OVM,
I have to tell you this first, talking to a relative last week in Toronto he was sure that the Looney was coming of age on the world market and it is because of the Canadian economy that is the only reason why – sorry the Canadian economy is too much dependent on the US economy at this point and the Looney is something like 9th on the list of preferred currencies to hold onto, with the US dollar still number one, euro a very close second.
OK here is the thing, there is no riddle. There is not an issue why this is happening. The problem is;
1) The markets are emotionally driven, be it a stock market, commodities or currency. The people involved want to make money and they are emotional with gains and loses (egos vs. depression). No one likes loses and it seems that no one wants to invest in a losing things – read on.
2) the US economy would be so much better if the US government would not bail out the mortgage mess, would raise rates to make the US more of a lucrative place to invest and a very VERY SERIOUS LOOK AT removing the progressive (socialist) punitive tax system and putting in place something that does not punish a person for the work they do. These three things alone would boost the Dollar up quickly.
3) the US is also being faced with a trade deficit that is problematic in itself. I think that we need to look at first the issue with Mexico and stop buying goods from there, stop vacationing there and stop supporting an invasion. This one issue strips out layers of our country’s foundation with issues of Sovereignty (for many they have no clue what this actually means) and the basis of our fundamental economy – mainly property rights. This is a complex issue and not one that should be taken lightly but for me to explain the cause and affect it would take me a long time which I don’t have for a while. Other countries, especially the EU countries have looked at what is happening with the invasion and have been pushing the Euro (which by the way is artificially propped to hide issues of no real united constitution – so there is a faux union, not unlike the NAZI puppet governments of France) while on the other hand countries like Russia and China see opportunity with a weaker US on the world stage. You notice I have not mentioned Iraq? That is because Iraq has little to do with this but some have been saying it has.
There is no riddle, there is no hidden issues, it is simple economics when you look at it.
OH one thing, if you can read...some can't read while on the road... I would go to a Borders or B&N and buy "The Forgotten Man". It will explain a lot of how we got here and gives a clear picture of what is the real problems are today.
