Doomsday for the Dollar
Years after the major economic depression hit the world, specifically the United States, many companies are slowly recovering and finding their way up again. But despite this fact, many financial experts are still seeing more crisis this year; mainly a crash in the value of the US dollars.
The unhealthy growth of the Americans borrowing and spending has been held accountable for the instability of the dollar values. However, there are a lot of reasons why the US dollar is seen crashing by many financial experts; all of the reasons, they said, are caused by the government and the banks themselves.
For every legislation that is done on areas like health care bill; cap and trade; tax increases; and even increase in military presence in Iraq and North Korea, the higher the possibility of the dollar crisis becomes. In the past, several other laws and regulations have been passed in the congress and have hurt the dollar value tremendously. Aside from these, external factors can also contribute to the crash in US dollars. One great example is the continuous trade of dollars for other currencies by countries such as Russia and China.
US’ failing economy has brought so much worries and concerns to both local and foreign investors. While the major result of such a situation is the weakening of America’s spending power, foreign investors are also finding trouble with their US assets.
However, things aren’t as bad as it seems. The country has been experiencing dollar crisis from time to time and the country was able to recover from the past crisis that it has experienced. The foreign investors, many of which come from the European market, have been the main reason why the US stock market, despite being in critical situations, still manages to rise up and completely recover from the crisis.
With this fact, anyone can say that there will always be some ways for the dollar value to take off once again. One of which is to strengthen the US economy by growing the foreign capital and credit, as well as the domestic credit demand.
But as an investor, there are things that you can do to still profit despite the predicted dollar crash. The first thing that you can try is to lessen your stake in today’s weakest currency – the dollars. You can buy shares from US companies that export to foreign investors such as Europe. Companies that are worth considering are those that export various transportation equipment, industrial machinery and computer and electrical products. You can also invest in commodity funds. Many experts have foreseen a growth in infrastructures, which also means a growth in the demand for the basic commodities.
About the author: Montele Hogan’s mission is to YOU to achieve the financial freedom and success that everyone in this internet marketing/network marketing game has always talked about. Your success is my success in that we can help each other reach our goals together.
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