The economic leaders in the world are changing. America was the biggest and most powerfull nation out there, but now it is going to be Europe and Asia, at least that is what it looks like. The dollar is worth nothing anymore and is continuing to drop. This is very bad for all the earnings in dollars, they are worth less and less. The Yuan is kept low, but if they decide to give it a boost, than de dollar will fall fast.
Soon I am starting a new webmaster forum with a marketplace. The marketplace will be in Euro’s and not in dollars. That will make it more unique I think.
America will still be on the top, but not taking the lead. I think from now to 3 years we see some drastic changes. And I don’t think the dollar will go back up in value. The turn is on other nations now.
PS: I have nothing against Americans, just sharing my thoughts.
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June 8th, 2007 at 5:06 pm
I think once our current president leaves office, things will look up drastically for America. I think the perception of America has changed drastically over the last term and a half or so, but many people understand that Mr. Bush is the primary driving force behind it.
Once he is no longer our “leader”, with any luck we’ll have a much better president in place, who can get to work on fixing what Mr. Bush has broken. Once the reputation is fixed, then the world’s confidence will come back, and I think the dollar will grow strong again.
June 8th, 2007 at 5:12 pm
The problem is, America does not make the rules anymore, it does not matter if there comes a new president or not.
June 8th, 2007 at 6:06 pm
You have the right take on this one Nomar. It does not matter who is in the White House, the world is moving on. The next president will affect what happens in the USA but not so much on what happens globaly.
I would not be surprised if the US moves towards a more isolationalist model in the coming years.
June 8th, 2007 at 6:29 pm
It’s scary how fast it can change. The comparison between the Canadian and US dollar is not much anymore. . .
June 9th, 2007 at 7:25 am
As both an American and a European, here is my opinion. The devaluation of the dollar you are seeing is the result of growth of the US money supply. The US is printing a bunch of money and getting the rest of the world to send a lot of capital to the US for money that is worth less and less (that’s part of the evil plan). Other countries do not have this kind of luxury, because they don’t have reserve currencies. Even the Euro does not have sufficient weight to do this. I’m sure some Europeans don’t believe this, but the fact is, you don’t understand the power of the dark side.. hehe. The US economy is so massive and so productive and has so much inertia, it will hold sway for decades even if it started downhill now, which it isn’t. The US consistently has higher economic growth than the EU and outperforms it in all important metrics. I love Europe and am also european, but the US continues to pull ahead of Europe. Asia has phenomenal growth, but is rising from an incredibly small base. They have lots of hurdles for decades to come and probably some big financial shocks too. All this said, here is some reality on the ground. Most US workers aren’t seeing much more money. The top 10% are getting much richer which isn’t true for most other US workers, so there are lots of imbalances in US society. Europe has seen lots of nice increases in property values, but this is not true economic growth. People feel richer knowing their home is worth more, but it is illusory growth and not an increase in the productive economy. Ex-socialist republics have seen good growth, but they are still a relatively small piece of the pie.
I hope this didn’t sound too long-winded or arrogant, but the basic idea is not to confuse exchange rates with economic power or trajectory. The weak dollar you are seeing is US economic policy, to maintain global hegemony in economic and military spheres. They will always publicly say they favor a strong dollar, but they manipulate it to enhance US power and that will continue.
I think the problem everyone has with America is G.W. Bush as president. It’s like having an 8 year-old drive a car. It’s not the car, it’s the driver. He’ll be gone soon, and yes there will be a lot of damage to repair.
June 9th, 2007 at 7:48 am
Go Canada GO.. up goes the loonie.. almost even with the states dollar which is good and bad.
June 9th, 2007 at 9:38 am
Marc, it is well known europe and asia grow faster than the US.
Good comment by the way
June 9th, 2007 at 6:52 pm
Switching to euros for a common currency may be a bit mature. Perhaps not for your audience, but in the world overall, I think the US dollar is probably still the most commonly accepted and traded currency outside of local currencies.
June 9th, 2007 at 8:47 pm
Go Canada!
, I can’t beleive how fast the American dollar is dropping. But it may be inevitable for the country to go between recession and prospertity.. according to the business cycle.
June 9th, 2007 at 8:50 pm
Hmm, @ Leroy Brown - I think the next president will have a lot of cleaning up to do and he will be having a heck of a pressure from the US people to do something worthwhile.
@ Marc - Thats a long one! But you got some points there. But I do not agree that other countries will take long time to overcome the US. Its near, since there is a lot going against the US these days. Currency is not everything, I am talking about world politics. US is no longer powerful as it was before…
@ Ed Kohler - I agree, $$ will be a common currency for a longer time since most people are comfortable with it. Like if I say I want to sell my site @ 500 euros, I am sure people will ask me, how much $$ is that.
June 10th, 2007 at 3:07 am
I have to disagree Nomar. Yes Asia is growing faster, but Europe is definitely growing slower overall. Some republics in central Europe are growing faster. e.g. Poland, Czech Republic, Slovakia, some parts of Scandinavia and some others. However the bulk of the EU economy; which is Germany, France, Italy, UK consistently grow slower. Spain has been on par with at times with US growth in the past decade. Benelux growth is also lower than the US. The UK is the best performing economy for a large country in Europe, yet still trails US growth consistently. So in aggregate Europe is growing much slower than the US.
June 10th, 2007 at 7:49 am
I believe Asia will be it…Their economy has been ahead of the U.S. for quite some time now. Everything in their economy is improving - technology which is aiding in their rapid growth.
I heard China no longer wants to invest in the U.S.?
-Gregg
June 10th, 2007 at 9:46 pm
[...] Kingnomar talks about how the American dollar is gradually dropping and how this affects others. [...]
June 11th, 2007 at 7:13 am
The debt that GW has racked up is crazy.
And that’s not even counting the massive shortfalls (like 50 trillion) when you count the social security and healthcare hammers that are gonna fall within 20 years.
It’s gonna get real ugly sooner or later.