dollar value

fullmoongirl1819 · Gast

hello guys,

i shall write a little text about the US dollar value and my main question is "is the US dollar value on a good way?think about the political and economic reasons."

and these are my points that i will mention:
cons:
- USA has a lot unemployment
- some enterprises broke down because of financial situation for example people are not paying their debts back because of high interest

pros:
- bush is no more president, obama tries to lead the place
- dollar is cheap which leads to good export

does someone has also some good reasons?please help and add
thank you smile

MI · Administrator Anmeldungsdatum: 22.01.2005 Beiträge: 1140 Wohnort: München

Could you please explain your question? I just don't understand it. What do you mean by "Is the dollar value on a good way?".
As far as I know, the currency value can decline or increase in value according to other currencies. So first, you have to make an assumption about the development of the currency - which is already based on assumptions about the economic situation of the country. And then you can evaluate this situation.

Greetings
MI

fullmoongirl1819 · Gast

ok, maybe I should ask: Is the us dollar currency on a good way compared to the euro currency?"

i just want to explain in my essay, that the dollar is loosing his value against the euro and I also want to mention the problems and the reasons.

and for me the reasons that i have mentioned aren't enough for me...that's why i am searching for more ideas.

MI · Administrator Anmeldungsdatum: 22.01.2005 Beiträge: 1140 Wohnort: München

The problem is that nothing is as easy as it seems. For example, you would not want the dollar to rapidly increase in value. Why? Because that would mean a flight into the dollar, normally only seen when grave international conflicts (like lingering wars) disturb the world financial markets. So perhaps we'll see an increase in value of the dollar, when the conflict with Iran gets more complicated - but no one wants that, do they?
On a different plane, a strengthening dollar could mark the recovery of the American economy - or the decline of the European.
Another aspect might be, a loss in value ot the dollar might lead to the Chinese finally raising the value of their currency, which is politicially underrated, which means that the Chinese cannot use their own currency in international affairs, which is why they have build huge reserves in American dollars. With a decline in value, they might search for alternatives, one of which would be to increase the value of their own currency to its nominal value, leading to fairer trade conditions, etc. This might help international relations and the world economy.

The value of a currency is a highly complex and very political issue as far as I know. Some variations are also only due to speculations.

What I want to point out with these little reflections is that I believe it to be nonsense to speak about a currency being "on a good way". You can say that the economy is "on a good way" and that the currency value is healthy, i.e. near its nominal value and not underrated or overrated due to political reasons or speculations. The currency value with regard to other values is just a reflection of the politics and economics of the country.

Greetings
MI

fullmoongirl1819 · Gast

sorry for belated answer..

hmm, how would you ask the question or titel?

MI · Administrator Anmeldungsdatum: 22.01.2005 Beiträge: 1140 Wohnort: München

Perhaps in the direction of:
"What determines the value of the dollar as compared to other currencies and in how far are these developments positive or not?"