If there is no struggle, there is no progress.

- Frederick Douglas

America's Econominc Swan Dive

Forget what the politicians say about the economy as it is all Clear Politics posturing. Look at the numbers and you will see we have been becoming weaker and weaker as a world economy. Yes, this has happened under the Bush administration, even though they keep touting a great economy.

An economy that is strong with a currency would not have the following current conditions:

Lowest value compared to its small neighbor--Canada--in more than 30 years.
Lowest value against Euro, EVER.
Currency reserves of countries being transferred from dollars to euros.

All of this, and they keep saying the economy is good. Perhaps if you close your eyes and have no fundamental understanding of economics you will believe the US Economy is getting stronger. (Of course, if it continues like this our illegal immigration problem will be solved.)

What are they saying outside the US media:

"After the strong fall in the dollar and the decision to transfer our foreign currency reserves into euros, we have taken measures and now 70pc of Iranian assets are in euros, other currencies or gold," said Deputy Economy Minister Mohammad Zahedi Vafa. [Read]

There is this joke circulating in financial circles that the once “almighty US dollar,” is fast turning into the “new American peso.” Since 2001 the dollar has lost more than half its value against the euro. It now costs nearly $1.40 to buy one euro. And it isn’t just the euro that seems to be growing stronger against the US dollar. It has declined against many other major world currencies, and even including minor ones like our peso, reflecting the dollar’s loss of purchasing power. [Read]

The United States Dollar has fallen to its lowest levels in fifteen years against a basket of six currencies. Things are so bleak that the Indian rupee is beginning to look like a viable reserve currency, a 'hard' currency. As a matter of fact, that's not a bad idea, but more on that topic later. [Read]

Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East. [Read]

As the government continues to expand and spend, you will lose your life of comfort. Politicians will lose nothing, as they vote on their own pay raises, retirement benefits and expenses picked-up.

posted at 08:14:06 on 09/21/07 by clearpolitics - Category: Economics - [Permalink]

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