Question:

What is the main reason the US dollar is so weak right now?

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What is the main reason the US dollar is so weak right now?

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  1. We've been printing out a lot of money.

    1. Interest rates were lowered- money supply increase.  So there was more money.

    2. Also we printed out money to pay for our high spending.

    That's why the dollar is weak.  So much is printed.  Therefore, inflation occurs, dollar loses value, and things get worse.


  2. PREZ BUSH!!

  3. Interest rates are continuously being cut, which reduces the value of the dollar.

    Also, speculators do not like to hold dollars because it is so weak, and thus like to hold on to stronger currencies to earn a higher rate of return on their savings.

  4. Because the U.S. Treasury is printing an obscene amount of currency for things we simply do not have the money for (e.g. the Iraq War) and the national debt is increasing at a rapid rate.

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