Dec
5
Run on the U.S. Dollar?
Posted by: Peyman Gazor | December 5, 2010 | Leave a Comment
Start saving and start producing United States! Change is definitely under way in American business. U.S. citizens will have to adapt to a lower standard of living, and for most, there will be no more indulging.
It is believed that the worlds financial crisis can be largely related to the greedy investors in Wall Street and their clever schemes, to the poor decisions made by the U.S. Federal Reserve. According to Jim Rogers, a well known international investor, America’s problems are much deeper than a weakening U.S. dollar. The Federal Reserve chairmen travels to asia and debases the U.S. dollar; more specifically, the FED is relying on other countries to “run” the US economy. On one side, we have many supporting the idea of letting businesses go bankrupt in this financial situation, and for the businesses that are sound to take over. However, we have others supporting liquidating assets, and pumping money into the economy; this move can have severe consequences not only for the U.S., but in markets around the world. An increase in inflation would be just one of many following such an action and to add, their will be debasing of currencies globally.
The U.S. economy is known for using up much of the worlds resources just as a single nation. For example, of the worlds oil supply, 50 % is used by America while the rest of the world has to live on the rest. This example sets us up for the question: why should the U.S. be given such opportunities and endulgance, while the rest of the world has to be limited to supply on world resources? If such practices in the U.S. economy should continue, there will be a run on the U.S. dollar as investors look to other markets and currencies.