How would a sharp US Dollar drop affect ordinary Americans?

[NAO]

It seems as if Bush is actually working to cause the US dollar to plummet.

He has done all kinds of things to endanger the dollar, and has shown no alarm or reaction at frequent suggestions that it may have a sudden, sharp drop in value.

That makes me think there must be some benefit to the ultra-wealthy of the dollar dropping. And that implies that there is a conversely painful result for the rest of us.

So what does it mean to average people if the dollar has a rapid fall?

[NMDemDist2]

1. higher interest rates and harder to get credit

all imports will cost more (and we import almost EVERYTHING these days)

inflation, inflation, inflation

[DODI]

2. It will really screw up my trip to Canada this summer!

Oil, it is all about the oil. See the posts a little while ago. Also, as the old saying goes, the rich get richer, the poor get children.

Question: Should I buy Canadian $'s now for our July trip?

[Nite Owl]

3. Inflation for us.

For the multinationals it means more money. Our dollar is less so it makes our stuff cheaper abroad. Imports are more and since we buy imports we pay more. The ultra wealthy are probably invested in foreign currencies making more money.

[LiberallyInclined]

4. just wait a few months-

and you'll be getting your answers.

[NAO]

6. Will the idiots who voted for * realize that he caused it

or at the very least, did not take reasonable measures to try to prevent it?

If it really does happen, it should be a top priority of progressives to spell out in detail exactly what policies contributed to it, and what policies could have prevented it. The American public SHOULD NOT be allowed to believe it was a natural, inevitable occurrence.

They should be made painfully aware that it was due to failed policies. Maybe next election, they will look at the issues and at policy, and not worry so much about gay marriage.

[mitchtv]

5. higher prices at Walmart

no so cheap Chinese junk
higher prices on anything imported.

[demgurl]

7. I hate to say this, but it will have a better effect for me.

I am owed a rather large amount from an estate in Canada. It has gone on for a couple of years and so it started when the dollar was strong. I was going to lose a lot due to the exchange rate but now I am just about getting dollar for dollar. If US currency becomes any weaker then I will be earning more money.

Now if only my lawyer would get off his duff and get that money to me!

[BiggJawn]

9. I think you're on to it there.

If the Dollar goes down the toilet, not only you, but all those Bush Pioneers with holdings in Euros and Krugerands and Yen will be raking it in.

Poor fucker like me who has only quarters and dimes in his coffee can will be fucked for sure.

[enid602]

8. gas prices

HORRIFIC gas prices. Remember, the dollar is still used as the worldwide method of payment for petroleum, but OPEC now sets pricing based on the rate of exchange of the dollar. Whereas they might have had a $25 price set for petro 18 months ago, they would have to add about 40% to that now to maintain the same price. Europeans are paying about the same price as they did before (as they can buy dollars about 40% cheaper than previously), but our base price has gone up about 40%. Add to that fears that the world might be nearing a 'peak-oil' scenario, and the results could be frightening. The price of oil determines the prices of all industrial and consumer goods which require petro for their manufacture.

[Massacure]

10. A drop in the dollar has the possibility of lowering unemployment

Because manufacturing things in the United States would be more competative with doing it overseas. In the short term it would hurt while industry was changing gears though.

Oil is really the only achilles heal. If we could sustain ourself on our own energy, we would be in a much better posistion. You can thank Raygun for dismantling Carter's programs on that though.