How many people here comment on the value of the dollar not fulling understand what it means?

Question

my guess is, from the looks of the comments, at least 90% of the people saying things about it do not know what it even means.

Answer 1

http://www.youtube.com/watch?v=XaxdUPNYj...

try that

Answer 2

realizing or fully understanding......

Answer 3

The value of any paper currency is measured only by peoples' belief in it and their governments ability to control information and kill out dissent.

Answer 4

The short way to look at the value of any currency is to look at its purchasing value. What can the average wage earners buy with their money in their own country.

If my wage buys me a nice home, feeds my family, and gives me a comfortable life, the no matter what it converts into in a foreign currency, I'm doing fine.  The problem arises when the international value of my money goes down because then I can no longer buy/import as many of the neccessities  I need and want.  Then is when my living standards go down.

This is happening in the US right now.  Thanks Bush and co.

Answer 5

The true value of the dollar is Zero. It is only an inflated promise to pay and is printed by a group of private banks known as the 'federal reserve'. The Federal name was meant to fool the public into thinking it was our government. The plot seems to have worked.

Answer 6

A lot of people. We used to have a Dollar that was backed by gold. Now, the dollar is only valuable due to government fiat. We have a fiat currency. Our Dollar has been steadily losing value because our central bank (The Federal Reserve in the USA) can print money at will. It is a good time to buy gold, silver and other precious metals. If you cannot afford a big investment you can visit a local coin shop and buy gold or silver coins. Silver is usually much less expensive than gold but it holds value just like gold.

Answer 7

Strengthening Dollar: Advantages

Consumer sees lower prices on foreign products/services.

Lower prices on foreign products/services help keep inflation low. U.S. consumers benefit when they travel to foreign countries. U.S. investors can purchase foreign stocks/bonds at "lower" prices.

Disadvantages:

U.S. firms find it harder to compete in foreign markets.

U.S. firms must compete with lower priced foreign goods.

Foreign tourists find it more expensive to visit U.S.

More difficult for foreign investors to provide capital to U.S. in times of heavy U.S. borrowing.

Weakening Dollar: Advantages

U.S. firms find it easier to sell goods in foreign markets.

U.S. firms find less competitive pressure to keep prices low.

More foreign tourists can afford to visit the U.S.

U.S. capital markets become more attractive to foreign investors.

Disadvantages:

Consumers face higher prices on foreign products/services.

Higher prices on foreign products contribute to higher cost-of-living. U.S. consumers find traveling abroad more costly.

Harder for U.S. firms and investors to expand into foreign markets..

Check it out:

http://www.chicagofed.org/consumer_infor...