During the last 5 years, the US dollar has lost 34% of its value. The dollar you had 5 years ago is now only worth 66 cents. That is an alarming rate of inflation.
The single most responsible cause of this inflation has been the extremely high deficit spending of the Bush Administration. The government has been increasing the money supply beyond that needed by the economy, which devalues the dollar.
To fight this inflation, the federal reserve has for the last several years tighten the money supply to the private sector in an attempt to slow the private sector's need for more cash. In other words, the private sector is punished for the government spending more money than it has.
This lack of fiscal control by the Bush administration has the country facing a shrinking dollar and the possibility of a recession by year's end.
As a fiscal conservative, I find this situation most distressing. How will we get the country off this road to ruin?
2007-02-27 03:54:37 · 15 answers · asked by Overt Operative 6 in Politics & Government ➔ Politics
I should add that as a fiscal conservative, I have never been a Bush supporter.
2007-02-27 03:56:13 · update #1
Interesting: As a fiscal progressive, I AGREE with you.
I would add, though, that it isn't just wartime spending, but also
the spiraling costs of health care that will drive our economy into
ruin.
2007-02-27 03:57:59 · answer #1 · answered by Elana 7 · 1⤊ 0⤋
this is best comment i have seen yet! very good! because you are right! the dollar is losing on the world market and we can thank bush for it! the only thing he wants to invest money in is the conflict in iraq, which will turn into a disaster! the same dollar worht 66 cents now will be wqorth 50 cents another 5 years from now! this war costs over 100 billion dollars a year! that would cripple entire nations!! so yes, america is in deep troubl with people like the rich republicans who support this waste of money! a recession is possible! and if these fools in washington are not careful the unemployment rate will skyrocket also, and lead to maybe a depression! so you are 100% correct! and i appreciate a person with good common sense that can see this!
2007-02-27 12:01:26 · answer #2 · answered by Anonymous · 2⤊ 1⤋
We are definitely in trouble in America. We have a president from the GOP, who is supposed to be conservative, who is spending more than any Democrat could possibly spend (and all with a GOP controlled Congress!). The Republican party has totally lost their direction, and this is the most glaring example.
The most troubling issue that we face is the fact that China purchases nearly all the bonds that the government sells (bonds=debt). Once in a great while, China 'forgets' to send someone to one of our bond sales, and the financial markets go into a panic.
Our country is totally screwed. We are very close to becoming an economic puppet of China (if we haven't already), everybody knows it, and there isn't a freaking thing we can do about it.
2007-02-27 12:24:59 · answer #3 · answered by irish_giant 4 · 2⤊ 0⤋
I too have always been at odds with the Bush economic model. Both he and his father are "big government" republicans and opposed to the Reagan philosophy. So I do agree with you on this point. The administration and the Congress have been spending us into oblivion and even if we do correct the problem, we're faced with Red China wanting to dump hundreds of billions of dollars in favor of Euros, an act that will definitely spike our economy. Yet GW Bush is going to maintain MFN status with them.
2007-02-27 12:02:01 · answer #4 · answered by Crusader1189 5 · 3⤊ 0⤋
That is seriously one of the symptoms of the Bush administrating. There are so many mistakes this administration has had over the past six years. Can someone please tell me ONE thing that this administration is doing well.
BTW for those who'll tell me: "We haven't been attacked in six years!!"
1. Wow you sure have a low standard for success, the past 39 of the past 42 presidents can say that.
2. Looks like the Taliban is re-grouping in Pakistan.... looks like Bush is failing in this aspect now too...
2007-02-27 12:01:29 · answer #5 · answered by Rick 4 · 2⤊ 0⤋
Blame it all on the president but don't take any kind of personal repsonsiblity for any of it. You could have the most gifted President in office but until we as a country start looking at our own part in it it isn't going to do any good. We are a country of materialism and greed and spend now and pay later.
2007-02-27 12:04:06 · answer #6 · answered by Mercadies2000 7 · 0⤊ 0⤋
It saddens me when I have seen how this administration has spent like a bunch a drunken sailors.
There is an even larger issue than the Federal Reserve tightening the money supply. More of our debt is being bought up by the EU nations. As the Euro climbs against the dollar it makes our debt grow even larger and harder to pay off.
2007-02-27 11:59:40 · answer #7 · answered by meathookcook 6 · 3⤊ 0⤋
Yes, I imagine having a lower dollar is distressful for Americans but for a European visiting American with Euros, this could not be a better time.
2007-02-27 12:14:42 · answer #8 · answered by venmar 2 · 2⤊ 0⤋
According to NGO experts YES
According to the GAO Yes
According to Bush life couldn't be better
Go big Red Go
2007-02-27 12:03:47 · answer #9 · answered by Anonymous · 2⤊ 0⤋
Indeed! I'm starting law school in Sept and thinking about being a bankruptcy attorney. It really looks like a growth area.
2007-02-27 12:00:21 · answer #10 · answered by Anonymous · 2⤊ 0⤋
I think the Bush administration is trying to bankrupt government so we have to bow to the corporations.
2007-02-27 12:00:03 · answer #11 · answered by Anonymous · 2⤊ 0⤋