement has been afoot for at least 50 years now. This hemisphere is trying to move towards the Amero (another discussion perhaps).

Second, A lot of people fail to realize the flip side of a strong(er) euro. You are correct in that a stronger euro means more purchasing power but couple that against a weak dollar and you have euro based countries purchasing MORE U.S. goods and services which help our economy. Is that all bad?

And third, as China's population continues to build wealth some of that money will find it's way into global investments...i.e. the United States. There are already joint ventures in the manufacturing sector and cash is flowing into the real estate sector (they are buying entire neighborhoods for their Chinese executives and families to move to) and some service/hospitality/entertainment sectors as well (the Chinese love to hang out in Vegas, baby!).

So what is the fear?

[RBG3]

I can't see that happeninng..China is too patriotic to join in such a thing..

[jimihaze]

Has anyone check the status of the value of the dollar around the world latey?

[RBG3]

i know canada's is as high/higher than the us's :)

[amilcarkabral]

Dollar depreciation is good you're in debt.

What happens is that foreign goods become cheaper as goods in other currencies shift from a 2:1 ratio to a 1.5:1 ratio, so what used to take two of our dollars to buy, now takes a bone-fity. Also the debt owed to foreign governments (it's held in US currency!) will depreciate as the US inflates its money, so not only will we be paying back at a lower exhcange rate, we'll have more money to pay them back with.


And we still need to make good use of these greenbacks.

[natirnr]

That may be an,
opinion,
but since China's use of some Euro's and dumping dollars since last year,
what are the
facts
about prices of all goods imported or domestic that, everyone on this here board have found out?????
And what is the
truth
we must realize as a people regarding our self suficiency,
if this trend accelerates?

[amilcarkabral]

Might be an opinion . . . heh

The reason the Chinese are dumping the dollar is because the dollar is holding less value over time. And as it depreciates, they can buy less stuff with it, and Americans can buy more stuff with it. The depreciation of the dollar i'm conspiratorily saying is a conscious decision by the government so it isn't in full hock with the national debt.

You want to know the facts about the prices? Go to Best Buy, look at the price of a new 60inch HDTV and compare it to the same price a year ago. Do you think that in one year that all that price reduction is due to cut-throat competition? Some of it 'has' (and i know that i'm taking a leap here) to be due to the devaluation of the dollar.

"What is the truth we must realize . . " we must realize that you just asked a vacuous question. Truth has nothing to do with the economy. . see my post on the "what is truth" thread. the economy has to do with the economy. But to answer what you're getting at . . .

Black folk need to focus on building our own business INFRASTRUCTURE. disparate businesses and 'networking' is waaay not enough. Powernomics by Claud Anderson [yes, the book, not the website] starts to lay the blueprint out in some detail, since you asked.