General Question

kevbo's avatar

The US dollar. Prognosis?

Asked by kevbo (25654points) September 19th, 2008

Any financial experts want to weigh in?

Observing members: 0 Composing members: 0

11 Answers

Judi's avatar

No expert here, but my guess is that we need to ride it out.

Snoopy's avatar

No expert here either…..but I am curious to see what Congress is going to come up with in the next few days. The overseas markets overnight certainly were giddy at the prospect of the US gov’t stepping in….

raceboy84u2's avatar

no expert here sorry i would help ill look it up if u want me to though.

SquirrelEStuff's avatar

peace out dollar. Hello Amero

Judi's avatar

I actuqally bought one of those Amero coins for my husband for his birtthday.

SquirrelEStuff's avatar

Would you mind posting a picture or a link of the coin you bought? Im curious to know what it looks like.

cwilbur's avatar

Not an expert, although I was nearly an economics major in college.

The dollar is sinking in value because of the United States’ heavy debt load, both national and personal, and because of the reckless spending habits of Congress and the President. Until that gets addressed—which probably means higher taxes and cuts in government services—the value of the dollar will remain low, or possibly fall further.

qashqai's avatar

The IMF recently raised from 1,3% to 1,7% the estimated growth of the U.S. in 2008. (if nothing has changed you will see that report coming out together with the world economic outlook, that will be published in early October).

I guess black gold price will stabilize at around 90 U.S. dollars per barrel in what should be the end of the “bubble”, and the dollar, especially after the U.S. elections, should strengthen and stabilize against the euro around a euro-dollar exchange of 1.35.

For me this means just one thing: U.S. economy is still the most advanced in the world and is probably the only one who could have faced the actual crisis without the complete collapsing of every single financial institution.

It was tough. It is not over yet. But I guess it is almost all downhill from here, or something really close to that.

grayreason's avatar

Lols downhill. We just barley hit the tip of the iceberg. If you’ve been paying attention and think on how important the banking system is, you would know that the dollar is going to be replaced with the amero.

marcosthecuban's avatar

the USD will continue to weaken because of
1. Quantitative Easing (US govt prints money, increases debt)
2. both current account deficit (budget over runs at the federal level) and
3. trade deficits (import more than we export)
4. interest rate differentials (usa interest yields will stay lower compared to many countries)
5. BRIC (brazil, russia, india, china) economies will grow faster than us for forseable future.
6. cultural biases as to recession and inflation. americans hate recession more than inflation, europeans hate inflation more than recession.

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