Is This Why the Dollar Is So Weak?
By: Kelley Holland | News Writer
The dollar's weakness isn't just a product of low interest rates. This new study ranks just how responsible - or not - U.S. fiscal policy is.
The dollar has been sliding for quite some time now, and sure, that's partly because interest rates are so low. But of course that's not the whole story, and some folks at Stanford University and the Comeback America Institute have come up with a dramatic representation of another key factor: sovereign fiscal responsibility, a measure of debt levels, fiscal governance, and time until the U.S. can't borrow any more.
Plenty of very smart people question whether high deficits are such a bad thing when the economy is decidedly weak. Still, wherever you stand on that question, seeing U.S. debt levels compared to others' like this is sobering - and at a minimum, suggests why others trading dollars are so bearish. I mean, come on. At 28th out of 34 countries measured, we rank lower than Poland, Slovenia, and Italy?
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