The beaten dollar

We all know that the U.S. dollar is falling, and probably is continuing to fall. Although the exports of the U.S. is doing good, but the dollar isn’t. The euro is much higher than the dollar now. The euro is getting higher and higher. Europe’s euro is over 1.40 which people felt that the euro should not have risen over 1.40 because it is as high as the European exports price out of the world markets. And the European banks should set the interest rate higher so that they’re currency would go higher. The falling dollar is causing problems such as people investing in U.S. assets, would now have to look somewhere else because it wouldn’t be worth as much.

Also U.S. imports aren’t importing as much due to the fact that U.S. would have to pay much more now than it used to. The other exporting countries would be affected to because they wouldn’t have as much exporting than it used to and would be losing a huge amount of money and would be forced to rise prices or interest rates. The dollar falling would’ve been a good thing if it were falling slowing however due to the rate of the dollar falling, it’s cause oil prices to rise. Also interest rates were falling so consumers would buy more stuff but it isn’t working because consumers are worried that the currency would fall too low in the future and would rather save up their money instead of spending it. The dollar is affecting all and it’ll probably get worse but of course it’ll rise back up, sometime in the future.

Source: http://www.wsws.org/articles/2007/oct2007/eco-o03.shtml