U.S.Dollar
The U.S.is in its worst fiscal shape in recent memory.
Since the war in Iraq began the U.S. dollar has fallen as much as 50% in relation to other world currencies. As oil is traded in U.S. dollars is it any wonder that the price of oil has increased dramatically when the buying power of the U.S. dollar has decreased just as dramatically.
To support the cost of the war effort the U.S. has had to spend billions and has a current deficit of half a trillion dollars.
With the dollar’s fall, foreigners buying U.S.companies and U.S.real estate has become a whole lot cheaper. Meanwhile China, which has consistently kept its currency undervalued, drives American manufacturers out of business with its cheap goods.
The U.S. appears to be on the road to ruin. So what is the answer.
Well actively trying to increase the value of the dollar and placing a tariff on Chinese-made goods until China properly values its currency would go a long way to helping the situation. It would lower the price of oil, give American-made goods a more competitive field, and decrease China’s demand for oil as demand for its cheap goods declines.
I know what you are thinking. We are news reporters not economists. True, but at least we have recognized that there is a very serious problem that needs immediate attention which appears to be more than the U.S. government has done.
This has been a Naked News Commentary. We would like to hear your views and invite you to write us at Feedback@nakednews.com.