The Poor Dollar

Thank you SO much for posting this. I experienced the bad dollar in Ireland last summer and it is a crummy feeling. But I loved how informative this was, it really reminded me of how connected the world is via the economy.

I'm in my early 50's, and for more than 1/2 of my life, I've lived outside the US. The national and trade deficits have so devalued the dollar that I travel (or live, depending upon the amount of time I'm in that country) at a lower-middle / working class level even in so-called "developing countries," and, worse, I cannot return to Europe or parts of Asia without being given a per diem in addition to my normal rates of pay. Soon, I won't be able to live in a major urban area in the coastal US either. Inflation + recession = hell.

I am a 20 year old college student that has been to Norway a few times. I felt as if I had lived in a third world country and the dollar was worthless. So is now a good time for me to freakout and start to invest in the Norwegian Kroner or should I still have hope for the dollar?

Well thank's to the Evil Cult Coffin masterbating,((Documented as one of the supposed ritual's that the Yale skull and bones prospect perform's to be a member,Gross)),Bush administration...We are Screwed,Who know's...this might be a little worm-hole into something even bigger,worldwide scale, that the United States of America((which before our second war with England the war of 1812 was Simply just"AMERICA"))Government trying to build up... like maybe the coming of a Amero Currency and because we live in a minority((Conservative white males or closest to that))is Majority more privilege's and right's,And the REAL majority((Democratic liberal's or liberated openminded Republican's,Latino's,African-American's,ect..))is just a statistic and a Census report...Or in the word's of Rockefeller we are just damn Sheep,Cattle...And sad to say that the world bank's are the key influence's of our world leader's and if we don't deliver a strong enough message to these pompus A-hole's then George W. Bush Sr.'s dream of a "NEW WORLD ORDER"((That he did try to promote in the late 80's/early 90's,which was said in an address he made on Several Live Network Television Staion during Primetime hour's)),will come true..And then we will be Screwd...Oohh,and don't be surprised if the pres. election is rigged or worse,Just like the 2000 and 2004 election's...People wake up and illuminate your mind's together and understand these metamessage's they send and think...hhhmmmm.

Fortunately for me, I have a stockpile of cash in the Bank of Scotland.

Why does Adam Yamaguchi put the United States down in every single pod he makes? It does not matter where he is or what the story is about, he is always putting the United States down. In one pod I saw with him in it he even denied being a United States citizen.

I really liked this pod. It provided insight into just how much debt this country is in. I recently took a trip to Europe and while I was in London all I could think about is how everything was actually double because the dollar is so weak. I don't believe Paraguay's currency is worth more than ours! I would love to travel more, but I think I need to wait for our economy to stabilize or move to Europe.

Well, to be fair, your first mistake was going to London. Everything there is double the price of anything else in England, too, so it's essentially four times what you'd pay in, say, Liverpool.

Prague, Northern Scotland, East Berlin and South America are all plausible travel destinations. You wont be able to see the glitz and glamor of Paris, perhaps, but it's possible to have a very good holiday on a tight budget.

it is interesting...i agree. and it is most definitely happenening, but i question whether it is such a terrible thing. of course, recession is bad for american citizens, but it is in many ways natural. certain economic measures must be prevented to stop the dollar from hitting rock bottom, but im afraid thats the most we can do until production matches consumption.

Right on the money Adam,

People really need to know the truth about the dollar..I think a lot of people are going to be very upset when one day they go to their retirement savings account and find out that all of the money won't even buy them a cup of coffee......The US is the largest debtor nation in history with over 9 trillion dollars in debt , to me it's amazing the US dollar isn't the weakest currency on the planet ? .. I like how in the past politicians would always talk about balancing the budget and avoid about talking about the debt .. I think a lot of people are confused about the difference between a yearly budget and debt ... like a person can make the minimum payments on their credit cards and if they had a budget for the year be in balance..but still have a large amount of debt... I personally think the country should go back to honest money and go back on the gold standard as they say 1 oz. of gold has been able to buy approximately 400 loaves of bread for the past 1000 years..there are companies such as the Liberty Dollar that are making alternative currency backed by silver but I see on their web site the US government has been giving them a hard time.... just my thoughts keep up the great work.. Jim

Dear Adam,
Excellent work. You always manage to present complex issues in a very eloquent, direct and accurate way. I would invite you to explore, however, certain aspects that have contributed to the apparent weakening of the US dollar.
1st. You are right when you mention that having such a large public debt is really bad and I would add, highly irresponsible. The US public debt however, is in US dollars, a good over which the US has total control on its production. In other words, the US government has a debt in a currency produced exclusively by the US government.
2nd. True, the trade deficit is also huge and most of the money is going to China, but China's success depends on the US economy just as much as Wal Mart's low prices depend on China's cheap labor. So when the Chinese want to start investing in Euros or Yens, they know they need to think twice. The political and economic consequences of such a move could be disastrous for the Chinese economy.
3rd. I wouldn't be so sure that the European Central Bank would be thrilled with the idea of having Iran, Venezuela or the entire OPEC trading with Euros. I also don't think they would like to see China converting their huge surplus of US dollars into Euros. European economies are not ready -at least not yet- to back up what may turn out to be the most demanded good in the planet. In order to have a pattern currency, Europe needs, first and foremost, to take care of their macroeconomic and productivity challenges. With welfare and social security systems bankrupting national economies and levels of unemployment that continue to be a huge burden, Europe prays for the Chinese to keep their extra cash in US dollars. Is not that Europe do not want a strong currency, everyone wants to produce the good everyone else wants. Is just that if the Euro appreciates quite suddenly, Europe would be in deep economic trouble. Rampant Inflation will co-opt productivity even more and the Euro will make the top ten list of worst investments ever.
4th. Could it be possible then that the depreciation of the dollar is a very well designed and orchestrated policy designed by powerful elites in Washington, Wal Street, and maybe even London, to carefully force China to take their dollars out, put some inflationary pressure on the European economy by, yes, selling to the Chinese expensive Euros and -in the process- making some extra money, cause those Euros they are selling to Beijing, are the same Euros they bougth years ago quite cheap, when they decided to show some solidarity with the European Union and invest in a transnational experiment.
Obviously, if the country with the largest reserves of US dollars in the world starts investing in a different currency, this other currency will appreciate while the US dollar depreciates, cause now the world market has a largest supply of US dollars. If the US government and an 'elite' of American investors sell today their expensive Euros in exchange of cheap dollars, they will not only be forcing China -slowly but surely- to get rid of at least a percentage of their extra surplus of US dollars, but they will be making sure that cheap american dollars re-enter the American market.
Risky plan? Of course, but America still controls many aspects of the world economy and Europe is not yet up to the challenge. And yes, the plan is risky and does have a cost, but not for the elite, the cost will be pick up, as always, by the average American citizen.
thank you and excuse the long message.
rogelio

When was the canadian dollar ever worth half the value of the American dollar? Check your facts Adam.

One more place you can vacation to is Nigeria. The rate of the dollar to the "naira" is 1 to 100 and sumthing. I'm seriously considering moving to the UK to live.

I live near the NY/Ontario border, and back in 2000 -2002 the actual exchange rate was 1.57 per US dollar so basically i was getting a 30 percent off sale on everything even with the 14 percent tax ontario. Those were some good times and honestly it was the only reason I went to Canada.. lol.

This pod was great. Not sure if anyone is going to take it seriously how bad our economy really is. He should've just come out and said we're in a recession. I've been saying it for years, but people are afraid to admit it. Something has to be done before our economy is a total failure.

great pod,

i think that the falling dollar might final be a sign for the US, but as a canadian, i can't be happier that more people are traveling to my country.

However, i hope that the drop in the dollar will make a large enough of an effect in it's wake that it travels into the suburbia bubbles that people live in so that people realize that mistakes have been being made in the US when it comes to the economy for a long time.

Long live the loonie ! ! ! !

Arby's isn't affected by the weak dollar. Their beef and cheddar sandwhich was 5 for $5 ten years ago and are still 5 for $5 today. Does this mean I have been over charged for ten years?

Thanks for the post. It has allowed me to further understand what is going on with this whole mess. I am scared and very nervous about our situation here in the USA. I feel like we have not hit the worst of it yet. SO I hope everyone is bracing themselves for some hard times ahead. I know I have become WAY more careful with my spending. Sadly, I am going to Europe this summer and get almost anxiety attacks because of the AWFUL exchange rate!

Wow. So the dollar is down, because we borrow money, to fight a war, that US citizens don't want to be in, that was started by a president who wasn't voted in but managed to get in because his bother padded the florida voting box or because his daddy was the president. That sounds fair to me.

Why would the "The EU-US Merger Project." work? Government=power and control? Europe has a good thing going for itself they wouldn't see a benefit to merging with America

very effective and entertaining way to make the arguments for why a weak dollar is bad. but i'd like you to also do a counterargument on this. america is not the big exporter it used to be, but couldn't it be an exporter of products, services and knowledge once again? there are plenty of arguments for why a weak dollar may be good. our deficits are shrinking. exporters are celebrating. and in due time, the dollar will rise again

I think having a Global Federation in which every country produces and sells thier service or product in the Global economy at one universally recognized currency is the next step in humanities economic evolution. As mankind's technologically advances we should smoothly move to a paperless currency society where our credits and debits are based on proprietary productivity.

Because GOD gave each of us a brain, to think for ourselves...not follow each other...wake up people and see this crap for what it is.

I am actually amazed how far the US dollar has "sunk" in recent years... or should I say since Bush invaded Iraq. But, its good for us in Australia because we now we can import US goods and not pay nearly double the price.

i live abroad and i'll say i can pay off my american student loans a lot more easily because the dollar is sinking.

I understand the point of the podcast, but Adam....Pret A Manger is a chain. We have them in the USA. Have you ever been to the one at 11 W 42nd St in New York. The prices you are giving are pretty much dead on to what I pay in NYC to eat lunch at Pret a Manger. A big UK city compared to a big USA city have the exact same pricing. Maybe you should have picked somewhere else for your example in the UK.
Sandwiches are normally $6-7. Lemonades and juices are over $3.00. They expect every customer to not leave unless they have paid at least $10.

Places not to visit: Porto Cervo, Sardinia. 1 Corona = 42$