Do you think the US Government should do something about the drop in Dollar value?

Question

This year has seen an unprecedented drop in the value of the US Dollar, and the huge rise in oil prices, and yet the government is doing nothing about it. What do you think should or could be done about it?

http://finance.yahoo.com/q/bc?s=USDEUR=X&t=1y

Answer 1

Excellent question.
Difficult to answer.
In short, YES!
What to do, however, is more difficult to resolve.

Due to a multitude of reasons (none the least being our Iraq money-pit), America is a debtor nation.

We outsource so much of our employment and manufacturing to other nations, then import the results back at a cost that on the surface looks good but the long-term effects are crippling us.

Consider the goods we import from China.
From the business we give them, it drives their industry, which means they use more crude oil to power the industry which means more demand for global oil which means higher oil prices which means we pay more at the pump.

Here's a portion of a report from last year (link below):
"The Commerce Department reported Friday that the gap between what America sells abroad and what it imports rose to $725.8 billion last year, up by 17.5 percent from the previous record of $617.6 billion set in 2004.

It marked the fourth consecutive year that America’s trade deficit has set a record and was certain to spark increased debate in Congress over President Bush’s trade policies. Since mid-2000 the country has lost nearly 3 million manufacturing jobs and Democrats blame the administration’s policy of emphasizing free trade agreements."

Answer 2

I am not sure exactly what the government can do directly about the rapidly weakening dollar, but maybe some fiscal responsibility would be in order.

I am fine with the mantra of "no new taxes" but that dose not give you the right to spend money that you do not have.

maybe if we do that the dollar can recover.

Answer 3

Indian importers may be happy, but exporters without safeguard to change in dollar value may like to. Let us help both of them how think it is as easy as power sharing system in govt.

Answer 4

the drop in the dollar is helping our exports(cheaper items as far as the world is comcerned)....more people visiting here(tourism) and more vacations in America by Americans,,,,,,,,,...............
end the war.end the deficit and the buck goes up...........George is in control..........still...........