My opinion on the dollar and basically everthing summed up

The dollar use to be the world’s currency. But now it is probably the euro. The dollar has been weakening each and everyday. The dollar doesn’t look like it will get any better soon. It might show little improvements buts that all, not major. Even if the dollar recovers, it won’t be like it used to be. The dollar will probably still be lower than the euro, and the dollar won’t be used as much, and it won’t be the world’s currency again. The dollar has fallen through a hole, which is possible to get back up, but it won’t be as strong as it used to be.

There are multiple reasons for the dollar being weaken. I believe it’s due to the Iraq War. The Government is spending money on the war instead of education. The war is causing the U.S. to spend money on weapons and materials for the war. And it is causing the U.S. to be in debt of other countries. The U.S. is spending money which they don’t have, which causes the Government to borrow money from other countries.

The dollar is causing the economy to go into a recession. It is making prices of food to oil to go as high as possible. From what I’ve have heard, even tea and shoes are going to be higher by about 15%, not completely sure how much percent it will rise. The prices are making people not spend even if they wanted to because the prices are so high. Imports are as much as it used to be because it would cost a lot more, however the U.S. been exporting a lot. Investors been staying away from U.S. and haven’t been investing in U.S. assets. The dollar has done so much damage and will continue to do more damage until the dollar gets itself back up.

Sources: My knowledge, and the past sources that I have used for all my older posts.

What is the Fed doing?

The Federal Reserve is having a problem, giving low interest rates causes the economy to go into inflation. During this time, the U.S. dollar still continues to drop low against the euro. It seems like balancing the consumer and credit markets is the Fed’s priority, which will mean that cutting more rates. And once that is done, supporting the U.S. dollar will be less hard to do, said Yared. The Fed has already lowered rates to prevent the economy from going to a recession. People say that the rates are going to get lowered again.

Meanwhile the euro has rose up to $1.5380 dollars. The Fed is ready for the dollar to lower and inflation. The dollar has lowered against the major currencies, lowering about 102.66 yen. The dollar is obviously going to be lowered even more. The weaken dollar has sent a barrel of oil above $100. The price of oil is predicted to go up obviously if the dollar is going to be even weaker. Other prices of necessities will likely to be higher. A gallon of milk costs way more, as I heard that big packets of rice now costs 20 dollars. The prices will eventually get lowered when the dollar regains some bit of strength and when the economy isn’t doing so bad.

Soruce: http://www.forbes.com/currencies/2008/03/06/dollar-federalreserve-ratecut-markets-commodities-cx_ra_0306markets38.html

The dollars getting better, is the economy advancing as well?

The dollar regained some strength and it showed that prices of food were going down slowly. Even though the dollar had regained some strength, there are still some fears to be worried about, such as housing, debts, etc. In April, 20,000 employees lost their jobs. It wasn't as bad as it was in March where 81,000 employees lost their jobs. The unemployment rate dropped down to 0.1 percent. Since the dollar made a comeback, investors started to invest in the U.S. The dollar now is to make U.S. assets attractive to foreign buyers. The dollar’s advance has lowered food prices, however oil prices rose due to other things than the dollar.

The economy was getting better as prices went down a bit. There were 7.6 million unemployed in April, has changed to 6.8 million. Worker’s pays rose to $17.88, in April, which rose from .01 percent from last month. Over the last 12 months, wages increased by 3.4 percent. If workers continues to get higher pay, then they would spend more, if not then they would obviously spend less. To help the economy get better, the Fed lowered interest rates. The economy increased in a slow pace just by 0.6 percent. If the economy keeps getting better than the economy might get out of the recession or might prevent an recession.

Source: http://news.yahoo.com/s/ap/20080503/ap_on_bi_go_ec_fi/economy

Dollar sets new low record

The dollar has fell 30% lower against the euro. Right now, people have to pay $1.24 for one euro, which used to only 80 cents a euro. The dollar fell against the major currencies and as it falls, other currencies get better. The bad things about a fallen dollar is that the importing will cost more, and business that need foreign goods, will receive less and business won’t produce as more. Traveling would be annoying due to the low cost of the dollar. Some countries now, don’t even accept U.S. dollars anymore. The euro is being used a lot and many foreign workers would rather get paid by euros instead of dollars.

The two currencies that are mostly recognized are the dollar and the euro. If both currencies were to go against each other, the euro would win since it is more valued and people would prefer euro than the dollar. As the dollar falls, investors hold back from investing into U.S. assets. The dollar will fall even lower and set a new low record against the euro. Will the dollar ever rise back up? Probably but that won’t be soon, it will take a while till it gets itself back up. And by then, the euro will be probably be the world’s currency and the dollar will still be lower than the euro, but won’t be as low.

Source: http://www.cato.org/pub_display.php?pub_id=2483

The dollar recovering?

The euro used to be down and below the dollar but this time it is the other way around, the dollar is below the euro. The euro has been doing extraordinary well that investors has been investing in places that their currency is doing well. The investors seem to be investing everywhere except for the U.S. due to the low value of the dollar. Ever since Euros were made, the countries using that currency has been developing more slowly than the U.S. but it has changed, it has been developing faster now and it creates chances for investors to invest in places that have currencies that are doing good.

Investors do not need to take their money out of their investments, they just need to stop putting a lot of money to it. The fact that the U.S. economy has been down has changed for other countries such as China or India. They have been growing and soon China will soon be the world’s largest economy. In fact, China exports a lot of goods into other countries, and almost everything now is made in China. The U.S. will soon stop dominating the world like it used to. Other currencies will soon increase dramatically and the dollar will probably still fall. The world would still be different when the dollar recovers, because Euros will be the “big” currency and not the U.S. dollars anymore.

Source: http://www.independent.co.uk/news/world/americas/the-dollar-may-recover-but-the-world-will-be-different-400730.html

The beaten dollar

We all know that the U.S. dollar is falling, and probably is continuing to fall. Although the exports of the U.S. is doing good, but the dollar isn’t. The euro is much higher than the dollar now. The euro is getting higher and higher. Europe’s euro is over 1.40 which people felt that the euro should not have risen over 1.40 because it is as high as the European exports price out of the world markets. And the European banks should set the interest rate higher so that they’re currency would go higher. The falling dollar is causing problems such as people investing in U.S. assets, would now have to look somewhere else because it wouldn’t be worth as much.

Also U.S. imports aren’t importing as much due to the fact that U.S. would have to pay much more now than it used to. The other exporting countries would be affected to because they wouldn’t have as much exporting than it used to and would be losing a huge amount of money and would be forced to rise prices or interest rates. The dollar falling would’ve been a good thing if it were falling slowing however due to the rate of the dollar falling, it’s cause oil prices to rise. Also interest rates were falling so consumers would buy more stuff but it isn’t working because consumers are worried that the currency would fall too low in the future and would rather save up their money instead of spending it. The dollar is affecting all and it’ll probably get worse but of course it’ll rise back up, sometime in the future.

Source: http://www.wsws.org/articles/2007/oct2007/eco-o03.shtml

How the weaken dollar is bad

The dollar is falling behind many other currencies around the world. The falling dollar is damaging America. Reasons that the lowered currency is hurting America is that consumers can’t spend as much. It changes that America’s currency was the world’s reserve currency but as it gets lower and lower, it will be changed to another currency that is much balanced and stronger. The weaken dollar lowers the number of imports because the cost would be higher to import. Investors like the weaken dollar because they would get profit from getting foreign currency and get extra money due to the exchange rate of the dollar and other currencies. The falling dollar is a major loss to consumers because their standard of living will change because they buy foreign goods but with the prices getting higher, they would have to cut back on that.

The weaken dollar causes the price of the things we buy everyday much more higher. So this forces employers to give pay rises. The falling dollar changes the economy and businesses, because some businesses used foreign goods for their business but they would have to find another material or cut back because of the prices for imports. So business would not produced as much as they used to because of lack of materials need to produce. The economy would go down due to people not spending as much due to the prices of goods that have gone higher.

Source:
http://seekingalpha.com/article/69729-weak-dollar-is-bad-for-america-and-etfs
http://www.asiasentinel.com/index.php?option=com_content&task=view&id=771&Itemid=32

What are ways the war in Iraq are causing the dollar to drop?

We know that the Iraq War is affecting the U.S. dollar. We know that the war is expensive and is costing us more and more. But there are other ways in which the war is also affecting the dollar. The stock market, the Iraq War has cost the stock maker $1.1 trillion dollars. The money came from consumers spending. If the stock market doesn’t do well the dollar won’t as well. The dollar still falls due to the war in Iraq, and investors are losing their money in their investment. As a result, the dollar won’t be used as much and will change their currency to another currency which is more stable.
With the Iraq War, the government will focus on spending a lot of money on that to have more materials or weapons made. This causes to cut back on other spending areas. As the Iraq war goes on, it cause a lot of economic problems and it is hard to get investors. To balance the rate of investment, U.S. made the interest rates higher and causes more problems for the dollar. It makes people not spend a lot due to the prices. And not many people spend a lot due to their fear, to keep their money because the future might not be what you expected it to be.

Soruce:
http://www.currencytrading.net/2007/20-hidden-ways-the-iraq-war-is-affecting-the-us-dollar/

How does the dropping dollar affect us? Is it good or bad?

The dollar has fallen extremely low compared to other currencies. It has fallen so low that the Canadian dollar is even higher than the USD. The fallen dollars has some advantages and disadvantages. People who like foreign goods will now have to pay more money. But for businesses, their products will be demanded more. Prices have risen up such as a barrel of oil used to cost $22 now it costs $80 a barrel. Imports are now more expensive, the fallen dollar adds to the inflation rate. The low cost of the dollar has caused people to spend more money on foreign goods than they used to spend. Many people start to hold back their money because they don't want to spend a lot and for safe keeping.

The government is currently working on making the dollar even lower, yet the U.S. Treasury Secretary Henry Paulson Jr. said “a strong dollar is in our nation's best interest." The fallen dollar has caused the interest rates to go higher. But the low dollar would make U.S. exports more competitive and imports would lower due to the rising prices. As foreigners come to the U.S. they would be able to buy more because their currency is higher than our currency. The lower dollar is disadvantageous and advantageous.

Source:
http://findarticles.com/p/articles/mi_qn4180/is_20071107/ai_n21102014
http://www.csmonitor.com/2007/0924/p01s05-usec.html?page=1

The history of the U.S. currency

What did was the original U.S. currency? Why did the U.S. choose paper as their currency? Where did the dollar start from? The dollar didn’t actually start out as paper, but as a silver coin. It was because gold and silver were hard to find so they went from coins to paper. The dollar has first appeared in 1785. The “paper money” was worth 100 cents. U.S. was the first to make their currency the dollar. The Dutch and German called coins, "Joachimstaler,” named after their town and shortened it to thaler many years later, the changed the sound to from thaler to daler. Soon the English used that word as well, and change to the current word, dollar. During this, people could change from dollars to coins or reversed.

The problem with this was that U.S. did not have a lot of gold and silver to exchange equally. People would often make up their own rules and have the value of the dollar higher than it’s supposed to be. This caused a lot of problems due to not knowing how much the dollar was exactly worth. Years later, Congress passed the “National Bank Act of 1863.” People then accepted paper money as their currency.

Source:
http://googolplex.cuna.org/12433/5spot/story.html?doc_id=548

What made the U.S. dollar go down?

The U.S. dollar has gone down and it might go even lower. One major cause is the War in Iraq. The U.S. has used more money than America itself has. U.S. needs money to make weapons and other materials for the war. The amount of money used for the military is way more than the whole world combined. Right now U.S. owes huge amounts of debts around the world for borrowing their money. The longer the war goes on, the more money U.S. would need. Then all of our money is going to the war and schools and businesses would have budget cuts due to the lack of money they have or can use. The value of the dollar affects businesses by making them more competitive due to the value of the dollar. It makes other countries try to lower their currency to have an advantage.
However a lower value of the dollar isn’t all that bad. Because it reduces the debts owed to other countries. And makes other countries less competitive because of the value of the dollar. The Fed allowed the value of the dollar to go down is to weaken the Euro. With the collapse of the U.S. dollar the debts will be gone, because U.S. just doesn't have the money to pay it back.

Source:
http://www.wakeupfromyourslumber.com/node/5050

U.S. Currency

The U.S. currency is made of dollars and coins. The common dollars and coins are one, five, ten, twenty, fifty, and one-hundred; the coins are nickel, dime and quarter. Of course there are other bills as well, but they're rare or hard to find. Dollars that are rarely used are the two dollar bill and coins that are rarely used are the half dollar and the one dollar coin.

The dollars and coins change every now and then. The dollars have the same picture of the president but with some new design. Dollars are used around the world and some countries use them as their official currency. A few countries that use the U.S. currency as their official one are Ecuador, El Salvador and East Timor, and Palau.

The dollar was the most strongest currency of the world but now the dollar is dropping, the Euro is now higher than the cost of the dollar, as of now the Euro is more stronger. The dollar is dropping lower and lower, even the Canadian dollar has risen up to the American dollar, currently on par with the American dollar. Right now the U.S. dollar is 1.55698 to 1 Euro. And the one dollar in Canada is worth 0.989712. The dollar used to be the most highest currency but now it has fallen and it is getting lower.

Sources: http://www.gocurrency.com/countries/united_states.htm
          http://www.x-rates.com/d/USD/CAD/graph120.html