The Dollar

The weakening of the Dollar is effecting everyone in the world. A number of factors have lead to this slow devaluation of the greenback to other currencies. The prime loan crisis the Iraqi war and the surprising success of Barak Hussien Obamain in his run for the presidency have all contributed to this situation. The prime loan fiasco has taken billions of dollars out of the stock market and sent hundreds of shady mortgage companies into bankruptcy. This caused a shortage of money and a slowdown in spending which in turn is causing a slowdown in production. Many companies have laid off workers as production has gone down which continues the downward spiral. The government is spending billions of dollars on the Iraqi war which is draining money and raising the national debt. Cleat uncertainty with regard to Barak Obamas spending plans if he manages to win the presidency. He has pledged widespread federal intervention in varied extensive spending plans. These future plans are making investors jittery and causing them not to invest and spend their money. This further is stunting growth in the private sector.

That’s the bad news.

The good news should be that American exports and industry should start gaining momentum from much higher sales in overseas markets. As the dollar weakens American exports will become very attractive to overseas markets this will in turn drive American companies to higher production. The dollars may be worth less but the American companies will be making more of them. In addition the massive losses on Wall street has stopped foreign companies from taking profits on American investments. This has left the money invested in the United States stay there. Eventually this surplus of money will surface to restart the economy.

As the American economy goes so does the world economy so the eventual comeback of the present sluggish United States Economy will herald the comeback of the world economy.   

The Dollar is still alright.