Foreign Currency Trading Schools
USA: Is it for sale, cheap?
Trade deficits and mounting government debt have contributed in a decline in the value of the dollar in the global currency market. Old school economics believe a weak dollar increased US exports. This was true as long as the dollar held hegemony in the international currency market.
Today this is no longer true as the Euro has taken the lead in the currency market. When first introduced, the Euro traded at 80 cents US on the currency market. Today it trades at $1.30 US. This is about a 60% decline in the value of the dollar against the Euro.
There is $27 trillion plus dollars in foreign reserves. Each one of these dollars is a debt the USA owes. This has not made US products more attractive. It has made US companies more attractive.
Yesterday a Russian comapny announced it may buy one of the USA’s largest companies, Alcoa. And why not. From their point of view, it’s for sale cheap.
As the dollar declines further, will more and more US companies be bought for cheap bucks?
china pretty much owns america, and owns a great deal of its debt, notice how american administrations pretty much bow down and kiss china’s behind. americans are even conditioned to pass up goods made in america to purchase chinese made goods. american currency backed by the pentagon is so way over valued, this slide will continue for a long time yet, especially as more and more countries distance themselves from america and all its imperialist wars
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