I am sure you are aware of the recent United States dollar weakness, but just what does it mean for you? If you are planning a trip abroad, think again. Your dollar buys less of the euro and other major currencies, and perhaps it might be worth considering a holiday in the United States. Now it will see a positive effect on the flow of business at home, and it's certainly not a bad thing.
You can ask just why the dollar is so weak. Since the middle of March decreased by more than 10%, and it is no coincidence that the time, the Federal Government announced its plan for aggressive spending to fight the recession was March 18. The plan includes measures to stimulate the economy, such as buying up hundreds of millions of dollars of government bonds in order to create a more low mortgage rates. This would contribute to the weakening of the United States dollar as traders sought alternative investments where returns more.
The weak currency will also affect business, as imported goods and resources will cost them more, and these additional costs would inevitably end up being passed on to the consumer. These are just some of the far-reaching implications of our increasing debt levels caused by stimulus packages and a source of concern to economists.