The value of the dollar fell and is now equal in value to the Canadian dollar for the first time since November 1976.


I can recall Nixon devaluating the dollar and the explanation that went along with it.

A short history of devaluation of the dollar:

• In 1934 FDR devalued the dollar by 41%.
• In 1971 Nixon devalued the dollar by 7.9%.
• In 1973 Nixon devalued the dollar by 10%.
Nixon said he devalued the dollar to make us more competitive with other manufacturing nations. A cheaper dollar meant that more countries could afford to buy goods manufactured in the United States.

Devaluation for whatever reason is a two edge sword. It also makes it more expensive for the United States to purchase anything beyond our borders. Since little is manufactured in this country we can expect a greater deficit with China, the cost of foreign travel to be greater and so on.


http://cbs5.com/national/local_story_264021408.html

At any rate have a good Friday! :)