SUIT YOURSELF

Tuesday 13 August 2013

DOLLAR IN DISTRESS

Poor dollar standard! The united states can pay any debt it has because we can always print money to do that,' Alan Greenspan, a former chairman of the Federal Reserve, whenever this point is made, people usually respond by invoking Zimbabwe. As the helpless African republic demonstrated  there is a  limit to how much money a government can print before its economy plunges into HYPERINFLATION.Zimbabwe is one of sixty-six (66) countries beside America itself that by the IMF's last count, either adopt the dollar as legal tender, peg their currency to it or manage their exchange rate against it. it  only present rival, the EURO, has a much smaller circle of influence, counting to 25 devotees, beyond the 17 members of the euro zone itself. However, the sixty-six (66) members of the dollar block have a collective Gross Domestic Product (GDP) of almost $9trillion, or about 15% of the world economy. the list includes some minnows like St Kitts and Nevis, some populous countries like Bangladesh and some middle-ranking economic powers like Saudi Arabia.The group comprises  allies such as Qatar, and rebels such as Venezuela, which expresses disdain for American imperialism even as it surrenders its monetary sovereignty to America's Central Bank. Alas, all is not well in the dollar block. The biggest member of the dollar block by far is China, which keeps tight tabs on the Yuan's movement against the green-back. HOW STRONG IS THE DOLLAR??/


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