What does this currency conversion chart depict during Bush's booming economy?

Question

USD to Australia
http://finance.yahoo.com/currency/convert?from=USD&to=AUD&amt=1&t=5y

USD to Brazil
http://finance.yahoo.com/currency/convert?from=USD&to=BRL&amt=1&t=5y

USD to China
http://finance.yahoo.com/currency/convert?from=USD&to=CNY&amt=1&t=2y

Good News!
http://finance.yahoo.com/currency/convert?from=USD&to=YER&amt=1&t=2y

bush family member (below) The family resemblance is remarkable.

bush fam mem: "Only people clueless about global economics want a strong dollar"

"A weak dollar is good for America"

"American factories were moved to Canada because it was less expensive to make products there"

What a load! A neo-con thinks that a lousy dollar will make nations move their companies to the states. How many decades of 3rd world status will it take to make this transformation happen? Neo-cons...

Danie (below) How eloquent of you to not tie Bush's record spending deficit to the drop in the dollars value over a FIVE YEAR PERIOD.

Answer 1

When GDP grows at a faster rate than other nations it makes the dollar devalue. When our central bank cuts rates compared to other nations, it devalues the currency. There are a plethora of other reasons that you do not understand.

A devalued dollar increases exports.

The EU is having a crisis because the Euro is worth too much and they are not able to export anything.
"However, it is the recent rise in the single currency that could contribute to the euro's undoing.

Germany's finance minister signaled an apparent shift in tolerance earlier this week when he launched an attack on the euro's strength, suggesting that its recent moves had been "disorderly."

"This is important in the ECB's context as it suggests that finance ministers from the biggest euro zone countries are now aligned in voicing concern about exchange rate movements - implying that the (ECB) ought to assign a greater weight to the euro in its assessment," said David Woo, chief currency strategist with Barclays Capital in London."

"Franco-German EADS for instance has a 20 billion dollars yearly turnover but since the expenses are mainly held in euros, a 10% increase of the value of the European currency is translated into a net annual loss of one billion dollars."

"In this way, several observers argue that the strength of the euro could, granted that the present situation does not change, harm the European growth and lead to a new increase of the level of unemployment."

"European companies such as Airbus are complaining about a loss of competitiveness, with Tom Enders, chief executive of the aircraft maker, calling the dollar fall “life-threatening”."

China intentionally keeps its currency cheap for a reason. The dollar is devaluing for a reason. It is part of a natural economic process and is nothing to be concerned about at this point.

Get a new subject to cry about.

Answer 2

a bush family member: If we had a strong manufacturing base in this country like we had 30 years ago I might agree with you. But as it stands now we rely heavily on imports and foreign oil, and those things are going to become more expensive as a result of the falling dollar. I wouldn't think a decrease in the quality of life for Americans was a good thing.

Answer 3

Tells me the national media was to busy burrying their heads in the sand when the economey was booming, and now that the economey is staggering a bit the media will now be on the highest mountains screaming "RECESSION, look further away from Iraq! RECESSION! RECESSION!"

It also tells me that too many lenders and too many borroweres who were to greedy and wanted it all have given the economey a tough blow, not sure how this will turn out, but you can thank your friends living in 300k houses while eaarnign 30k a year.

Answer 4

It shows USD dropping like hell, and it was anticipated by me and many other people ?! This is not one of those times that the drop is good for economy, foolish thinking ?!
This trend will continue to some unknown and scary future ?
The stock market will crash for sure ?!
Thanks to bush and family ?!

Best Regards.

eat emm emm : Where in fantasy land ? lol
USD is not backed by gold any more ? which makes it vulnerable in crisis, emm like now? deep - h - - that we are in ? can't see that ? wake up smell the emmm ?

That's a big problems with Cons, they keep thinking every thing is honky dori like before, This is all new? Be ready for change , this time you must ?!

Answer 5

That Bush is an A R S E hole, who sold this country out by signing off on the North American Union.

Answer 6

An absolute disgrace. Bush has turned us into a third world nation in the span of seven years. It wouldn't be so bad if we still manufactured something in this country.

Answer 7

It shows the dollar is changing for the better. Study global economics. Japans economy was great for many years with a weak currency. It ran into trouble when its currency got stronger.

Currently, several European countries want a weaker Euro because it increases business. Funny how they didn't complain when the U.S. dollar was so strong to the Euro.

Also, every country in the western world wants China to stop playing games with its currency. The value of China's money needs to get stronger. China currently devalues its currency while it "pegs" the U.S. dollar. That is basically economic terrorism that will bankrupt the U.S.. And now China's currency manipulation is starting to hit the EU hard. For example, the EU can no longer compete against China in steel production.

EDIT:
Only people clueless about global economics want a strong dollar.

Currently, the U.S. dollar is very strong in Asia. It just is not strong in Europe and that doesn't matter much because most Americans don't buy a lot of products from Europe.

A weak dollar is good for America. Japan, China, Russia, Brazil, and India all enjoy the benefits of weak currency.

Canada's devalued currency benefited Canada for decades. American factories were moved to Canada because it was less expensive to make products there. Now it is less expensive to make products in America, which doesn't make other countries that survive off of American consumerism very happy. Many countries around the world parasitically survive off of the U.S.'s $12 trillion yearly GDP (gross domestic product). Those countries survive by making American designed or invented products at a less expensive price due to their currency being worth less than the U.S. dollar.

Understand more here:
"Why Do People Keep Thinking A Weak Dollar Is A Disaster?
They don't know countries around the world purposely devalue their currencies to make their country economy better and to improve the country's standard of living."

http://answers.yahoo.com/question/index?qid=20070920193903AA1OcdY

To Pops McGee : Short term pains are less important than long term gains. It will take a while to restore the U.S.'s manufactoring base but it needs to be done. Every country needs a manufacturing sector for both national security and economic growth. If nothing is done, eventually every nut bolt and washer will be made overseas.

To Chi:
Currently, China, India, Russia, Mexico are using currency manipulation as a way to build their economies. Canada used to do it. (Like Venezuela, Canada now survives by exporting oil. It is the largest exporter of oil to the U.S.. And it is now growing its oil industry and it will someday rival Saudi Arabia.) Currency manipulation is the easiest way to create a trade surplus.

Trade surpluses transfers wealth from one country (usually 1st world) to another country (usually 3rd world). Trade deficits will eventually bankrupt a country that does not produce new inventions.

Innovation creates wealth and most Asian countries are only copying U.S. inventions. A country's wealth increases by manufacturing new innovations. Currently, the U.S. is allowing other countries to manufacture U.S. inventions. That is increasing the wealth of the countries that are manufacturing U.S. inventions.

The reason why the U.S. has a $12 trillion gross national product is because of innovation. Most of the stuff used around the world was invented in America (that includes cell phones, person computers, LED, lcd screen, plasma tv, microwave oven, electronic television (year 1927), optical recording (cd,dvd, etc), refrigerator, air conditioner, digital camera, digital music recording, digital video, video recorder, computer chip, lightbulb, laptop computer, operating system, computer databases, word processors, spreadsheets, high level computer languages, digital radio transmission, tcp/ip (the internet), etc.. And no other country in the world comes close to designing complex computer processors that are created by U.S. companies (Intel, AMD) )

Many countries survive by just manufacturing U.S. inventions and later exporting them. That is why they are so concerned about the falling dollar. A falling dollar will not allow countries to manufacture U.S. products below the cost of manufacturing the products in the U.S..

This a very large subject, a few paragraphs won't completely answer the question.

Answer 8

Terrific trade deficit reduction.