The End - 2000 to 2009

America: Not a Super Power Anymore!

  • Author: MR
  • Filed under: America, News
  • Date: Nov 7,2007 | 01:44 PM

If you didn’t know that one American dollar is equal to one Canadian dollar, well now you know. Also, one pound (UK) is equal to $2.10 and increasing. Also China will become the largest energy consumer passing the US by 2010. With the declining American dollar value in the world market countries like Saudi Arabia, South Korea, China, Venezuela, Sudan, Iran and Russia are abandoning the US dollar.

EDIT/UPDATE: The Canadian dollar passes the US $1.10! I think I’m moving to Canada!

The Euro, Japanese Yen, UK Pound are all the hot new currency of the 21st century. The American dollar is no longer respected throughout the world. As an Economics major, I can tell you this. So many Americans are in debt, cost of living has drastically gone up in many areas, house prices are high (it may fall but not too much) and the wars in Iraq and Afghanistan have completely stabbed the heart of America’s economy. America is dependent on too many other countries and is imploding.

America will no longer be a super power in the coming years. It’ll still be a functional country and still considered “first-world”, but not just the number state in the world in terms of power and financial backing.

Who’s the next world power? China. Japan. UK. Europe. India

The fall of an empire has begun:

The dollar fell to a record versus the euro and the lowest since 1981 against the pound after Chinese officials signaled plans to diversify the nation’s $1.43 trillion of foreign exchange reserves.

The U.S. dollar also declined to the cheapest versus the Canadian dollar since the end of a fixed exchange rate in 1950 and a 23-year low against the Australian dollar. The New York Board of Trade’s dollar index dropped to 75.077, the lowest since the gauge started in March 1973.

Source: Dollar Falls to Record on China’s Plans to Diversify Reserves

General Motors Corp., the world’s largest automaker, reported a record $39 billion quarterly loss after three money-losing years forced the company to write down the value of future tax benefits.

Source: GM Reports $39 Billion Loss on Deferred Tax Charge

Oh yeah! I forgot to mention the amount of mortgages and loans that are going default (they can’t pay the monthly payments) and the banks are having problem taking care of such a high velocity of default loans and mortgages. In other words people are putting down on homes they can’t afford. Banks are giving out loans to people who can’t pay the interest.


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  • 21 Responses for "America: Not a Super Power Anymore!"

    1. Bilal Brown November 7th, 2007 at 4:04 pm

      Well it won’t be the UK. Our country is going to pot as well!

    2. Baba November 7th, 2007 at 4:58 pm

      Don’t delight in the despair.

    3. Ayoub November 7th, 2007 at 5:39 pm

      Its time some other nation to step up to the plate. My prediction: China, then India.

    4. Zaynab November 7th, 2007 at 6:24 pm

      You know what’s hilarious, I heard on the news yesterday that this model, Gisele Bundchen, is now refusing to be paid in $US! LOL, she’s asking for strictly Euros.

      On the plus side though, if the war and all of the ridiculous scandals haven’t swayed the masses yet, maybe the state of the economy will be the final nail in the Republican coffin for the ’08 election…

    5. WeeZie November 8th, 2007 at 1:59 am

      Salaam,

      Well…not to rain on the parade but a falling dollar isn’t really that bad economically speaking. The exchange rate of the currency is based on supply and demand and seeing that the United States has a massive foreign debt, it is to the U.S’ benefit if the dollar is cheap. A cheap dollar means that for foreigners, American goods are cheaper and for Americans, foreign goods are more expensive. The result is that the negative capital outflow will decrease.

      Simply put, a fall in the exchange rate does not in itself mean anything substantive and can even help the country.

      Masalaam

    6. YoussefAlMasry November 8th, 2007 at 9:32 am

      Alsalamualaikum,

      Just another quick point.

      By this time next year we will have elected a new president, so the longterm economic outlook is far from set.

      That being said, trips to Masr have become MUCH harder on the wallet :(

    7. Mujahideen Ryder November 8th, 2007 at 10:27 am

      WeeZie on November 8, 2007 at 1:59 am said:

      Salaam,

      Well…not to rain on the parade but a falling dollar isn’t really that bad economically speaking. The exchange rate of the currency is based on supply and demand and seeing that the United States has a massive foreign debt, it is to the U.S’ benefit if the dollar is cheap. A cheap dollar means that for foreigners, American goods are cheaper and for Americans, foreign goods are more expensive. The result is that the negative capital outflow will decrease.

      Simply put, a fall in the exchange rate does not in itself mean anything substantive and can even help the country.

      Masalaam

      You forgot to mention the falling markets of American products and the rise of imported products. Also the exporting of thousands of jobs.

    8. WeeZie November 8th, 2007 at 9:23 pm

      Mujahideen Ryder on November 8, 2007 at 10:27 am said:

      You forgot to mention the falling markets of American products and the rise of imported products. Also the exporting of thousands of jobs.

      Salaams,

      That is the thing. A cheaper dollar, makes imports more expensive and in theory, should in the long run, decrease imports. In the short run, of course, there is that fear of an economic downturn but over the long run, its not such a bad thing.

      Look at China. The United States wants the Chinese to revalue the renminbi because they feel that it is too cheap and because of that, the U.S market is being flooded with Chinese goods.

      masalaam

    9. salam November 8th, 2007 at 10:05 pm

      Y= C + I + G + NX, take that you econ majors!

    10. Bilal Brown November 9th, 2007 at 5:45 pm

      The United States runs a large and growing deficit in merchandise goods trade. While the United States exported more than $1 trillion in goods in 2006, it imported more than $1.8 trillion worth. The US imports about 50% of its food.

    11. Yaser November 9th, 2007 at 9:56 pm

      Look I don’t know what all this economic mumbo jumbo means but we can solve this with two simple words: Invade Canada.

    12. BostonMuslim November 10th, 2007 at 8:49 am

      A falling dollar doesn’t mean much actually, it is Europe that’s actually getting worried because as the dollar keeps falling American exports will rise and that’s good for America and that’s why the government is not even wanting to do anything about it. the american dollar is falling because the Fed is cutting interest rates making foreign investors not interested in American investments since they can get better returns elsewhere but i think this if offset but the rise in exports in the long run.

    13. landdocked November 14th, 2007 at 3:10 pm

      HaHa yea, Afhganastan will be the next big thing.

    14. Mujahideen Ryder November 14th, 2007 at 3:12 pm

      landdocked on November 14, 2007 at 3:10 pm said:

      HaHa yea, Afhganastan will be the next big thing.

      Afghanistan…You’ve got to be kidding me? They don’t even have a stable functional government.

    15. YoussefAlMasry December 3rd, 2007 at 11:34 am

      Quick note: The dollar is ahead of the Loonie this morning. Markets fluctuate; that is the nature of the system.

    16. YoussefAlMasry December 3rd, 2007 at 11:47 am

      This, however, does not mean that we should do away with plans to invade Canada.

    17. runny nose sister December 3rd, 2007 at 3:53 pm

      osama said he was going to bankrupt america with the war efforts in afghanistan and iraq looks like the plan is working lol

      we better move to egypt or sudan now and buy that big house we always wanted hehehehe

    18. simon March 22nd, 2008 at 2:52 pm

      if you want to stop a country say china from being a world power just stop buying goods imported from china its down to the people on the street .

    19. towel-head-HATER February 22nd, 2009 at 9:53 pm

      America will always be on top for one reason we are free nobady killing us for our religon. Also we dont wear masks over our faces like ragheads. Number 2 we dont live in mud hutts and take a baths in the same river we shit in. And if you dont like it here go back to the sand dunes and quit soakin up the good life here and sending our worthless dollar to your 3 world countries were your own presidents dont care about you.

    20. MR February 22nd, 2009 at 11:19 pm

      @towel-head-HATER – Thank you for your comment and for visiting my blog. Can you please explain to me why GM/Ford/Bank of America/Citi are all getting billions of dollar in aid just like those people in “mud hutts” are getting billions of dollars in aid?

    21. genieyclo February 23rd, 2009 at 12:46 pm

      America not a super power? Please. A little fluctuation in the currency won’t make America topple overnight.

      America’s strength lies in 3 things:
      >It’s economic might
      >Marketing, cultural, and ideological power
      >Military might

      It seems the first one is starting to shake, yet the other two, particularly the 3rd, are still strong threats to anyone. Of course, China continues to grow, as does India, ever more in population, expertise, skill, and influence. Japan does as well, but their problem is the same as Europe’s, and to a lesser degree (but soon coming) America’s: dropping birth rate and longer lives.

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