droo <03dakotacc4.7_4x4@comcast.net> wrote:
> On Tue, 05 Feb 2008 12:37:29 -0500, Dustin Williams
> <dustinewilliams@gmail.com> wrote:
>>
>> It's a bit more complicated that it was in the days of the gold
>> standard, but the principle remains the same, print more money and it
>> becomes worth less.
>>
> We don't even have to print more money to make it worth less. It just has
> to be outside this country and in someone else's hands. That makes it
> undesirable. No one is going to use dollars in their own country to buy
> anything. So they need to sell it back to the US for another currency
> that the US is trying to get rid of. And because we import more than we
> export, we don't have a large supply of other currency to trade for the US
> dollars. Since they can't get rid of the US money and they can't spend
> it, it just isn't worth anything.
That doesn't sound right to me. Even back in ye olde days, I
would expect the foreign seller of dollars to be paid in gold or
silver, it would simply not be feasable to stockpile foreign currency
soley for the purpose of buying back dollars. Since 1977, this has
been done electronically. The offshore dollars get shipped to the US
for an electronic transfer of funds at the current exhange rate.
--
-Jon-
.- Jon Steiger -- jon@dakota-truck.net or jon@jonsteiger.com -.
| '96 Kolb Firefly, '96 Suzuki Intruder, Miscellaneous Mopars |
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