USA: House passes $819 billion stimulus package with 0 GOP votes (1 Viewer)

ziki

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Can someone give me a simple idea on what would happen on global economy IF the US dollar takes a dive in vaule, would it practically kill the entire economy of the world? or would it actually do any good?

right now, im ASSUMING (just assuming) that america is working all of its mint's ass off printing out money, would anyone agree with me on this one??
 

juggernaut

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Dumb question (i have 0 clue about finance/business) - but how do you just 'print' money ? is that allowed ? Or does the money they print get included in there debt or something ?
 

Graney

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Dumb question (i have 0 clue about finance/business) - but how do you just 'print' money ? is that allowed ? Or does the money they print get included in there debt or something ?
Mugabe's deadly farce: 100 trillion dollar note - World - smh.com.au

Fiat currency. Backed by nothing, except faith the bank will accept it, because the government orders them to. Printing money is why we have inflation. You print more and everything already in circulation loses value.
 

Zionist

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Mugabe's deadly farce: 100 trillion dollar note - World - smh.com.au

Fiat currency. Backed by nothing, except faith the bank will accept it, because the government orders them to. Printing money is why we have inflation. You print more and everything already in circulation loses value.
Incidentally, Zimbabwe abandoned its currency today and is effectively replaced by US dollar, Pound Sterling and SA Rand.

Meanwhile .

WASHINGTON (AFP) — A new "Buy American" push in President Barack Obama's economic stimulus plan is sparking protests about protectionism from US trading partners.

Passage of the 819 billion dollar economic stimulus package Wednesday by the US House of Representatives raised hackles in Europe and Canada, the United States's biggest trading partner.

Obama has pushed for swift passage of the American Recovery and Reinvestment Act as vital to prevent the collapse of the US economy, reeling from the global financial crisis that has thwarted governments' unprecedented actions to ease the turmoil.

The legislation's package of tax cuts and spending has moved to the Senate, where lawmakers are working on their own version of the plan.

The bulk of the bill's spending is aimed at bringing aging infrastructure into the 21st century to preserve and improve the country's long-term competitiveness in the global economy, creating millions of jobs in the process.

The sweep of projects is broad, from roads, rail, bridges, airports and dams to military construction and housing, among others.

The House-approved plan's "Buy American" provision generally prohibits the purchase of foreign iron and steel for any infrastructure project in the bill.

The European Union's trade commissioner, Catherine Ashton, pre-emptively voiced concern about the US measure.


Italian Trade Minister Adolfo Urso warned Monday as the US legislation was being developed: "A dangerous new steel war is looming and we need to counter it with strong and decisive actions."

A European familiar with an EU trade commissioner dinner held the same day said that "one or two delegations signaled that the US recovery package contains seeds of a new steel dispute."

Obama, who criticized international trade agreements, including NAFTA, in his presidential campaign, has wasted no time in taking a tough stance on the trade front since taking office on January 20.

The next day, the Obama administration branded China a currency manipulator, setting the stage for a trade war with the Asian giant which has overtaken Japan as America's biggest foreign creditor.
AFP: 'Buy American' stimulus plan riles trade partners

We should pass our Buy Aussie Act too
 
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Riet

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Protectionism, lol. If the US dollar truly did fail it'd simply be replaced by the Euro.
 

katie tully

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Hay guys, lol in other news, Zimbabwe is at like 300 million percent inflation or something, idk, and theyve officially replaced their non existent currency with everybody elses currency

going to zimbabwe to pay $8US to see a dr!

edit: b10 :(
 

ziki

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It would actually be good for the world economy in the long run.

The United States will no longer be able to spend beyond its means and as foreign labour becomes comparatively more expensive it will encourage the US to return to producing much more.

if US is back to producing its own goods, then what happens to all those countries who were originally applying their stuff to the US (eg China)
 

КГБ

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Obama is calling on the people of America to buy American goods. the free market does not have any national border nor alliances. American built goods are much dearer than their Asian counterparts. i dont see how this will work. can some1 explain. cheers
 

mrcalkin

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Obama is calling on the people of America to buy American goods. the free market does not have any national border nor alliances. American built goods are much dearer than their Asian counterparts. i dont see how this will work. can some1 explain. cheers
creating jobs in America and reducing trade deficit. I think America will need to return to manufacturing to survive this crisis.
 
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xeuyrawp

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Protectionism, lol. If the US dollar truly did fail it'd simply be replaced by the Euro.
What are you talking about? Regardless of the increasing number of currencies which are pegged to the euro and the fact that it's growing as a reserve currency, the euro has been steadily replacing the US dollar as a secondary currency since it was introduced. It was even noticeable between my last two trips overseas... Shops that once had local + USD prices were changed to local + euro.

Whilst both these things aren't really a major economic consideration by way of effect (as we're usually talking about shitty little economies), it is definitely a sign of what's happening.

Bleh, anyway this issue -- especially whether/when the euro will become the first reserve currency -- is constantly debated.
 
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loquasagacious

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But oh so easy to interfere in it and create inefficiencies...
 

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