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How will the weakening of the American dollar affect the world economy?
Wiki User
∙ 16y ago
The Situation: Almost all contracts of Crude Oil, Gold & Silvers, LME, Petroleum Products are in USD. US Economy gain major chunk out of dollar conversion(exchange rate differential) The weakning of USD: This lead to : Crude oil & Gold Prices upwards. Money received in crude oil deals are ultimatly converted and put into precious metal. Once crude price up total world economy will change? No, other than US rest of the country will see that their currency will appriciate against USDollar. This will save that country against crude price increase. This is not the case with US they have to pay in USD only & inflation will start increase in USA. To avoid inflation, US may use the "supper power" status and call the "war" against any crude producing country. This cycle will go on till crude get exhusted in comming years. Jayesh Trivedi j_n_trivedi@Yahoo.com
Wiki User
∙ 16y ago
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How effective was the dollar diplomacy in Nicaragua?
"It was very effective because American banks made loans to the government and became heavily involved in the economy."
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How effective do you think dollar diplomacy was in Nicaragua?
it was very effective because American banks made loans to the government and became heavily involved in the economy. <3
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