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