why would another countries dollar be worth more?
2007-11-18 01:47:07 · 7 answers · asked by sunshine 3 in Politics & Government ➔ Other - Politics & Government
Because the dollar can purchase less today than it did yesterday. It's called inflation which is caused by putting into circulation excessive amounts of FRN's which has no backing of anything---in fact they are an IOU of the FED. The only way the govenment can pay its bills is to use more borrowed currency from the FED which takes Bonds of the U.S. Government and the citizens pay off these bonds with taxes. All goes well until confidence is lost in this arrangement. Euros---which are partly backed by gold and is on demand more and more because of this--some nations are considering switching their reserves to the Euro because of the decline in the dollar.
2007-11-18 03:23:51 · answer #1 · answered by doubleolly 5 · 0⤊ 0⤋
its all about how much stock they traded on that dollar, it is only a comparison, that if canadians went to the usa to purchase something their dollar is now worth 3 or 4 cents more than the american dollar, this was always the case when I grew up and we still had american tourists, there is always someone on a bandwagon complaining about this or that, now that our dollar is higher this is going to happen, when the canadian dollar dropped in the sixties to below the americans there was not such an outcry from canadians as there is today, I don't understand why, they have been reaping the benefits for years buying US selling Canadian making fortune, I guess greed just never seases and Canadians have become greedy some afraid to say this is fair we have made much money in the past because of this now it is time to give back to our loyal patrons, no of course they want more. its all a bunch of crap as far as I am concerned. people who get too greedy and refuse to share usually end up with nothing, not even friends, because of course you cannot purchase those.
2007-11-18 10:13:42 · answer #2 · answered by Neptune2bsure 6 · 0⤊ 0⤋
The Yuan in China is worth more against the dollar.
Many world currency's are worth more against the dollar.
I believe some countries have gone off the dollar as a measurement of its own currency.
The dollar just isn't what it used to be.
Peace
Jim
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2007-11-18 09:59:25 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Currency is no longer based on tangible assets . . . it performs like an individual stock or any other asset . . . it is subject to market conditions just like your home is . . . for instance if there is an over supply of housing in your area due to lack of demand . . . then your home will most likely decline in value . . . the same logic applies to currency. Treat currency like any other asset . . .
2007-11-18 09:57:55 · answer #4 · answered by CHARITY G 7 · 0⤊ 0⤋
ACTUALLY OUR DOLLAR VALUE IS BASED ON THE GOLD AND SILVER AND PLANTNIUM THAT THE USA OWNS. YOU CAN LOOK ALL THIS UP ON THEIR WEBSITE. RIGHT NOW I THINK THE DOLLAR IS ONLY WORTH LIKE 87 CENTS
2007-11-18 10:44:52 · answer #5 · answered by elmucki 2 · 0⤊ 1⤋
World currencies are like stocks, if the Governments don't perform, they sink.
2007-11-18 10:47:04 · answer #6 · answered by Anonymous · 0⤊ 0⤋
uh, the value of the dollar against the value of other currencies...
2007-11-18 09:51:56 · answer #7 · answered by nostradamus02012 7 · 1⤊ 0⤋