Since the dollar dropped like a rock when we abandoned Vietnam Why would Dems want to leave Iraq?

Question

Is it because they want a return to the "good old days" under Jimmy Carter?

Keynesian economics tells us that money is based on the perception of market value. The more stable a government is the more the money is worth. By electing a Democratic Congress the people of the United States created an antagonistic and unstable government.

Money is a liquid asset and until 1933 money was based on the value of Gold. In '33 we went to a semi-Keynesian economic system where the government backed the money, but, the money supply was based on the amount of Gold the US government has.

In '70 we went to a pure Keynesian economic system where the amount of money is totally dependent on the stability of the government.

Governmental stability = money stability.

Withdrawal from Vietnam in 1975 = dropping dollar since the world perception was bad US government.

Withdrawal from Iraq = dropping dollar since the world perception would be bad US government.

The drop of the dollar is a direct result of the election of a majority of Democrats to Congress creating an antagonistic and unstable government combined with the constant attempts by Democrats to withdrawal from Iraq.

In fact, if you review world news headlines and Democratic attempts to leave Iraq you will notice a correlation to the value of the dollar.

Not that any Democrats understand economics well enough to do anything intelligent about it.

Obviously no one remembers how bad the Carter years were after we left Vietnam.

It was pretty bad during the Nixon Impeachment process, which destabilized government. It was worse under Carter with interest at 20% and the Canadian dollar worth more than the American dollar.

Renegade: In that case the dollar should have risen during the Carter admin. Obviously your reasoning is fantasy based and has nothing to do with reality since Carter Raised taxes and we were not at war.

I gave you the era to research, you spent your time on propaganda and wrote a very articulate fantasy.

More fantasy, as if there were only one way to measure the worth f a dollar.

http://www.measuringworth.com/calculators/uscompare/result.php

Income vs cost ratio is a better way to determine value. Since the market sets prices different things increase in price at different rates. For example, using the stupidity calculator gasoline is well under valued and should be around 6 bucks a gallon. If we use the ratio of gasoline cost to income, how many gallons of gasoline can an average person/family buy? We discover gasoline is about 3 times it's normal cost.

If I had a dime for every uneducated person who read a little propaganda and then started spouting crapola .....

I do have a source:

http://www.federalreserve.gov/releases/H10/hist/

The dollar was worth 1.4100 Canadian on 22-Aug-03 well after the invasion. In fact it went up slightly after the invasion.

After that it dropped fairly slowly.

In January of 07 the dollar was 1.1647 against Canada.

Now, 11 months later the dollar is 0.9727 against Canada.

The "Rock Drop" came after Democrats took office. Duh.

http://www.federalreserve.gov/boarddocs/speeches/2001/200111302/default.htm

For anyone interested in learning about fiat currency, according to Alan Greenspan.

http://www.econ.tcu.edu/harvey/workppr/wp10.pdf
Too deep for most of the answerers here, but, a useful source on Keynesian Exchange Rate Theory.

Answer 1

I've said it before and I'll will say it again.
The libs don't care about anything else right now. They just want
George W to look as bad as possible even if it means we lose the war on Islamo Fascism and we all die. They don't even care if the dollar drops. Just so long as Bush gets blamed.
I Cr 13;8a
Ps 122;6

Answer 2

I remember my eco professor making a point like this about Vietnam, how people had no confidence in the United States after Vietnam because we didn't follow through on our promises. He also made the point that Vietnam was really a war between China and the US and by negotiating free trade with China Nixon set the stage for tremendous economic development in both nations. That happened. what is interesting, looking at your links, is that during the Clinton Impeachment the dollar did not drop significantly although Clintons Congress was no where near as oppositional as Bush's Congress. The current Democratic Congress is as oppositional as Nixon's Congress. Time will tell if you are correct that the economic results of withdrawing from Iraq will be the same as withdrawing from Vietnam. Now to answer your question Democratcs do not believe the economic situation is similar which is why they want to withdrawal from Iraq. Even if they are I don't believe liberals or democrats learn from their mistakes so they will withdrawal.

Answer 3

The dems prefer to be famous! Its usual in some circles to assist Tibet and Darfur. those dems prefer to coach a blind eye to what's truthfully going on in worldwide. i'm sorry for those 2 worldwide places, yet combating terriost is extra important. We have already got our nostril in too many places.

Answer 4

There is no way for liberals to defend their "surrender now" policy without sounding strident...but I think making a strong dollar argument (while true and important) seemingly gives these moral midgets a small booster shot of righteous indignation to go along with their shrill "America Sucks" mantra.

Answer 5

democrats since pre johnson have been in love with feel good politics which has little basis in reality or cause/effect, it simply deals with polls or reaction at the moment. this group and most others could care less about long term results as long as they can posture and grandstand for a momentary advantage. the great "power grab" of 06 involved promising the world a bill of goods about a quick fix regarding iraq and al qaeda that reality simply wouldnt allow. when they were found out naturally the excuse ..."its all bushs fault" and we did the best we could were offered. if they actually were held accountable by dealing with reality in iraq rather than the solution promised, theyd be out of office and the world would be in a worse mess than it is now. again, impressions not reality run the liberal extremists.

Answer 6

I believe your premise of the dollar value tied to getting out of Iraq is incorrect. America is still in Iraq and won't be out for quite awhile. The spending for this prolonged war and the national debt incurred and is still being incurred has not helped the dollar. Also, the bad financial decisions such as the mortgage fiasco shook investor confidence worldwide. Increasing oil demand, unemployment, slowing economy all have an affect to. Your right about the perception of stability but this government has been spending like a drunken sailor and enough debt equals bankrupcy and guess what, the value of the dollar goes down when too much money has been printed and in circulation.
As far as Jimmy Carter he wasn't in office when America withdrew from Vietnam. So trying to make that link is a nonstarter.

Answer 7

The dollar has always been in decline. All fiat currencies eventually collapse. In fact, the dollar has lost about 95% of its value since its inception. Anyone old enough to remember the 60s when they could buy a Coke for a dime will surely attest to this reality.

If you dig up a long term chart of the U.S. dollar, you'll notice that the dollar index was at 120 just prior to Bush cutting taxes while going to war, combined with the Fed cutting interest rates. The dollar index now stands at 77. Here's the dollar index chart tracking the steady decline in the value of the dollar from the time Bush took office to the present:
http://charts3.barchart.com/chart.asp?vol=Y&jav=adv&grid=Y&divd=Y&org=stk&sym=%24DXY&data=H&code=BSTK&evnt=adv

Here's a NY Times story with a longer-term dollar index chart:
http://www.nytimes.com/2007/09/22/business/22charts.html

A currency doesn't hold value just because people "feel good" about it, rather it holds or loses value based upon fundamental economic conditions. Heavy war spending combined with tax cuts for the wealthy is a recipe for a dollar collapse -- which is exactly what we've seen since Bush became president.

Furthermore, there is no indication that the far right wants the dollar to hold value. The right-wing has long wanted labor in the U.S. to work for the same $2 per day that 41% of the rest of the world's labor force earns. Promoting policies that result in a decline of the dollar's value while at the same time wages are stagnant is effectively slashing wages.

This, of course, doesn't even address the moral issue inherrent in your policy of killing, raping and destroying as long as it helps our dollar maintain its value.

Answer 8

I was alive in the Nixon / Ford era, Vietnam War the hijacking of airliners, the killing of the Jewish athletes & the retaliation, the gas shortage, the new state of the art Toyota imports, the drive 55.
The same is happening today, like in the 70's either you were rich, middle class, working but still kinda poor, or just plain out right poor. Cars still got 12-17 MPG in the city & 18-25 MPG highway with the imports.

What cost $100 in 1976 would cost $361.97 in 2006.

Inflation calculator below

Answer 9

I just don't understand how the world would view our withdraw from Iraq being bad for US government. Currently we are engaged in a war (a preemptive war) that is barred by the UN Charter. A Charter that we proposed and signed.

I keep hearing about how Bush will not listen to the American people, which doesn't quite sound like a democracy to me. Yet, we want to create democracies in other countries.

It all just doesn't add up, and that's what's causing such dissent among the American people and the world.

Answer 10

Governmental stability=money stability? Since a lot of the world now looks at our President as a loose canon, do you think that has any effect on our money? Yours is pure republican bluster straight out of the GOP propaganda machine. In case you didn't notice, we're also still in Iraq. Any other theories as to why our dollar is plummeting?