No confidence in Bush = no confidence in dollar?

Question

The plummet in the value of our currency is astonishing. It's really getting scary.

Answer 1

when your dollar is worth 4 cents then yes I would have no confidence in it...... Bush just sealed our fate. It didnt start with him!

Answer 2

Confidence in President Bush, either good or bad does not affect the value of the dollar. Where did you get such a ridiculous idea? The plummeting value of the dollar has a distinct advantage by the way, it lowers the price of our products on the global market making them more attractive and so more competitive. Traditionally American goods are way too expensive because of the high price tacked on by Union Workers. If the United States is to survive economically, the National Labor Relations Board is going to have to go. We will need to replace the high paid low work Union worker with robots too.

Answer 3

Unfortunately that is the way of the world, he is your elected representative and therefore speaks on your behalf, irrespective of his current approval ratings. If the USA administration pumps negativity out, what else do they expect to receive in return?

Think of it like Dubya was going to meet Laura's parents and needing to create a good impression. He's wearing a hand made suit from the finest American fabric, made by the best American tradespeople and then he and his buddies make their own choice of tie, you know the one that says 'bo####ks' on it.

This on it's own hasn't been enough in the past though. The added pressure is that the developing world has grown in it's involvement of everything, especially manufacturing and technology so there are more choices for consumers nowadays and less money landing in the US.

The share of global revenue that the USA can attract is now reduced and instead of tightening their belts like the Europeans, they go out and spend billions on billions of dollars fighting expensive and tactically flawed wars.

You still have the power to vote for change if you want it badly enough though.

Answer 4

Don't be scared.
This is intentional.
The Fed lowers the interest rate so money is more available for borrowing, and investment
This makes money cheap.
There are other good effects from the devalued dollar.
Increased exports due to the effective price reductions
Increased tourism due to the bargain prices in foreign currency

Answer 5

Do as Greenspan said and don't keep your money in US Dollars
The only way "rich" Americans (You have a positive net worth)
will be able to keep their money, is to invest overseas in places like China (your money will rise, while your neighbors will drop)
or you can do the Lou Dobbs thing and just complain

Answer 6

As the great liberal FDR said: "You have nothing to fear but fear itself."