Americans have become increasingly worried over the recent sharp decline of the dollar abroad. Six months ago, 69 percent expressed at least some concern over this decline, and now 80 percent express similar concern. Forty-seven percent say they are worried a great deal about it, up from 30 percent who felt that way earlier in the year.
The dollar has recently plunged to all-time modern lows, especially in relation to the world's stronger currencies, such as the deutsche mark, the yen and the Swiss franc. Foreign governments have been critical of the United States for not taking stronger steps to shore up the dollar.
Four major reasons are cited by Americans as to why they are worried about the decline in the dollar. The following results were obtained from a recent survey of 1, 153 adults nationwide:
Fifty-seven percent say they are worried a great deal that "we are importing too much energy from abroad," up from 53 percent who expressed similar concern six months ago.
Fifty-one percent admit to a great deal of worry that "we are buying much more abroad than we are selling to the rest of the world," up from 42 percent who felt this way in February.
Forty-six percent say they worry a great deal that we "haven't convinced people abroad that we have inflation under control at home," up sharply from 30 percent who shared this view in February.
Forty-one percent worry a great deal that "we haven't convinced people abroad that we are really going to take tough measures on energy at home," up from 33 percent who felt this way earlier.
Most observers abroad do not feel that the ongoing U.S. trade deficit as such is the major cause for the dollar's decline. Instead, they feel that the high cost of importing oil and natural gas automatically puts the United States in the red in its balance of payments.
Straints on energy imports, along with fears that inflation here could easily get out of control, as reasons why the money markets have been voting their lack of confidence in the United States' ability to manage its economy by devaluing the dollar.