Opinions on the US dollar by 2012

[GFPC]

Was thinking about the US dollar for the last little while. I recall back in about 2003 when the US dollar was around 1.50ish CAD (Canadian). Then around the end of 2007 is was on par with the Canadian dollar.

I am getting sick of the fact exchange rates means while I get paid in US dollars I am losing money with the drop of the US dollar along with exchange rates.

Would it be wise to change all my accounts and payments into Euros?

or

Do you think the US dollar will rise again to its once solid state by 2012?

Just wondering if it would wise to change currency structures or allow it more time in case the US dollar increase.

Its like on average getting paid to be an affiliate based on US dollars is around a 20% - 30% decrease on average between 2005 and 2010.

Forecasts?

[Nandakishore]

I don't think it is worth changing the currency structure because the currencies keep on going up and down. For example, the 1 Euro was worth about $1.60 one year back, then it slumped to around $1.20 and now it is around $1.40 again.

[GFPC]

Yeah that's true. Its just really bothersome the currency value is so low when converted to CAD funds. Its like a 20-30 percent decrease from when i started as an affiliate. Yet if I have to pay in US dollars I get shafted the other side as well.

[AmCan]

the currency you get paid in is irrelevant, it's the currency that your players spend that makes the difference. if you have US players and get paid in euros, as the dollar drops, your Euro income will drop too. If you players aren't using USD and you're being paid in USD, but don't live off USD, then change to your local or your player's currency.

Using Nandakishore's example rates: if your player lost $100 at $1.60 to the Euro you'd be paid about 68 euros, if the rate was $1.20 to the Euro you'd be paid about 83 euros.

[grem]

how about the euro in comparison to the pound. There is a change

[Nandakishore]

how about the euro in comparison to the pound. There is a change

Basically there is no difference. Currently 1 GBP= 1.15 Euro. So if your player loses 100 GBP you will get 115 Euro. If EURO rises so that 1 GBP = 1.10 Euro, you will get for 100 GBP only 110 Euro.

However, if you have an account with a payment method like Neteller, they have their own rates which are not equivalent to the official rates. Last month I was surprised to get paid at a more favourable rate.

[radicaldomains]

as for the question topic, the Dollar is going to be way stronger by 2012, by an incredible amount. I not going to explain why though. That would take 3 page post

[TheGooner]

Most financial analysts expect a continued drop in the US dollar - simply due to the stated fiscal policy of quantitative easing. Put basically, this involves the US government printing more and more US dollars, while not improving Gross Domestic Product.

Everyone has more actual dollars, but there is no more product being produced or to buy, the eventual effect is domestic inflation and a drop of the US dollar value against international trading partners.

In the last two years the NZD (my local currency) has gone from being worth US 40c to US 76c ... that's almost a doubling of value. Or put another way - your wealth has been cut in half - when measured against New Zealand's currency. It's true when comparing the USD against the CAD and AUD as well.

Another example is the headlines about gold prices. All quoted in USD. The reality for people outside the US / Eurozone is that Gold has actually declined in value in the last two years - if considered in your local currency.

Current US economic policy of printing lots of money to pay interest bills to foreign investors is rapidly making US citizens international paupers. If the US does not stop spending and start saving - I canot see how the US dollar appreciates.

[Nandakishore]

as for the question topic, the Dollar is going to be way stronger by 2012, by an incredible amount. I not going to explain why though. That would take 3 page post

I don't think that the dollar can become stronger by an incredible amount as long as the USA don't bother to reduce their deficit by an equally incredible amiunt.

[AmCan]

The US Federal Reserve is seeking to create modest inflation, to keep the economy from crashing into another recession ala Japan in the 90s and 00s. Because of the huge amount of government debt and now the huge amount of underwater housing debt held by the private sector, higher inflation has the effect of cutting cost of government debt, while helping to re-inflate the value of homes so that people will have an incentive to pay their mortgages.

I'm with Gooner on this one and am not worrying about the US dollar strengthening again soon 18-24 months and i don't really believe it's going anywhere good in the long term either.

[vcasino]

One good thing about the weaker USD is that you can pick up some bargains on Ebay

I didn't know the gold price wasn't increasing outside of USA, I thought the Aust price was also increasing over the last 5 years http://goldprice.com.au/

[wireless]

Whatever you say there are so many factors involved. It is impossibel to predict where the journey goes.

[Renee]

One good thing about the weaker USD is that you can pick up some bargains on Ebay

I didn't know the gold price wasn't increasing outside of USA, I thought the Aust price was also increasing over the last 5 years http://goldprice.com.au/

For sure. I managed to buy my perfume online last night in the US for $91AUD including shipping.

In Oz I pay $140.

Makes a huge difference.

Clothing in the US is way cheaper than in Oz too, so with the dollar being so close, bargain shopping is becoming much easier.

[GFPC]

Great posts!!

I think I am going to change everything to Euros!!! I may end up in Europe for a while anyways!! LOL

Its just sow weird getting paid in US dollars and when i withdraw them to my bank i lose around 5 cents on the dollar.

[LiveCasinoPartners]

I agree with Gooner (again). The US has to change their fiscal spending. Here's some examples of how they dilute the dollars value. Just last year they bailed out insurance companies, automobile companies, and mortgage companies. All of these had business models that were not sustainable. Their products were not competitive on a global scale or there was gross negligence on their companies spending. A truly free market would force these companies into extinction. So the governments strategy is to "bail" these companies out, thereby trying to offset the laws of economics, which result in sustaining losses that the government pays for. So the tax payers are majority share holders of GM? Why do I care, I own a Toyota, that's superior!

The governments is causing a real devaluation of the dollar that will continue until there is a real change in fiscal spending. That mentality in the political system is a long way off. That's why I believe the devaluation of the dollar will continue for quite some time.

[Tony]

I cashed one check the other day and it cost me I think I'll change too.

[bonus-map]

For sure. I managed to buy my perfume online last night in the US for $91AUD including shipping.

In Oz I pay $140.

Makes a huge difference.

Clothing in the US is way cheaper than in Oz too, so with the dollar being so close, bargain shopping is becoming much easier.

Are you dressed properly and smell nice now?

[arkyt]

The governments is causing a real devaluation of the dollar that will continue...

Many believe this is intentional - the "illuminati" are looking to move to a new "world" currency ...

[Gabriel_LCP]

The same thing is happening to me! I live here in Costa Rica and the dollar is not worth what it was some months ago... I don't know what to do!

[GFPC]

The same thing is happening to me! I live here in Costa Rica and the dollar is not worth what it was some months ago... I don't know what to do!

From now on I am asking for Euros!! LOL - I don't know why the US dollar is still a default anyways.