The dollar's fall against the euro and the growth in emerging
economies dollar reserves are thus both manifestations of the same basic trend — a lack of private demand for dollars, relative to the US current account deficit, and the resulting pressure for the dollar to fall...
Not exact matches
The U.S. is the world's largest
economy and the U.S.
dollar is the world
reserve currency.
The ratings agency Moody's maintained the US's top - notch «Aaa» credit rating Thursday, saying, «The diversity, dynamism, and competitiveness of the US
economy, along with the US
dollar's status as the preeminent international
reserve currency and very large size and depth of the US Treasury market, offset rising fiscal pressures stemming from aging - related entitlement spending, higher debt - service payments, and recent policy actions that will likely reduce future revenues and increase expenditures.»
Why can't they increase their consumption and investment levels rather than relying on the U.S.
economy to buy their consumer goods and capital goods for surplus
dollars that have no better use than to accumulate in the world's central banking system as excess
reserves?
The Triffin Dilemma, as this problem is known, points out that if foreign growth is high enough relative to US growth that the need for US
dollar reserves grows faster than the US
economy, the resulting US current account deficit will require that the US sell assets fast enough, or that US obligations to foreigners grow fast enough, eventually to put the US
economy at risk.
Using foreign exchange
reserves to support the currency — spending
dollars to buy up renminbi — means the central bank is effectively taking billions of renminbi out of circulation, preventing it from flowing through the
economy, where it can bolster growth.
The expectation that the Gulf
economies will have to draw increasingly on
reserves is putting pressure on GCC currency pegs, as five of the six countries are pegged to the US
dollar; only Kuwait links its currency to a basket.
BEIJING — China's foreign exchange
reserves rose slightly in March as broad U.S.
dollar weakness continued and escalating trade tensions between the world's two largest
economies bolstered expectations of a firmer Chinese currency.
He raised taxes at a time when the average family was near or in starvation mode, he confiscated all of the nation's privately - owned gold and then promptly devalued the
dollar by 40 % (reducing the buying power of any saved
dollars by almost half overnight), he raised bank
reserve requirements numerous times (taking yet more cash out of the real
economy so it could be hoarded in vaults), he actively supported a trade war with tariffs that created massive global imbalances (some would argue ushering in the rise to power of fascist regimes that would have had no chance in times of prosperity), and perhaps most damning, rather than plowing most of those raised tax
dollars back into the stalled
economy, he instead bought gold on the global markets for the government and sequestered it, keeping it from backing new
dollars (monetary expansion, which most understand is required to turn a recession around) and instead further crushing the
economy — and not just the US
economy.
The United States carries tremendous debts, much of it owned by foreigners and foreign governments, other countries» sovereign wealth funds are looking to acquire chunks of the U.S.
economy, the U.S.
dollars is the world's
reserve currency primarily because of inertia rather than our economic strength, and we ship money abroad every day to buy plasma tvs and gasoline.
Bitcoin was introduced to operate as its own
economy, store of value, and digital currency, competing against assets like gold and
reserve currencies such as the US
dollar.
Louis and Ryan discuss the impact of the earthquake and tsunami on the world
economy; inflation, interest rates, the Fed and Bank of Japan action and the U.S. budget negotiations; the profile of home purchasers today; the paradox of government intervention to make «homes affordable for everyone»; the direction of the rental market, rent vs. buy ratios; the comparison of Fed action during the Volker years vs the Bernanke era; Charlie Sheen, oil prices; the direction of the
dollar and other currencies race to the bottom; the status of the
dollar as the world's
reserve currency; the abandonment of the gold standard; the fate of fiat currencies; Utah's gold standard push; the actions states are taking to cut spending; the price of gold and silver and their role as stores of value; real estate vs. gold and silver as investments; the impact of shadow inventory on general inventory; the impact of the numbers of government workers and their salaries on the D.C. area housing market.