# price of dollars

A few years ago you needed 15 cents to buy one big mac.
Soon you will need 15 dollars to get one big mac.
Nothing has really changed you still get one big mac but you need a
bit more paper.
Now you pay 41.000 dollars for one Volt
How many big macs is that and how many big macs did you need a few years back to get a car?
Who wins when you print more money?
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The lowest cost vehicle one can buy today is approaching \$20,000, just eight years ago one could buy a full size car for \$25,000.

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Perhaps but the poverty line is \$600 a year and who knows how many millions of them at 2.8% of the population? A person living in poverty is the US is rich compared to someone in China. One could become a millionaire just selling one pair of SHOES to the average person in China LOL

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Lots of variables. But it all points to China is a better run country than the US. Lower debt, more jobs, real growth above inflation, modernizing fast and not decaying. Compared to the US the Chinese government owes nothing, and in fact is in surpluses the US has never ever seen. Taxes for the average joe are quite low too.
China is effectively an authoritarian capitalist. Highly efficient government compared to the US.
What keeps the world from economic collapse is that China is buying the commodities the US no longer buys.
And Washington DC still thinks they can spend their way out of a debt problem. Hopelessly screwed.
On 8/14/2010 5:15 PM, Mike wrote:

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Is government working for you, or are you working for the government?

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Again you are wrong. Although China has passed Japan as the worlds second biggest economy it is less than half of the 14 trillion dollar US economy

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I was always taught that when you pay with inflated paper dollars, the seller can lose and the buyer shrugs off some of his actual debt. Really humps you in international business.
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The chinese do not want to change the value of their currency and they keep the wages low. Same for some other countries. The big mac index is used to show the real value of money in different countries. By not allowing wages to go up the jobs go to those countries. Many big international companies are increasing their numbers of employees in total but the increase is all in low wage countries and we in the high price countries lose jobs. GM is growing and profitable in china. The wars usa is paying for in various countries is costly in more ways than one. They make usa less popular and they make the dollar worth less. So what would happen if usa stopped sending troups and printing dollars? The real question is what happens when other countries stop wanting to use dollars and they start flowing back. I guess the price of the big mac is going to go up a lot. There are already some countries like china and russia wanting to stop using as much dollars in their trade. The oil producers are starting to go away from the dollars in their contracts. The price of gold is going up and up.
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Oil producers will try to stay with the currency that is the most stable. At one point this was the dollar, and later it slid toward the Euro. Lately the Euro has had some signs of weakness. It will all come out in the wash.
Gold, IMO, is overvalued. I have gone through this before, and have seen gold go up because people had no confidence in paper currency. Gold could drop like a rock if the dollar regains high stability. Investment diamonds are another way that you can put a fortune in very hard value in your pocket and get across the border to a friendlier country.
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On 8/14/2010 10:17 AM, hls wrote:

Is gold over valued or did the currencies loose their value? It is relative.
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Is government working for you, or are you working for the government?

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On 8/14/2010 9:57 AM, Bjorn wrote:

The real reason is that it devalues the \$2 trillion USD that the the US Government owes them.
Say 6 Yuan is 1 USD. If they let the USD sink, to say 3:1 then the value in Yuan is 1/2 as much. Bad deal for China. Good deal for corrupt US government.
Sooner or later the Chinese will realize they will never see the value of the \$2 trillion as Washington DC never plans to pay it off. As this happens, the USD will sink, and perhaps Yuan will be worth more than a USD...at which point people will realize the full hyper-inflationary effect of this.
Given China is no longer buying US debt like it used to, DC has resorted to bank ponzi scheme of having a government bank create money, expand it and loan it back, in short buying its own bonds. A real ponzi scheme for sure.
Which will translate into a combination of inflation and deflation at the same time. Discretionary stuff must deflate as people will not buy it. Real estate will too. But world commodity essentials will stay high or higher like oil, wheat, food.
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Is government working for you, or are you working for the government?

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By the time those thirty year US Bonds come due they can be easily paid off with BO(ZOs) inflated dollars.

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Yep.
Loan the US government \$40k today.
In 20 years get maybe \$45k back. But wait, that \$40k car today will cost you \$100k in 20 years.
Your money depreciated by \$55k. Who wins is governemtn debtors as they will pay you with depreciated 20 year money.
Also part of why in 2008 the ruse was no one was lending money. Of course not, the valuation was wrong as interest rates were too low. Government caused it.
On 8/14/2010 3:58 PM, Mike wrote:

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Is government working for you, or are you working for the government?

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This is why all governments world wide borrow, because inflation beats interest rates, they win hands down. People buy government bonds because they pay better than the banks, but still way below inflation.
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Clive

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It is a very complicated game. It has to do with distribution of welth as well production and use of goods. Lets say A and B work for a day and they each get a bar of chocolate as pay. A eats his bar but B only eats half the bar. Next day same happens again. After this day A has nothing but B has a whole bar. If this continues then B will accumulate a lot of chocolate bars and A has nothing. After some time B can stop working and just enjoy all his chocolate but A must keep on working. In a communist society lets say B has accumulated 1000 bars of chocolate. The government would like to take half of Bs bars and give them to A. In a capitalist society the government wants to borrow half Bs bars and lend it to A but A never pays them back again and so the situation becomes the same in both systems. There are different needs and it is difficult to accommodate all. With a simple system it may seem easy to see what is right and what is fair but the more complex it gets the same principles are at work but it is difficult to say what is fair. Lots of people do not do any work and still get chocolate bars. Others steal from their neighbors one way or another.
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Actually inflation in the US is in check today. That will soon change, as trillions of dollars are added to the US nation debt, over the next ten years to pay for the new healthcare law, and the increased deficit spend by BO(ZO) and the Dims in Congress, according the HBO.
writes

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You are confused, again! The difference between the thirty year Bonds that the Chinese have been buying, and the taxpayer money give to GM, is GM has paid back the money loaned to it, with interest, three years before it was due.
The Preferred Stock given to the Government, as collateral for the rest of the taxpayer money, will also be bought back by GM, at a profit to the taxpayers, when it goes public again. The US Treasury Bonds on the other hand will result in the taxpayers paying the interest due on the Bonds.

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Why would they want to get rid of the dollar? The dollar is the most stable currency in the world because the free capitalist economy in US is the most stable economy in the world.

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Chinese Yuan has been much more stable in the last 5 years or so. USD has been loosing value against amny currencies.
On 8/14/2010 3:47 PM, Mike wrote:

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Is government working for you, or are you working for the government?

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That is because the Chinese government is not allowing the Yuan to fluxuate, dummy.
wrote in message news:b5dfa033-55fb-40d6-8ac3-

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I remember looking at the price of a Cadillac and wondering how people could afford a car that was \$5000.
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