I remember my days living in the USA and my belief in the all mighty dollar. I used to think that it made no difference what other currencies in the world were trading at against the dollar because I lived in America where the dollar is all that matters. But this kind of ignorant thinking is probably why the US economy is certainly headed for a complete collapse. Everyone know the US no longer makes anything and therefor they rely on trade and business as their business. But the since the Bush years there has been such a lack of GLOBAL confidence in the US leadership that every major currency has gained blissfully against the dollar."Thank God for George Bush," my British friends tease me, "Now our Pound has never been stronger."
I don't really care too much about business, but to be honest this is the sad truth, the dollar's death is stage one of an economic collapse in the US. It doesn't take a genius to see that when the global merchants come to the table to do their negotiating Euros and Pounds and Yen are replacing the dollar as a mode of trade. WHY? Come on, it is becoming so devalued no one can count on it to being stable enough to use. Since my arrival in Thailand, a supposedly third world nation, the Baht has gained nearly 22% against the sagging dollar. Simple math, 1000 bucks used to get me 42,000 baht. As of today's rate, that same 1000 is only going to buy me 32,000.
Now again all the Americans, a nation proud never to travel -- with the lowest number of passports issued to their citizens of any developed nation -- will say I earn my money here and I spend my money here. Well I doubt very much that the company you work for can say the same. Think about it, if the dollar has no value you'll have to keep putting more of them on the table to buy the Nike shoes which are made in Asia, the leather jackets made in Pakistan, the cars made in Japan, etc.
The final truth is the worst of all. Since the Pound has basically doubled the dollar now, one of our biggest trading partners is absolutely the big brother now. Without risking a thing their companies, simply by having their cash in Pounds have added to their resources expedientially and of course this will continue to be the case. You see the value of American's wealth is errantly primarily fixed into the home where they live. If you have a $500,000 home you may say, "there is my security." Oh really, well considering outside investors view your home as only worth about $250,000 compared to its worth six years ago then is your money really so secure?
Has everyone forgotten when Japan bought up half of New York and LA because of the sky rocket of the Yen?
If you are curious about the exchange rates around the world click on the Title and it will take you to a currency exchange site. You will not like what you see. The site is also very handy if you are getting ready to travel to see just what your money will exchange at anywhere in the world. I hope for your sake you are not holding dollars or as the saying goes, 'may your savings be in Pounds!'
