A lower valued Euro currency has in recent days corresponded to a rise in the value of the dollar per the dollar index. With a rise in the dollar, oil price increases are curtailed as it is priced in dollars. Higher dollar valuations also mean lower treasury yields have more value which makes U.S. foreign debt more expensive in terms of real worth.
A higher dollar is good for Americans in the sense that having a higher valued dollar also prevents inflation and allows income to buy more. However, a low dollar valuation also makes debt cheaper in the sense that the value of debt declines, and the national debt is over $14 trillion dollars. In this sense the goals of the government and the American people differ in some ways.
Maintaining a strong economy is achieved by actions that give a 'country' rather than a 'nation' a stronger long-term position in the global marketplace. In theory, a strong country means the needs of the nation can then be better met, but that is neither a guarantee nor a requirement in any clearly defined way. In a way, the economic needs of the nation are not necessarily optimally calibrated with the expectations for the country's economy.
• CBS: President Obama bypasses senate to appoint consumer affairs chief
• Reuters: Federal reserve governor advocates bank penalties
• Bloomberg: S&P has best annual start since 2006
• Moody's: Illinois bond rating downgraded to A2
• Business Insider: Long-term stock market cycle implies more volatility
• Washington Post: Euro currency value sliding
:.
0 comments:
Post a Comment