U.S. Dollar will get weaker over time

breadline2– I’ve said it before and I’ll say it again.  The U.S. dollar will weaken as we go forward.   There may be momentary gains and loss cycles but the overall long term trend will be for a weaker U.S. dollar.

– Why?   Short-term Capitalistic greed over long-term nationalistic concerns.

– Virtually all the big corporations (U.S. and otherwise), have renounced any allegiance they may have had in favor of one nation or another in pursuit of wealth.  If sending U.S. manufacturing and U.S. hi-tech jobs overseas results in lower costs and thus higher profits, they’ve long since done it.

– The net result?  We, the United States, are no longer a wealth generating nation.   We no longer produce large quantities of things to sell the the rest of the world.  We’ve sent our production capabilities out of the country and we’ve become a nation of consumers.  And any nation that spends more on what it consumes than it makes on what it sells, is a nation with diminishing wealth.

– Other nations, and the U.N. itself, have realized that as the U.S. gets poorer, it makes less and less sense that our currency should remain the world’s reference currency.   The calls to move away from the U.S. dollar as the standard are increasing.   I’d say the writing is on the wall unless something fundamental changes.

– Check out the following articles that have just come out in the last few days:

China argues to replace US dollar

BRIC nations urge diverse monetary system

UN panel touts new global currency reserve system

– And check out these pieces that I reported and commented on earlier:

China stuck in ‘dollar trap’

China Flexes its Muscles and Finds Support in a Bid to Dump the Dollar as the World’s Main Reserve Currency

Growing Deficits Threaten Pensions

Comments are closed.