patrick.net

Remember the Continental dollar?

http://en.wikipedia.org/wiki/Continental_dollar

Interesting that this inflation report is running as the top story on the NewsHour website (hmm, maybe it struck a cord when it aired last week). As they say, only in America could you find a company like Not Your Daughters Jeans who has patented "tummy tuck" construction built into every pair of jeans they sell domestically and abroad. Their fabric buyer had the best quote in the story. Yes, that's right, Turks are turning down the greenback.
MARVIN JACOBS: I just came back from Europe. I was there for three weeks. It was so expensive, it was painful.
I was in Turkey. I went into a restaurant. And on the menu, it had a corned beef sandwich. It was $38 U.S. You go for a Coca-Cola, it's $7. They wouldn't take U.S. dollars. They would only take euros.
I was there years, for 30 years, I never had any issues. Now they don't want the dollar. So you tell me where your cheap dollar is taking us. It's killing us.

Wasn't there an expression, "not worth a Continental"?

Wasn’t there an expression, “not worth a Continental”?

You got it. :)

The continental dollar is one reason why the Constitution forbids making anything but gold or silver money.

Actually the Constitution forbids the States from making anything but gold or silver legal tender. See Art. I, section 10, paragraph 1. The Feds on the other hand have broad authority in the securities and coin of the US. Art. 1, section 8, paragraphs 5-6.

the 500 euro note is worth like 770 usd!!

The language of the Articles of Confederation is vague but it appears to be similar to the later Constitution in regards the power of the central government in regards "coin". See Articles of Confed. Art. 9, paragraph 4.

seriously im thinking about sneaking into europe illegally and mowing lawns for cash money, then i can send the euros home and retire in a few years in cheap cheap usa with my euro stash.

@EBGuy,

They would only take euros.

And Turkey isn't even a member of the EU yet, let alone part of the Eurozone.

Which makes me wonder, is it even theoretically possible to have the Euro as your currency without being an EU member? I could conceive of circumstances where someone like Switzerland might want to do this. (Or where someone like France might want to leave the EU.)

I've said for awhile that given our #1 export is our paper currency, its probably in our best interests to make sure it retains its purchasing power.

I guess it comes down to whats a bigger problem for the average American, outsourcing or a weak dollar.

Given that unemployment is going up and our country has a negative savings rate, having a job is probably the most important thing. Regardless of the strength of the currency.

kewp said:
Given that unemployment is going up and our country has a negative savings rate, having a job is probably the most important thing. Regardless of the strength of the currency.

Socializing risk of job-loss by debasing currency, so that the people whose skills are competitive end up paying via devaluation? Given the political benefits of this, I have no doubt every spineless jerkoff in congress will be in favor of trashing the dollar to "keep jobs".

My memory was incorrect.
http://ec.europa.eu/economy_finance/the_euro/the_euro6482_en.htm

It's Denmark, Sweden, and the UK who haven't adopted the Euro.

But French Guiana has!

I kinda don't want to actually discuss the positive effect of a weak dollar and the black market.

One of Patrick's posts today talks about DOW7,000 by years end.

Can this be backed up by numbers? Specifically, can somone use a little calculus on fractional banking system to project how many dollars must be destroyed today and at what current versus new leverage ratios to account for a halving of the capitalization of the DOW from peak?

Ah leverage, so good for amplifying gains, so bad for amplifying losses.

While it sems possible I jsut wanna see the math.

Blah blah blah.

My hard earned money and disciplined savings are worth a lot less. That matters a lot more to me.

"allowing drug dealers and smugglers to lighten their suitcases"

We'd hate to see anyone throw their back out humping their Big Fat Stacks of Cash around wouldn't we? I mean whether we're talking about legit businesses or the Black Market I'm all about being efficient!

Yeah, it's a minor miracle with all of the intelligence gathering satellites up there and all the people monitoring every imaginable activity that an under age kid can get away with having a wino buy beer for him? BUT.. we have all kinds of arms being shipped around the globe along with enough blow to sink a battleship yet it goes on largely undetected?

I could see in the 70's maybe even the 80's having "cowboys" move a ton of "product" without it showing up on radar but today!? We're kidding right?

My hard earned money and disciplined savings are worth a lot less.

Unless you are buying imports or planning foreign travel, you savings may do you well. Prices will fall, in my opinion, on houses (no real superlative wisdom there), stocks, and commodities. Wages will fall along with prices of American produced items. Executives will not be immune either, I believe that the "Tan Man's" troubles about his high pay are just a forshadowing. Since workers wages will fall, we will see support for heavy taxing of jackpot salaries. Also, note the following quotes from Real Estate Journal on lenders "blacklisting" areas:

"As property values decline and credit markets contract, home lenders nationwide are growing ever more unwilling to finance home purchases in sharply declining housing markets, driving prices down further. In some cases, lenders have ruled out entire geographic regions and property types altogether...."

"One silver lining: For "all-cash buyers," Mr. Zalewski says, the lists are "heaven sent."

"Buyers who have cash "can use that to negotiate," he says: "If you don't sell to us, who are you going to sell to?"

Specifically, can somone use a little calculus on fractional banking system to project how many dollars must be destroyed today and at what current versus new leverage ratios to account for a halving of the capitalization of the DOW from peak?

Psychology alone can drive the stock market to *any* level.

Not sure what Mr. Z means whe he says "the lists"? Lists of all cash buyers? Listings?

I'm sure by "property types" that would imply condos (and no one can blame you there!)

I'll just say I've had the same conversation at least 4 or 5 times last week. People that had not over-leveraged themselves, saved and lived modestly really feel like chumps of late. With all of the bail-out measures (along with the $'s implosion) feeling the part of a fool just seems natural.

Seems like the "little snag" that we have been expecting in the BAC-CFC merger might come soon. It's not just the SEC, but the FBI is also investigating the Tan-Man.

No one in bubble-blogging world believed that this merger was in the best interest of BAC. Conspiracy theories abound. They were pressured to buy it, they were promised "something" in return. My conspiracy theory was it was done to just stop the bleeding, with an expectation of a surprise snag that will derail the deal in the future.

It's all about giving the appearance of everything being OK. The Fed, Treasury clearly think that such pretending will prevent the panic. We will see.

He's talking about the list of properties that lenders won't write mortgages to. Only cash purchasers will be able to buy them.

I had a hell of a leverage over my FB seller here in Boise since I had cash and had therefore complete control over a closing schedule. I beat him down $10K.

Will MI and FL delegates be seated?

McCain is my favorite.
Obama is fine.
But if I have to bet money, I think Clinton will win.

Not sure what Mr. Z means whe he says “the lists”? Lists of all cash buyers? Listings?

Sorry, I should have added the link.
http://www.realestatejournal.com/buysell/mortgages/20080306-wotapka.html?refresh=on&ref=patrick.net

What we need is for McCain to select Ron Paul for director of the IRS....

DinOR said:
BUT.. we have all kinds of arms being shipped around the globe along with enough blow to sink a battleship yet it goes on largely undetected?

I have a close friend who works for a European law-enforcement agency in the counter-trafficking side of the business. He doesn't talk much about his work but from what I gather, shipments of hash are "cleared" all the way to Amsterdam by the time brick gets loaded on to the first donkey-cart in Peshawar. They know exactly who will be on duty at the border-crossing or the port, and how much they "take" to look the other way and ensure smooth, well-greased transit.

No one in bubble-blogging world believed that this merger was in the best interest of BAC. Conspiracy theories abound. They were pressured to buy it, they were promised “something” in return. My conspiracy theory was it was done to just stop the bleeding, with an expectation of a surprise snag that will derail the deal in the future

I've always had the same "feeling" as well. Regardless of discount it seemed crazy to rush in and buy them - it's one more of those things that makes me feel like an idiot. (I normally consider those who 'believe' in such conspiracies idiots)

@ Peter P
sorry to get back on this question but it's a big one for me: why do you say Obama is fine? What do you know about him which you find reassuring? I don't mean "as opposed to X", I mean on his own.

StuckInBA said:
It’s not just the SEC, but the FBI is also investigating the Tan-Man.

Just heard a rumour that Sunkist will be going after him for trademark infringement too.

"the first donkey-cart in Peshawar"

Pretty much what I thought. That and the fact that much of the product moves along the same routes and we get token busts from time to time. Once in awhile we'll get a report of some submarine being built for contraband to show just how "ingenious" these guys are and what resources they have at their avail.

What a joke. If the U.S Navy "pinged" an unknown submersible vessel in open water and he doesn't respond correctly they'll go to full scale alert. Of course this leaves open the possibility/plausibility there may operational vessels out there. Oh give me a break.

Spitzer "resigned"? Weird huh?

DinOR Says:
Spitzer “resigned”?

Yeah, some news about being involved in a prostitution-ring (no, not NAR, but the old fashioned kind).

Just heard a rumour that Sunkist will be going after him for trademark infringement too.

lol SP!

by the way, does anyone have any idea why congrssman Issa is so adamantly defending the CEOs (esp. Mozilo) who were in front if his comittee yesterday? Isn't he independently wealthy? Why is he trying to stand in front of this tsunami?

I had always worried that mr.-anti-gun Spitzer would be Obama's pick for Veep. Won't happen now.

I can't imagine what could have unraveled in Elliot's life? He was like this modern day Ralph Nader and raised awareness about what was going on in the financial services arena. He could be a pain but his intentions were honorable.

Was the REIC Cartel his next target?

OT.

A few posts back FAB, HARM and I were talking about how much people in trades make. Yesterday I had a plumber over to change my water tank which is long overdue. The whole process took about 4 hours and his labor (with a Mexican sous-plumber) is $360 plus tip, which is about $400. I have to pay for the new water tank separately of course.

He told me he has about 3 jobs (some more complicated than other) a day, often busier on weekends, so he takes weekday off instead. Well, after splitting with the sous-plumber, he probably pockets $80/h a day, based on an 8-hour work day.

Now if he works on average 20 days a month, that is $12.8K income, and that makes his annual income well over $100K. Don't forget I pay him cash and he gets to write off lots of things from his "small business".

This guy definitely has a lot more job security that most of us.

That's why I don't quite believe the pay surveys on "sole proprietors" especially in these trades. Such a survey probably only reflects the reported after-cost "income" on tax forms.

OO,

I don't want to start a slam-fest but what most of these guys do is report only what looks feasible. If they have a ___ mortgage, they'll declare ___. Where they run into trouble is when they go to qual. for a loan. (Up until recently that wasn't even an issue)

OO,

I had dinner with my Mom the other night. It came up in conversation that she had called a plumber to get an estimate on having the bathroom faucets replaced. GET THIS. $1600.00 plus the cost of the fixtures. I told her that if she hired him, I'd have her committed. (joking of course) There's nothing special about the setups in her bathrooms. Easy stuff, two hours,tops, for all three. I told her to pick the models that she wanted and that I would pick up the fixtures and supply lines and install them next weekend. A lot of these guys see what they think is an easy kill and go for it. That crap makes me furious.

Richmond,

$1600 sounds ridiculous, that makes my $420 sound like a steal. Actually he was doing something that I couldn't have done myself because I don't have the welding tools. He also hauls back the old tank which is a big saver for me. I am very satisfied with his service.

I just want to illustrate a point to HARM that it doesn't take the top 10% plumber to earn $100K in the BA. I have also been slapped a minimum charge of $80 just for a plumber to come out.

Plumbers are actually very high on the job needs list for English speaking countries. If you are an experienced plumber especially with certification, you are very welcome in UK, Canada, Australia, etc for immigration, ranking way ahead of accountants, software engineers etc.

Perhaps the USA should have 500 and 1,000 dollar notes again to compete. Not sure if anything can halt the USD decline but why not take a shot. They should have the 10,000 note too just to be sure! Oh, these will all come in handy when doing some grocery shopping in the not too distant future.