Why is the United States Dollar goes down in value?

The dollar is falling for a combination of 3 reasons, all else equal:

1. RELATIVE interest rates are falling

2. RELATIVE productivity is slower

3. RELATIVE attractivness of US investments is declining.

The dollar will increase for 3 reasons all else equal:

1. Raise RELATIVE interest rates

2. Increase RELATIVE productivity

3. increase the RELATIVE attractivness of US investments.

Each of these things increase demand for dollars, which in turn increases the value.

Your question implies that the decreased value of the dollar is a bad thing. Nothing could be further from the truth. There are huge imbalances in the US economy (i.e., trade balance, savings rate, consumption) that have to be corrected eventually and a devalued dollar encourages these corrections. In addition, the worsening credit crunch and real estate woes are costing jobs and decreasing economic output. These declines are being offest- at least in part- by greater exports and foreign capital investment that would not occur if the dollar hadn't sunk to its current level. In addition, the cheap dollar is bringing in foreign investment into real estate, which is helping to stabilize real estate values- or at least mitigating the drop.

Either Richard Nixon, or Jimmy Carter passed a law which allows us to produce money with no gold, gems, minerals, or other precious resources or backup behind it. It is now based on our economy totally basically. Now people are hearing about this huge mortgage crisis and economic instability in the U.S. so that is why it has inflated. There are also a large portion of countries against us now such as Venezuela which are moving from the standard currency of buying oil from the USD to the Euro. This will in turn severely damage the economy.

the day previously immediately became publicized a estimation with regard to the growthing human beings economic equipment for the 1/3 3-month; it became an develop of four.3% (plenty bigger). it truly is between the end results of the expectancies of weak spot of USD...

the short answer is that our economy is weakening when compared to others around the world. Here is somehting for you conclusion - the falling dollar will allow the US to recreate its industial nature an allow for a EXport economy.

because we are in such a huge debt its lowering but thtas just a partial reason 13 trillion dollars is alot for a debt

because were making to much money... like the litterally paper stuff not the amount the paper... so the more we have the less it goes down.... and usually when they make more copys of money they burn some more that are all worn down

because the government is making too much of it and "pumping" to much of it. its not rare anymore because theres so much of it and now its worht the same as a canadian dollar.