The Seeker wrote:I would guess the most important issue right now in the US is why the US dollar in Bush's reign has dropped from $1.60 Canadian to $1.10 Canadian and also from 1.20 Euro to 0.78 Euro. I think it's either that someone in Europe and Canada has been doing something very right, or someone in the US has been doing something very wrong.
That's actually an easy answer: Bush wanted to make it harder for companies to leave and set up shop elsewhere (ie. to keep business in America). How do you do that? Make it cheaper to stay at home. Instead of getting 1.2 Euros per USD, they're getting $0.78. So, you're losing 40 cents on the dollar by setting up shop in Europe. All of a sudden it's now worth it to just stay at home and ship out the product to Europe rather than setting up shop there (remember, the savings you get by setting up shop elsewhere often comes at a cost of extra shipping to and from the factory for raw materials and finished goods; it's just worth it 'cause you used to be able to get so much for the American dollar, something that's been lessened in the last couple of years).
I actually hadn't thought of that 'til I read it in the newspaper, but it makes perfect sense.