The article I have chosen to analyze is from nytimes.com printed on January 27, 2005. The title of the article is A Sinking U.S. Dollar Dominates the study at Davo. This article discusses the relentlessly sinking horse and the softness to find and an answer to the problem. It indicates how economists, politicians and business executives are very come to about the imbalances in the global financial system, which is reflected in the dollar marks lofty fall against the euro and former(a) currencies. But most were unsure that the scrubbing administration would reduce the trade and bud fare deficits, which have take to those imbalances.
        The article indicates that The White House has said that it does not slang these issues as a major problem because foreigners still stead the American economy as a good investment. some(prenominal) at the forum said they doubted that China, which is financing much of the American debt, would bow to pressure to allow its currency to rise against the dollar this year. The Bush administration, which has all ways sent a grownup representative in the past Davos meetings to defend the Iraq war and other foreign policy actions, did not send a in addition prominent economic policy maker to this gathering. That gave the World frugal Forum proceedings an imbalanced tone.
The problem of the sinking dollar combine with United States not paying enough solicitude to the risks of its growing indebtedness could create unsustainable multiple burdens of household and earthly concern debt in the United States, leaving American consumers like an accident waiting to happen. The article states that it depends upon how well fiscal policy is applied, I believe there needs to be some diversify in U.S. fiscal policy, with the dollar already trading at $1.30 to the euro, near the level of economic unacceptability for Europe...
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