(PHOTO CREDIT: GETTY IMAGES)
FROM CNN's Jack Cafferty:
The U.S. dollar just isn't what it used to be. In fact, the dollar has been declining in value for 6 years now against other major currencies.
And, if you look around, it's hard not to see the signs: hordes of vacationing Europeans are picking up bargains in the U.S., while Americans traveling overseas are hit hard with sticker shock. Canadians now flock here for shopping bargains, instead of the opposite. A Belgian company is attempting a hostile takeover of Anheuser-Busch, the largest brewer in the U.S. If the takeover goes through, it might be the first of many foreign takeovers of American companies.
While everything made in the U.S. is so much cheaper to foreigners, Americans are paying more for imported goods, while most are also grappling with rising food and energy costs. Since oil is bought and sold in dollars, the devalued dollar makes gasoline that much more expensive for Americans.
Some even suggest the continued decline of the dollar could one day lead to it being replaced by the Euro as the so-called "primary reserve" currency. There are stores right here in New York that now accept euros as payment.
Meanwhile, the message from Washington doesn't seem to change much. President Bush has often talked about his support for a "strong dollar", just last week saying “We're strong-dollar people in this administration." Really, Mr. President? You have presided over the most precipitous drop in the value of our currency in our nation's history.
Here’s my question to you: How concerned are you about the sharp decline in the value of the U.S. dollar?
Interested to know which ones made it on air?
Rory from South Carolina writes:
It breaks my heart that none of the candidates, or so-called leaders, is talking about our federal budget deficit and the huge private debt that is also at historic highs. Obviously the dollar is falling in value. It shouldn't come as a surprise. Our way of life is not sustainable. It will change one way or another.
Robert from Forest, Virginia writes:
Jack, As a banker, I am very concerned with the decline in the value of the U.S. dollar. The huge budget and trade deficits combined with the Iraq War, high gasoline and food costs and the growing economic power of China all point to a declining U.S. economy that is out of control. We are quickly losing the ability to control our own destiny.
I'm a 44-year-old defense industry worker and for the first time in my life, I lie awake in bed worrying about the financial future of America and the future of the dollar.
Pugas from Arizona writes:
I'm more concerned in the decline of American values than the decline of the dollar. Some pain might do us some good. It could help our character as a people. Let us think longer term and prepare for the future, whatever that might bring.
Very concerned. I am a junior in college, and have just returned from studying abroad in Europe. I could not believe how bad the dollar was. The exchange rate just emptied out my bank account. I was based mainly in the Czech Republic, which isn't on the Euro yet, so it was much cheaper. However, I saw the declining value of the dollar in just 4 months. Traveling is what makes my life fulfilling, but right now, I just can't afford it.
For the majority of Americans, the lower value of the dollar is not a problem. Because of high gas prices, most of us don't have a dollar left.
Literally, what can I do about it? How can I make it better? So why worry? Let the boneheads who I vote for take care of it? Or am I the bonehead for voting for them in the first place?
Of course I am–it signifies America's overall decline as an influence in global politics. Our role is diminishing, our currency isn't valued as much. Other currencies such as the euro are doing much better and Asia's economy is booming once again.
Absolutely! I've been saying for over a year that we were headed for a bad recession if not a depression but all the pundits were saying all the evidence wasn't in yet. When all the jobs were being shipped out of the Country, the lobbyists were getting all the earmarks and tax breaks for the corporations while the CEO's sucked them dry, when the unemployment rate was only good because of "manufacturing jobs" as Bush called work at McDonalds and when we have a President (and I use that word loosely) who is dumber than a doornail, it's not hard to predict things are not going to get any better in quite a while and we're headed down the skids.
Jack, very concerned. As with many others, my husband and I live on a fixed income. Neither rich nor poor. It just seems that each day requires a little more "stretch" for the basics.
We are, however, healthy and that means a great deal. Have to take the bad with the good, although, more good and less bad would also be a good thing!!
I'm very concerned because the devaluation of the dollar has a direct impact on the cost of a barrel of oil. To fix it we need to get out of debt to places we don't really shouldn't be indebted to - places like mainland China to whom we owe over 500 billion dollars. How do we get out of debt, you ask? A good way to start would be to get out of Iraq as quickly and safely as possible. With the billions we save we could pay off our debt exponentially faster than if we stay.
I am not concerned at all Jack. I moved to Canada to work and now make a higher salary and can pay my US students loans off at parity. I also have health care and no threats of terror when I travel as a "fake Canadian". I love it!
Prince Edward Island Canada
Jack I'm not the least bit concerned and hope it keeps declining. A few years ago I bought a house in Florida and paid over 30 cents on the dollar extra because of the exchange rate between our currencies. If all goes well you'll elect John McCain and keep your economy in a downward spiral then in a couple of years I should be able to come back down to the U.S. and get two houses for the price of one.
I’m as concerned as I would be if someone had all my passwords and pin numbers – it has the same result.
i'm not with the "new world order" so very concerned, i am!
Terribly. We (meaning the Republicans lead by Bush) forgot that there is more to being the "leaders of the free world" than policing it and showing military might. We need to lead the world economically - something we have set on the back burner so large, wealthy coorperations can make bigger profits by throwing our jobs and tax money overseas. Well, now America is in the financial toilet and must cowtow to China (no joke intended there). When will we ever learn that in order to have economic progress, we need to have a Democratic president. It shocks me that we keep voting "values" (whatever that means) over our own economic success.
How concerned? How high is up, Jack? In a few minutes I'll go grocery shopping and spend 35% more to buy 40% less than I did this time last year.
Ummm, yes. I am concerned. It means to me that the price of everything is going up and my pension and social security checks are being sent to me in "old" dollars in a "new" economy in which inflation far outstrips the interest earning possibility.
I am surprised you asked, but thanks anyhow.
Concerned is a gross understatement. Good thing they don't make Buffalo Nickels anymore. I would be squeezing it so hard that the Buffalo would poop in the Indian's eye! I can remember my parents and grandparents talking about the depression and it was so hard to imagine. However, it is becoming easier and easier to understand over the past couple of years ... especially over the past few months. It is scary. Everything but salaries has skyrocketed. Anything that was considered savings before is now a luxury we can't afford. This is a reality check I could have done without.
These are frightening times, but maybe the dollar will lower to the point where manufacturing is cheaper to do here than anywhere else. You can only look for the silver lining at this point.
All I know is that we were stationed in Japan in the early 50's and I sure would like to have a suitcase full of Yen's. Yes, I'm very concerned and much more than the Fed that keeps lowering the interest rates even after Greenspan said that everytime we lower the interest rates the value of the dollar goes down, duh, I don't get paid to do their job, but I can figure that one out. Stop kneeling down to Wall Street and raise the rates back to historic levels to strengthen the dollar and make more money on the CD's.
I'm very concerened because oil is priced in dollars. In Dec, 2002 one Dollar equaled one Euro and oil was $23.25 or 23.25 Euros per barrel. Today, oil is $136 or 85.68 Euros. Our cost of oil has gone up 485% while the cost of oil to the Europeans has only gone up 268%. The difference is due to the decline of the dollar.
Port Aransas, TX
Very. Our dollar means nothing overseas, a sharp contrast to the past. Europeans are coming over here in droves, buying up all of our property for investment purposes. America is a joke and we have those 'get rich at any cost' republicans to thank for it.
Forget about a recession, I think this is Oct 1929 all over again. You can't afford to get to the supermarket if you have to drive there, and if you manage to get there, you can't afford the price of food. Restaurants, movie theatres and all other forms of entertainment will be feeling the crunch and many will be failing soon, if not already. Look at Starbucks. How am I coping. Being retired and on a fixed income, I stay home and live very modestly. So much for the American Dream.
Senator McCain has two choices.
My friends, since it seems on a daily basis he has been looking more and more like Bush. Therefore:
1) the Senator could either cry a lot, or
2) he could offer some consoling words to Bush telling him that if he wins, nothing will change and the Bush library coloring books have really been a good investment.
our form of currency has no real value anyway because it's not based on anything real.
Decline in the dollar. Decline in Manufacturing jobs. Decline in Health Care. Decline in American Civilization as we once knew it.
Increase in Gas prices, food prices, barrels of oil, transportation of goods, drugs and with no end in site.
America needs a radical change before there is blood!
The more the dollar drops the easier it is to export. The more we export the more we have to make. The more we make the more jobs we create. The more jobs we create the higher the wages would go. The higher the wages go the more things we could buy. So if the dollar was worthless we would all have jobs, making lots of money and be buying lots of stuff.
How concerned about the sharp decline of the U.S. dollar am I.................... very. I can now go to the grocery store and get half as many groceries for the same amount of money as before. I can drive half as many miles as before for the same amount of money. My real estate taxes have risen and now the government is tacking on fees for services. My electric has gone up over 16%. Home insurance skyrocketing and the list goes on.Saying that my dollar doesn't go as far as it used to is stretching the truth, today my dollar is getting me nowhere fast. So am I concerned, you bet your boots I am and so are millions of other people.
St. Augustine, Fl
Very concerned, Jack. So much of the weakness is due to enormous outflows to the oil folks and China. This is fundamentally hocking our future inb a way which may not be recoverable in our lifetimes, if ever. We are, in essence, damaging our national FICO score - and soon won;t have any equity left to borrow against.
I'm concerned enough that my retirement dream to buy a little camper and travel through Europe for as long as I want has gone down the toilet. I could live modestly over there if my fixed monthly income was worth the same there as here, but instead it's worth half. But shoot, if I was in Europe, I'd be missing all the political garbage I'm addicted to, and especially all the pithy retorts of you and your readers.
Sometimes I can't believe how far the United States has fallen over the past 8 years. The declining dollar is another nail in the coffin. It's contributing to unaffordable gasoline, heating oil, groceries, housing, education and medical care. Forget frivolous items like clothing. In a few short months we'll have people freezing to death in the northeast because of lack of heat. Most Americans are beyond concerned and well into being afraid of what's coming next. If only we had a functioning Congress, something might happen to change things. Vote Democratic for a supermajority in the House and Senate and vote Obama for President. It's the only solution.
You bet, Jack.
We (3 generation-family) are moving from California to Missouri to build a sustainable homestead – growing our food, raising and hunting chickens, eggs, milk and meat... and in general, trying to get off the grid as much as possible...
as an added bonus, it will be a move from one of the highest gas prices to one of the lowest, as well.
The decline in the dollar effects us all in a negative way. Everything costs us more and this underminds the stability of the US Economy.Thank you President Bush for doing more damage to the US Economy and the Constitution than you did in the opening night of bombing in Iraq.
I'm concerned to the extreme, not just because of a weak dollar, but because of a perfect storm of energy, dearth of leadership, fiscal neglect, inflation, national debt, national deficit, an irresponsible citizenry, war spending and general political myopia. I'd say we have a better than fifty fity chance at a repeat of the early to mid thirties.
The economic decline is dragging the value of the dollar down.
Until critical issues are corrected, we must deal with the situation the best way we can.
The decline in the doller is the real reason for the high price of oil...the political hacks dont have the guts to do what it takes to fix the problems...the media hacks dont have the guts to ask them why.
Not very.... Just don't leave the country.
I make my living selling rare collectibles on eBay. More than 50% of my sales are overseas and the percentage is increasing monthly. My business is booming because all my European and Asian customers are taking advantage of the weak dollar. Of course I can't buy anything from them but what the heck.
Excessive consumer debt + over-speculation in the stock market + devalued currency + stagflation.... sound familiar? 1929, the beginning of the Great Depression.
You're damn straight we're concerned!
I believe that we should be much more concerned about the value of our dollar than some of the symptoms it has caused... like $4 / gal. for gas.. Our trade deficit has grown, we've borrowed from China, from Social Security, and many of our sky scrapers are no longer owned by citizens in the U.S.... We are loosing jobs every day, we are shipping jobs overseas, and our tax base is reduced to almost nothing in many of our large cities...
We need to be concerned, but I'm afraid with the congress that we have, and their record of accomplishments... it ain't looking any brighter... Hang on for a bumpy ride, Jack.
Jack, I served overseas when Richard Nixon took us off the gold standard. I was also overseas when the dollar tanked in exchange with the D-Mark. Please understand that no matter how much pain we feel here in the US of A it is minimal compared to what the troops feel stationed overseas. For many of the young, lower ranked troops it is often a question of can I afford to keep my family, wife and child(ren) with me or do I have to send them back to the States. It is during fiscal crisis such as these that the statistics show the drain on mid-career soldiers.
I not concerned, I AM PAINICED!
Jack: Very concern. Until the American people get pi**ed off enough to fix the systemic weakness of our government and elected officials and hold them accountable, and end the ethical and moral corruption that has existed for such a long time, America will be for "sale" to the highest bidder.
We are the best place in the world to live, but our standard of living is declining fast. We are so overextended to the rest of the world that many generations to come will be paying off our enormous debt. I see a time when our country is no longer regarded as #1. It is sad and it is scary for our children.
I'm very concerned. The rise in gas prices and food pretty much grounds me to stay at home unless absolutely necessary to buy food and gas!
The dollar malaise is a indication of where the power really lies. As long as the United States can not keep it economy blance, by paying it employees equitable salaries; lifting its workforce to tax based driver in the Senate and Congress. America worker are not the bet paid, based on individual countrie ability to have its people seek balance expenditure of their income. When our money is a good as the currencies of other countries of, at least, eqaul or better than those of the G-8 hiearchy,
Ira – Harrisburg, Pa
Deeply concerned I am 65, and have never seen our economy in such bad shape. The sad thing is no one seems to have a game plan to dig us out of this hole.
Yes. It's one of the major factors driving up the price of oil, and the national deficit. It's like President Bush declared a "War on Paper." First he beat up the Constitution. Now he is strangeling the Dollar into sumbission.
Jack,There is NO DECLINEin the dollar this is what Bush wanted
most people have for his economy everone but people who
don't have too make a PAY CHECK.
I'll just put it this way; my investments are in commodities and foreign currencies.
Very concerned Jack, With the price of oil now shown as a continuously moving ticker in the corner of your News screen, it's also a symbol of higher prices for food and goods and its impact is a stagnant economy.
The Bush oil regime is making its big oil price push and you won't see it slow down until January.It may be time to invest your dollar into pesos.
Jack, I really took notice of the falling value of the dollar when I was in Europe last fall. You get a real lesson in economics when you go to dinner in Paris and what would cost you 12 dollars apiece in a small family restaurant costs you 24 in France. A weak dollar would be a boon for American business if we had factories that sold things overseas, we could compete with China, who keeps the value of their currency low for just that purpose.
As a college student and young American I am very concerned with the decline of the doller. I never thought my future would face such struggles. The doller declines and gas rises which in turn raises food costs, energy costs, and wages lag way bedind the cost of living. The job market has been flooded with professionals who were laid off, leaving me struggling to find even the simplest of jobs.
Concerned? You bet. Surprised–not really. George Bush was a failure in every single thing he did prior to becoming President so why should we be surprised at what's happened to our economy during his administrations last 7 years? He inherited a balanced budget and then promptly, with typical Bush "strateegery", began to "unbalance" it. No one should be surprised when John McCain gets hit by a freight train in November because everyone sees straight through his proposals on the economy for what they truly are - gimmicks. A perfect example is his gas tax proposal that will do absolutely nothing for any of us. It's going to take more than gimmicks to get us out of this mess and we'll be years recovering from the damage of the Bush administration. It's the economy stupid and U.S. citizens will have their say very soon.
The continued collapse of the dollar is a total catastrophy for not only for the U.S. but the the entire world. Most commodities are pegged to the dollar for their valuation. When the dollar is deemed worthless,watch out,World War III.
Dear Jack, As you probably know, Representative Jim Kolbe wants to do away with the penny. It costs the U.S. Treasury more to make the little Lincolns than they're actually worth. So lies the fate of the dollar...at the present rate, the doomed, deflated dollar won't be worth the paper it's printed on.
For over fifty years we have gone to Canada every summer to visit friends and relatives.
A couple of years ago the Canadian dollar was worth .65 American.
Today it is dollar for dollar and at the rate it is declining the American dollar will soon be worth .65 Canadian.
We are seniors with a limited income. So , in addition to eating less and driving less due to the increrases in the cost of food and gas' , soon we will no longer be able to afford our yearly trip up north.
Sure would like to know what we need to do to enjoy that improved economy John McCain was talking about.
Jack it’s embarrassing to see our self proclaimed” most powerful nation in the world” falling behind when it comes to the value of the dollar. It’s even more embarrassing to see how our government tries to do something about it by handing out $300 checks to people like that’s going to solve any problems.
Yes I am concerned about the decline in the dollars value. I always wanted to go shopping in Europe when I graduated and shop. Well I am graduating and what’s the point when our money is not worth all that much. I can just shop here for less.
The tea leaves are telling me that there will be a sudden turn-around some time in early November. Is there some big event that happens then?
I'am more concerned in the decline of American values than the decline of the dollar. Some pain might do us some good. It could help our character as a people. Let us think longer term and prepare for the future-what ever that might bring.
As a banker I am very concerned with the decline in the value of the U.S. dollar. The huge budget and trade deficits combined with the Iraq War, high gasoline and food costs and the growing economic power of China all point to a declining U.S. economy that is out of control. We are quickly loosing the ability to control our own destiny.
The Chinese should be the ones concerned the most, since they own all the American dollars that the Fed prints up. The collapse of the American Dollar, as we have known it, is part of the larger stradegy of the "one world, one currency" agenda that is gripping Washington. The little people (that's you and me Jack), are of no concern to the powers that control these things. As long as we remain docile and complacent, we will never have a strong dollar again.
The decline in the dollar is a direct result of the increase in the national budget. As Greenspan said, if we can get back to a pay as you go system in Washington and actually pay down the budget the American people and the world would have faith in the dollar once again.
This is how a country gets destroyed. Not from without, but from within.
I hope I can still get my $ 1299. Social Security check each month!
By the way Jack , how do you and Wolfman get by on your
The price of a barrel of crude oil is tied to the value of the dollar. As the value of the dollar goes down, the price of oil goes up. It's not just oil either. As the world's reserve currency the low value of the dollar also raises prices on other commodities such as food and steel.
This retired guy is still waiting for my stimulus check. Hope it gets here before it's worthless.
if the dollar falls too far will that mean we are in a depression? or is it just when the stock market falls that means we are in a depression? or do both of them need to fall to be in a depression? does the price of gas price of food plus the fall of the housing market make us in a depression. or am i just asking stupid questions cause we never been this bad before in my life and I want some answers cause i am feeling depressed and oppressed and invisable in this country. help
I'm not sure concerned is a strong enough word. Try terrified or maybe depressed. Our economy is not the only one affected by the declining dollar and the world is very concerned. Look at the cost of the basic necessities and everyone should be worried. This should keep even the wealthy up a night wondering when the poor will storm the Bastile. Friday is after all Independence Day! Maybe we need another revolution.
Anyone who isn't doesn't face reality....Waht was it Bush said the other day, "It looks bad, but we 'll be alright in the long run."
Yeah we will Gov. Bush (I say Gov. because he didn't become President fairly)...As soon as you are out of office....
If you look back we the USA thought the EU would be a joke and not effect the US Dollar. NAFTA the same thing it would only make the US Dollar stronger. This administration said the current war would be paid with Iraq oil money. All three times we where dead wrong.
I still hear Ross saying listen to The Great Sucking Sound do you hear it Jack?
Round Rock, Texas
I am very concerned about it. The only thing that will help is if the Federal Reserve raises the interest rate and that will even take a long time to bring the dollar back up to where it is even worth the paper it is printed on. I think it is time that the Fed do that and let the recession come and go. When that happens then the dollar will grow again. All the Fed is doing right now is prolonging the agony of the inevitable.
I am concerned enough about the American Dollar to stick with the Republican Candidate,that knows more about the Dollar. McCain,and his advisors will be able to restore the Dollar,if given the chance. Obama will just find new ways to spend the Dollar......Your Dollar! That will simply keep us spiraling out of control and borrowing from other countries. Our national debt,has had more to do with the dollar. And ,as for the war, McCain just wants to bring this war to a victorious close for all concerned,and restore the world's faith in America handling it's world commitments to humanity..
Sure raises H- with everyone's little Social Security checks. Now I am wondering how many of the foreclosures and our ranches and farms and other business. around the country are being picked up by forgien companies. A lot of that happened in the 70'. Thank you to the Bush Admin for selling us out and taking us to the door step of repeating the 30's and making a mockery of this country our Democracy and our Constitution.
Actually, the fact that the dollar has slipped to almost no value is good. It makes me less sad when I think of how many dollars I have lost during the Bush years. Can you imagine of those thousands of dollars were actually worth something?
Extremely concerned, Jack. Between the markets being subverted by the Republican financial policies, and investors seeking refuge in bubbleing oil prices, our dollar is dying quickly. The problem is that no one, absolutely no one, is going to do anything about it until January, if even then.
The damage this administration has done to our country cannot be rivaled, but may be healed, if and when we finally wake up.
I do not worry about things I cannot control. I just hope that the people who can do something about the sudden drop in the dollar will get their heads out of their butts and start showing concern.
Pretty soon we will all be selling trinkets to tourists.
my late grandfather lived through the German hyperinflation of the 1920's and it was one of the main reasons, along with the rise of the nazis, that he and grandma immigrated to America. he used to tell us stories about how it took a bushel basket full of Marks to buy a loaf of bread.
unless the federal government gets it's financial house in order REAL FAST, I fear that could happen here in America.
The value of our dollar went the same place George Bush's popularity went to. The value of both is in deep decline. We will be over the Bush decline in January, but as far as our dollar is concerned, I am really worried.
When I consider the horrible state of our medical system, our dysfunctional educational system, the outrageous cost of gasoline, the poisoned food supply, the lack of government response to natural disasters, the crumbling infrastructure in this country, the insane war in Iraq and the one to come in Iran I just count it as one more Bush disaster.
First and foremost companies that are sending numerous jobs overseas and to other areas outside the United States is going to have to stop. Ever since this started back in the 1980's the U.S. has been on a steady decline from an economic stand point. These are gonna to be made bring those jobs back and pay adequate salaries to there employees. If they want to make their products overseas or anywhere other here in the United States then don't sell them here. Let the people who have our jobs buy their products because apparently they care more about a cheap dollar and a cheaply built product rather quality, and being good standing with the very people they are trying to get to guy their goods. Take care of your people and we'll take care of you.
i should have invested in big oil.i'd be sittin' pretty,now.
The majority of Americans use credit cards wisely.
However our government is taking its lead from those of us who do not borrow and use credit wisely.
And borrowing from China, how nuts is that?
And to think that only 8 years ago Clinton left us with basically a balanced budget and the lookout for a debt free country.
And "CONSERVATIVES" brought us this?
Thank God for McDonalds 49cent burgers on Wednesday.
I'm extremely concerned. And if we don't CHANGE Washington and get the Republicans out of the White House...the dollar won't make a comeback.
i'm gonna start writin' checks,instead.thanks for the info,jack!
Finally. The dollar and the supreme court, in my opinion are the two biggest issues facing our country that election coverage isn't talking about nearly enough.
I just hope that voters see that John McCain is dead wrong on the issue of free trade which only serves to exacerbate the problems of unemployment and a dead stock market.
He is 100% wrong on this issue and the falling value of the dollar makes it that much more crucial that people think about what not reneogtiating NAFTA could really mean in states like Ohio, Michigan, Pennsylvania, and even here in Texas. Disaster.
Very, does the paco have more value then the dollar yet...
C.I., New York
Concerned? I'm thrilled. If I put my savings into euros, and my credit card debt stays in dollars, I might be able to pay off my credit card balance in a year or so.
Concerned? Jack the US as a partner,ally and freind is over 80% of our economy and a weak dollar just hurts us both. The statement , “We’re strong-dollar people in this administration.” , should be all the proof people need to show just how out of it the Rep party really is. Bush couldn't do anything alone.
The sharp decline in the value of the dollar is just one of many dire economic circumstances that are of great concern. Escalating energy and food costs, the fall in the market value of real estate, massive and increasing federal debt and rising unemployment to name but a few. No political candidate or party has articulated a comprhensive approach to these issues, the combination of which are unique in my fifty plus years of experience. Today I saw Bush advise people who can't afford food to grow their own – like they did in the first Great Depression. Brace yourselves and recognize that you're on your own.
My real concern is whether we'll bounce when we finally hit the bottom, or just go splat. Unfortunately, I'm thinking it's going to be splat for a lot of people unless our government and the business community get their acts togehter, which so far, they haven't.
My question to you, is how good of an FDR impession do you think Obama can pull off if things REALLY get bad?
With dollar and war, American image is going down abroad. That’s my primary concern.
The few comments the Canadians made on this blog sums it all up. People from around the world are buying America in pieces because their countries currency is more valuable than the American dollar. That should concern all Americans!
I started traveling to Canada on a regular basis in 2001. My wife and I loved shopping there because the U.S. dollar was worth $1.25 Canadian. Now, it is worth $.90 or less. Yep, definite sign of the decline of the mighty U.S. economy. Add in a trade deficit, specifically with China, and that devalues the dollar even more.
Jack, the reduced value of the dollar is just one of many indicators of the declined value of America in the world economy under the failed foreign policy of George Bush. America and its dollars are no longer accorded much value on the world stage.
I am distressed at the devaluation of the American dollar, but not surprised. I had been reading for some time that the Bush agenda was to pursue a policy to expand NAFTA politically, setting the stage for a North American Union designed to encompass the U.S., Canada, and Mexico. So this comes as no surprise to me.
Not too concerned. I'm one of those Europeans happily planning her next trip to the US.
See me smile 🙂
can you say, "...hell in a hand bag."
Well let's see I am concern about the enconomy,the war of course,the moral decline of america,oh hell since Bush nothing has gone right.
We need a whole lot of changes, i.e approach to life, values, priorities.
We then need a new kind of leadership. A leadership who will have to start promoting America as a Brand and change the battered image we currently have. Sometimes I wonder how we got to this point?
It's a good thing we use credit and debit cards. If the dollar continues to drop, we will have to get a bushel basket for carrying our money. And that's just for toting enough for a week's worth of groceries. It is time to get G. W. out of the White House and maybe a few Congressmen too.
IF that shrub would take all of our troops home and stop asking them to through away their lives to protect the OIL and stop draing the country and if american would open their eyes and use the thing beetween their ears that GOD gave we would not be in this mess.
You have hit on one of the biggest problems we face that is seldom discussed in the press. This is the biggest challenge for our economy and puts the future of most Americans in jeopardy. The George Bush economy was designed to weaken our dollar by encouraging companies and wealthy investors to invest overseas. Its beyond belief that Americans could not see George Bush's incompetence.
Yes. I spent last summer in Europe and I don't think my credit has recovered yet. Thanks Mr. President.
The sinking dollar is like the loss of exported jobs to me. The last 15 years most of my work has been overseas making big budget documentaries. Since the dollar went into the toilet so have the opportunities to make films outside the country. A strong dollar meant your budget went a lot further and was reflected in what you could put on the screen. One dollar looked like you had 2 or 3 dollars in your budget. Example: in 2002 it took 88 cents (U.S.) to buy 1 Euro, today it takes $1.59 to buy that same Euro.
It's time to put the Democrats back in office and see if they can turn the dollar around. This country needs a strong dollar, not only to make oil cheaper but to put people back to work again, in this country.
The dollar's decline has tracked pretty closely with the additions of all the pastel colors, micro-printing, holograms and Big Dead President Heads. Maybe a pink-back can never be as valuable as a good old green-back!
How concerned are you about the sharp decline in the value of the U.S. dollar?
I am deeply concerned.:
It contributes to the increase in oil/gas cost.
It contributes to the increase of job losses.
It contributes to the increase of foreclosures.
It contributes to the increase of environmental issue.
It contributes to the loss to pay back foreign debt.
It contributes to the rise of rogue nations.
The middle class has all but disappeared.
Mark my word, we'll become the thrid world nation where other countries purchase our goods and question if they are good enough to buy because they are so cheap.
of course I am...thank you bushie....will be buying a few more lottery tickets now....at least they are still one dollar....
“We’re strong-dollar people in this administration.” You kidding Mr. President?
Before you took office i.e. 1999, I went to Canada and got $1.60 Canadian for each American. We referred to Canadian Dollar as "Funny Money".
Last year I went to Canada and got $0.98. What the heck? Is it going to be a matter of time before Canadian would call the greenback as "Funny Money"? I think it will, if we see four more years of McBush.
Are you concerned just now? I came to the US 8 yrs ago when sticker of magazines showed the price in US dollars a few cents cheaper than the price in Canadian dollars. That difference has almost dissappeared under Bush's watch. The question is: should we still be allowed to make fun of canadians?
Just another part of America that George Bush abandoned and refuses to acknowledge. As long as him and his friends are still getting richer everything's good. This man is a walking crime against humanity.
As much as Ron Paul is concerned about it, yet nobody would listen to him and its showing how bad our dollar is being valued.
It won't do me any good to be concerned since I can't do anything about it. When you have a tyrannical , secretive , greedy ,power hungry gov't who insists on spending billions of dollars on wars. The dollar is not going to go up. and as long its in the bottom of the tank, oil prices will remain up. The trillion dollars of which we owe 29% to Japan and 26% to china will cont. to increase. Of course, the increase in demand for oil will also keep gas prices up. Don't forget China, India and other countries are learning about transportation by car.
Since January, this pessimistic friend that we have has been saying that W wll make it worse than it is before he leaves office. I sure hate it that I am going to have to admit that he is right. Devaluing of the dollar is just part of what we will see in the next 6 months. Not his fault? His policies have not helped.
Jack, you gotta' take baby steps with the public. The more appropriate question seems to be, "Do you realize how concerned you should be with the decline in the dollar's value?"
Why be concerned about the strength of the dollar after all the value of the dollar is merely the product of our actions as a country.
And don't blame George Bush either because we all know how busy he is with WMD the war in Iraq,Iran ,Afganistan, terrorism, illeagle imigration, the stinking economy. civil unrest and the oil crisis. He will tell us that congress is to blame as if this somehow is an appropriate answer. Let the man retire to all the grateful people at Haliburton Inc. Just tell me where to get those euros.
Should I be concerned about the decline in the value of the U.S. dollar? Because of outrageous gasoline prices, I gave up vacationing in the U.S. a few years ago and have only been a few miles out of this country, in Mexico, once in my lifetime. Maybe it affects the rich people but I don't see how it affects me. I am too concerned about filling my gas tank to just get around town to be worried about how much it costs to buy trinkets in foreign countries. Maybe I would consider vacationing in Venezuala where people pay 12 cents a gallon for gas.
The Bush borrow and spend Trillion dollar debt was bound to cause the dollar to dive. But it will stabilize eventually.
Jack, Hang onto your jockey shorts, here comes WW III. That's what usually brings us out of trouble. Damn, I hope I'm wrong.
Really concern, and I am looking scarely forward to the day when europeans, asians and specifically China will start buying or paying us one after another.
Very concerned. This country can't continue to operate on borrowed money. I don't think McCain or Obama has a clue what to do about the mess Bush and Chaney are leaving behind.
This is yet another symptom of the the Bush economic "strategery".
I'm retired and on a fixed income, other than my efforts in stocks and my 401/IRA "BS".
Need I say more????
grosse ile, mi
The worst President in the history of these United States has totally ruined this country so I'm not surprised that the dollar has fallen.
Thank God that the elections are just around the corner cause it wouldn't take too much longer for Dubya to make us just another Third World country....
Yes and this is repeatedly implicated as a cause of the oil speculation. But the big story is whether it is really due to our politicians overspending, overborrowing, and dropping interest rates. If so, just how would our politicians fix that problem?
Concerned about the dollar? If I had a significant amount of them I would be very concerned. Since they are in short supply these days, I'm not that worried.
I guess I am more concerned for my kids and grandkids than for myself. Never thought I would say it, but I am fortunate to be old. Already been there and done that and they may never get that chance.
I'm very concerned.
Most "Republicans" don't realize that the ones in power do not have their interests at heart. They've sent our jobs overseas and doubled our national debt. The ones in power have sold our country out and they are traitors.
The decline in the US dollar means that our goods and services are less costly to everyone in the world; so that means that our exports should be on the rise. Unfortunately we don’t make anything here anymore so we can’t do as we have in the past and increase our exports. Our agricultural exports usually see the a best response, however, it’s inflation, the cost of the trumped-up war, and the out of control speculation of oil that bothers me most. Together they are inhibiting what should be a great world market for us due to the declining dollar…..
Terribly concerned about the decline in the dollar. If the rest of the world's markets and currencies were taking as much of a beating as we are, I would think nothing of it and continue to plow ahead. However, with the astronomical inflation – that right, I said the "I" word, INFLATION – in goods over the last few years, the lack of reciprocation in wages, and the fact that foreigners can essentially buy America (CSX, Anheuser-Busch, any piece of property in New York City) should leave every American scared. Add to it the enormous trade deficits and the lack of money in our treasury – hmmm...I wonder how difficult it is to get a work visa in Europe?
I am concerned about the strength of the dollar! This administration is talking with forked tongue. They know darn well that as long as the Chinese let their currency float against the u.s. dollar, there isn't a lot that can be done to buck-up,the buck! We have got to get our trade imbalance under control, one way to address that issue is to improve the quality of our products, and productivity of our workforce! Manufacturers have got to cut cost and reduce waste, some of these high paid CEO"S need to have their pay tied directly to the performance of the corporation- what a radical idea!
I only have one worry about our dollar
I can live with it dropping another penny: (reason?)
Since the price of Kraft dinner takes care of 2 of those greenbacks, I"m good for another month
ask your congress man
council bluffs iowa
Extremely! And as long as we continue to print money to fund "Policy" that we can not afford, the situation will continue. There is no Political Will in this Country to Balance the Budget and reduce the deficit. There are simple solutions that will require difficult and painful sacrifices, but as long as the Two Party system prevails we will continue down this path to eventual Bankruptcy. In the Private Sector if you print money to fund a lavish lifestyle you will go to Prison. I guess "What is good for the Goose is not good for the Gander".
The US dollar has become too unreliable for our long term savings. We switched to $Euro many moons ago.
It just doesn’t pay to keep ones money in a devaluing currency when in this day and age there are choices. 🙂
Tell JD (John Roberts) not to forget where he came from!
He's still the host of New Music to me and Canadian.
Joe from Bermuda a fellow Canadian.
I'm so concerned about the declining value of the dollar I haven't been sleeping well for quite some time. But I've just bought a load of gold coins to replace the dollars that used to be in my mattress. It's hard and lumpy, but I sleep alot better!
I am very worried about the decline in our dollar.... We have become Europe's mexico with all of the tourist comming here for cheap goods kinda like americans do to mexico... my how times have changed....
I consider it not only a horror but a complete embarrasment. Being a veteran deploying to places such as Greece and knowing that their currency is worth MORE than the currency of the very country you are defending is not an easy thing to come to grounds on. Bush destroyed our country and we are a joke to the rest of the world.
We should all be very concerned about the precipitous drop of value in our dollar. And while Mr. Bush may say his administration is for a strong dollar, he is once again blowing smoke in our direction.
Economists have been saying for quite some time that the Bush Administration willingly let the dollar fall. It's no secret.
This administration is committed to furthering business interests, the citizens be damned.
Thankfully, they will soon be out the door. And hopefully our citizens will not be foolish enough to vote for four more years of the same!
A.M. from Falls Church
Why should i be concerned a couple of years ago I could buy a loaf of bread for a buck & my $1 was worth $1.25 now it cost me $3.00 for aloaf and my dollar is worth .65cents DUH
As a 24 year old Californian who was going to vote for Hillary, and seeing how both candidates are appearing to be more like Bush and looking out for commercial interest rather than the American Public I am extremely worried about the decline of the dollar. We keep on working harder and these puppets "leading" our country keep on taking out money out of thin air without a care of how it is going to be paid back. Thanks a lot Bush and his goons for destroying the country. The Iran war talk seems exactly how the Irak war talk sounded. I hope more people talk against it happening.
As an US student in a foreign country, namely Mexico, the decline of the dollar greatly affects me. Before I go to the bank to exchange funds I have to check the exhange rate to make sure that I can get the best deal, as the dollar fluctuates by about 9% a day with regard to the peso. Not so long ago, the peso traded at almot 11 to 1, now it is at about 10.4 to 1. What is going on across the border?
Administrations of both parties have followed weak-dollar policies since the 1980's, and it's a common joke among economists that politicians can't admit it. The only reason the Euro isn't the reserve currency already is that Saudi Arabia insists on pricing oil in dollars – we fight mideast wars and they prop up the dollar. And the Europeans, most of them anyway, aren't really that anxious to replace the dollar.
But our weak dollar policy, which is really tied to our trade policy, means that it's only a matter of time till the world switches to the Euro. The recession that follows that will make this one seem mild.
Jack, this is probably one of the most important questions you have asked only because the value of our dollar affects EVERYTHING. I'm very concerned Jack. When we have one person, Ben Bernanke and his fellow friends at the Federal Reserve inflating the money supply by cutting interest rates through the Fed, the dollar loses its value. We need to get rid of the Federal Reserve and send Ben back to Princeton where he should take an Economics 100 level class. Man, I wish Ron Paul was as popular as Barack Obama....
I love declining dollar because that is the only way to bring back all the jobs we lost due to off-shoring to low wage countries. Even though high gas prices is hurting everybody in this country, due to high transportation cost, companies will be forced to produced goods locally in this country. So, finally we could see goods really made in U.S.A. not just "distrubted" by American company and made in "China" (with full of toxic materials). I am hoping this (dollar decline & high gas price) shift will re-build america and it's middle class again.
Why should I worry about the declining dollar? I have lots of money, my own special Social Security plan, and plenty of good friends in 'big oil'. Oh wait, that's not me.........that's the President. Guess I'll just have to vote my way out of this one.
I find myself paying more for less and see my families budget getting tighter every month. My concern is for the young families out there that are getting close to financial ruin. Our country needs to stop thinking of the wealthy and start thinking of the young folks that deserve the chance to have something. Lets stop worshiping Bradgillina and start thinking about the next generation. You know the ones we ask to fight the wars.
Joe From St Louis
I love it, as a Canadian I regularly see significant declines in the prices of everything. If the American dollar continues to drop at its current pace maybe we could buy Alaska back, with Canadian dollars of course.
If Bush believes that the dollar is sound let him subsist one month on a fixed income like millions of older Americans. He wouldn't last through the first week. He couldn't even afford to buy himself some whiskey.
For most of my working life, I was looking forward to retirement and being able to travel. Now, under the policies of George Bush, the value of the dollar has fallen drastically and gas & airline ticket prices have risen drastically, limiting my enjoyment of retirement, Thanks, George!
I am not worried about the dollar but I am worried that nobody in Washington, currently or prospectively, has even a clue about what is causing the decline. .
i'm a 44 yr. old defence industry worker and for the first time in my life ,i layed awake in bed worrying about the financial future of America and the future of the dollar.
I just read this quote this morning from my google page.
"Those who do not economize will soon agonize"
Montie/Sun City, Ca
Of course I am Jack. The weakening dollar is the main reason for high gas prices, higher food prices, and a lot of other economic problems that we are currently facing. Ron Paul talked about the weak dollar being the cause of a lot of problems all throughout the primaries and no one listened to him. It bothers me that this country refused to support the best candidate that we have had in a long time. The only way that I would support Obama or McCain is if Dr. Paul is their running mate because as for as the economy goes, those two are hopeless.
I don't know how any one can afford to jet set around Europe. I can't afford to leave my county, what with high gas and food prices. Maybe those vacationers should stay home and spend thier money at home. We could use it.
Just another reason why our citizens are quickly giving up hope on our country's ability to remain a world power and to get a hold on our budget. We might be reintroduced to another 1929, but let's hope the next president will defend our 'mighty dollar' and prevent asia from replacing Mother Liberty's torch with a foreclosed sign.
As A Canadian viewer I could not allow your remark that the value of the US and Canadian dollars have "reversed" in recent years. Today your buck is worth approximately 101.00 Canadian, down significantly from 1.50 a few years back, I admit, but still above par. Canada has plenty to offer US visitors: clean air, safe cities, superb scenery and friendly people. So come on up (and bring your dollars)!
Ofcourse, everyone is concerned about the decline of US dollar. I wouldn't be surprised if the Euro would be considered a global currency. After all, the countries which have Euro as their currency, do not spend it ill-wise like for war.
I think the best thing for US to do would be to join the Euro nations after England accepts Euro as their currency and then change the name to 'European US (EUroS)'. This would help us with foreign trade and spread the jobs available to everyone in the world equally.
War with Iran. That's the republicans solution.
I am very worried, but am glad I can still afford satellite service for my CNN fix.
Welcome to Mexico! The U.S. dollar has become the peso. Shame on us! We should have seen this one coming.
How could I be worried? The DOW reached bear market status, we are seeing a run on financial insitutions we haven't seen since 1929, and we're watching wage erosion I don't ever recall in our history. But I am not afraid. This is Reaganomics magic of trickle down, GW says we're only experiencing a slow-down, and McCain is not concerned enough to learn about personal economics. Why should I be afraid of the economy? My government tells me all there is to fear are terrorists. The Republicans tell me I"m safe. What's to fear?
Currency adjustments make things cheaper or more expensive depending on how the valuations are. My gut says the big reason for the drop is the sheer number of US dollars being sent overseas to buy oil. Am I concerned?
Yes. The dollar has a prestige value that reflects on us a nation. When they stop looking on our currency favorably, they can begin to look at our nation the same way. That's why I am concerned.
Have you ever noticed how every time there's a disaster somewhere in the world, they turn to the US for help and our money? When we send aid to foriegn countries we send US money? Countries seek our business and want us to buy their products with our money? Well if our Dollar is so worthless, maybe they should all start asking the OPEC and Europeans for money and leave us alone, or at the very least send us money to help the US coup with all the disasters we're facing. Haven't seen many EUROs coming in for flood,tornado,or forrest fire relief.
At 83 yrs of age I remember the depression of the early 30s. What party was in the Whitehouse? I watched my father leave home early enough to be on the job at daylight and get home after dark. It was a 2.5 mile walk each way. All this for a basket of grocerys and money for rent and utilities. If that were to happen today I think 75% of the people today would not survive. Put the blame for our slumping economy right were it belongs. Right at the feet of the Supreme Court for giving the Presidency to Dubya. This would be oil baron is mad at his own stupidity and he is ruining the United States of America.
A really PO-ed senior citizen who has seen it all before
We have no leader and we have no policy that is in anyway concerned about keeping America economically strong. Congress (Bush supporters) and our President and our V.P. (especially) are only concerned about the Neoconservative agenda in the middle east. Bush and his supporters have spent our dollars and American lives, wantonly. For this they are running this country in the ground! We need to get out of Iraq NOW!...be dammed any other agenda....we need to take of America first. Congress needs to get to work in putting Americans back to work. Wake up America!...anybody home?
Very concerned, Jack. Last year, when the dollar was much better than it is today, I considered buying Euros with my savings.
However, I held faith, and decided to invest with my local bank.
Now, as I look to the future, and as many of my deposits approach maturity, I must re-think my strategy! I am one of the fortunate Americans who is able to save in these rough times, and I am forced to look elsewhere for better returns. I know that if I am, many others are as well, and that isn't going to help our dollar at all.
yeah Jack, I am more than worried about the shift in the "almighty dollar," Our credability is shot. Other countries are moving in and taking over or american companies are moving out of america. the more we hear about this, the less we believe and can believe that we remain in control, if things aren't lost already. Its obvious its time for america to reverse what is already happening. However, the american people know that this will continue until we get someone in office who cares more about the american people than their growing wallet.
I am very concerned with the declining value of the dollar. I am a junior in college, and have just returned from studying abroad in Europe. I could not believe how bad the dollar was. The exchange rate just dwindled my bank account. I was based mainly in the Czech Republic, which isn't on the Euro yet, so it was much cheaper. However, I saw the declining value of the dollar in just 4 months. When I got there it was close to 20 crowns per dollar, and when I left it was down to 15. Some friends who had been there since the previous semester said it had been closer to 30! Traveling is what makes my life fulfilling, but right now, I just can't afford it. I hope something can be done to reverse the low dollar.
Very concerned, since one of the drivers is the $650 billion dollars in deficit spending used to fund the war in Iraq. I only hope that the unfriendly foreign powers that hold a significant portion of our paper are unable to foreclose. It's bad enough that some of our largest companies will soon be controlled by foreign interests.
Outsourcing has already cut short my IT career, now I'm looking at moving to Panama so I can live on my dwindling retirement accounts and afford medical care.
Am I concerned about the sharp declline of the dollar? About as concerned as I would be if I were to fall down the side of a mountain. Let's face it. The dollar's precipitous decline should be understood as a direct outcome of such monumental incompetence by the Bush misadministration that it makes Vlad the Impaler look good in comparison. Vlad impaled cruely impaled thousands of his subjects, but this son of a bush has impaled an entire nation.
It is good for the US economy. Export is going to increase and there will be less import. US manufacturing will benefit because of cheaper US dollar. Most US debt is in dollars and cheaper dollar is not going to have any effect on debt. Higher oil import bill will force US to alternate energy source.
Konichiwa Jackieson, if you can't beat 'em join 'em. We would all be wise to convert our impending repos into bed and breakfasts for the hords of European and Asian jet-setters that are just dying to come to America. Screw the Almighty Dollar...It's just as easy to count Yen as U.S. green. Repeat after me, Ichi Ni San Shi Go (1,2,3,4,5).
Very much concern, because Mr. Bush gets to retire and a lot of hard working americans won't, ( Who can save anymore) ,The low value of the dollar will not allow middle class america retirement, but it won't affect the Bushes. The President has rob the american people without using a gun. This should be grounds for arrest.
I'm very concern that U.S. is becoming a third world nation and surely the standard of living is in the decline. The great disparity between the haves and have nots have been going on in this country and this sign is a precursor of how a third world nation operates. I have lived in one and Americans will not know what to do when they are humbled.
Very concerned, the decline in the dollar also leads towards long term inflation. With manufacturing weakened in the US we must rely on other countries to provide goods to us. We'll see prices for these goods rise because of the weak dollar, at the same time we see wage stagnation in the US. Gotta love the free-market global economy, big business can screw anyone in pursuit of a larger profit margin.
Very. In case you hadn't noticed, our financial house is in a virtual state of collapse, courtesy of the Bush Administration. How many people understand that the Iraq war is bing paid for with borrowed funds? Debt which will have to be paid back by our children and grandchildren with interest. It has long been the dream of the neocons to eliminate ALL social programs including Medicare, Social Security, public schools and many other programs. Since they have been unsuccessful, they are seeking to attain this goal by bankrupting our country so that we will no longer be able to afford any social programs. Just pay your taxes and don't dare to expect anything in return. Of course, the wealthy, as always, will have their wealth to insulate them from the dire effects of such neocon malevelence.
I've been concerned for some time now. Given the fact that this nation sends all of its wealth to the middle east for oil and to China for imports, we live in some pretty sad times becasue that wealth is not comming back home. The only real beneficiaries of the Bush / Grand Oil Party are the rich and wealthy and it has all come at the expense of the middle and lower classes and democracy. If people are not mad, then something is terribly wrong.
I think about the value of the dollar everytime I go to the gas station. Oil isn't the only commodity spiking in price. Like oil, gold is priced in dollars and is also rising sharply. The Bush Administration routinely complains about Chinese monetary policy but they don't seem the least bit concerned about the effects of their own monetary policy. The full faith and credit of the US government is seriously in doubt and the dollar is showing it.
Jack, I am very concerned. I'm on a fixed income and my grocery budget is pretty much static. I take blood pressure and Cholesterol medications and have always tried to eat healthy. As the cost of food and everything else goes up, I am being forced to buy whatever is on sale this week, whether it;s good for me or not. Until Bush's solid dollar is replaced by a real solid dollar, I'm afraid I'm on a limited diet.
Jack If we don't change by every american paying attention in this country to our politics, there will come a time when you will either be very rich, or dirt poor just as it is in South America......
I'm an European living in NYC.
I have to change Euros in dollars immediately and buy a property in one of the most beautiful cities of the world. I cannot miss this occasion!
The dollar will continue to decline because the country needs to import goods from Europe. Here nobody is producing anything anymore. German export is still strong despite the recession. And the Federal Reserve is playing with fire keeping the short term interest rates too low. A majior inflation will eventually make the dollar weaker.
I was so doubtful regarding the introduction of the new European currency. Well, see what is happening.....