Padrecero
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There are a lot of factors to it. But the short answer is that the Bush administration wants it low. They've made a policy of doing nothing to support it, and everything to make if fall. I think that they are even on record about it. Ol' Jorge thinks it's not important.
Part of the long answer is that among the factors that go into valuing a nations currency are budget deficits. You know the score on that one, right? Bush has amassed a larger deficit than all of the other presidents combined, times 2. Just one guy did that (with the help of the congress, of course). Budget deficits give a country an ugly income statement, which no one wants to invest in, unless you give them a nice premium when they trade their money in. Not to mention inflation, which erodes the value of the currency further. Right now, 1 Euro gets you $1.28 in buying power. That's what it is taking today for investments in the US by Euro holders. That's a pretty good premium, right? Before the election in '99, it was 1 Euro gets you $0.85 ! (Although during Clinton, it had gotten as high as $1.45 Euro/$, but at least they worked it all off.)
There are many other factors that effect the value of the currency, and can also be utilized to support it. The fact that none of them are being utilized is not by accident. When you practice fiscal irresponsibility, you have to downplay the affects. |
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lyn_zie2003
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because he is sorry |
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erin
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Because Bush became President. |
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Perplexed Music Lover
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Have you also noticed that the price of gas has gone up even more during the same period? I wonder why? Do you think there might be a connection? :o) |
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Alexander H
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It's not since Bush became president, it's a gradually increasing thing that has increased in recent years. It is due mainly to the trade imbalance with China. We import much more than we export. This causes an inproportionate ratio of money to products, causing the comparative value of the dollar to decline. Exporting more will prevent this.
Another major factor is the fact that our government is spending more money than it actually has. This is due to president Bush. The value of the dollar is forced down when the government does things without actually paying for them.
The third factor is the increasing price of gasoline due to the increased consumption of China. This causes inflation because as gas costs more, trucking companies charge more to ship their goods, so retailers charge more to sell the goods, so the people buying need more money, and are forced to raise their prices as well. |
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auntiegrav
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The value of the dollar is plummeting because Americans don't understand what value really is. They throw away their money on trinkets and bling at "always low prices" because they fall for the advertising that tells them to.
The only way to keep the value in the dollar is to keep the dollars in your pocket or in your bank. When we buy junk for fifty bucks that costs China 2cents to manufacture, we are taking the time we spent to earn that money and throwing it into the ocean for China to fish it out and buy our country's future.
Add to that, the dependence on imported oil, and the fact that we are paying for both sides of the terror war, and you start to see how the value of our lives (the dollar) is simply being burned up so that we can have chrome wheels on giant SUV's, boats, McMansions, pizza delivery, and immigrants to grow our vegetables, not to mention the MRI machines to show us the big cancerous lump that used to be our colon before we became addicted to pizza.
Buy less, buy local, buy only what you need, grow the rest yourself. |
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kuhner_us
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Any statistics person or anyone with a common sense can tell you that correlation does not mean causation. Its like saying "can you tell me why it rains when im only doing something indoors". You are obviously looking for a conspiracy theory. Try getting educated and learn the real economic causes underlying the drop in the value of the dollar. President Bush doesnt make every single decision that our government carries out, he doesnt tell you when to go to the bathroom or shower when you need to.
Its people like you that make liberals so easy to pick out and pick on. |
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n317537
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The value of the dollar has always dropped. I remember the late sixties you could buy a Shelby Cobra for 6K that same car would probably cost you 60K today. |
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beautiful252006@sbcglobal.net
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Bush is the devil and it won't change until he comes out of the white house. |
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Jingle
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Because people like you eat money.
Oh wait.
...
Because that's been happening ever since, uh, forever? It's called inflation, and it happens everywhere? |
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Joseph Binette
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A huge lot of money is going to pay the war in Iraq. In the mean time the Canadian dollar is reaching summits. Canada has the same trade imbalance problem with China as the USA. |
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