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Spread this message with Digg, Del.icio.us, Reddit, or Stumbleupon, and subscribe to the RSS Feed to track articles The Crown Is Falling Off “King Dollar’s” HeadE-mail - editor@economyincisis.org |
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The US dollar has long been accepted as the world’s major reserve currency, a status that represented strength and confidence in the American economy. Today, concern about the long term sustainability of the US Economy has caused a dumping of the dollar in foreign exchange reserves worldwide. In 1999 the dollar accounted for 70.5% of the worlds currency reserves, in 2006 it fell to 65.7%, said an International Monetary Fund report. Over that same time period the Euro moved from accounting for 18% to 25% of all reserves. Recent accounting shows that this trend is accelerating So why are countries concerned? America is importing $1,450,000 per minute more than it exports and accumulating an $8.8 trillion dollar national debt. Mounting American national and trade deficits are causing countries to loose confidence in the greenback- and no one wants to hitch their economic health to a debt-ridden currency. America can temporarily sustain its massive debt and loan based economy in large part due to its long-time status as the world’s reserve currency- and the perception of invincibility that standing has bestowed on the dollar. The gradual shift in the global market away from the dollar- to euros, pounds sterling or other economic holdings is- and has been- underway for some time. Once the shift is completed, loans will be cancelled and foreign faith in the American currency will be lost and nothing will stand in the way of the dollars momentous decline in value. The dollar has long been king of the world currencies- as America was the most productive country- but like all unsupported kings it eventually will be dethroned. Its current worth is now propped up only by its past reputation. It is time to demand congress take action. Use the search engine at EconomyInCrisis.org to write to your local congressman and tell them that the US must free itself from its dependence on debt and handouts from foreign lenders. America must maintain a robust manufacturing capability in order to support the country without relying on ever increasing debt and imports to sustain it. In order to avoid a future dollar with next to no value EIC urges concerned citizens everywhere to act now. Click here to contact your Representative in Congress. Spread this message with Digg, Del.icio.us, Reddit, or Stumbleupon, and subscribe to the RSS Feed to track articles
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Article Comments From Readers
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guest says "They lie like dogs" on 08/18/07
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guest says "Why do so many Economists Lie?" on 08/07/07
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Why is it that so many economists assure us that our economy is stong and vigoous?
They boast a rising stock market, a strong economy, and claim low inflation and good consumer confidence as indicators. Surely both this article and their views are contradictory. In terms of one of these claims "low inflation", here's what I see: The dollar has lost 40% of its value against the Euro since 2000. College costs continue to go up far faster than students can pay for tuition. Health care has risen 76% in the last 5 years. Gas is way up compared to when Clinton was in office. Groceries are more expensive in my neighborhood, stamps are more (while bulk/junk mailers get discounts)and credit card rates are higher for purchases. Surely the 3-5% annual inflation rate must be false unless it cherry picks data to find exceptions. I would guess that the real inflation rate is probably about 10-15% per year when you include the goods and services people use. Yet, despite it all, I am earning LESS than I did 10 years ago. When the bill for the Iraq war comes due, where will the money come from? |
That is just the biggest bunch of hogwash I have ever heard. They have been lying about unemployment and everything else. We can no longer trust them to tell us the truth, we have to tell it to them.