Yesterday, the Wallstreet Journal reported that the United States dollar is falling to the Japanese Yen. They said that the United States dollar is now worth only 85 yen now. The Japanese finance minister "hinted" that if the situation continues they would be taking stronger action. The article does not explain though what kind of action, but I believe that it'll be for their benefit. Also, although the US dollar has been losing ground in Asia, it has rebounded recently.
It is bad news for United states citizens if the power of the US dollar continues to drop. That means that things in other countries will be more expensive for us to buy. I remember going to Japan three years ago and the the US dollar was worth 100 yen.. since then that number has dropped significantly. I also recall that this past summer, in Japan when I went, the US dollar was already losing significant ground. It was worth roughly 90 yen or so.
Friday, November 27, 2009
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3 comments:
well, with the US government continuing to print money it doesnt actually have, i bet we will see an even greater decline in the value of the dollar. this loss of value world wide shows that inflation not only has bad consequences in the country in which it is happening, but it creates "ripple effects" world wide.
Yeah the dollar hasn't been doing so well lately. This trend makes it more difficult for Americans to travel abroad, but makes it easier for those abroad to come here. Hopefully as a small positive side to our struggling dollar, the U.S. can generate some more tourism that may be able to help our economy. And I guess it's also good news for those who happen to have yen..?
I agree with Lizzy and Sabina. The government is using money as if it "grew on trees" which isn't helping the economy much. The only upside to it is that because things are cheaper in this country, it could increase tourism and spending. Wasn't there a blog entry like a month ago talking about decreased tourism? Although the decreased value of the dollar is bad for us, it could be beneficial for tourists especially since tourism is down.
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