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Originally Posted by samcol
Citizens might not care, but it does effect them and Iran knows that the dollar is approaching it's intrinsic value (which is literally the paper it's printed on).
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Did you know thats actually true for the US penny. The value of the copper in a penny is greater than a penny.
You can't be serious about US paper money. But if you are. Please go to your bank and get as many $100 bills as you can, send them to me, and I will give you the value of the paper in Euros. Deal or No Deal.
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Gold at 700, oil at 70, prices aren't neccessarily going up so much as the dollar is going down.
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If you bought a pound of gold and a barrel of oil 25 years ago and sold them today, your purchasing power would be materially less today than it was then. Now the trick question - does that mean the value of a dollar went down or the value of gold and oil?
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Foreign countries are ditching the dollar because they no longer want to trade in currency that is being printed at will, and because our country has fewer and fewer assets to offer the rest of the world.
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Exchange rates go in cycles. Our dollar has been too strong for too long, making imports cheaper and exports more expensive. If the rest of the world lost confidence in the US dollar interest rates would be materially higher than they are. Our current economic policy wants the dollar weaker relative to other currencies. Economic growth in Europe for example pales in comparison to the US economy.
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As more countries drop the dollar, our national debt is going to become a serious problem real fast. Maybe that's a more significant reason Iran is seen as a threat, once again it's about oil and money, not nukes.
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You forgot security. I want economic stability in the world and stable oil prices so I can enjoy life and raise my son. I want him to grow up secure in the world. I want to address the problems in the world now. I don't want to stick my head in the sand and pretend everything is cool when people say they want us dead.