Where do you predict the American dollar is going within the next 10 years?

Where do you predict the American dollar is going within the next 10 years?

9 answers , last was 16 years ago

The value of the American dollar is of legal tender.. which means it varies on whomever controls it says what and why. So whats your prediction on what the value will be in and/or leading up to 2018?

Asked by Anonymous in Current Events & Politics at 8:10am on February 11th, 2008
Cameron Trickey 2333
Answered at 5:19pm on February 19th, 2008
At the end of the day, there are so many factors that no-one can say for sure.

If we're all still here in 2018 I believe in all likelyhood the dollar would have combined with other currencies, much like the euro has done.

As for the concepts of a cheaper dollar, it certainly helps with exports, which in turn can help sustain unemployment considering the necessity for an increase in output, which usually assists the manufacturing industry. But don't for one second think that this is an entirely good thing.

Most of our cheap, manufactured products are produced in places like China or Mexico. A decrease in the value of the dollar makes all of those porducts more expensive. Add to that an increase in oil prices and so an ultimate increase in delivery charges. Our morons in charge of running the country and through pressure from interest groups, wish to seek alternate sources of energy like ethanol from corn. Aside from it being entirely inefficient, if the price of corn goes up as a result, the price of most drinks and a ton of foods will again rise - go and look at the amount of corn syrup found in our products. In other words, major inflation.

The US market is different from many, as it relies on us, the consumer. They drop interest rates, not to simply put more money in the system, but to try and maintain consumer confidence. If consumer confidence is high then spending continues. Problem is, conusmer spending continues, but does so on credit. Furthermore every time we borrow more money from the fed, we do so at interest - so the debt continues to grow. Who knows how long this will be sustainable.

Also, a decrease in the value of the dollar means a lessening of imports, which means an increase in unemployment in that sector.

At the end of the day, it is a balancing act, but right now it seems to be heading towards inflation as well as the recession. Having said that, we've been in recession for some time, it's just that the figures they give you on TV are misrepresentative as they do not account for the rise in oil prices or food. Add all of that in and inflation sits over 11% at the moment.

But there's more. The world trading standard is in US$. If we continue the path we're going on and the dollar maintains its devaluation, there is always the possibility that we loose our right to print money and the trading standard changes - more than likely to be the euro. Not to get into the debate about the war on terror, but if you really want to know why our leaders hate the Iranians so much (and Venezula for that matter), it's because they are pushing to drop the dollar as the value for oil, and move to the euro. That's 40% of OPECs oil!

There are a lot of 'ifs', but based on our current leaders view of what's improtant in the world, the dollar will likely continue it's decline. Interest rates can't go down much more, and when that stops, so the trading in Wall Street will begin to slow. That's when consumer confidence will get destroyed, because so many people think the stock exchange is a good place to invest money - bad choice. If you have extra cash, do it for fun. If it's your life savings... very risky.

That's why I feel it's likely that the dollar will combine with other currencies - hopefully not, but very possibly.
Bryan Heslop 1385
Answered at 10:00am on February 19th, 2008
I hope a lot of them go in my pocket.
Andrew Anthony 1380
Answered at 3:31pm on February 12th, 2008
Believing there will still be an American Dollar by 2018 is foolish.

http://www.wisebread.com/europe-has-the-euro-are-you-ready-for-the-amero
Unknown Brain 1437
Answered at 8:46am on February 12th, 2008
It will go up because of this, and because other countries realize there currencies and economies have a very close relationship wth ours (USA) they will adjust there interest rates as well.
Unknown Brain 1437
Answered at 8:44am on February 12th, 2008
The interest rate cuts are compromising the dollars relative value to other currencies. The most recent cuts are really just an emergency response to a few economic factors such as the subprime credit crisis, and the poor housing and real estate market. These cuts are being made to free up more MONEY in the economy to help consumers get over these bumps in the road. This is not a bad thing... it is exactly why we have reserve banks, to help out markets that arent fucntioning correctly. it will certainly bounce back up, it is cyclical for many reasons. Not only will the interest rate cuts help consumers by allowing more money to be freed up, it will help domestic manufacturers and the likes... I know thats complicated to an extent if you arent atleast an intermediate econ student, but simply said...

a cheaper dollar just means its cheaper to do business here in the united states, since things are cheaper. domestic manufacturers and exporters have a signifigant advantage. this boosts our economy over time and eventually interest rates are increased, in an attempt to slow down the domestic economic boom to a sustainable rate and to solidify our economy in terms of international trade.
Unknown Brain 1501
Answered at 4:14am on February 12th, 2008
unless we make some brand new discovery, we are going to be in the hole BIG TIME!
Nikita Franz 1190
Answered at 6:47pm on February 11th, 2008
I think that the american dollar is going down and down!
Johanna Painter 1234
Answered at 1:05pm on February 11th, 2008
China owns us already and I don't see that changing. The American dollar is screwed. By 2018 I don't think it will be worth anything especially with the way it is taking a hit of depreciation. Some people say that it will help our economy, but the truth is that there are to many invisible dollars floating about in the world, with no currency to back it up. Everyone has a card or a credit line which will only exacerbate the problem rather than fixing it.
Camryn Prevost 1414
Answered at 9:21am on February 11th, 2008
Well, good question since the minimum wage has just been raised in verious states, the American dollar does seem to be on a decline.Yet, there are some benifits from a declining dollar that could lead to strengthing the the American Economy. " The primary benefit is increased price competitiveness of U.S. products, both for exports abroad as well as in the domestic market." As the dollar declines more US products will be purchasable by oversea markets, the more US products purchased by the global market, the stronger the US Economy can become. .

" The "strong dollar policy" (pursued by both the Clinton and Bush Administrations) has been deeply damaging to the U.S. economy, leading to significant job loss in the manufacturing sector and the accumulation of historically large trade deficits. This overvalued dollar policy should be reversed, and a larger (although orderly) decline in the dollar should be encouraged instead. In the long term, U.S. exchange rate policy should aim to avoid large trade deficits. This could be accomplished through international policy coordination that allows exchange rates to float within a flexible band, but prevents them from getting so overvalued that they generate large trade deficits"

(Economic PolicyInstitute)

http://www.epi.org/content.cfm/briefingpapers_bp140


I feel the dollar will continue to hold a markable value in the years leading up to 2018, and will help the US regain a stable prospoures economy in the years leading up to 2018.
Load more
There are no debates yet! To start one, click "Debate this answer!" under someone's answer.
There are no debates yet! To start one, click "Debate this answer!" under someone's answer.