2006-10-31 13:41:37 · 10 answers · asked by swhite3084 2 in Social Science ➔ Economics
Powerful? the dollar used to be backed by gold now it's backed by missles and troops the euro is worth a little more by
by calibrated exchange but the USA military is more to be reckoned with than exchange values ....
2006-10-31 13:52:40 · answer #1 · answered by dogpatch USA 7 · 0⤊ 0⤋
The dollar is more powerful because just as many paper dollars are held outside the country than as inside.The euro is new and is not used in other countries except for the European Union nations.
Every nation uses oil and they need to pay in dollars,this makes the dollar powerful.Oil producing nations need to do something with all those dollars so they buy dollar denominated investments.
Britain and Norway do not use the euro and produce oil which earn dollars so adopting the euro would beg the question why not accept euros for oil from European countries which would shake up the current system.Why risk making a leap like that when you can ignore the euro and earn oil dollars and keep the US your buddy.
The euro is about political unity producing economic benefit the dollar is about economic benefit producing political unity.People can figure out the dollar way of doing things better than the euro way of doing things.
2006-10-31 21:13:10 · answer #2 · answered by hollow choco prius 5 · 0⤊ 0⤋
The euro. Right now I believe one euro has the buying power of about $1.25.
2006-10-31 13:47:02 · answer #3 · answered by pat z 7 · 0⤊ 0⤋
Euro.
2006-10-31 13:51:21 · answer #4 · answered by Jim 2 · 0⤊ 0⤋
the euro, i recently went to europe and they dont' accept the dollar anywhere. only the euro, and it's worth more than the dollar is.
2006-10-31 13:43:47 · answer #5 · answered by divamommy_4 4 · 1⤊ 0⤋
As far as the market its dollar and as far as the opportunity and investment is the euro. Moreover, recent trend of US world order or peace keeping strategy, specially involvement and switching from talk to force, if continues it definitely shrunken its market.
2006-10-31 14:26:43 · answer #6 · answered by nRehman 4 · 0⤊ 0⤋
Currencies are just pieces of paper that denote a nominal value. You cannot compare either in one fixed point in time; instead you would consider which one is likely to become more valuable over the other in time. To answer this you would consider a range of indicators, like investment rates, productivity and net borrowings.
The US has the problems with its current account deficit, while Europe has unsustainable welfare programs. Perhaps neither will become valuable over the other, but instead lots of other currencies will appreciate over them.
2006-10-31 18:47:56 · answer #7 · answered by Mardy 4 · 0⤊ 0⤋
British Pound
2006-10-31 13:50:03 · answer #8 · answered by Pierrot 2 · 0⤊ 0⤋
"Powerful"?
The Euro is worth more, if that's what you mean.
2006-10-31 13:44:11 · answer #9 · answered by Anonymous · 1⤊ 0⤋
peanut butter and crack sandwhich... ummmm mm..
2006-10-31 13:49:55 · answer #10 · answered by Diagoras 4 · 0⤊ 0⤋