| Talkback | |
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Title: | Cute ideas but mostly wrong | |||
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| Name: | James | | |||
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| City: | Philadelphia | State: | PA | | |
| I have seen too much misguidance on boards/ international news and my own media to stomach. The dollars fall is due to 3 main reasons, all relating to simple supply and demand economics in a macro sense. 1) the use of the US dollar as the primary currency for world commodity trade, including OPEC and oil dropping due to Opec countries allowing trade in foreign currency (Iran and Iraq ie `The Axis of Evil`) 2) the use of the US dollar as the primary reserve currency to back weaker money, primarily through the purchase of US Treasuries Many countries have slowed down buying treasuries as bad investments or as a form of lack of faith in US diplomacy. 3) the overextension of easy credit to US citizens and companies and sale of treasuries to offset US govt deficit. these three have all been challenged in the past 8 years an excellent book http://www.amazon.com/Petrodollar-Warfare-Iraq-Future-Dollar/dp/0865715149/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1213411907&sr=8- |
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