t2p

the value of the US dollar has dropped - due to inflation

above it appears the US dollar is being compared to other currencies

MinnMan

Correct. In response to the post by beng1 , who wrote

rekmeyata

Problem with that chart is that ALL the currencies are becoming worthless due to very high debts and other irresponsible behaviors, so while the dollar might be stronger than all the others, the dollar over all is significantly weaker than it was just 15 years ago, it's just that all the other currencies are weaker than we are. So that chart is a bad example...actually, how it was presented by the poster was misleading, or the chart was misunderstood by the poster.

MinnMan

One can measure the value of a currency against other currencies, or against its ability to purchase goods and services. The latter is synonymous with inflation. The relatively recent spike in inflation is real, but as to "the last 15 years or so", your statement is questionable, as inflation was at near-historic laws throughout - until recently of course..

The fact that the dollar remains strong compared to global currencies gives comparative information that is valuable. Those who blame our present problems on a particular US policy or politician are pretending that a global problem is chiefly national, though it is not.

Perhaps Koyote will want to weigh in.

LeeG

Sure they’ll drop and rise and drop and rise but overall I’d say up. Compared to 40 yrs ago you get much better quality now for less cost inflation adjusted so it’s not exactly like this is a costly product to begin with. The big price rise will be boutique brands and top end bikes. In hard times bikes rule.

LeeG

And when world production of oil plateaus and declines making everything more expensive and Biden is long in the grave who will you blame for a civilization that grew on a non-renewable resource? Go back to the 2008, 1980, 1973 oil price spikes, Biden’s handiwork too?

rekmeyata

Sure you can measure it all you want against WEAKER currencies and say, see how strong our currency is? that's bogus! All the currencies are weaker due to out of control spending by most countries. While Biden isn't the only president who was an idiot with finances, this goes all the way back to Obama who borrowed money like crazy to put us in a bubble, then Trump came along and borrowed some more due to an unforeseen event with Covid, but I think he, and other world leaders over reacted by shutting down the economy, now Biden is borrowing, who is mentally challenged.We can earn profits, which they can tax. They can print money, which is just a promissory note that relies on the future profit-earning power of Americans. They can borrow from China, but that’s also reliant on expected future earnings of Americans. The government’s money is all borrowed money.

Rather than spend more and more, they should seek to help us earn more and more. When we earn more, the system works. When our earnings go down, while government spending increases, the system gets unstable and unjust to the middle class, Biden is going to tax the crap out of the middle class, just like he said he would. This still won’t pay off the debt because the government will just waste the money, but he is certainly going to be taxing us to death. That is one clarifying point to distinguish a Conservative from a Liberal. Problem is, that the liberals have made such a huge mess no one is going to be capable of fixing it; the only way that I can think of that might work, note, I said might and not will work, is to shrink government down by at about 75% and let the states take over what they were supposed to have control of according to the Constitution. And they will need to start drilling and pumping for oil and natural gas immediately and make it an emergency. But that still won't answer the problem with supposed food shortages, I think the US by itself can produce all the food that the US needs, and not export any food unless by chance we have an overabundance; but in order to that we would have to know just how many acres of farmland we need for each type of crop.

I did notice today in fact while on a bike ride, for the first time since I've been here in the farm belt of Indiana, that wheat was growing on a very large acre farm, I haven't seen wheat grown for many years, it's all been corn and soybean, and hay for cows. So maybe the Feds are telling some farmers to start growing wheat? The US should have no reason whatsoever to have a food shortage.