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In 2001 when Clinton left office, 84 cents bought 1 Euro. Today 1 dollar and 28 cents buys a Euro. In 2001 when Clinton left office, 230 dollars bought an ounce of gold. Today 620 dollars buys an ounce of gold. Please explain how you think Bush economic policies of weakening the currency have made America better rather than worse.
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When asked to cite your sources for the rise in the price of the euro or the price of gold, you posted an article to the price of gas.

You might find these articles more informative:
http://www.easy-forex.com/en/Forex.dollareuro.aspx

http://www.chicagofed.org/consumer_information/strong_dollar_weak_dollar.cfm
 
dogbert said:
In 2001 when Clinton left office, 84 cents bought 1 Euro. Today 1 dollar and 28 cents buys a Euro. In 2001 when Clinton left office, 230 dollars bought an ounce of gold. Today 620 dollars buys an ounce of gold. Please explain how you think Bush economic policies of weakening the currency have made America better rather than worse.
Click to expand...


It was not just Bush's economic policies that weakened your own currency. It was the cost of fighting wars abroad, as we Canadians know to be fact. No one knows about devaluing one's own currency more than a Canadian. It is Canada which leads the world in this economic activity. Canada purchases more American dollars than all other countries combined. We do so to ensure our dollars falls against theirs. It is one way we continue to keep our competitive edge during our cross-border trade. As it stands, hundreds of thousands of jobs are being lost here in Canada, thanks to our rising dollar. It has been suggested by Canadian economists, that on paper, the Canadian dollar is actually worth far more than the US dollar. How can this be? Simple economics. We are the only G8 nation to have run consecutive trade surpluses (20 straight years I do believe). Our trade surpluses have far exceeded that of all G8 nations COMBINED. Naturally, I would like to thank our American cousins to the south for that, and our 'weak' dollar. While it is true Bush does have a tendency to lower his country's dollar, he fails because Canada keeps pushing it up. The only thing that allows our interference to not affect the American dollar would be the costs of your military adventures. Sadly enough, we are beginning to suffer the same fate. Our adventures in Afghanistan are costing us a fortune, thus forcing NATO to do something about assisting us. Whilst true that we ask for NATO assistance in Afghanistan because of our low numbers, it is obvious we ask for such assistance to ensure the rest of NATO bears some of the cost. Our population is far too small to support such adventures, even if we are a nation which is wealthier than shit. It just cannot continue.
 
dogbert said:
In 2001 when Clinton left office, 84 cents bought 1 Euro. Today 1 dollar and 28 cents buys a Euro. In 2001 when Clinton left office, 230 dollars bought an ounce of gold. Today 620 dollars buys an ounce of gold. Please explain how you think Bush economic policies of weakening the currency have made America better rather than worse.
Click to expand...

It was not just Bush's economic policies that weakened your own currency. It was the cost of fighting wars abroad, as we Canadians know to be fact. No one knows about devaluing one's own currency more than a Canadian. It is Canada which leads the world in this economic activity. Canada purchases more American dollars than all other countries combined. We do so to ensure our dollars falls against theirs. It is one way we continue to keep our competitive edge during our cross-border trade. As it stands, hundreds of thousands of jobs are being lost here in Canada, thanks to our rising dollar. It has been suggested by Canadian economists, that on paper, the Canadian dollar is actually worth far more than the US dollar. How can this be? Simple economics. We are the only G8 nation to have run consecutive trade surpluses (20 straight years I do believe). Our trade surpluses have far exceeded that of all G8 nations COMBINED. Naturally, I would like to thank our American cousins to the south for that, and our 'weak' dollar. While it is true Bush does have a tendency to lower his country's dollar, he fails because Canada keeps pushing it up. The only thing that allows our interference to not affect the American dollar would be the costs of your military adventures. Sadly enough, we are beginning to suffer the same fate. Our adventures in Afghanistan are costing us a fortune, thus forcing NATO to do something about assisting us. Whilst true that we ask for NATO assistance in Afghanistan because of our low numbers, it is obvious we ask for such assistance to ensure the rest of NATO bears some of the cost. Our population is far too small to support such adventures, even if we are a nation which is wealthier than shit. It just cannot continue.

Read this and learn, my bitches:

The US In The New Economic World Order
Developments on the economic front are even more dangerous for the U.S. Its power rests on two main buttresses: 1) military superiority, and 2) the role of the dollar as the world’s reserve currency. Iraq is making a mockery out of the first, and the second is in jeopardy. The U.S. massive trade and budget deficits ($630 billion and $500 billion, respectively) are driving down the dollar to such an extent that its status as the global reserve currency is imperilled. Since world trade is largely conducted in U.S. currency, most countries have to export goods and services in order to earn these dollars, but all the U.S. has to do is print more dollars. As economist James K. Galbraith explains: “[The U.S. gets] real goods and services, the product of hard labour by people much poorer than ourselves, in return for chits that require no effort to produce.”

But, if the value of the dollar keeps going down, why should anyone continue to invest in it? The dollar has dropped by 47% against the euro since 2001, and by 24% against the yen. The greenback hit a record low of $1.37 against the euro in December 2004. There is no end in sight to the dollar’s fall, since the Bush administration is content to let it drop (in the hope of reducing the trade deficit) and has shown no inclination to rein in overall spending. The dollar is expected to shrink by another 30% during the second Bush term, which, according to one observer, “will wipe out anyone holding dollar assets and bury the dollar as a global reserve currency.”

With these dire prospects, surely anyone in possession of a lot of dollars would be inclined to sell. As U.S. Federal Reserve Chairman Alan Greenspan warned in November 2004, “foreigners may tire of financing the record U.S. current account deficit and diversify into other currencies or demand higher U.S. interest rates.” He repeated this warning last March. Currently, Washington needs to borrow $2.6 billion a day —90% of it from foreigners—to finance its trade deficit and to prevent a dollar collapse. The main lenders are Japan and China, whose central banks hold the largest amount of U.S. dollars ($720 billion and $600 billion, respectively). Taiwan owns $235 billion and South Korea $200 billion.

According to the Financial Times, “Central banks are shifting reserves away from the U.S. and towards the Eurozone in a move that looks set to deepen the Bush administration’s difficulties in financing its ballooning current account deficit.” The Asia Times (Hong Kong) confirms that Asian central banks have been replacing their dollar reserves with regional currencies for the past three years. A report by the Bank of International Settlements states that the ratio of dollar reserves held in Asia declined from 81% in the third quarter of 2001 to 67% in September 2004. China reduced its dollar holdings from 83% to 68%, India from 68% to 43%, and Thailand from 80% to 50%. A January 2005 report sponsored by the Royal Bank of Scotland states that 39 nations out of 65 interviewed were increasing their euro holdings, while 29 were reducing the amount of dollars they owned.

Significantly, the move from the dollar to the euro has spread to the central banks of OPEC countries, which own the most valuable traded resource: oil. The Bank for International Settlements reported in December 2004 that OPEC members’ dollar-denominated deposits fell to 61.5% of their total deposits in the second quarter of 2004, from 75% in 2001. During the same period, euro deposits increased from 12% to 20%. Russia, the biggest non-OPEC oil producer, has switched 25% to 30% of its currency reserves from dollars to euros.

At the end of February, comments by South Korea’s central bank sparked another round of dollar declines. The bank announced its intention to move away from the U.S. dollar and increase holdings of Canadian and Australian dollars. The New York Times described the impact of this “innocuous” statement: “As the Korean comment ping-ponged around the world, all hell broke loose, with currency traders selling dollars for fear that the central banks of Japan and China, which hold immense dollar reserves…might follow suit. That would be the United States’ worst economic nightmare. If it appeared that the flow of investment from abroad was not enough to cover the nation’s gargantuan deficits, interest rates would soar, the dollar would plunge, and the economy would stall.”
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