Noting unrestrained governmental spending and not enough taxes to keep up, it seems that inflation will rule. If the Federal Reserve keeps on printing more and more paper, isn't it inevitable that the dollar collapses and a worldwide depression takes over?
2007-02-27 08:06:11 · 6 answers · asked by Hmmbop 2 in Social Science ➔ Economics
Not for awhile, in theory it could happen, but hopefully those who determine policy won't let it happen. They certainly have nothing to gain from it. I don't know about worldwide depression, if the dollar loses value then something else will gain value (Yuan, Euro, etc...).
2007-02-27 08:14:20 · answer #1 · answered by Pfo 7 · 0⤊ 0⤋
You are right about the denomination of the dollar, yet the US Higher Administration will never let to reach the collapse of the dollar. We are away from a worldwide depression, but it is obvious that the policy is not as wise as should be. The economical balance is not a problem for the US Government, as the reserves of oil and gas are so much that for a couple of days USA could totally confuse the market, plus the political tools..Some analyst are saying that's a policy of USA ( to keep the currency exchanging at those points).
At the moment the main issue is the permanent rise of the Euro , bearing in mind also that from the 1st of January occured another "wave" of countries enetring the EU.
Have a great day!
2007-02-27 08:15:09 · answer #2 · answered by sunflower 7 · 0⤊ 0⤋
Nah, countries like El Salivdor use the dollar and dont bother running a central bank anymore. Dollar is king historically because anybody with a IQ above 85 knows the dollar holds it up well overtime. Lower Dollar be nice since we can export more goods aboard, and small reduction in the trade balance would be nice. I bet money inflation will fall, and the fed will cut rates and will see more shift to building productive capacity in the economy for the next fews years. The dollar will fall slowly over time, but I think the lower dollar make exporting competitve.
2007-02-27 11:01:00 · answer #3 · answered by ram456456 5 · 0⤊ 0⤋
the 1st ingredient that should could be carried out is to establish a soup line for the liberals. all of them worship the government and that they are going to be status around whining because of fact their desires are no longer being met. to respond to your question, whilst the dollar is finished being trashed by the Democrats we are able to discover ourselves lots poorer than ever till now. we are able to stay to tell the story on the barter gadget. Liberals ought to even could discover ways to artwork.
2016-11-26 19:20:24 · answer #4 · answered by ? 4 · 0⤊ 0⤋
no worl wide depression would happen it happend to dermandy after world war one and the only thing differnt was the some guy from a differnt country could come their and be a millionaire with one of their countrys dollars
2007-02-27 08:30:28 · answer #5 · answered by mike 1 · 0⤊ 0⤋
Not anytime soon.
2007-02-27 08:24:13 · answer #6 · answered by Anonymous · 0⤊ 0⤋