I am very concerned about the US DOLLAR.oN THE USDX today it is below 83.?
If it falls below 83 ,there is every reason to believe that it will fall into oblivion.Does anyone share my concern?
China holds a reserve of 1 trillion US dollars.If and when the dollar goes below 83,it is likely that they will sell off their dollars ,flooding the world market,thereby decreasing its value even more resulting in unimaginable inflation
- regeruggedLv 71 decade agoFavorite Answer
It isn't going to happen. None of what you fear is even a remote possibility. It's too bad Milton Freedman passed away recently. He was an Economist Americans could trust. So, I cannot refer you to him for advice.
We have the strongest economy in the world. Our economy will stay strong no matter which numbers people may use to measure it.
- 1 decade ago
The US dollar has been diluted in recent years due to two major factors:
1. Trade Imbalances: Particularly in oil and manufactured goods.
2. Rise of the Euro: The dollar is no longer the defacto standard for a stable currency.
The US economy drives a large percentage of the world economy. A low US dollar actually harms European companies that export to the American market. As oil prices moderate, the dollar will recover somewhat.
- bata4689Lv 41 decade ago
Yes the "war" in Iraq has really cost us dearly (in more ways than one.) However, I doubt if the inerenational community will allow the collapse of the dollar. There are too many bonds held by foreign entities (The Chinese goverment being number one.)
What will help is a change in Washington from our present, free spending one. And the developmet of a more robust domestic economy.