The value of the dollar

[chad]

Here's a great website on the value of the dollar:

http://useconomy.about.com/od/tradepolicy/p/Dollar_Value.htm

In general, money makes the U.S. a little insane- trying to figure out the value of the dollar, in particular. As the article notes, there are several ways in which we measure the value of the dollar. How do you measure the value of the dollar? Which way works for you? Or do you have a different way? Can we ever meaure the value of the dollar with any accuracy?- Up for commantary......

Chad

PS- The also article notes a downward trend in the value of the U.S. dollar- not good news.... What do you attribute to this downward trend? It is possible that the dollar will rise again......

[GS2991]

I remember gas being a dollar a gallon. Buying my stash uf different gums for a dollar. Its not that things are getting high its the dollar is weak. Soup droped from 14.5 oz. to 10. oz. to stay $1.59. If the dummy keeps going no I do not see the dollar getting better. Stop taxing the rich the rich employ others that is kinda how they got there. Don't evilize the people that do good they make jobs. Bah well tis my thoughts. Nevermind me.

[chad]

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GS2991 wrote:
I remember gas being a dollar a gallon. Buying my stash uf different gums for a dollar. Its not that things are getting high its the dollar is weak. Soup droped from 14.5 oz. to 10. oz. to stay $1.59. If the dummy keeps going no I do not see the dollar getting better. Stop taxing the rich the rich employ others that is kinda how they got there. Don't evilize the people that do good they make jobs. Bah well tis my thoughts. Nevermind me.

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If I'm understanding you- that kind of goes without saying..... a rise in prices domestically, sometimes results in overseas investing, causing a weakening of the U.S. Dollar. It is, in part, responsible for the declining trend of the dollar, I think. I also think taxes have become a political catchword and change with each administration and do not really amount to much- rather than targeting specific income brackets, more specific targeting is usually needed. For example, a tax on the wealthy might include investors who invest in this country as well as overseas investors. Anyway, a steady downward trend in spite of the innovative tax reforms we ecncounter ....I really feel we need to rid ourselves of the income tax- but that is a long way off......

Chad 

PS- thanks for you're input!

[GS2991]

Politic: another word for thief,crook, igit. I don't really care but I do keep tabs. I love radio. Don't care for TV. I think too many planted or hidden things thrive on TV. Maybe I'm weird whatever. Everyone has their thoughts. I think nothing more or less of those who agree or disagree. But I bet you can't guess my age.

[chad]

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GS2991 wrote:
Politic: another word for thief,crook, igit. I don't really care but I do keep tabs. I love radio. Don't care for TV. I think too many planted or hidden things thrive on TV. Maybe I'm weird whatever. Everyone has their thoughts. I think nothing more or less of those who agree or disagree. But I bet you can't guess my age.

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I can't guess your age and we try to keep politics from being criminal.

To clarify: usually when I say something is political, I mean "to wield power or might, or persuade, if you will." So. as I stated above, a party will be either for or against, raising or lowering taxes, in order to gain support- and they can gain support with a position on taxes by including the income tax in their platforms. Let's face it, tax breaks usually are the fastest and easiest way to place money directly into their voter's wallets. You may hear other arguments over why, or why not, a party takes a position on a certain tax plan, but they usually are pretty specious....

Chad

[GS2991]

Interesting. Not to go OT but it kills me how government blows money. In FL someone spent $14,400 on red capes for the unemployed. As a new add campain to get people employed. One was CAPEable to get a job and defeat doc. Evil unemployment. Last I heard they were looking into who was incapeable of realizing what a terrible idea that was.

[chad]

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GS2991 wrote:
Interesting. Not to go OT but it kills me how government blows money. In FL someone spent $14,400 on red capes for the unemployed. As a new add campain to get people employed. One was CAPEable to get a job and defeat doc. Evil unemployment. Last I heard they were looking into who was incapeable of realizing what a terrible idea that was.

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I wonder who are supposed to don the red capes, as well as when and where. Maybe they're advocating unemployment as a state of mind? I guess it is to some degree, but so many people are now screaming about "job creation."  (?)

Chad

PS-  Employment can affect the human mind. Sometimes employers encounter diffulties iin training or retraining employees. Routine tasks are not conducive to creativity and so on.....

[chad]

It's great that you bring unemployment up. It obviously affects the value of the dollar. But the article I posted omits employment as a measure of value- maybe it's not an exact measure, or as exact as measures the article mentions? Theoretically, the amount of currency should shrink or expand as unemployment rises and falls- too theoretical I think....

Chad 

PS- We tend to think of unemployment as a result of the weakening of the dollar and not as a cause....

[GS2991]

I didn't get to read the article I'm posting form my 3G nook. And there are jobs out there plenty. Around here anyway. The place that dad works for is struggleing to find help. But the people that get a job there get caned because a lot of them don't like the hard work of turning the wrench. Work is work. If your that in need of money you have to work.

[chad]

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GS2991 wrote:
I didn't get to read the article I'm posting form my 3G nook. And there are jobs out there plenty. Around here anyway. The place that dad works for is struggleing to find help. But the people that get a job there get caned because a lot of them don't like the hard work of turning the wrench. Work is work. If your that in need of money you have to work.

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Well, you sound like an eager beaver. But, the media has reported loss of homes, jobs, etc. Do you think the the media has reported this in err or given an accurate report of real situation? Possibly sensationalizing a few losses.

OK- before you read this, I'm just playing devil's advocate to your above statement on work:

If there is value to me in turning the wrench, then I'll turn it. But if I can find more money somewhere else, then I'll work somewhere else, all things being equal. Moreover, if I can find a way to lighten my "hard work" load while maintaining or increasing my production, then I am a more "efficient" worker. Essentially, modernization, technology, invention, or whatever you want to call it, has made "hard work" obsolete. "Hard work" is for societies which reject modernization, like the Amish.

Basically, don't tell me that if I need money, then I have to work, because the need for money alone will eventually lead to a loss of my job, or someone else's through modernization. Tell me "why" I have to work, better yet, tell me "why" I have to work for you when "efficiency" is also rewarded....

Chad  

[GS2991]

Oh but it was not to be this bad remember? Get wacha vote for. I'm into a book right now I'll be back.

[chad]

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GS2991 wrote:
Oh but it was not to be this bad remember? Get wacha vote for. I'm into a book right now I'll be back.

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Well, I'm reading "Treasure Island" by Robert Louis Stevenson on the classics board and I decided to post some CE topics related to the novel. But I must move on from the money topic soon, interesting though it is.

Stevenson is always interesting and one of the points he elucidates, indirectly, is that money is about making things easier. So, rather than lugging a lump of gold or a pound of silver to the  traders, I can represent that lump or that pound with a piece of paper -it's a lot lighter to carry. The U.S. and others are about hard work, but they're also about making things easier. Working hard for your money or even working for your money will only make so much sense when money itself is made to make things easier.....So, there is always this constant struggle between hard work and easy money. And I think we only respect people so much for hard work and then we wonder why they don't make it easier for themselves.....interesting- happy reading!

Chad

[GS2991]

Treasure Island. Never read it. I never have been big on Classics. Enjoy!

[chad]

You could also say that the dollar, or currency, affects it's own value. Too much of a particular currency in the world market, and the value of that particular currency diminishes (i.e. an inflation of prices) Not enough of a particular currency, and the value of that particular currency rises in the market.(i.e. a deflation of prices) In general, we're more concerned about inflation and not deflation since we left metallic standards. And people monitor the value of currency for health and profit (i.e. the value of a country's currency is usually an indicator of the health of its economy, and currency traders often profit from the rise and fall of the value of currencies). So, you can envision a "peak efficiency", or a balance that currency has, whether or not we have achieved it. What comprises that balance and what takes place at the "balancing point" is always very interesting- why Stevenson wrote "Treasure Island" I think.

Chad