USA is borrowing large amount of funds from international market on daily basis and has huge amount of deficit and balance of payment despite of all this value of doller is not declining?
2006-06-12 19:04:28 · 3 answers · asked by girlnxtdoor 1 in Business & Finance ➔ Other - Business & Finance
Because US is one of the wealthiest countries in the world. People are living a good life compare to the rest of the world. They have education, health care, basic services, advance technology, a largely advanced military, free media, etc.
Yes, the US govt is borrowing lots of money, but consumer spending is unbelievable. One of the richest countries in the world, and yet lack of education in finance. Most of these people don't know how to save.
In economical sense, the value of the dollar is constantly fluctuating. You need to understand Monetary Policy and Fiscal Policy to understand it.
2006-06-12 19:07:37 · answer #1 · answered by Anonymous · 2⤊ 1⤋
True the dollar is declining because of European union but that will probably weaken over time but America is stable.
Some European countries will leave the EU and some smaller countries will join but America will always be this stable union.
2006-06-16 16:19:19 · answer #2 · answered by Man 6 · 0⤊ 0⤋
the value of the dollar is declining, ask this question again in 5 years.
2006-06-13 02:08:34 · answer #3 · answered by dzr0001 5 · 0⤊ 0⤋