Quote:
Originally Posted by Nitack
Here is an interesting thought in this topic. Our currency is valued based on the strength of our economy.
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Isn't it based on a lot more than that? If the strength of a country's economy stays constant yet the political leadership becomes unstable then currency would loose value (as an example).
Quote:
Originally Posted by Nitack
I don't believe our debt is taken into account though when those valuations are made.
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I would think it is. I don't know exactly how the foreign exchange works, but I'm rather sure it's ultimately people's perception that sets the value and people can take into consideration anything that changes their perception.
Am I way off base here?
~modest
