United States Heading Towards A Financial Collapse?
By David on November 08th, 2007
I am no financial genius – let me be clear about that. But lately, when I start adding the numbers together, the future of this country’s economy is not a pretty picture. 7 of our top trading partner countries are considering dropping the U.S. dollar; the euro is at an all time high against the dollar; the amount of real estate foreclosures and the credit crunch in this country is staggering. Ugh, it’s all getting to be a bit much. Sure, a lot of people will tell you to invest more money because of the dropping prices, and I cannot say I disagree to a certain extent…but still, these are some scary times for the old U.S. of A.
From the New York Times:
Still, several important factors besides the emergence of sovereign wealth funds are weighing on the dollar. One is that big investors from the United States — ignoring the traditional “home bias” — are pulling their money out of dollar-denominated assets. Stephen Jen, global head of currency research at Morgan Stanley in London, has calculated that United States money managers are some of the largest “dollar diversifiers,” pulling about $400 billion out of mutual funds in the United States and into international assets. Allocations into international assets have risen from 15 percent then to 22.5 percent now, he wrote in a recent report.
From Currency Trading:
It’s no secret that the dollar is on a downward spiral. Its value is dropping, and the Fed isn’t doing a whole lot to change that. As a result, a number of countries are considering a shift away from the dollar to preserve their assets. These are seven of the countries currently considering a move from the dollar, and how they’ll have an effect on its value and the US economy. …
Interesting times coming through….interesting times.
Source: United States Heading Towards A Financial Collapse? | My Two Dollars