Falling dollar = inflation?

Question

Considering that the falling dollar for the past two years has NOT in fact stoked inflation, why do pundits keep saying that the falling dollar will cause inflation? Do these same people still believe the world is flat?

Tirsa, aw, almost a great answer. Europe is economically more powerful than they were previously; but not more powerful than the U.S. is (which fact will be amplified over time as the US continues to far outgrow Europe).

Answer 1

Pundits for the most part use economic numbers to make a points about politics or promote their own pet theories about the world. They do not understand either economics or numbers, and some think the world is flat, we should go back to the gold standard or whatever. Not even trained economic really understand all the implication of the global economy, so there is no one who knows what will be the long term effect of the falling dollar, so people feel free to say what ever they want.

Answer 2

I think it's because those pundits don't realize WHY the dollar is falling. They think it's because of the US's foreign problems in Iraq, Afghanistan, the controversy over Iran, North Korea, oil prices, etc. In fact, the dollar is falling because of the Euro. It has taken about eight years, but the Euro has finally unified the monetary system of Europe. This basically means that all of the countries in the EU can now pool their resources financially and have more purchasing power and stability. It is definitely better than a whole slew of currencies in one area (creating chaos, essentially). So basically Europe is now more powerful (financially) than the US. Sucks to be us. And yes, I would probably say that they think the world is as flat as a dollar bill.

Answer 3

making an investment immediately. no longer really person-friendly to make money. party when you're an American investor you've a 6% go back on your money in line with 365 days. no longer so undesirable you imagine. the most important problem is how a lot is the genuine inflation in line with 365 days? 3%,5%, 7%, or maybe 10% and would nicely be even more advantageous. I really were following the replace price adversarial to the Australian dollar over a one 365 days era, so now you would might want to pay 17% more advantageous to purchase one AUS dollar. Sorry to assert the USA of a dollar is on a decline and could in easy words purchase a lot less contained in the destiny. in easy words good investments immediately to safeguard your self adversarial to inflation is with gold, silver, commodities or land. continuously remember that paper money is outlined and by no skill dug out of the floor like gold.

Answer 4

Here is the best definition and discussion on the subject of inflation currently on the internet:

http://www.americanissuesforum.com/whatisinflation.html

Answer 5

It is because people from the Britney Spears question section are running the world.

Answer 6

Deflation of America.