http://www.economicgreenfield.com/2013/11/04/u-s-dollar-decline-november-4-2013-update/
Annotations:
The chart shown above is a long-term look at how the dollar has changed in value over the past thirty years. As the trends show, the dollar has been very inconsistent, but has trended down in value. The red line shows the best fit for the overall trend of the value, and shows how the value of the dollar has greatly declined since the eighties. Overall, the dollar is facing a major issue, and there is a lot of work that needs to be done to improve its condition.
What this graph shows is that as time has went on, the value of the dollar has fallen, while very little proactive action has been taken to improve its condition. While it is not reasonable to think that the dollar could get back to its value that was present around 1985 or so, the downward trend is what really needs to be changed. If the financial and economic world can begin to put some effort into place and make decisions that could benefit the overall fate of the dollar, it could begin to stabilize and even trend back upwards again. Otherwise, the dollar may very likely continue to slide and fall in value. This would consequently have an even more significant international impact, and could alter the success of the international financial and economic fields.
If the value of U.S. dollars keep going down, there maybe a day that money equals paper. So what will happen? Are we going use gold and silver pieces as our money? That would be hard for us if we make trade with foreign countries. Maybe gold and silvers pieces' values stay the same in the country, their values vary on foreign countries.
ReplyDeleteI agree with the fact that the dollar is going into a downward spiral and that we need to do more to get its value up where it belongs. The problem with that is in order to do that we need to reduce our national and trade debt which is, as you can see, very difficult especially for our country. The only good thing that has kept the dollar from plummeting is the worlds most credit worthy borrower which means that the risk involving the dollar is small. However sine the president's worldwide approval is linked to the dollars success the dollar might b in for some serious downturns.
ReplyDeleteI think that it is a problem that our currency is so inconsistent with its value and this situation impacts us and our families directly because if the dollar is in a position where the value is horrible, the prices of domestic imported goods will increase.
ReplyDeleteThe way our financial situation as a country is right now, I don't see the dollar mounting a comeback anytime soon. With our growing debt, I can't see us bringing the dollar back to where it was. There is going to have be some radical spending change in order for the efforts of our government to be focused on the growth of the dollar.
ReplyDeleteI agree with Dave, I don't think the value of the dollar will climb back up for a while yet. Serious changes will have to be made in this country for us to get back on the right track. Government spending, aid, and food stamps will have to be severely cut back to increase the value of the dollar.
ReplyDeleteThere are many reasons for the decline of the U.S dollar. I think that reducing the debt would greatly raise the value of the dollar. Getting rid of the debt will be easier said than done however. It will be hard for the government to agree on what to cut funding on.
ReplyDeleteI agree that it is important for the international economy that the dollar remain strong. However I don't know what measures you think should be taken. I don't know what you would do to fix that.
ReplyDeleteThe trend of the dollar almost directly relates to the current state of our economy. What are some possible options to increase the value of the dollar once again? If the dollar continues to slowly decrease, will our economy collapse hence a "worthless" dollar?
ReplyDeleteIsn't the current trend of the dollar mostly true with a lot of currencies around the world? I could be mistaken, but money in general is lowering in value. I know for sure the yen and canadian dollar both have recently declined in value.
ReplyDeleteI believe there is too much political wrangling to effectively handle resuscitating the dollar. Basically there are too many egos and too many politicians simply looking out for themselves and not the welfare of the country they were chosen to protect. It should be noted however that the dollar is currently performing better than the Euro if I'm not mistaken.
ReplyDeleteYou're absolutely right Lem, the downward trend of the dollars value does need to be reversed. However, unless the Federal Reserve is disbanded, the dollar will likely continue to lose its value for the foreseeable future. Inflation really is a hidden tax because while the value of the dollar falls, salaries never increase at a fast enough rate to keep up, and citizens end up with less wealth in the long run.
ReplyDeleteIn order to remain competitive, we need to keep the dollar strong, relative to other countries' currencies. I think that as long as we don't fall way behind other countries we should be good. the graph shown displays an alarming downward trend, but this trend has been mirrored by all currencies around the world. Still, inflation is a bad thing that should be curbed however possible.
ReplyDelete