Why is the USA the wealthiest country on earth?

Question

and why is the US dollar the "international currency" used all over the world?

Answer 1

Before WW2, Great Britain was the world imperial power and British sterling was the international reserve currency and trading standard.

After WW2, Britain was financially weak and America was in the strongest financial position, so the Dollar became the global trading currency.

There are several reasons why America is so rich. The Dollar is used in all oil trading and this makes America a fortune.

But the main reason for US financial strength is because the Federal Reserve simply prints money.

After WW2, America removed the 'Gold Standard'. The Gold Standard linked the Dollar to a value in gold and gave money stability and real value.

Today, the dollar is just a slip of paper that holds no lasting value. This lets the Fed print the dollars and lets the government spend now, build-up debt & pay the money back at a later date after inflation makes the debt smaller.

This talk from a Congressman will make more sense:

http://www.house.gov/paul/congrec/congrec2006/cr021506.htm

Answer 2

U.S.A was founded by thirteen colonies declaring their independence from Great Britain on July 4, 1776 and ratifying the Articles of Confederation, on March 1, 1781. It adopted the current constitution on September 17, 1787. The country greatly expanded in territory thoughout the 19th century aquiring lands from France and Mexico. With the collapse of the Soviet Union in 1991, it became the world's sole remaining superpower. The United States continues to exert strong economic, political and military influence around the globe.


Dollar is the world's currency because In the period following the Bretton Woods Conference of 1944, exchange rates around the world were pegged against the United States dollar, which could be exchanged for a fixed amount of gold. This reinforced the dominance of the US dollar a global currency.

Since the collapse of the fixed exchange rate regime and the gold standard and the institution of floating exchange rates following the Smithsonian Agreement in 1971, currencies around the world have no longer been pegged against the United States dollar. However, as the United States remained the world's preeminent economic superpower, most international transactions continued to be conducted with the United States dollar, it has remained the de facto world currency.

Only two serious challengers to the status of the United States dollar as a world currency have arisen. During the 1980s, for a while, the Japanese yen became increasingly used as an international currency, but that usage diminished with the Japanese recession in the 1990s. More recently, the euro has competed with the United States dollar in usage in international finance

Answer 3

Simple answer really. World War II. After WW2 every other single industrial power was in complete disarray and nearly destroyed. With the Marshall plan to re-build Europe, dollars was the natural currency in use as every other currency was in shambles. The United States didn't suffer the same devastation Europe did. So the dollar being the "international currency" is largely a historical anomaly .

Answer 4

They like to think they are, I think it is actually Luxemburg who can keep such good controol becuase of the size. I could go into a long waffel about how education makes UK strongest, foriegn investment keeps Switzerland running, India is climbing becasue they are all prepared to work their own way out of povity, China is the most techonologically advanced country in the world and therefore will move fastest. Marks gave the idea that the US is the most wealthy contry, and the rest of the world either think he's right or try to prove him wrong.

Answer 5

Laws protecting private property tend to encourage private business in the US --- this is one reason the US economy is so dynamic.

The dollar holds a value as a reserve currency simply because there are attractive investment opportunities in the US.

Answer 6

Huge resources, stable Government, capitalist ideals, and pretty much self-sufficient.

The dollor is an international currency because it is relatively strong. It is also one of the hardest notes to forge, because it is made of a very secret combination of paper and linen

Answer 7

No,

According to the link below, the richest country in the world per head of population is Luxembourg.

Answer 8

The USA is not the wealthiest country - many smaller countries are by far richer per person.

Answer 9

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Answer 10

Luxembourg is actually the wealthiest country