...may be the biggest debtor nation in the world, but the rest of the west isn't far behind. It is also the biggest economy in the world, has the smallest unemployment rate, consistent growth rates, high productivity and high consumer spending.
Every one of these trends also has a dark side, of course. Indeed, the Fed has little interest in raising interest rates to increase the value of the dollar, as much as europe would love to see it happen. It keeps the cost of american goods down and foreign goods up.
The USA is trying like hell to get China to properly float the Yuan for the same reason.
The EU hates a high dollar, as much as they may say otherwise. The US is the biggest market in the world and will continue to be for years. A low dollar means fewer EU items sold in the US, from cheese to airplanes.
When I look at the economies of the EU compared with the USA, I, personally, don't see the 35% difference that the current value of the monies suggests.
A lot of it is political, of course. Since the value of money is subject to supply/demand, anyone with enough resources can alter the relative value of currencies by buying or selling.
It's about perception as much as about economic theory.
...may be the biggest debtor nation in the world, but the rest of the west isn't far behind. It is also the biggest economy in the world, has the smallest unemployment rate, consistent growth rates, high productivity and high consumer spending.
Every one of these trends also has a dark side, of course. Indeed, the Fed has little interest in raising interest rates to increase the value of the dollar, as much as europe would love to see it happen. It keeps the cost of american goods down and foreign goods up.
The USA is trying like hell to get China to properly float the Yuan for the same reason.
The EU hates a high dollar, as much as they may say otherwise. The US is the biggest market in the world and will continue to be for years. A low dollar means fewer EU items sold in the US, from cheese to airplanes.
When I look at the economies of the EU compared with the USA, I, personally, don't see the 35% difference that the current value of the monies suggests.
A lot of it is political, of course. Since the value of money is subject to supply/demand, anyone with enough resources can alter the relative value of currencies by buying or selling.
It's about perception as much as about economic theory.