Saturday, November 17, 2007

The Fall Of the American Dollar…and it taking us down with it

Over the past few years the value of the American dollar has been falling when compared to other currency such as the Euro and the Canadian dollar. The devaluing of the buck has been so drastic that people are no longer looking at it the same way that they used to. Where the US dollar was once seeing as the most stable currency in the world people around the world are dropping the dollar in favor of what is now being seen as more safer currencies.

That’s right people are dropping the American Dollar faster then a hot potato!

China (one of America’s largest investors) has just released a statement that they are going to stop buying American debt.

South Korea is pulling away from the dollar

Saudi Arabia which currency was pegged with the US dollar has decided to break it’s currency away from the dollar.

OPEC is now not going to only use the American Dollar to price the value of oil but will now start using a basket of currencies.

Etc, etc, etc.

What does this all mean? Well that all depends on policies that the American government makes. If we keep running things the same way as we are doing right now we may in fact be heading for some really reeeeeeeeeeeeeeeeeeeaaaaaaaaaaaaaalllllllllllllllllllllllyyyyyyyyyyyy economically troubling times. More then the current recession that we are in (or heading into depending on your view) some fear of the level of the great depression.

But if we take policies that do more to stabilize our dollar we might be able avoid falling into anything that bad and return to be the world’s safest currency again.

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