The Depreciating American Dollar, or is it depreciating? Options

[TiffanyFactorial]

If you haven't noticed, the British pound trumps our dollar. One dollar is equivalent to .50 pounds. I went to London last year and buying fish & chips was seriously ridiculous for me since it's 12 dollars or 6 pounds. made me QQ.

I think for a day, the Canadian dollar surpassed the American Dollar, for the first time in the history of the currency exchange. damn canadians and their maple syrup.

BUT as of today, the American Dollar is now equivalent to .512 pounds. YAY we gained 1 cent in worth.

Do you guys think our dollar will keep depreciating or will it start to appreciate with our current economic issues?

[rawtheekuh]

The reason our dollar is so crappy is because the U.S. Treasury keeps borrowing money from China to pay for shit & then can't pay it back. On top of that, we keep printing more and more money, which is causing inflation to go up. The fact that the Fed keeps cutting interest rates isn't helping with inflation, either.

Also, Americans keep borrowing money and aren't able to pay it back. Living outside your means is a uniquely American phenomenon and it's not only causing our dollar to depreciate, it's causing people to go into six-figure debt and all sorts of horrible things.

So, if the American government can raise interest rates a little, regulate our banking system, cut the national debt/quit borrowing a ton of money, AND get Americans to stop borrowing so much money (raising interest rates), inflation would go down and our dollar would go back up. Yes, growth would slow, but the faster an economy grows, the faster it falls. We need to strike a balance between growth and stagnation.

[TiffanyFactorial]

The reason our dollar is so crappy is because the U.S. Treasury keeps borrowing money from China to pay for shit & then can't pay it back. On top of that, we keep printing more and more money, which is causing inflation to go up. The fact that the Fed keeps cutting interest rates isn't helping with inflation, either.

Also, Americans keep borrowing money and aren't able to pay it back. Living outside your means is a uniquely American phenomenon and it's not only causing our dollar to depreciate, it's causing people to go into six-figure debt and all sorts of horrible things.

So, if the American government can raise interest rates a little, regulate our banking system, cut the national debt/quit borrowing a ton of money, AND get Americans to stop borrowing so much money (raising interest rates), inflation would go down and our dollar would go back up. Yes, growth would slow, but the faster an economy grows, the faster it falls. We need to strike a balance between growth and stagnation.

perfectly put. where i live, A LOT OF PEOPLE live outside their means. it bugs the crap out of me when a family tries to prove that they're not poor buy a C class mercedes. they buy the c class because it's the most affordable mercedes. Trust me, a lot of people in the vietnamese community around my area do this. their houses will be a tiny box & their cars: mercedes/lexus.

anyway. . . yes our dollar is still powerful compared to other countries, especially zimbawe, but it has declined and that's what this is about. at one point, the canadian dollar was just as much as the american dollar.

it's a good thing gas prices are slowly declining. knock on wood! If they miraculously went down to a $1.50/gallon, i would cry tears of happiness.