US Dollar Decline ... or Collapse?
The US Dollar continued its decline today, making another record low against the Euro, by falling to 1.4862 (EUR futures market), and making another record low against the Swiss Franc, by falling to 0.9050 (CHF futures market).
There are several potential reasons being given for the new lows, including speculation of an additional interest rate lowering by the US central bank, a revaluation of the exchange rates of several oil producing countries, and calls by some OPEC (Organization of Petroleum Exporting Countries) countries for oil to be priced in several currencies instead of in US Dollars. Whatever the cause, the US Dollar decline is continuing unabated, with no attempt to stop the decline by the US government or the US banks.
Currency investors that are holding US dollars face a difficult decision. If they convert their US Dollars into more stable currencies (such as, well, almost any other currency at this point), they will not get a favorable exchange rate, but if they hold onto their US Dollars and wait for a pull back to a more reasonable rate, they may be waiting indefintely, while their US Dollars lose more value with each day.
Comments
We the Citizens of the United States are looking at the beginning of what could likely turn into a ecomnomic depression here in the US. I think 2008 will be a year that will go down in history as the year the US took the greatest fall, in its history.