Monday, April 7, 2008

What are ways the war in Iraq are causing the dollar to drop?


We know that the Iraq War is affecting the U.S. dollar. We know that the war is expensive and is costing us more and more. But there are other ways in which the war is also affecting the dollar. The stock market, the Iraq War has cost the stock maker $1.1 trillion dollars. The money came from consumers spending. If the stock market doesn’t do well the dollar won’t as well. The dollar still falls due to the war in Iraq, and investors are losing their money in their investment. As a result, the dollar won’t be used as much and will change their currency to another currency which is more stable.
With the Iraq War, the government will focus on spending a lot of money on that to have more materials or weapons made. This causes to cut back on other spending areas. As the Iraq war goes on, it cause a lot of economic problems and it is hard to get investors. To balance the rate of investment, U.S. made the interest rates higher and causes more problems for the dollar. It makes people not spend a lot due to the prices. And not many people spend a lot due to their fear, to keep their money because the future might not be what you expected it to be.

Soruce:
http://www.currencytrading.net/2007/20-hidden-ways-the-iraq-war-is-affecting-the-us-dollar/

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