Does the falling value of the US dollar scare you?

Question

How about making you worry at least? It seems to be falling lower in value each time I read about it. OPEC recently had a meeting in which the US dollar was called "valuless wastepaper" and reccomendations arouse about converting OPECs trading currency to something of more stable.

Answer 1

Not really. A strong dollar and weak dollar both have positive and negative aspects.

A weak dollar will let us export more American made goods and services to other countries, result in less imports, result in less outsourcing, and reducing our trade imbalance. These are all things people have been complaining about for years. It will also encourage foreigners to vacation in the USA, and Americans not to go overseas for tourism, but spend their vacation dollars here at home.

In the long run, I believe many countries will deliberately weaken their currencies, because many of them depend on selling exports to the USA. They need their currencies weak and the US Dollar strong to encourage that.

Answer 2

U. S. exporters are delighted as the Euro, for instance, buys more dollars making U.S.goods cheaper and in demand, abroad, while their exports are more expensive to us. The big question will be what China does since its yuan is pegged to the dollar. Since China does not want to upset its vast trade with the U. S. I think they, and many other nations will do their best to support the $. Oil is another story -- its price is not going up in Euros. The value of the dollar is, as you noted going down. Yes, we're in trouble and its been foreseen for a long time. We've thrown $1 trillion at Iraq..... ....jeez, we've gone over this before, haven't we. I believe now is the time to invest in good int'l companies. Your own real estate should hold its own in the long run because people have to have a place to live. Gold and silver are good inflation protection. The dollar stinks! Yeah! Not only the deficit but the $9,000,000,000,000 nat'l debt. I'll tell you what -- first chance we get to elect a new president, let's go for another beer-swilling Texan who slept thru classes at Yale on his daddy's coattails.

Answer 3

Back in 1985-87, the U.S. dollar lost half of its value, and no one in the U.S. even noticed. If you insist on being worried, worry about the budget deficit instead...

Answer 4

yes, its value will go down and our government is doing a poor job. the 7.50 an hour law in illinios wont help. inflation and we are starting to realize we are on the downhill of the economic trend