US Dollar Hits All-Time Low

[Toro]

The US dollar hit an all-time low this week, touching 77 on the dollar basket. It was over 120 a mere six years ago.

A declining currency is a sign of economic weakness, not strength.

 

[mattskramer]

It is all Bush’s fault. He is president after all but he is not responsible for over 100000 new jobs in September. Look. A sitting president really does not have that much control over such things. There is the world market, congress, and the Federal Reserve. Oh. A president might be able to add a brick to a building (or make waves by dropping a pebble in a lake) but he does not have all that control over the job market. There are just too many unforeseen events and variables. Even the finest economists and “Job experts” disagree on how to create jobs and advance the dollar appropriately.

 

[Toro]

Ah, but Matts my man, the President does bear some responsibility, as it is the President and Congress who have increased deficits - which is inflationary and erodes the value of the currency - and have invaded Iraq, which has eroded America's standing in the world.

It is certainly not all Bush's fault - note I made no mention of such in the OP. In fact, a cogent argument could be made that the Fed has more responsibility for this mess. And, there are structural and good reasons for the dollar falling - such as European economies growing faster and poor people getting richer in the third world - and a prudent diversification away from dollars as reserves in central banks.

However, the government since 2000 bears partial responsibility. As long as America continues to believe it can cut taxes and increased spending with no consequences, I - and other traders - will shoot against the dollar all day long and make money off the trade. I'd like to buy the dollar, but I just can't right now.

 

[Paulie]

As much as i hate Bush, I blame him for VERY LITTLE, of the economic situation the US is in.

I blame Congress more than i blame him...535 men and women get to decide whether or not to let the president get the country into this kind of trouble. And even the Democratic congress has allowed Bush to get us into even more debt.

The dollar has been declining since it's inception. There's no one else that can take more blame for the dollar's weakness then the Federal Reserve.

Congress itself doesn't even have that much oversight of the Fed.

The Fed is a monster that no US politician besides Ron Paul even cares to try and control, much less STOP.

When the dollar finally collapses, what will be next? Another Fiat currency that is controlled by debt and inflation/deflation? WHY? It's never worked in HISTORY.

 

[doniston]

As much as i hate Bush, I blame him for VERY LITTLE, of the economic situation the US is in.

I blame Congress more than i blame him...535 men and women get to decide whether or not to let the president get the country into this kind of trouble. And even the Democratic congress has allowed Bush to get us into even more debt.

The dollar has been declining since it's inception. There's no one else that can take more blame for the dollar's weakness then the Federal Reserve.

Congress itself doesn't even have that much oversight of the Fed.

The Fed is a monster that no US politician besides Ron Paul even cares to try and control, much less STOP.
When the dollar finally collapses, what will be next? Another Fiat currency that is controlled by debt and inflation/deflation? WHY? It's never worked in HISTORY.

the western world will continue to support the dollar until they all collapse, and collapse they will.

 

[actsnoblemartin]

why has this happened

The US dollar hit an all-time low this week, touching 77 on the dollar basket. It was over 120 a mere six years ago.

A declining currency is a sign of economic weakness, not strength.

 

[Toro]

why has this happened

Martin

I'll elaborate a later, but the reasons can be boiled down to

1. Interest rates that went too low
2. Too much money created in the world
3. Deficit financing by the federal government
4. The war in Iraq
5. The opening and rise of emerging countries, in particular China, India and Brazil
6. Increasing growth in Europe.
7. Overvaluation of the dollar in the first place. Financial markets tend to over-react.

 

[eots]

Iran breaks with the US dollar

Press TV | October 23, 2007

The Central Bank of Iran says the process of converting the country's dollar reserves to other foreign currencies has been completed.

The process of diversifying Iran's foreign exchange reserves by converting reserves held in dollars to other currencies is almost complete, Fars news agency quoted Tahmasb Mazaheri, President of the Central Bank of Iran, as having told the American publication, The Emerging Market.


He added that the procedure has been carried out in the best possible way and achieved maximum results.

Experts believe Iran has gained huge profits by adopting the measure because of the sharp fall in the value of the US dollar.

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A weak dollar is bad for America

Sify | October 23, 2007
Carl Delfeld

Martin Feldstein, the chairman of the Council of Economic Advisors under President Reagan, wrote an article for the Financial Times this week, which outlines why he believes that a more "competitive" or weaker U.S. dollar is good for America.


Even though I am a rock-ribbed Reagan Republican, I cannot overstate how strongly I believe that this opinion is incorrect. "Strong Dollar, Strong Currency" is more than a mantra for me since economic history indicates that no country has ever achieved greatness nor maintained it by debasing its currency

 

[rOckNrOllsCar11]

America is on the downward spiral.