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socralynnek · 15-01-2008, 08:56

I guess, the low value of the dollar is not as big a problem as for countries like Germany.

In Germany, wages were growing less than the prices of goods has risen, therefore Germany is currently living from exporting. The stronger the Euro gets, the less profit German firms make outside the EU (but most of our exports go to the EU anyway)

But I guess there would be a point when countries like China or Russia switch their savings from US-Dollar to Euro, which means the USA probably should take care of their currency, otherwise they might be losing economical power.

Concerning deficit: Other countries are doing even worse than the US. OTOH in bad times one should spend to help the economy, but I thought that the worst after 9 11 was over, so they should start saving some now again...

15-01-2008, 08:56	#9
socralynnek Moderator Join Date: Nov 2004 Location: USS Defiant Posts: 3,827	I guess, the low value of the dollar is not as big a problem as for countries like Germany. In Germany, wages were growing less than the prices of goods has risen, therefore Germany is currently living from exporting. The stronger the Euro gets, the less profit German firms make outside the EU (but most of our exports go to the EU anyway) But I guess there would be a point when countries like China or Russia switch their savings from US-Dollar to Euro, which means the USA probably should take care of their currency, otherwise they might be losing economical power. Concerning deficit: Other countries are doing even worse than the US. OTOH in bad times one should spend to help the economy, but I thought that the worst after 9 11 was over, so they should start saving some now again... __________________ Being without a signature since November 2004.