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.
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.
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.