Why has the value of the US dollar dropped so much overseas?
Answer:
If it was'nt for China bank rolling the US it would be lower.
Because Americans are buying $3.50 coffee and $200.00 tennis shoes while other countries are purchasing US Bonds.
"Economists say the decrease is due in part to two big deficits in the U.S.
First, there's the U.S. budget deficit, the amount the federal government had to borrow to cover its spending: $413 billion for the past fiscal year."
We are not producing as much as we are spending.
"And there's the broadest measure of the U.S. trade gap, known as the current account deficit. That's the shortfall on trade and investment income between the U.S. and the rest of the world. That deficit is expected to top $600 billion this year,"
We are spending more on imports than we are selling to other countries.
because the US imports so many things, meaning that the world's supply of US dollars is increasing. As supply increases, price decreases. Basic law of supply.
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