The Rate of Inflation Under the Bush Administration

The CPI inflation calculator uses the consumer price index to measure the purchasing power of the US dollar and has been calculated every year since 1013. For example in 2000 it took 17.39 to purchase what $1.00 would purchase in 1913. In 2008 the figure stands at 21.57 one of the biggest hikes since the 1970’

s. This figure does not speak well for the economic policies of the Bush administration.

The current economic crisis faced by the US can, in part, be traced back to the deregulation frenzy of the GOP controlled congress of the 90’s with the partial cooperation of the Clinton administration. With many of the safeguards in place since FDR’

s New Deal rescinded many financial institutions began to engage in risky and sometimes irresponsible behavior. Many Forex traders say that this behavior puts the dollar at risk.

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Tentative US Agreement Reached

Forex Traders and the US Dollar

The recent plan by the US to buy 700 billion dollars worth of toxic debt from US banks has thrown Forex markets and traders into a state of bewilderment. With rising oil prices and an unresolved presidential election the future of the US dollar is uncertain. Although banks made temporary gains fx traders and investors are concerned because investors are concerned about the price at which banks may have to sell their assets.

Forex Trading, the US Dollar and Politics

Investors and Forex traders worldwide are waiting to hear the details of the bailout which are unclear. Another complicating factor is the political nature of the bailout with the Bush administration and congressional Democrats differing on who and what should be bailed out. Said senate majority leader Harry Reid of Nevada, “The Bush Administration has called on Congress to rubber stamp its bailout legislation without serious debate or efforts to improve it. That will not happen.” To complicate matters even further some senate Republicans are calling the Bush plan ‘Totally Unacceptable.”

Congressional debate on the issue is expected to last well into next week.

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