Is the US Dollar on it’s Death Bed ?
This comment by James Turk caught my attention.
“When you look at a currency crisis, and there have been dozens since the end of the Second World War where currencies have disappeared and been completed destroyed. The people who react last are the people in the country where the currency is being destroyed. It’s a natural thing to have happen because your being paid in the currency, your spending that currency and your think everything is going to be well.”
Take a look at the videos and judge for yourself. Grab a handful of salt since the videos were created by Al Jazeera, but don’t stick your head in the sand.
I think my 401k is on its death bed.
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Hi Julie,
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Marcel
Too true, I don’t hear many people talking about this but I agree the answer to this recession is not increased consumer spending but real innovation and productivity that can instill faith in the dollar. Can you imagine if we went to mars, no one else could do that right now it would boost the American image (thus the dollar) more than a tax rebate ever could.
China could go to Mars too. But I’m not sure if anyone would really care anyway, IMHO. Business confidence is placed in Brands and not the countries they come from.
Great video links, I enjoyed watching them.
As for the Mars thing, I’m with you on this Marcel. I don’t see why anyone would care. I’m sure people would just start complaining on the government is spending money on other things we don’t need to spend money on.
The dollar is not on its death bed. It is just going through a necessary decrease in value based upon decades of American consumers spending more than the economy is producing. The economy is still strong, people have just been living beyond the means of the economy. That naturally results in a declining dollar (only due to other factors – mainly countries artificially keeping their currencies devalued and countries having excess savings has delayed this happening much earlier).
A currency on its deathbed is the Zimbabwe dollar.