Wednesday, August 8, 2007

What Affects The Value of the US Dollar?

All of our plans are priced in US dollars. It is interesting to learn about what affects the value of the dollar. We will list 50 main points that affect the value of the dollar...
1. Balance of trade
2. Falling prices on foreign goods
3. Balance of investment
4. Budget deficit and national debt
5. Little or no default on debt
6. President’s popularity
7. Terrorist attacks and war
8. Geopolitical events
9. Consistent policies
10. Government expansion
11. Elections
12. Tax cuts for consumers
13. Turmoil in other countries
14. Stability in other countries
15. A change in foreign reserves
16. A strengthening Euro
17. Acceptance of oil in dollars
18. Strong foreign economies
19. Social Security
20. Medicare/Medicaid
21. Demand for dollars
22. Demand for physical currency outside the US
23. Increase in money supply
24. Rise in interest rates
25. Attractive interest rates in other countries
26. News about interest rates
27. Consumer savings
28. Gas prices
29. Purchasing imported products rather than products made in the US.
31. Slow housing market
32. Strong housing market
33. Overinflated housing market
34. Low growth in manufacturing
35. Strong manufacturing growth
36. Outsourcing
37. Entrepreneurship
38. Employment growth
39. Wage data
40. Bear markets
41. Bull markets
42. Accounting scandals
43. Economic growth and stability
44. Economic recession
45. Outperforming other economies
46. Unfavorable farming conditions
47. Unusually hot summers
48. Natural disasters
49. Slow in inflation of foreign goods
50. News about inflation

Just a quick note regarding point #4: The US national debt currently stands at $9 trillion and is growing by over $1 billion per day.

2 comments:

Anonymous said...

I hate looking at the value of the dollar these days. The pound and now the euro are far superior to the dollar.

Anonymous said...

Will the dollar ever come back to its old value?