Lifestyle > Train of Thought

US Dollar Continues to Weaken

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Don Rizzle:
i wish the pound would drop its always stayed stong and has ruined whats left of our manufacturing industry

Don Seer:
I just wanna be able to buy a house dammit..

*Jamal*:

--- Quote from: Overseer on November 08, 2004, 02:24:41 PM ---I just wanna be able to buy a house dammit..

--- End quote ---

Convert to Judaism... move to Israel... and I don't know how, but you're bound to come back rich...

Don Seer:

or in a casket :P

Ant:

--- Quote from: Machiavelli on November 08, 2004, 01:46:25 PM ---Its Bushs fault.

--- End quote ---

While I assume your being sarcastic what you say actually is the truth.  Deficits force dollar devaluation.  People have been predicting this would happen for months.  Actually the dollar has slowly been losing value over the past four years.  If you remember, there was a time when the US Dollar was worth more than the Euro.  Now that obviously isn't the case, and unless something drastic happens this slow trend will only continue.  Eventually it will force inflation in the US economy. 

Explained more thoroughly, the value of money is influenced by supply and demand, just like everything else is.  When you run deficits you increase the supply of dollars, as the supply goes up, the price goes down, if demand stays constant.  Actually in this case though, Bush increased the supply of dollars by running deficits, and at the same time, demand for the dollar is dropping. Many of basic inputs into our economy, like raw materials, come from overseas.  As the cost for imports rises, the cost for all American goods will eventually rise or profits will fall. 

Many people voted for Bush just so they could proudly declare their side won, and they never thought to consider why so many people were fighting so hard to vote him out.  It wasn't because we hate republicans, it was because his policies are making this country worse, and will continue to do so.  Our economy is weakening, our money is worth less, we're one of the least respected countries in the world now, our military is being stretched thin, and we really aren't doing a great job fighting terrorism.  How much are you willing to sacrifice just to say "the side I voted for won?"

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