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Business
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| Number of pages / Number of words: |
5 / 1147 |
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Treasury bonds and just in dollars in cash. They're quite worried that if the dollar keeps on falling, this will cause them very, very large losses. And so they want to re-balance a little bit to have more money in the euro. So even though the U.S. economy is a much stronger economy than the European economy, that doesn't matter so much to them because what they're worried about is the prospect of the dollar continuing to fall and the prospect of a very large current account imbalance and trade deficit that the U...
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has, which means that the U.S. needs to suck in huge amounts of financing every day just to stop the dollar from falling further. (National Public Radio,2005,p.1)
The Euro is not all bad news for the United States. The United States economy may very will flourish with the diminishing dollar. With the value of the dollar much less than the Euro, exports will increase to European countries where now they can afford what is made in the United States...
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