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Originally Posted by jacksonm
Sure, Americans are being insulted and having their pride in the once mighty dollar hurt by this move. The change will be difficult for many 40-60 somethings to accept. It will require a generation change before people will drop the cocky attitude. .
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I trust you know, but 99.9% of average Americans pay -zero- attention to world currency exchange rates etc.
Cocky attitude?...frankly, this topic isn't even mainstream or hardly front page news to the average person.
You should be more worried about what happens to the US economy is going to trickle down to other world
economies for both good and bad. Here's an article that kind of gives one perspective.
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.
A weak dollar also hurts some people and benefits others. When the value of the dollar falls or weakens in relation to another currency, prices of goods and services from that country rise for U.S. consumers. It takes more dollars to purchase the same amount of foreign currency to buy goods and services. That means U.S. consumers and U.S. companies that import products have reduced purchasing power.
At the same time, a weak dollar means prices for U.S. products fall in foreign markets, benefiting U.S. exporters and foreign consumers. With a weak dollar, it takes fewer units of foreign currency to buy the right amount of dollars to purchase U.S. goods. As a result, consumers in other countries can buy U.S. products with less money.
Ideally, the dollar and all nations' currencies should be valued at a level that is neither too high nor too low. Such a level would help sustain long-term economic growth and stability both here and abroad. However, this ideal is difficult to reach since many factors affect the value of a nation's money. Some of the factors are complex, but many are quite simple.
http://www.chicagofed.org/consumer_i...eak_dollar.cfm
. Don't know if Wot has changed policy on his ascii cctld.
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