http://news.independent.co.uk/world/americas/article3169638.ece
2007-11-17 06:20:16 · 5 answers · asked by seoaxen 1 in Social Science ➔ Economics
Of course it will. Eventually, there will be a dramatic rise in interest rates to thwart inflation or some technological breakthrough, such as the internet in the 1990s, that will cause investment spending to explode. Either or both of these this will cause an instant and dramatic increase in the demand for dollars. Looking outside of the US, there could also be a meltdown in one or more foreign countries- a la asia in the 1990s or latin america repeatedly- that causes a flight to safty.
Further, the ecomonic imbalances (high trade deficit, low savings rate, etc.) will be corrected eventually. These corrections will spur a gradual increase in the value of the dollar
2007-11-17 07:35:58 · answer #1 · answered by Homer J. Simpson 6 · 0⤊ 0⤋
It goes up and down. But over time the general trend is down.
The dollar is taking a hit because of our debt. It's not just unprecedented levels of debt, and rapidly rising debt, it's that we apparently have no plan to remedy the situation--our whole economy seems to rest on ever-increasing debt!
Sooner or later our creditors have to decide we are not a good risk. They don't have to call back their loans, all they have to do is stop lending us -more- money, and our economy will collapse like a house of cards.
The only way to pay back that debt, or to decrease it, is to make the dollar cheaper, making the debt smaller. This has the incidental good effect of stimulating exports and decreasing imports, helping our balance of trade. And at this point our trade deficit is even worse than our budget deficit!
2007-11-17 06:40:37 · answer #2 · answered by Anonymous · 0⤊ 1⤋
imagineworld is a doodoo techniques!! Bush has no longer something to do with the fee of the dollar on the international marketplace. it somewhat is regulated by potential of commodities which contain wheat, rice and crude oil. the european Union is in hassle, and has been considering its inception. anticipate to be sure the Euro-dollar sink in fee as time passes.
2016-11-11 22:28:16 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Haha. Nope.
2007-11-17 06:27:45 · answer #4 · answered by Anonymous · 0⤊ 1⤋
The Dems do not want it to, so I guess it will not.
2007-11-17 06:27:31 · answer #5 · answered by Blessed 7 · 0⤊ 1⤋