Thursday, May 7, 2009

US $ in decline!---International trade blog

The United states economy faces some challenges now that the "value" of the American dollars has dropped. The European Union (EU){http://en.wikipedia.org/wiki/Euro} has lessened restrictions on imports and has also have created the Euro which now has value in 25 countries and its economy is more than that of $9 trillion dollars. (Not bad at all, eh?) There has also been some searching by the Floating Monetary System {http://en.wikipedia.org/wiki/Euro} which determines the value of money in a certain country and its value in other places...Etc.


Because of the United States debts other countries put less faith in American Money and thus do not trust us to pay back thus creating the rocky drop in American currency value. But there is also the fact that it could increase exports to other countries which could inturn stimulate our economy...thus showing, this may not be a bad thing at all.


I personally feel that the American people should be working to lower our debts before digging ourselves into more. Yes, working with imports and exports can be helpful but only to a certain extent. Tariffs can only go so far as to lower the debt issue, you can only tax people so much until they decide they can do without...etc. {http://en.wikipedia.org/wiki/Tariff} If people want to stay on the ruite of looking alternatives then they should try working with some subsidies which can help give some advantages to our countries business and labor force. {http://en.wikipedia.org/wiki/Subsidy}


Lyndon B. Johnso liked working with taxes which in a sense could be useful, he would like to fund benefitial programs with tax money and hopefully improve the economy by improving people and their situations.




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