State of the Dollar Currency

WotaWaster · #1 (**permalink**) 07-13-2006, 04:16 AM

Since I am not a member of any forums discussing the global economy I will have to ask this question here.

I am about to set up an offshore savings account and wonder whether I would be best to set it up in US$ or £. If the recent drop in the dollar is temporary I would hate to now exchange all my dollars into pounds only to find that when I withdraw the money in a couple of years the exchange rate has reverted to previous levels.

Is it felt that the Dollar will strengthen/weaken.stablisie against the pound in the next few years?

Gryff · #2 (**permalink**) 07-13-2006, 07:12 AM

The dollar is going to continue its slide.

xxdemexx · #3 (**permalink**) 07-13-2006, 07:28 AM

The dollar has been oversold.. the only way is up...

hope this helps

WotaWaster · #4 (**permalink**) 07-13-2006, 07:45 PM

Looks like a 50:50. Better ask the audience.

Av8tor009 · #5 (**permalink**) 07-13-2006, 08:17 PM

the dollar is going to eventually work its way back up the ladder... it really cant go much lower

Gryff · #6 (**permalink**) 07-14-2006, 12:09 AM

Lol! You really think that?
The dollar has been oversold for decades to generate "stealth" revenue for the US, its value is way too high even now.

Marm · #7 (**permalink**) 07-14-2006, 02:03 PM

Couple interesting things I have been wanting to tell somebody that I recently learned, but could never find a spot to fit this in.

1) It costs the US governement approx $.017 to make a penny, in materials alone.

2) At the current price of scrap copper and nickel, the US government could pull all the pennies out of circulation, scrap them, and pay off the national debt.

Beavis68 · #8 (**permalink**) 07-14-2006, 05:11 PM

Quote:

Originally Posted by Marm

Couple interesting things I have been wanting to tell somebody that I recently learned, but could never find a spot to fit this in.

1) It costs the US governement approx $.017 to make a penny, in materials alone.

2) At the current price of scrap copper and nickel, the US government could pull all the pennies out of circulation, scrap them, and pay off the national debt.

I have to call bullshit on that.

The national debt is currently $8,418,630,555,019.65

There would have to be 4,020,884.29 pennies is circulation per person to pay it off considering a profit of .7c per penny. Over 1.6 million pennies per person if you count the entire 1.7c.

one site estimates 150billion pennies in circulation, that would be 1.5 billion dollars.

Marm · #9 (**permalink**) 07-14-2006, 05:34 PM

Oh no, they don't profit that much, it's much higher profit to scrap it.

But the bullshit part is the affect it wopuld have on the copper market, it would flood the market, dropping the prices, and therefore the expected return would not really exist.

the alex · #10 (**permalink**) 07-14-2006, 05:48 PM

Quote:

Originally Posted by Marm

1) It costs the US governement approx $.017 to make a penny, in materials alone.

2) At the current price of scrap copper and nickel, the US government could pull all the pennies out of circulation, scrap them, and pay off the national debt.

This has been a rumor that I remember since I was a kid. Seeing that nothing has come of it, I'll say that this would make for interesting bar conversation, but I highly doubt that anything would come of it. You'd think by now, a penny could be minted small enough. Less intracaies, but the penny isn't very intricate as it is and the government's given up improving $1 bills.

The rapid expansion of the Euro will stagnate its value eventually. I'm not up on recent dollar trends, but we're approaching an upswing in the cycle of the American market. Currency, in theory, all evens out. I'd say to just follow the trends closely.

Or do what I do. Invest in silver.