if interest rates in the United States were lowere than rates in the rest of the world, would the united state
612169
All other things being equal, lower interest rates means capital outflow because it becomes more attractive to invest abroad. And a capital outflow means in turn current account deficit.
284413
Well, not all of the world's nations are in debt, but much of the money ends up in the hands of private entities as governments spend it to help people, either their own, or another country's people.\n\nThe United States spends money on itself to help stimulate economic development, as well as to help in recovery after large natural disasters.  It also spends money on foreign countries to help with their development or other misfortunes.\n\nOne might ask, "if the government issues the money, why not print more of it if they're in debt".   The simple answer is that if they did this, it would make that country's money less valuable.  That's a bad thing...afterall, who wants to have worthless money?
494073
Interest rates in that country relative to other country's interest rates.\nInterest rate expectations in that country and other countries.\nEconomic situation in that country.\nEconomic situation expectations in that country.\nPolitical stablility in that country.
490966
I think that aswell as the above comments, it also depends on taxes. Take here for example (UK) our government taxes us on everything!
849933
It would create a huge underclass in the US.  This would in turn be a huge burden for the American tax payer.  The country would probably collapse.  Many educated Americans would move out of the country to protect their money.  I know I would.\n\nCheck out WWW.Numbersusa.com
174498
The USA is a 4th World Country with controlling the majority of Gold heald and the largest stock market in the world. 80% of all control happens from the USA.
614164
US trade deficit is too small compared to its GDP (nearly $12 trillion).  While trade deficit is a minor problem, global supply-demand will keep varying over the years and this could change the trade-deficit. Further, the deficit is paid by foreign investment, which means Americans aren't saving enough. When the interest rates are very low they won't save much money but spend it on commodities which includes importing from overseas. When the rates go up there is incentive to save it in term-deposits and other safe investments.  It is a tricky complex phenonmenon that will get resolved on its own with time but as of now it is not an alarming situation.
353535
In general, yes they are.\n\nMortgage rates are based on inflation.  When there is greater risk of inflation rates trend higher.\n\nCurrently, if you look around at the cost of goods that you buy day to day... things are a little more expensive.  (Gas to say the least).\n\nAdditionally, foreign monetary policy is starting to frown on the US treasury as an investment.  This means that we will probably see further deterioration of the dollar, probably not too much, but enough, to attract investment...\n\nIn a nutshell, I don't have a positive rate outlook.
25691
As interest rates rise, so does the cost of capital. Therefore (eventually) labor becomes cheaper than capital, and capital improvements decline until the reverse is true i.e. falling interest rates. If you are an Indian firm that manufactures products for an American company, then this will harm Indian industry (but only to a degree, as even in a time of rising interest rates Indian labor is still cheaper than American labor). For Indian manufacturers producing machinery, this is not good news, since the cost of capital will not be exceptionally less expensive than labor.
128196
Japan, China, England for starters and if they started selling it on the open market because they were pissed at us you would have very high interest rates and maybe no job!
1186929
If by expansionary you mean investing in other currencies, it would probably drive the domestic rate downwards. If a country doesn't trust its own currency why should the people?\n\nA contractionary money policy? You got me on that one. Not familiar with what that term means.
960724
NONE. They are very very very very bad. The interest rates are about 250% to 500% or more. Do not do this.
199098
Higher interest rate say in Japan(lol) than the U.S. would cause a demand shift for Yen over dollars. The value of Yen would rise, and the dollar would fall. U.S. goods would then become cheeper for Japaneese citizens than previously were, and Japaneese good would be more expensive for U.S. citizens. Japan would import more from the U.S. and export less, the U.S. would export more and import less from Japan.
339698
If you are refering to t-bills and bonds, then the rate at which the government borrows money is below the yeild curve of other borrowers. The rate at which the governmnet borrows money is at the Risk Free rate (rate on the on the 20 year note (it could be the 30 year bond)) because the government has never defulted on it's payments, and it would be very difficult for them to do so (since they can simply print money). When figuring out a rate of return required for non US government borrowers you need to include a risk premuim, which will raise the rate at which they can borrower money at.
650090
They did borrow from the United States to pay France and and England.  France and England then paid the United States from this money.  When the Depression hit, there was no money to lend and no money to pay.
328304
My impression is that they are all scams.  It is just not possible to offer interest rates like that.  I certainly wouldn't invest in one outside the U.S., because it would be hard to get your money back when they steal it.  But I wouldn't invest in one inside the U.S. either.  Here is a government website about these scams:
248355
I am not sure there is an easy answer for it. It is projected that US growth this year will be weaker than the last two years. Also, it is projected that the US currency is likely to depreciate in 2006. If you want to invest in the stock market outside the US, then you should go for it.