Wednesday, July 27, 2011

THE WORLD REACTION TO THE USA DEBT LIMIT BY THE DOWNGRADE.

The world reaction to the USA alternative solution to the debt limit referred to as the ceiling alternative, or the extention of the debt limit have had world wide intervention for the downgrade which too have resulted in the immediate and further devaluation of the USA currency the dollar. The dollar has been rated at the value of just over 77 to the euro in the world markets. The decline has been attributed to the world wide intervention for the downgrade that may revalue the debt ceiling to over the limit by a hundred billion to trillion US dollars with no immediate monetary consequences in currency devaluation and uncontroled inflation. However, the US dollar purchasing power has been expected to decrease, eventhough the exports would rise as the value of the dollar decreases to a point in which the imports to the USA will cease, particularly from the major economies, before the final collapse of the stock, if markets and the industries in the USA were to continue to either the closer, or the outsourcing.

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