Archives - Economics: Page 26
Author: amparo enriquez (Sat Jun 18, 2005 1:42 am)
Title: How long will the US Dollar gain strength?
HOW LONG WILL THE DOLLAR KEEP IT’S NEW GAIN IN STRENGTH?
If you have an answer please let me know.
The strength of the US dollar is dependent on the countries political stability. The US has a track record political stability even with the relatively frequent change of leadership (president). The closer the world gets to becoming a true global entity the more power the dollar will lose. As the rest of the world begins to take responsibility for each other the US will no longer be forced to be the world police and more countries will become more politically stable. This will level the playing field allow countries such as Iraq, Iran and some countries in Africa who have some of the richest resources to start fighting the power of the US dollar.
But as more countries begin to gain strength in the global market, won't they present a new source of revenue for the exports of the United States? This can only increase our economic stability in the long run, provided that we maintain the economic output needed to supply a growing global market. If we can't produce the technological innovations and educational reforms necessary to remain at the forefront of the world markets, the dollar will surely fall.