understand this, please

[johndigiovanni]

Let me begin by turning the clock back 16-17 years for those of use who are able to recall. Russia, a major world power brought to her knees. IN NO TIME. Why?
the money of Russia was worthless-the government was BROKE>

Where is America in bible prophecy, Where is America in bible prophecy, We hear now and then, IT IS NOT THERE America is broke.

The National debt is at $8trillion 838Billion That is with a booming economy 12 of the last 16 years. When that number doubles Americas Government will have NO money to run the country NONE so the effects of the debt WILL NOT have to actually get to that number to effect us.

lets try to put this into a understanding scenario:

lets put our dollar into a % so 1 dollar is 100%, one penny per percent.
1 gallon of gas is $3.00 or 200 percent more than the value of the Dollar.
In 2006 the value of the dollar dropped 8.6%
Now we need $3.26 for that same gallon of gas. See the price of gas did not go up at all, the worth of what be bought it with went down.
now our 100% worth of the dollar is now worth (100% - 8.6%) = 91.2%
the gas is still the same as it was so we need more cents to buy it.

Now, what event could take place to devalue the dollar most dramatic
Even though America produces very little oil worldly speaking, it is still bought and sold in the commodity market in US dollars "WORLD WIDE".

In other words every country in the world who uses oil "ALL", need to have funds, electronic or otherwise, in Dollars.

The oil burse is like a big currency exchange. If Japan buys oil from Saudi Arabia they buy the Commodity (OIL) through the oil burse (MARKET) and it is bought and sold in US Dollars regardless of the country.

Lets give one more example that will really hit home.
Lets say when anyone in the World buys gasoline at the pump, (you, me, everyone) you have to pay for it in Euros. Well, we would all have to have some Euro currency sitting around to use as needed for one product, not much just a little.

If I made $60,000 a year and I buy $300 a month in fuel it would + $3600 yr.
or 16.66% of my annual income. SO I need to exchange my dollars for Euros to buy fuel.

Now all the sudden we are told buying fuel has now got to be done in yens. Guess what, the value of the Yen increases, we all now need them, and nobody has a need for the Euros. Therefore the Euros flood back into European countries whose currency is the Euro, flooding them with Euro money. The value of the money drops, A huge part of the world "no longer needs it".

Well the people in my scenario Are the countries, the yen is the Euro, and the Euro is the dollar.

When you start hearing about the oil being traded in any other currency, "watch out" the value of the dollar will PLUMMET and our national debt will sky rocket.

Did you know Soddom entertained the thought of trading his oil in Euros prior to the US going in. I am not saying it is the reason, but it is interesting.

[Michelle95]

Hubby and I have talked about this before...or rather, he's talked and I've listened. :idunno

Either way...I strongly feel that oil being traded in dollars has its days numbered.

[Waiting...]

:thinking:thinking:bump:bump:bump:bump

[Bernardd]

I'm not sure I accept your analogy of the U.S. dollar going the way of the Russian Ruble.

Instead of asking where America is in Bible prophecy, why don't you ask where Russia is in Bible prophecy. Last I heard Russia was going to lead the Gog-Magog invasion...and Russia went bankrupt, right? (How on earth can this bankrupt nation be a player?)

You claim America is broke (though I would certainly argue that). Certainly the debt is much larger than it should be, yet it must be considered that most of that debt is owed to Americans.

Question: You claim "In 2006 the value of the dollar dropped 8.6%"
Are you talking about the VALUE of the dollar (against he EUro etc) or the purchasing power of the dollar within the confines of the American economy?

Even though America produces very little oil worldly speaking

WHAT!!??

This may come as a surprise to you, but AMerica produces over 8 million barrels of oil per day, which makes it the THIRD leading producer of oil behind Saudi Arabia (11 mbd) and RUssia (9 mbd).

If I made $60,000 a year and I buy $300 a month in fuel it would + $3600 yr.
or 16.66% of my annual income. SO I need to exchange my dollars for Euros to buy fuel.
What if you use a credit card (pay at the pump?)....as most people do when purchasing gas?

On thing you've forgotten to mention, when the value of a nation's currency increases, that nation's products become more expensive to the rest of the world. Hence, European goods are now more expensive for Americans to purchase because the Euro has been "strong" while the dollar has been "weak." Thus, there is a greater demand for American goods which leads to more American jobs etc. The opposite happens in Europe. Therefore, it's important to realize that a "strong" currency is not always ideal.

More importantly, though, it should be mentioned that a nation's currency is as a strong as that nation's economy. Have you noticed that the Euro and the Yen etc are always compared to the US Dollar? Do you ever hear about the EUro compared to the Peso or Ruble? Of course not, they're always compared to the US $. (that should tell you something)


When you start hearing about the oil being traded in any other currency,
We've been hearing about this for years.

[HisAlways]

I'm not sure I accept your analogy of the U.S. dollar going the way of the Russian Ruble. I would have to agree here. I'm not saying that our dollar is not in trouble, but I don't know if it is fair to say that we would follow Russia's path.

[Betty]

Hubby says if the World Bank was to call in its chips for the money America owes, we would be bankrupt. We have as a nation been living on borrowed money for years, and it is only a matter of time. I admit, I am weak and pray that the rapture happens before America goes into another depression. Which will be far worse then the other depression, simply because we do not know how to live with nothing. Look at what happened in New Orleans. People became like animals. When America does enter a depression, crime will be at an all time high. People will be killed for a tank of gas.
Hubby says that the reason they haven’t is too much money is owned to China and if they were to call in their chips, we would not be able to buy their goods. But, if we were to have a major catastrophe, that crippled our economy, they may do so anyway. America is a proud Country who has left God behind. It is only a matter of time that God removes His protection from her. I pray that He will wait until after the rapture for His kid's sake.

[Rebecca]

What if you use a credit card (pay at the pump?)....as most people do when purchasing gas?


FYI - it is still dollars even if you buy the gas on credit. If you go to Europe and buy something with a US bank credit card, the current exchange rates for that bank apply and your purchase is converted to dollars.

Other than that, interesting argument.

I remember reading Iran tried to open its own oil burst last year, but it didn't happen.

[Bernardd]

Hubby says if the World Bank was to call in its chips for the money America owes, we would be bankrupt.
Again, most of the debt is owed to Americans whether in the form of SOcial Security or Treasury Bills (bonds etc). Thus, you can't simply decide, "Well, I want my money NOW!" A bond, like just about any investment, has to mature.

But it might be worth considering that U.S. T-bills are a solid investment. Why do people "purchase" them? Because the U.S. economy is stable and it's rather unlikely that the Federal Govt will go bankrupt, thus rendering the T-bills useless.

Don't get me wrong, however. I am certainly not suggesting the debt is okay. But I don't think it's as bad as many think. Considering that most of the debt is held by Americans, that's a good sign (esp if it means more Americans are investing in bonds).

[Bernardd]

FYI - it is still dollars even if you buy the gas on credit. If you go to Europe and buy something with a US bank credit card, the current exchange rates for that bank apply and your purchase is converted to dollars.

That's my point: No one would be exchanging dollars for Euros.

And the Iranian Oil Burse was exactly what I was thinking about. Of course, as we all know, that never became an issue. THe fact still remains (whether we want to believe it or not) is that the dollar (for all its supposed problems) remains the leading currency in the world. Why? Because is backed by the American economy which is the strongest and most stable economy in the world.

Yes yes yes, I understand things can change, but as the situation presents itself to us today, what other country has as more stable and open economy?

We might want to take a look at France and its new economic policies being made by its new prime minister. (or his new economic proposals) Clearly he recognizes that the economies of Europe must adopt more America-friendly methods in order to revive that stagnant economies or Europe.

[turtle]

I beleive their is probably a big plan in place allready for the main foreighn holders of greenbacks like China and some of the opec nations to all dump their greenbacks at the same time and put everything in Euro's.

Right now we are so far in debt that right now foreigh Economies must invest Billions of dollars a day into U.S. Gross national product just to keep us secure at the bottom of the hole we are in.

I have seid this before.
I beleive because of this country's Christian people's support Of Israel"The Lord will not Let this nation Fall into great depression untill after The Rapture.
He who restrains will continue to do so untill it's time to let the Bubble pop.

When that happen's this country will become just like the Movie escape from N.Y.

I feel especially sorry for all the young well to do; who have become so puffed up and prideful and arrogant and secular and anti christian.
Their protection and blessed lives wich has allways come from the hand of God "who they reject" will be removed.
and they will be at the mercy of other's.

I don't want to sound like a doom and gloomer but I really do beleive that
is exactly what is comming to the U.S.A.