How much longer can the U.S. economy survive at its current state?
with more going out that coming in and more jobs going to immigrants and foriegn nations, How can the country continue to go about with "business as usual"?
Answer:
We will be fine as long as China continues to loan us money
As long as people in China and other rather unstable countries continue to believe that t-bills are the most stable investment for their savings our interest rates will continue to be low and our economy will thrive. The minute they loose faith we are done.
The two previous respondents makes it seem as though a decline in foreign purchases of American securities would lead to a crisis! Far from it... all that such an action would lead to is a faster decline in the value of the dollar (which would correct the trade imbalance).
One shouldn't forget that all the foreign debt is US dollar denominated and so maintain a fixed nomial value even in the face of a currency depreciation! It is only a problem when this is not the case (like for many debts of developing economies).
. less Lou Dobbs people!
50 more years at least.
More Questions and Answers:
How is canada economy in 2007, and any prediction for beyond?
One method the United States Federal government has used to stimulate consumer spending has been to?
Major Economic activity in The Province of Georgia?
More ricardian quilvalence problem!?
Define MPC and explain using a diagram how changes in the value of MPCaffect the level of consumption spending
What is the role of the government is stabilizing the economy?
The development and changes in agriculture in the world till today?
Problems when fisacal policies are used to stablize the economy?
Economics Anyone...Elastic or Inelastic?
How would you relate the New Growth Theory in the Philippine setting?
Answer:
We will be fine as long as China continues to loan us money
As long as people in China and other rather unstable countries continue to believe that t-bills are the most stable investment for their savings our interest rates will continue to be low and our economy will thrive. The minute they loose faith we are done.
The two previous respondents makes it seem as though a decline in foreign purchases of American securities would lead to a crisis! Far from it... all that such an action would lead to is a faster decline in the value of the dollar (which would correct the trade imbalance).
One shouldn't forget that all the foreign debt is US dollar denominated and so maintain a fixed nomial value even in the face of a currency depreciation! It is only a problem when this is not the case (like for many debts of developing economies).
. less Lou Dobbs people!
50 more years at least.
The answers post by the user, for information only, FunQA.com does not guarantee the right.
More Questions and Answers: