Declining Dollar Major Problem
Posted by Joshua Price on October 30, 2007
Well there’s more great news out there resulting from globalism and internationalism. The U.S. dollar has hit a record low. From The Washington Times:
Barry Katz, a retired lawyer in Silver Spring, is angry and worried about the steep fall of the dollar and what it’s doing to his buying power as an investor and consumer.
It took only 82 cents to buy a euro just a few years ago, and now it takes $1.44, he noted. Meanwhile, the Canadian dollar has achieved parity with the U.S. greenback for the first time in a generation.
“Whatever happened to ‘Sound as a dollar?’ You remember that expression?” he said. Mr. Katz blames political leaders for allowing the dollar to sink so far, so fast.
Mr. Katz is not alone in registering alarm about the rapid decline of the dollar, which recently hit record lows against the euro and a basket of the world’s top currencies. A survey by UBS AG this month found the dollar’s drop is contributing to pessimism among U.S. investors, with 39 percent saying it’s hurting the investment climate “a lot,” and many saying it’s forcing them to plan less holiday spending.
The worries go all the way to the top in global finance, where some officials are worried a rout in the dollar could destabilize the world economy and markets. International Monetary Fund Managing Director Rodrigo de Rato recently noted the potential for serious disruptions from the steep fall of the dollar, which he said could be the result of a broad loss of confidence in the dollar worldwide or the cause of such a loss of confidence.
The story continues:
Central banks from Russia to South Korea, increasingly burned by their traditional investment of dollar reserves in U.S. Treasury bonds and AAA-rated U.S. debt securities, are diversifying out of the dollar and devoting more and more of their reserves to the euro and other currencies.
To facilitate the trend away from U.S. Treasury securities and toward investments far afield from Africa to Siberia, China, Russia, the United Arab Emirates and some other emerging countries have set up national investment funds with an estimated $3 trillion in assets to invest in stocks and venture partnerships around the world.
Besides cutting the purchasing power of Americans, these moves away from the dollar pose a big challenge for the U.S. economy in the long run. The investment of the bulk of the world’s reserves in U.S. bonds and other assets has been a critical source of financing for gigantic U.S. budget and trade deficits. Without that money, the U.S. government and consumers will not be able to go on spending 6 percent more than they produce each year.
This is yet another consequence of globalism. We have been told over and over again how important foreign investment is this country and our political and economic institutions, along with China, have helped to devalue the U.S. dollar to attract more foreign investment.
Can’t you see what’s going on here? America is being sold off chunk by chunk by the globalists, and the devaluing of the dollar makes us more vulnerable to more suspect foreign investment.
I recognize that I’m not being a “good” Republican by saying all of this, but something has got to give.
We have been so brainwashed by the liberals, the media, and the globalists to hate this country or at least disengage from any semblance of nationalism, and a result, we have undergone a form of American desensitizing–an absence of a common culture.
This is all part of the desired end goal of a borderless world. Actually, a world without America.
When are people are going to wake up and see how many Arab and Asian countries are getting rich off of our decline? Perhaps they do see it but choose to ignore it because their only loyalty lies in making more money, not to any particular country, especially America.
That’s good people. Keep doing business with communist China and terror-sponsoring Arab nations and see where it gets you. Your money won’t save from a Chinese takeover or a suicide bomb, but please, sleep well with your multi-million dollar 401(k) you helped accumulate by doing business with those types of countries. You are greedy traitors that are intent on making a damn dime at the expense of U.S. sovereignty and security.