The dollar’s slump is of great and immediate concern because, while the dollar has been slipping only gradually in the recent past, the rate of decline has picked up momentum. A dollar crash will have disastrous implications for global financial markets. At the end of 2001, the euro was worth $ 0.8915, but it has been on a steady upward march since then…
May 23rd, 2008 | Addison Wiggin | 5 comments | ContinuedArchive for Addison Wiggin
Editorial director of The Daily Reckoning, Addison Wiggin is also the author, with Bill Bonner, of the international bestseller Financial Reckoning Day and a frequent guest on national US radio and television programs. Look for the sequel to Financial Reckoning Day, Empire of Debt (John Wiley & Sons) in October, 2005.
Three Scenarios That Could Cause a Sudden Drop in the U.S. Dollar’s Value
1. Foreign countries drop their U.S. dollar reserves. We depend on foreign investment in our currency to bolster its value or, at least, to slow down its fall. When that thinly held balance changes, our dollar loses its spending power. At a November 2007 meeting of the Organization of Petroleum Exporting Countries (OPEC)’s 13-member cartel, Iranian President Mahmoud Ahmadinejad…
April 23rd, 2008 | Addison Wiggin | 5 comments | Continued
How the U.S. Trade Deficit Affects You: Living in the age of the declining U.S. dollar
Most people can relate to the realities of how jobs and profits shift, and why. The idea that higher-wage manufacturing jobs are being lost and replaced by lower-wage retail jobs, for example, is a reality that working people understand. They get it. The same is not always true when we talk about trade deficits. Like [...]
June 29th, 2007 | Addison Wiggin | 0 comments | Continued
U.S. Housing Market a Victim of Poor Federal Reserve Policy
The global economy is changing, and the US dollar is on the front lines of change. When we take a look at history, we see how past events have affected everything. The Black Death created a devastating labour shortage throughout Europe for decades. Christopher Columbus’s voyages turned trade upside down for hundreds of years.
The Industrial [...]
Cerberus Buys Chrysler At A $30B Discount
Cerberus Capital is buying Chrysler back from the Germans for $7.4 billion. After spending $37 billion to buy the American carmaker, then billions more trying to keep it afloat, Daimler gets to keep all of Chrysler’s debts. (At least, they get to write them off against activities at Mercedes and other going business concerns.) The [...]
May 15th, 2007 | Addison Wiggin | 0 comments | Continued
The Fall of the U.S. Dollar ~ A Dismal History
History has shown that money - not counterfeit, but official money printed by the government - has been known to lose value and become virtually worthless. Examples include Russian rubles from pre-Revolution days, 50-million marks from 1920s Germany, and Cuban pesos from pre-Castro days. In all of these cases, jarring political and economic change destroyed [...]
December 6th, 2006 | Addison Wiggin | 0 comments | Continued
Bretton Woods Agreement
1944’s Bretton Woods Agreement had the original intention of smoothing out economic conflict after World War II. Howver, the actual outcome - replacing of the gold standard with the dollar standard - ended up causing far more problems throughout the years, as today’s falling dollar will show.
November 29th, 2006 | Addison Wiggin | 0 comments | Continued