With the $700 billion bailout taking place, the US will need to print 700 billion, since they do not have a 700 billion surplus or the means to raise it from outside, right?

This will mean that the USD will see a reduction in value over the next little bit, in response to the large-scale inflation that will take place. So the USD will fall in comparison to other currencies such as the CAD and EUR.

Right?

This is what I'm thinking right now, as anytime a government prints such a large amount of currency, it will devalue the dollar, obviously not on a Zimbabwean scale, but it will still be significant, no?

As the CAD is nearly $1.08 USD, would it be a wise idea to transfer any USD to canadian now (100 bucks gets me 108 CAD) and then trade it back to USD in a month/year/decade since Canadian will be the stronger dollar then.

Or will the markets react in a totally unexpected way to the bailout plan?

I'd like any advice, this is just what I (and my econ prof) think will happen, and how to take the most advantage of the situation.

Also, if anyone wants to ballpark how low the USD will fall and when, I'd appreciate any educated guesses.

good idea. i cant say that i have more than guesses as to how global economic guesses work, but for somthing this large of a scale, and considering the fact that its just a loan, do you think the gov. would even bother printing the cash? its all going to be credit anyway.

It's called inflation tax or seigniorage. It was one of the reasons Zimbabwe's dollar inflated ridiculously. Inflation should increase in the USA, but will the benefits of the bailout counteract the tendency to inflate? Maybe someone else can answer that.

Nice question...considering people with doctorates in economy and finances are trying to figure this out with no real good answer.

Why the fuck is the USD so high right now?

It's been almost ready to hit 1.10 CAD.

Shouldn't it be sinking?

A quick question though.

All these banks that are going under, they had assets in the hundreds of billions, totaling let's say 2 trillion.

So, when they declare bankruptcy, does that mean that those 2 trillion go off the market? If the money was in the bank, it would be considered as in the market, no? So when they went bankrupt, their credit was purged, and all of a sudden there's 2 trillion less US dollars in the economy.

Could that be causing the deflation?

So if the USD does suffer from a massive increase in inflation, what would this do to my debt? I have some college loans, around $8000. Due to the fact my loans were taken out in USD, if our economy suffered horribly, would I see my loan debt nearly erased? This is assuming we became so bad off that $10,000 would be needed to buy a loaf of bread. Or do banks and what not switch the currency so that they do not get killed?

They can't change the principal, but they probably can change the interest rate unless it says otherwise in your contract.

That said, we're looking at about a 10% increase, not 1005958190501598650198%.

Buy low sell high my nigga. Investors are dropping the Eurofag dollar because it is overvalued, and buying alot of USDs because they are so cheap.