The Troubled Dollar and Related Articles

The article called “The Troubled Dollar” discusses how the current currency of choice around the world, the US dollar, is facing a huge downturn. In the recent decade, the US dollar has seriously lost its strength in the world economy, which has led to an increase in prices for oil and food. The article even raises the possibility that the US’s currency could be replaced by another one, such as the euro or China’s yuan. The economic crisis that is taking place in the US seems to be spreading like a disease to other countries. This just goes to show how dependant the world is on US as a global superpower. I wonder how much longer it will be before foreign investors begin turning to a country for their finances.

It’s truly astounding how the US lost 26 percent of its value in just six years. Even though it is recovering a little, it still faces a huge deficit. Those around the world who are reliant on the success of the dollar are beginning to have their doubts. It poses a huge threat to Middle Eastern nations, such as Saudi Arabia, who count on the stability of the US dollar by pegging their currency to it. With the serious downturn of the dollar in the recent decade, I worry about what our nation’s currency will face in this coming decade. Will this decade prove to be the end of the US currency as the primary world currency?

In a recent CNN.com news article by Fareed Zakaria, it is stated that Wall Street has the possibility of paying a large bonus after having relied on the government for a year. Zakaria recommends that a portion of the money should be kept in reserve for crises that may occur in the future. I believe that this is a great idea. With the US dollar being as shaky as it is now, there is no telling what may happen in this new decade. How should investors go about saving their money? What percentage should be kept in reserve? In another article, this one written by David Frum, it’s is said that the rents for offices in Washington could potentially be higher in expense than New York. Frum declares that it shows how Washington is becoming the dominate financial capital in the US. This may prove that there may no longer be a separation of business and government offices. My question is how might this possibility be affecting the financial in not only America but the world as well? Should this change be accepted?

-Joe Siler