Why is the US Dollar so low?

Question

I noticed today that the British pound is almost twice the dollar and now the Euro is better than the dollar. Are they getting better or is our economy just sucking?

Answer 1

The trade deficit with China, and the most recent recession, has eroded the dollar.. by de-valueing our currency, our goods become more attractive to foreign buyers and investors. This is a necessary step in a strong economic recovery, such as the one we enjoy now.

Answer 2

You're exactly right. We've been lied to by our government and economists into believing that the economy is good in order to trick us to spend more money to stimulate the economy. It's only common sense. If the economy is good then our supply and demand would have been at a peak giving businesses more buying power, therefore increasing the value of the dollar. But on the other hand, supply and demand is thwarted, then the value of the dollar will sink loosing value to foreign investors and at the same time increasing their money value over the dollar. The reason is that our supplies become valueless causing cut downs in the work force and smaller and medium company going out of business. At the same time, you would have more people looking for work, and work would then be hard to come by. Good enough, yes?

Answer 3

you just noticed that today? where have you been for all of 2006??

the US$ is low for quite a few reasons - conflicting economic policy, international reserve diversification out of USD's, political karma, a galactic trade deficit, gradually slowing capital flows into USD denominated assets, domestic economic conditions such as a slowing housing market and slowing growth, historically high commodity prices, and even more reasons than that including but not limited to speculative capital

Answer 4

Because of Inflation