As of Monday the US dollar hit a new low. How will Bush supporters attempt to put a positive spin on this?

Question

Lets see....

Good for exports! True.

Q: How much more will US consumers consume versus export?

Is it anywhere near 1000:1?

andy (below) My solution is to stop the Bush/GOP blank check spending and balance the budget.

You are absolutely correct when you state "Neo-cons have no solutions".

Locutus (below) Welcome...

Answer 1

Bring on those EU dollars...and let's jack up the prices to tourists !

Everything goes thru phases, Chi Guy...and soon you will be complaining about how strong the dollar is , and the trade deficit resulting from that strong dollar...

Answer 2

BUSH?? Reps??
The blame is squarely on the dysfunctional congress ..Murtha got 83 MILLION in pork alone . Politicians routinely waste tax $ on idiotic projects/"friends" projects Placing $$ in their home state (projects) is simply a conduit for return cash to fund the politicians war chest and increase power.
..More $$ is throwns at all the "groups" that if "accommodated" will "endorse/fund"...X'''back to the congressman/senator.
Export treaty terms are based solely on who wields the power ( in committee) so if the agriculture conglomerate out funds the xx union (ex steel /metal workers) then the treaty terms are tweaked as payback...OH WHAT? did they care if the terms served or harmed the USA? of course not no $$ is attached to actually serving the nation only the special interest groups with big wallets ..
More $$ goes to provide "aid" because it will "prove" that they are caring individuals who weep for the suffering in the world (good soundbites when talking to voters ), Throwing $$ at and getting $$ back is a coordinated musical chair game.
The "folks" that elected them sadly do not see that THEIR GAME has nothing to do with a desire to preserve/protect the nation or take care of the "working" folks who can always be taxed for just a little more and be manipulated into blaming someone or something else (Bush, the evil oil companies, the greedy drug companies, the climate change...)

Answer 3

The weak US dollar is a big problem. Good for exports, but look what how much we import, and despite what anyone tells you, US manufacturers are not going to come back as long as they have cheap labor elsewhere. It just means higher prices for consumers. Our economy is screwed up big time. Something like 70% of our economy is based on consumer spending. And much of that is consumer debt. Whats going to happen when consumers can no longer borrow more money, and start defaulting on loans? We have a problem with supply exceeding demand in a number of key areas of the economy. Housing is one such area. Another is the automotive industry.

Answer 4

It makes US exports more competative, and US domestic products more competative with imports.

It makes offshoring of US jobs less attractive.

It makes long-term loans easier to pay off by bolstering inflation (and American are, on balance, debtors).

It, uh, will give a boost to the tourist industry.


And, well, that's about it, really. Also, the first point doesn't really matter since the Yuan is pegged to the dollar, so no matter how weak the dollar gets, Chinese imports will still be crazy-cheap.

Answer 5

I think besides bush effects, there could be another fact contributing to the devaluation of Currency ? I am not an economist, but rapid widening gap between Rich and Poor
would eventually cause the poor to spend less and less, due to the rise in prices which moves in direction of rich getting richer. If the poor does not spend money to buy from rich, well
that will be the end of line for Money??!!

Best Regards.

Answer 6

Some *** has already posted a question here a few minutes ago blaming it on the possibility that the Democrats will win big in the next election. I just hope whoever is elected President will not take the fall for Bush's damage to our economy and to the world.

Answer 7

A bush Family Member - you always answer this question but never the obvious flip side of it. If the lower US dollar improves our Terms of Trade and reduces our trade deficit, is this improvement enough to outweigh the increased cost of servicing international debt, demoninated in foreign currency?

Edit - China does not have 9 trillion dollars of public debt accumulated. Thus they do not struggle to service such debt as thier currency falls (in fact the opposite - the return on thier net lendings is increased). Your refusal to answer this just leads me to confirm you have not read ahead to that chapter of your high school economics textbook yet. Come back when you actually know what you are talking about.

Answer 8

If imports cost more than home grown then we will buy homegrown. It could (not saying it will) boost manufacturing.

Chi life is a biotch all the time you gotta roll with the punches and look for the openings or you get knocked out.

Foreclosures suck for the foreclosed on but mean good buys for those that can manage their money a little better. A slump in building means a buyers market. The cycle goes on and if you are willing to work the flip side you can always make a buck.

Answer 9

A weak currency is a sign of excessive debt and a weak manufacturing base that creates a negative balance of trade.

The US has more debt than all other debtor nations on Earth combined.

If a con tries to spin this they should check into rehab as soon as possible. They need help.

Answer 10

Once the dollar is worth less than a peso, we won't have to pay to deport illegals, they'll be racing each other back to mexico.

For it to be good, we have to have decent exports. What do we actually make here any more??