American tourists in London have become objects of pity. The poor people - they've come all the way over here, say the locals, and now they don't have the money to enjoy themselves. Monday, the dollar touched a 26-year low against the English currency. The dollar has dropped well below 2-to-the-pound.
Tourists go about in a state of shock and awe. When they buy a hamburger they find that it costs as much as a rib-eye steak at home. They hop in a taxi and wish they had refinanced their home before making the trip. At the Savoy or Claridge's, before giving customers their bills, bellhops are positioned directly behind them, to catch their wallets as they fall.
America's markets were closed on Wednesday for the 4th of July celebrations. But America's money was marked to market all over the planet. Wherever it showed up, it was greeted warmly - but not quite as warmly as a month ago.
While dropping below the 2-to-the-pound level in London, on the continent, the greenback lost ground too. At US$1.36 to the euro, it is near its all-time low.
The dollar seems to have the weight of the entire world financial system on its shoulders. And what a system it is!
We are amazed. We are flabbergasted. We don't see how it can continue.
And yet, as a dear reader tells us below...we've been saying that for a while...and the Great Reckoning may not come for another 40 or 50 years!
Or sooner...
Bill Bonner
The Daily Reckoning Australia
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About the Author
Best-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning.
