Why are people not more concerned about the Falling Dollar?

Question

And the state of the economy?

http://www.msnbc.msn.com/?q=The+dollar+fell+&submit=Search&id=11881780&FORM=AE&os=0&gs=1&p=1&adunitid=939&propertyid=3501

Answer 1

There isn't anything we can do about it!

Answer 2

I know I am.  I think most people simply do not understand the dire threat involved in the weakening dollar.  Be it history, economics, current events, or what have you, the populace is simply uninformed on the issue.

For instance, how many people know what M3 is?  And how many are aware that the Federal Reserve stopped publishing that number? and why did they stop it?  What would that M3 figure be today?

Answer 3

People have acquired a VERY low economic IQ, and are in so much credit card and mortgage debt that they are just living in perpetual denial.

These same people are the ones that are still out drinking and partying, buying new cars, clothing and were stupid enough to spend their rebate vs save it.

Answer 4

I *am* concerned. I'm VERY concerned, and I'm glad someone else is too.

The first two responders are correct, but the 3rd responder (Alby) is stupid to suggest that it's not GW's fault.

Bush is about 90% of the reason the dollar has gotten so low. He squandered our budget surplus (with one swipe of the pen) on a tax cut to benefit the rich, which most of the country didn't really want or need. He has stood idly by and watched our trade deficit get way out of hand, and has tried (like the pathetic buffoon that he is) to blame this on China or India. A widening trade deficit weakens the dollar.

He started an illegal war and caused unncessary chaos in the oil-rich Middle East and continues to threaten other countries in the region, like Iran. This makes investors nervous, and in turn drives up the price of oil. Additionally, he has antagonized the leaders of other oil rich nations (like Chavez in Venezuela) whom we seemed to get along with just fine while Clinton was in office. Having Chavez threatening to cut off shipments to the U.S. doesn't help much.

Oil plays a key role in the value of the dollar. The dollar is the official oil currency and OPEC intends to keep it that way. When the dollar is weak, investors try to buy more oil as a hedge against inflation. The demand drives up the price. That's why we need a stronger dollar.

From time to time Bush has given a few speeches talking about the importance of a strong dollar but this has translated into nothing but lip service. Bush is a moron when it comes to economics, and Ben Bernanke hasn't been much better either. You can't have a growing trade deficit and a strong dollar at the same time; this is something apparently they didn't teach him at Yale.

One of the only things that can help the dollar's value is to raise interest rates, but this might hurt the already-weak economy so the Fed won't do it.

On the day Bush took office, gas was $1.45 a gallon. If a chimpanzee were president I don't think it could possibly ruined our nation more than Bush has.

Answer 5

Because they have no idea about what it means.  How can people accept the idea that every year, price and wages go up?  They accept this as natural.  They think that inflation, the stealing of our wealth, is acceptable.

What really amazes me is how the American people turned in their gold to that arch-criminal, Franklin Roosevelt.  In 1933, there was a much better understanding as to what money is, than today.  How could Americans have been so stupid?

And when you consider that today, you can buy one ounce Eagles from the Treasury for about $1000 each, that's $1000 for one ounce of gold, when the American people's gold was turned in, in 1933, it was $20.67 per ounce.  So, in 1933, $1000 would have bought 50 one ounce Eagles!  Why don't people realize that they have been robbed?

It's not gold that has risen in value, it's what has happened to the dollar, thanks to our politicians, and their creature, the Federal Reserve.

Answer 6

I don't have a very good head for economics but I've been expressing my concern daily to anyone who will listen (family, friends, co-workers).  Everyone I speak with is equally concerned and none of us know much about economics.  I think "the powers that be" are down-playing the FACTS so that people don't panic.  Our way of life seems to be hanging on a thread.

Answer 7

I'd trade my money for Euros! I think you can do that online!

Answer 8

I think most people have their heads in the sand.

Answer 9

Only people who understand economics see the tidal wave approaching. The rest of the population doesn't get it and just thinks its George Bush's fault they are paying $4+/gasoline. They cannot understand that Oil/Gasoline is imported and that a weak dollar means it takes more dollars to purchase the same amount of goods.