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Saturday, November 25, 2006

The US-Dollar and its troubles

The US-Dollar has suffered under the recent wars quite greatly, the economy took a beating on the international market, then a hurricane visited the US and many Tornadoes did too, this in combination with the war effort seems to be harming the US-Dollar enormously. Several currencies reached new heights to the US-Dollar, which means that the US will now have to pay more to import goods, something the US is a champion at. The imports of the US have many years ago surpassed the exports of the US, which means that the US economy will be likely to suffer under the increased prize of goods and services in other nations. On the other hand a low currency might bring more money into the country, because the Dollar is weaker, which means that a company with now mainly Pound or Euro as a currency in their portfolio can now invest more easily in the US since they would get more Dollars per Euro or Pound which in theory would make a smaller amount of money necessary for an investment.
Yet, it also shows that the giant, the US is reeling from the pressure put onto its economy and budget, this is mainly done by the US-government, further the US is now closer then ever to the 9 trillion debt mark. So it would be logical to suspect that the problems are mostly homemade at this point that is by the US government.

Dollar loses ground against euro (BBC)
U.S. NATIONAL DEBT CLOCK

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