Originally Posted by
stdreb27
http:///forum/post/2739446
Sure in a round about way it is all connected. But demand dictates the value of the dollar vs foreign currencies. Not how much money we are spending vs what we are taking in. We do basically print money money (in the form of T bills) for banks to buy with a federal reserve note. Adding to supply, But the big reason imo for the fall in value of the dollar, and the reason the market is flooded. Was Europe going to a single currency, ending the need of the USD in that market, and to add some competition with which currency to use the USD or the Euro.
its much more than that... the USD is what the world's currency is based on. I read something and there is a lot that goes into it... investing, capital, wall street, stocks...etc all play a part.. but so does our debt ratio (defecit)