We have been discussing the potential for the additional colors added to the US currency having a relationship to the decreasing value of the dollar. The theory comes from the believe that countries that have poorer economies have brighter colored money.
209330
Only to the extent that having more colors in money makes it more difficult to counterfeit. So, if there is a huge amount of counterfeiting going on, then that country will experience high inflation and loss of buying power. If they then switch to colored money (as we did) then the counterfeit bills can be removed from circulation and the money supply will go back down to where it should be.
180751
Sudan, Mexico? i don't know, but it's probably not pretty. Actually check the currency exchange and see where the dollor is worth most at.
71641
Very simple...   When there is a negative trade balance, we are purchasing MORE foreign goods that we are exporting..\n\nThe BAD is that it shows that there is more demand for foreign goods than "stuff" built in the USA.\n\nThe GOOD, negative trade balance puts downward pressure on the US dollar and that is good for exporters because it makes US good cheaper to foreign investors.\n\nThe BAD, a weaker US dollar makes it more expensive for US residents to vacation abroad..\n\nThe GOOD, US residents who do not vacation abroad spend their money instead here at home...\n\nConclusion, there is not right or wrong answer..
113301
1) <Know it all> The Quote "In God We Trust" IS actually a metaphor for our currency, if means that we don't really get paid in anything worth of value except a paper with a scripple, basically an I.O.U, and it says that because as long as the Americans beleive in currency there will not be any problems with the economy- Completely irrelevant to this situation though\n\n I think America will fall eventually, and it can't be surely predicted because many things could be a factor to this. There is no true answer except opinions. Yes I do beleive America will eventually fall or at the least will crumble down to a smaller country but i doubt anytime soon. And the reason that America seems to reject God or God-like figures is because many people find it offensive to mix Religion with Government. And i suppose they have a point seeing as many people came to America to be freed from strict laws and religious beleifs in other countries. You must understand that America is a very diverse place and I really do hope that America does not fall because it , aside from any corruption and greed, is one of the greatest and most free countries, NO i'm not being patriotic, but you must understand that many rights are available here than in other countries, and even though America might seem evil and vile to many people, i'd rather live in a democratic fucked up countr rather than a communist one where our freedom is limited.....so yeah good question
241052
the world is headed for a crisis- gold has an established history of being valuable in and of itself, so people switch from currency to gold if they feel that the currencies are unstable. it also means that people who understand market forces are seeing "other than hard value" commodities are a very high risk as they are "over" valued- and can't stay that way- also, the total debt of the US is staggering- and therefore what is there to back up the dollar? it's value is entirely theoretical- and won't stand in a crunch- so, buy gold, silver- have something on hand with real value.
16320
The reason is something like this. It was in the interest of profit to lower the interest rates in the US. By shifting there money to the new currencies and forcing the interest rates down more people get loans that are not fixed interest. There will come a time when all these rich people switch there money back to US dollar and raise the interest rate and steal all your money.
613191
I think the issue is more then a depression. The United States is losing confidence throughout the world. Foreign and American investors are turning to Europe as the solidified economy. A depression indicates a periodic significant drop in the economy. I think its going to be much worse. It will be permanent. New jobs consist of unskilled and underpaid positions. When 10,000 Americans are applying for jobs that pay 8 dollars an hour, just so they can work, and basic fuel products, gasoline, natural gas, heating oil etc are skyrocketing, how are people going to afford this at 8 dollars an hour? We are watching the decline of the American dream and hence its empire. This is sadly written by someone who loves America.
319792
Since when did a devalued Dollar make U.S. stocks a bad investment? Do they correlate? I don't think so. Almost all of the Dow 30 are international companies, along with thousands of others, and they will benefit as well.\n\nA weaker Dollar means we are more competive overseas. \n\nUnfortunately, I think the Dow has reached a top, but it has very little to do with the Dollar strength or weakness. \n\nYes, the foreign currencies have been in screaming uptrends since March, and this will probably continue.\n\nA mutual fund is a bad idea if the the stock market declines, since funds are always "in" the market. Have you noticed that world markets tend to trend together? The Nikeii was down 225 last Friday. A bad economy here means a bad economy everywhere. Investing overseas just complicates the matter, and solves nothing. \n\nIf you're a big institution with billions of dollars to invest, and you only need to beat other institutions by 1% or so to get a feather in your cap with the boss, then yeah, look overseas for other markets to put so much money to work and divest it. But for you as an individual to shift your focus overseas as your primary investment makes no sense, unless you know at least as much about that foreign market as you do our own. \n\nThere's two sides to every market. Short U.S. stocks if you think they are going down. \n\nWhy go to a foreign country where you know nothging about their gov't, their interest rates, their stability, their economy, their cultural preferences, etc?
268662
I don't think England would be wise to give up the monetary system they currently have. Joining the Euro system would be the same as using the American dollar. You would be assimilated, with no identity then. I am an American, and I don't like the fascism going on with the Republicans, and the current Bush Administration. Americans wont go along with it for to long without a revolt, and I see that happening really soon.
128952
Currencies are based on purchasing power, and interest rates in nations. If there are high interest rates that exsists in say the U.S. and low interest rates in Japan the exchange rates will move in the favor of the U.S.  If inflation is high in the U.S. compared to Kenya the U.S. dollar will fall to the shilling. To maintain equal purchasing or investing power between the two nations. This happens because in a free market world economy the prices of all similar goods and services will have very similar if not the same prices.
316925
There was a time in the mid 1960's where the Canadian dollar was worth $1.15 to the USA dollar and the economy was doing well then on both sides of the border.  In fact in most households where families was concern, the husband father was the only one employed.  There was no need for both spouses to be employed. Families had closer ties with each other.  There should be no reason for bias to begin with.
317482
It's pretty simple. If China calls in its markers, the US will have a third world economy almost overnight. We have sold our national soul to buy cheap crap at Wal-Mart that we don't really need, but love because it's cheap. Sure, there's a savings in the short term, but at what greater cost? The US is effectively a socialite debutante, loaded with plastic surgery, dressed in the best, eating the finest in the swankiest locales, all paid for with Daddy's extremely overextended credit card. We have lots of style, but very little substance. Until we learn to put off our impulse towards instant gratification, we are at grave risk of being dumped in the poor house at a moment's notice. Our economy is functioning right now courtesy of Asian development, nothing more.
41861
The Us produces 13,000,000 tones of two things. The most worrying of the two is the greenhouse gas carbon dioxide (the KYOTO protocol agreement could help here). The second thing is monetary coinage i.e. loose change.
311119
True.  If the Aus$ is going to go down in value, then Austrailia needs to be pay higher interest rates to make up for the loss in value of its currency.
304713
okay, the tariff, as you know, is a tax on imported goods from other countries.  Governments implement tariffs in order to discourage other countries from selling their goods here.  \nHow does this affect our economy? The US's Net exports (a factor which contributes to the nation's wealth, therefore the higher the net exports, the better for our economy) equals the US exports minus imports.  The tariffs reduce imports, and therefore increaces the NET EXPORTS, which adds to the US wealth.  \nThis is also good for another reason.  Becuase the US exports increase and the imports decrease as a result of the tariff, other countries need the US dollar in order to buy the US goods.  As a result of the increase in demand, the dollar will become more valuable, or appreciate, making the dollar stronger abroad.  \n\nThe negative aspect actually comes as a result of the prior two advantages.  As the dollar becomes stronger, it becomes more expensive for other countries to buy the US goods, therefore discouraging the exports that initially rose as a result of the tariff.  So, in the end, there is no change in the NET EXPORTS, this disadvantage and the first advantage balance each other out. \n\nSO, after looking at three main outcomes of implementing a tariff, the advantage to the economy is this:  The dollar becomes stronger abroad, therefore making it cheaper for the US to buy other countries goods, even if fewer imports are being brought in to the US.  It also decreases foreign competition for US based companies\n\nHope this helps, good luck with the paper!
412829
Here's just a small part of why the dollar is weak and none of that's good. It is correct that it will make the trade deficit LOOK better than it is. The stock market has very little to do with the economy-it has to do with buying and selling. For the most part, the stock market today loves the inflation numbers which say inflation is low overall, but largely because it includes prices of vehicles, clothes and luxury items most of us can't buy. Food and housing costs are way up-and that's what most people need first. Corporate earnings are falsely inflated by cost cutting not by true growth. Our ever-increasing deficit-yes, our Treasuries-our US debt is 51% foreign owned. China is our largest foreign debtor. Most pundits as well as the administration don't want to tell us the bad news because US optimism-the will to shop-and the US consumer's desire to ignore problems-leads to "growth" and "profits". Sure, War is Peace and Debt is Wealth.\n\nLONDON (AFP) - The dollar sank to a 20-month low against the euro and a 14-year low against the pound as investors seized on weak manufacturing data in the US to drive the currency lower, dealers said. \n\nThe Chicago PMI index of business activity fell to 49.9 in November from 53.5 in October, well below analysts' expectations for a pick-up to 54.5, data showed.\n\nAnalysts said the data could portend a fall in the closely watched ISM manufacturing index which is to be published on Friday.\n\nCalyon currency analyst Mitul Kotecha played down talk of a recession in the US, which has been driving heavy selling of the dollar in recent days.\n\nThe euro has gained 3.7 percent agaist the dollar since November 21, taking it from 1.28 dollars to its present level of 1.32.\n\n"It's maybe too early to talk about a recession," said Kotecha.\n"Clearly the risk of a recession has increased in recent months.\n\nBank of New York currency analyst Michael Woolfolk said the Chicago PMI, combined with other income and spending data, "were the one-two punch that knocked the dollar back on the ropes, leaving little doubt over the near-term direction in the beleaguered greenback".\n\nLONDON (AFX) - The dollar stayed weak, hovering around the 1.32 mark against the euro and staying at 14-year lows against the pound following disappointing US weekly jobless claims numbers. \nUS jobless claims surged by 34,000 to 357,000 in the week just gone, well below analysts' forecasts for a fall in claims to 314,000, although the figures are likely to have been distorted by the Thanksgiving holiday. \nThe news broadly offset a stronger-than-expected core PCE deflator, the measure of inflation favoured by the Federal Reserve. \n"A larger than expected rise in jobless claims, even though the Labor Department says the Thanksgiving holiday skewed the data, is being emphasized by the market more than the unexpectedly firm core PCE deflator," said Jamie Coleman at Thomson IFR Markets. \nThe PCE measure showed that core inflation rose by 2.4 pct on an annual basis, above expectations for a more moderate 2.3 pct.
143522
None really. In theory there is some gold in Fort Knox and every time money is printed it's secured by the gold. In truth, the treasury can do whatever they want. They have a theoretical endless amount of money. Of course, if they print/use too much money - they'll cause inflation that that in turn will lower the purchasing power of that money so the government should be cautious about that.