What's behind the weak dollar??

[chuck22b]

Man, you guys are funny.... yes, the government is out to get you mua hahhahah!

A floating market is exactly that. The market determines the relative strength of a currency. Since other countries have been growing their currencies have been steadily increasing in value (more demand) while our country has been loosing production (decreasing demand for dollars).

Furthermore, other countries are shedding US dollars as the defacto reserve currency further deteriorating the demand for dollars.

Short-term wise a weak dollar is going to hurt... but in the long run as things balance out and the world uses a basket of currencies the weak dollar is going to be a benefit for us to transition back to a production oriented economy.

-chuck22b

[krakenten]

Jaysus, how long have I been saying that?

[the_pines]

Originally Posted by chuck22b

Man, you guys are funny.... yes, the government is out to get you mua hahhahah!

A floating market is exactly that. The market determines the relative strength of a currency. Since other countries have been growing their currencies have been steadily increasing in value (more demand) while our country has been loosing production (decreasing demand for dollars).

Furthermore, other countries are shedding US dollars as the defacto reserve currency further deteriorating the demand for dollars.

Short-term wise a weak dollar is going to hurt... but in the long run as things balance out and the world uses a basket of currencies the weak dollar is going to be a benefit for us to transition back to a production oriented economy.

-chuck22b

Yet that still does not even begin to answer the problem that got us here in the first place which is gross dependence on foreign nations and markets.

/golfclap

[texdav]

When the governament has to turn to foreign countries and the peole in those country savings to finance thing for governamnt progrmas it makes the USA dollar which is like a IOU worth less and less as you borrow more and more.But IMO the dolar has been too high and that makes products made here cost more . For instance China has controlled their currency to keep it low in order to make there products cheaper for other countries that have higher value currency. Their are alot more reasons too.Much of treasury notes are held by foreign savers since americans don't save much so the government has to go to other countries to get maney.

[skyegirl]

I have been enjoying reading the posts, so now I have a question that is off topic, but I'd really like all of your opinions. Is there any leadership that can get us out of this tailspin? Who do you all support for president, if anyone? Thanks!

[sterlinggirl]

Ventura. He won't get us out of everything, but at least he has the guts to tell the truth. That and it's fun to watch him **** off reporters.