What effect has Bush's policies (or lack thereof) had on the declining U.S. currency exchange rate?

Question

What needs to be done for this historically terrible economy to turn around and get the exchange rate back up to 2003 levels?

Answer 1

First off a low dollar is not bad for America, it is or can be a good thing. It makes our exported products cheaper on foreign markets, increasing sales of our exports. it make imported products higher in American markets, hence increasing sales of American made products.

Answer 2

The fundamental cause of the of the fall of dollar is the trade deficit which has been supported by foreign investments in US assets. We need foreign investment to replace domestic savings which has decline from about 10% of GDP before 1980 to a net of zero today. Government deficits contribute to the low savings rate and large oil imports are part of the trade deficit, so balanced budgets and energy conservation policies may have helped, but would not have solved the problem.
Economist had always believed that high income earners saved a larger fraction of their income than the middle class, so they expected national saving rates to rise as the rich got larger and larger shares of the income. The problem is that the rich went on a spending spree, and the middle class is too hard pressed by rising health care and education costs to increase their saving

Answer 3

Pobept K makes an interesting point about trade but it is a falicy. The exchange rate only helps our trade deficit if we actually export more products and the products are bought. The same holds true here at home if imports cost more but we continue to buy them then it does not actually help the trade deficit. How often is price the deciding factor in what is purchased. The fluctuations look good on paper but in the end all that matters is actual product sold. We need industry to set higher standards for what they produce, we need government to invest in technology and education. We need to demand a truely even playing field for our exports. We need to trade with whoever will trade with us fairly no more favored nation status for anyone. You trade fairly with us we trade fairly with you end of negotiations. Exchange rates are not the be-all end-all they are just a sympton of the real problems. We must take back our position as the world leader in technology, education, health care and manufacturing or the exchange rate for the dollar really won't matter.

Answer 4

Two points related to previous posts:
I agree that the lower value of the dollar is likely to reduce the trade deficiet, and that things are not as bad you make them sound in your question. And of course price matters in purchasing things.

Now, more to your question directly, what has Bush done to cause it? I think that he has eroded foreign investors confidence in the US market. In part by running up the federal debt, in part by just pissing off foreigners with poor policies. And of course, the poor government oversight of sub-prime loan securitization (not sure if you can blame Bush directly).