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http://www.bloomberg.com/news/2013-10-24/dollar-near-two-year-low-against-euro-before-confidence-data.html
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For the last few years, the dollar has continued to decline in value, especially when compared to the euro and other international monetary units. The dollar reached a level that approached a two-year low in value during the week of October 21, while the euro, yen, and even the Mexican peso experienced small gains in value. In opposition, the euro reached its highest value in over two years, furthering the gap in value between the euro and the dollar. The dollar's 1.1 decrease in value within the previous month made it the worst- performing form of currency among the ten developed nation currencies followed by Bloomberg's currency index, and there are few signs of any significant increase in value for the dollar within the near future.
The current situation of a sagging dollar, among other issues, is one that needs to be proactively worked on. If the value of the dollar continues to slide, it is very likely that it will lose its place as the standard for trade in international markets, which would be a disaster especially for the United States economy. Although this is not an issue that can be solved overnight, the government and international traders need to take action now in efforts to change the current issue. Otherwise, it may be too late to do anything and the country could end up facing an even more dire situation.
The United States is soon not going to be look at by other countries as this strong power house anymore. The decline of the dollar is something we cannot afford. These other countries are soon going pass us in wealth and economical strength if something is not done soon. Bring up trade was a good point too, I completely agree.
ReplyDeleteI agree. I do think this will affect how other countries look at the U.S. In some aspects there are countries that have already passed us. We have been passed in population, in environmental conservation, health care. We have already fallen behind and cannot afford to fall behind anymore.
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