US Dollar Exchange and Rates

As the growing multi-billion dollar U.S. trade deficit, and stirred the government billions of dollars in bonds, several readers have become a little nervous about the dollar's value. What it is not shrinking?

What I would like to know why the dollar does not decline even faster: In view of Hong Kong as the world's largest debtor nation status, what is it? And ... why do people still pricing oil in U.S. dollars, instead of moving more solvent state-issued currency, such as the yen, yuan or euro?

C. P. - Houston, Texas

Of course, there are a large number of economists, they will tell you, the dollar headed down. If the world stops buying our IOUs, the Treasury will continue to raise interest rates until it can find buyers. , In theory, this could throw the U.S. economy into a tailspin. "The world is watching the United States and the fear, anxiety, concern, but there is hope," the International Monetary Fund Managing Director Christine Lagarde told CNN. "Instability is never a good idea, never a good idea., And this level of uncertainty, arising from the August 2, the fear, bring a lot of instability," she added.

But its weakness, the dollar remains the world's most powerful currency. And a big reason is that the U.S. economy remains the world's largest and most dynamic of. Thinking to Europe to travel? Start saving. As the weak dollar, overseas travel more expensive. Kang Sidu U.S.

Even if you do not intend to travel around the holidays, the dollar may cost. If the slump loss of control, it could mean inflation and interest rates are much higher for Americans. As for IBM, S & P forecasts, revenue increased by about 7.9%, 5% this year, in 2012, reflecting the improving global economy. S & P estimates that earnings per share in 2012 and 2011, $ 13.40 $ 15.00. Standard & Poor's pointed out, IBM Corporation for about $ 4 billion stock buyback in the second quarter of 2011, is expected to buy back shares to enhance earnings per share ahead. Standard & Poor's has $ 205 of the 12-month target price of IBM. As of 3:39 pm (JST) in Tokyo reported, the dollar fell to 73.421. DXY, 3-month low, traders believe that it could fall further, even after the fall of Lehman by 72.696 low struck in May. U.S. dollar exchange rate of dollar collapse

Dollar's decline against the yen to 77.85 yen, down 0.1%, is causing some concern in Tokyo, central bankers are thinking about another intervention. Is rapidly approaching, the Japanese yen at the G7 meeting in mid-March proposed intervention, but most analysts believe that any intervention now would be a move by the Bank of Japan only. Japanese government officials on the U.S. debt crisis of the key indicates that you can especially the Japanese financial system is not conducive to a default. The late trading session before the U.S. stock market prices, but the end of their new high. Shares rose after the U.S. Federal Reserve Chairman Ben Bernanke said the Fed was considering some "untested steps" to further stimulate the economy. Bernanke talks stocks higher.

U.S. gross domestic product - which is basically where the production value of all goods and services - in 2005 came to about $ 12.4 trillion, according to the U.S. Central Intelligence Agency overview. (To reach the GDP figures, add up all the spending by consumers, investors and government agencies - and then add the value of exports minus imports of goods.) Represents one-fifth of the world. Therefore, every five dollars in the global economic value is based on the United States. U.S. dollar has lost value, and other major currencies since the end of 2002 compared. Results: the euro against the dollar rose more than 70%. Affectionately Chen C $ Canadian dollars, up 60% or more - in more than 30 years the first time an equal footing. Yen is up about 16%. Us dollar

We will see the dollar collapse, which would shock the world trade. U.S. dollar is the world's reserve currency, supported by the global financial system. Worldwide, countries holding U.S. dollar, U.S. Treasuries and dollar-denominated debt. By default, the world will face a financial crisis, a significant proportion. By $ 2000, we can see gold break through in the short term, along with a wide range of political unrest. ... ... Europe's total gross domestic product roughly the same (about $ 12.2 trillion). But, while it relies on a common currency, Europe and the U.S. economy is far from uniform - thanks to its 25 member countries to pursue independent economic policies. Moreover, any attempt to sell the product throughout Europe learned the hard way, one in 20 different languages ​​can be expensive.The marketing dollar fell in part because the U.S. imports more goods to sell abroad - especially oil - - must borrow to close the gap. Another factor: in Europe and elsewhere to make their currencies more valuable high interest rates.

In most years, crude oil and gasoline fell in price this fall. But this year, AAA's daily price survey, regular unleaded gasoline about $ 2.79 per gallon, the country, up 21% from a year earlier. China, although it is developing rapidly than in Europe or the United States, recorded $ 89,000 in 2005 gross domestic product. However, China only recently began to gently unlock the yuan's "peg" dollar - it remains to be seen what will happen when the money trying to stand on our own two feet. The Chinese economy is growing rapidly, it is not clear how long this rapid growth is sustainable. If they have a recession there, this will be a doozy. BMW 3 Series sport sedan base price has risen about 20%, than in the past five years, "Wall Street Journal" reported this week. This may go up.

Bay Area, said a professor, to increase the federal debt ceiling of the treatment is no reason to celebrate. San Jose State economics professor Jeff Hummel said, it could have been a good thing, if the Government of outstanding debt. Although BMW and other car manufacturers may accept lower profits in the U.S. market, a lower dollar will increase import of food, shoes, chemicals, and price. European governments worry that the free fall of the dollar may be a disaster, even Germany, Europe's strongest economies. In the Dow Jones Industrial Average ($ INDU, news, message) is a large multinational company. Each of them a conversion, for example, the profits from Europe, the weak dollar increases the bottom line. For example, IBM Corporation (IBM, news, message) reported quarterly revenue rose 9 percent over last year. No money changes, or about 6%.

If price competition is to simplify, U.S. companies can gradually sell their products in the domestic charge more. Dow Jones Industrial Average index plunged 265 points to 11,866, a loss of nearly 2.2%. Standard & Poor's 500 index fell 2.6 percent and technology-dominated Nasdaq composite index fell 2.8%. Broader stock market is its longest losing streak in two years the pace.