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COMMENTS:
Voted : zimbabwean dollar
one of those trillion billion dollar note... I can go around saying that I am a trillionaire.
by LCD on Wed Nov 04, 09 10:39am
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Well how is you holding dollars making your retirement a joke? Unless you're playing the currency exchange markets, or buying commodities, how would the weak dollar affect you negatively as it pertains to your retirement?
In fact, in terms of purchasing, a weak currency is not going to affect you in any way. A strong, or over-valued currency would in terms of selling prodcuts abroad because it makes them more expensive, but even with that, the imports you're buying here in the United States would not be all that impaced, since most major exporters have operations here anyway, so their pricing is not affected (think Toyota as an example).
I'm not sure I follow the train of thought on that.
Do I need to do another lesson on currency valuations? :)
Ahh, are you hinting at inflation?? We're actually having deflation, so again, not sure what you're getting at. The joke about a trillion billion dollar note is one making the rounds on the net, but generally, by people who are clueless. They speak of hyper-inflation, which is not going to happen... not matter how much Glenn Beck would like to say it is. :)
no, I am hinting at the fact that 10 years ago, I could have taken my $$ and went to number of countries and lived like a king.
now, my dollar in those countries buy maybe 1/10th of what it used to buy.
I miss my overseas retirement dream.
by LCD on Wed Nov 04, 09 11:04am
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^ But what countries? You could still go to China and live like a King. Mexico too. Those valuations have not changed. Remember, currencies rise in valuation all the time. If one rises, while one remains the same, did the one lower, or did one simply increase in value?
Besides, currency traders and now Gold commodity traders, try to drive down the value of the dollar all the time. For ever down-tick they can create, Gold rises.
Take Canada, since you listed their currency as a choice.
The central bank of Canada just last week issued rare public comments on the value of their currency because they know what too strong a currency can do to an economy. Their dollar is near parity with the US dollar. About a year or so ago, when the Canadian dollar did reach parity, some Canadians had “parity parties.” The merriment of the people involved was very short-lived and not shared by their industrial or retail base… at all.
Anyway, Canada’s central bank is considering a major intervention to drive down the value of the Loonie. They’re considering lowering the Bank of Canada's key interest rates to it’s lowest level in history and not only that, but to issue a formal statement that the rate would remain that low through 2010.
They’ve also considered implementing quantitative easing, which is a tactic in which a nation’s central bank would directly purchase securities from their country’s commercial institutions so that it would result in a massive increase in the number of Canadian dollars floating around in the economy. This tactic would put a rapid downward pressure on the currency's value, but also an upward tick in inflation. The sole reason? To de-value their currency. The tactics are used by almost all major economies except the United States… until now. There’s a reason why they do it.
So where is their joy at having a currency that is now considered "strong?" :)
As for the Euro, Jean-Claude Trichet of the ECB would probably love to see the Euro comed down in value pretty fast. Why do you think Germany, China and Japan are so vocal about the United States intervening to drive up the value of the US Dollar? Now why would they push so hard for our currency to rise in value? Hmmm. :)
hey you are talking to someone who's brain's leaking, give me a break :)
as far as I recall, I can take about $5000 and officially retire, in Korea, Hong Kong, taiwan, Vietnam, Cambodia, etc.etc in the 80's.
Now the world is changed.
as for you saying that I can retire in Mexico, I don't think the standard of living would quite be the same, unless you are thinking of going there with several million $.
by LCD on Wed Nov 04, 09 11:25am
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My great uncle retired from military over 20 years ago and he and my aunt stayed in Spain.
His pension paid in US dollars went a long way , now he says, not so great.
:) I would love to live in Mexico. Actually, many Americans are retiring to Panama, Costa Rica and the Dominican Republic.
Look at it this way, even if the exchange rate is great, you have to think about the rate of inflation where ever you go. In Mexico, a box of cereal could cost you the equivealent of $15.00. My advice? Retire to Boca. :)
^ in who's nightmare?
I would rather live in a hut on the beaches of Tahiti eating only coconuts rather than living in Boca :)
by LCD on Wed Nov 04, 09 11:47am
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^ that has always been my dream
actually, I have tried this once in college, and it's not all that's cracked up to be.
sand gets in everywhere. rather uncomfortable.
by LCD on Wed Nov 04, 09 11:50am
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Me too. I could never live in Florida. I think Australia would be a great place to retire to.
^why did you pop my balloon ?
sorry, life's a beach :)
by LCD on Wed Nov 04, 09 11:53am
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^^ meant for lcd, a lot of people talk about living in Australia but I never wanted to do that
^not that there is anything wrong with Australia
Voted : Euro
by buying Chinese yuan, you are buying most other currencies
by ABC on Wed Nov 04, 09 3:24pm
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^ So you regularly buy currencies do you? :) A currency trader in our midst. So are you holding short?
Voted : zimbabwean dollar
Hahaha LCD, I have one of those, a 100 trillion dollar note. They started using those as wall paper in Zimbabwe until the government switched to the South African Rand and American Dollar.
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