President Bush ,how far will he let the American dollar fall?And who can stop the free fall.?

Answer 1

The dollar took a big dip during the Vietnam war also. This is because the America government spends money making war. We must pay the price if we are going to police the world. It will erode your savings and retirement plans and be the people of America that will pay the bills. Through poorer living standards, Schools,
hospital and medicines will suffer also to name a few.

Answer 2

We (The Americans) voted Mr. Bush because he had determination. That he can "stand the course" in the face of adverse public opinion.

Now we are learning that the other side of that coin is that he is just plain stubborn. He just don't care about what American opinion says AT ALL.

Like all great civilizations of the past, the down fall comes from with-in not from the outside.

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Oh man, I just scared the crap out of myself.

Good Luck.

Answer 3

Bush has no control over the dollar ...He can not stop the fall of the dollar ,there is no big secret at all . it is general knowledge and common sence when it comes to explaining the fall of the dollar, we focus on the current account deficit as the biggest single factor. The current account deficit is the difference between what Americans earn from other countries (exports, services, investments abroad) and what we pay out to other countries (imports, services, loans). This shortfall in trade and investment income between the U.S. and the rest of the world rose 8.24% in 2006 to $856.7 billion.* As a share of gross domestic product (GDP), the deficit increased to 6.5% in 2006 from 6.4% in 2005. Foreigners must absorb this shortfall by buying over $2 billion worth of U.S. dollar denominated assets every single day, just to keep the dollar from falling.
We often hear about the trade deficit, which is simply exports minus imports. Let us visualize what the trade deficit means: if we import $600 billion+ more than we export, we are passing many dollar bills to other countries. They can hold the cash (e.g. purchase U.S. bonds), re-invest in the U.S., or exchange it into their local currency. Unless other countries purchase U.S. dollars at a rate of about $2 billion a day, there will be downward pressure on the dollar.
Visualize the U.S. buying Chinese goods and paying for them with U.S. dollars. The Chinese must decide what to do with the dollars they receive: as they do not find enough American goods and services to consume, they can decide to purchase U.S. dollar denominated assets, such as U.S. Treasuries; or they could convert them to their own currency, which would cause the dollar to fall.
Our international trading partners have been reinvesting our dollars back into the U.S. economy. China, one of the main buyers of U.S. debt, has been increasing its foreign currency reserves at a rate of over $200 billion a year; in late 2006, China's currency reserves surpassed $1 trillion (not allof of China's reserves are denominated in U.S. dollar). Since 2005, there has been a gradual diversification from buying U.S. Treasuries to acquiring real assets, especially those that help China secure its vast appetite for natural resources. The highest profile attempt to acquire U.S. assets was by the Chinese state controlled oil conglomerate CNOOC, as it tried to acquire the American oil company Unocal. The Chinese wanted to use their dollar reserves to buy something of value to them, but were rebuffed by the resulting political firestorm. Since then, the Chinese have looked beyond U.S. borders to make acquisitions—amongst them Canada, Latin America, Africa, and Australia.
The questions are: Why do Asian central banks purchase so many dollars, is it sustainable, and what happens if these purchases were to slow down? Asia buys U.S. dollars because their governments deem it to be in their interest. Asia’s interest is to sell goods to the American consumer, so that they can build up their local economy and create jobs for an enormous flood of the rural population into cities. China has to generate more than 15 million jobs a year. As the Chinese leadership has social stability as a top priority, they are likely to continue to favor to subsidize their exports through U.S. dollar purchases, which allows them to keep their currency competitive (the Chinese Yuan is pegged to the U.S. dollar).
However, China and Asia, and indeed the U.S., may not be able to afford to continue this policy forever. We have all heard about soaring commodity prices, a side product of global overproduction. Given that the U.S. economy is about 8 times larger than the Chinese economy, you may be able to imagine that any small impact we may feel in the U.S. economy has a huge impact in some other way on the Chinese economy....the reason I say common knowledge is because even I a house painter ,and a volunteer fire fighter with a GED can explain this without blaming President George W. Bush .....We are actually paying for Clintons Free Trade Agreement and the loopholes he included ...I could name a few but I have typed too much ,and my d@mn fingers hurt.

Answer 4

hey GENIUS...who controlls economic policy in the united states is the house ways and means committee, controlled by the liberal extremists NOT the president. in other words your ...mandate.... of 11 percent now is coming over to the economy....i cant wait till they put out those bumper stickers that say..DONT BLAME ME, I VOTED FOR BUSH.

Answer 5

...why to you blame Bush...? it's not up to George... ask the "loons" at the stock-markets of the World who trade the dollars and regulate it's value by their "whims"......

Answer 6

He has his money made he does not care