Does The Weaker Dollar Worry Anyone?

Published on November 26, 2004 By Genghis Hank In Current Events

Look, I don’t claim to be an expert at economics. On a good day I can barely spell it correctly without a spellchecker. But I see all these different things happening that sound troubling and they have me raising my eyebrow. Consider:

Gold reached a 16 year high breaking $450 an ounce, and is expected to go higher.

Oil is still over $48 a barrel, just coming off it’s all time high.

Currency markets have the Dollar lower against all the major currencies.

OK, so interest rates haven’t gone up very far yet, but don’t these other things sound a lot like we are about to be hit with inflation?

What’s your take on it?

Comments (Page 2)

Nitro Cruiser

on Nov 29, 2004

In my opinion a lower dollar is good (at this point in time), unless you’re buying a BMW or other import. It makes products produced here more affordable abroad, creating hire demand and keeping Americans working. I don't believe we have to worry about the dollar becoming worthless, if it did the world would be thrown into a major depression, nobody wants that. If Wall Street sneezes, the world feels it. The only major drawback I see is for things we must buy from foreign sources, like oil. I hate paying 2 bucks a gallon, as most people do, but in the long run expensive gas is what we need to kick that dependency and move to alternative fuels.
As for the dollar, it's the only currency I know that spends (in bill form) most places in Europe, the Middle East, and Asia, no exchange necessary (but no guarantee on the rate).

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