Quote:
Originally Posted by KingK7
Anyone think it will bounce back?
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Nope - chances of that in the future are remote and in the near future the dollar will drop further.
When the US economy has an accountant monitoring it, would think there will be a slowing down of the depreciation and maybe some increases in value. But overall and in the longer term - probably a downwards spiral and a massive challenge to combat/reverse it. Only my
, but this should be a top priority and already past the stage of stupid politics.
The US now has more debt per person than any country on the planet - forgetting the habitual personal debt. US industry has very little to offer to reduce the trade deficit. The government continues to borrow heavily from other nations (roughly $10-15bill/day).
US folks have been spending more than they earn and that is increasing rapidly. The moment there is a general wage increase - that is spent - plus an extra portion usually financed by cards. The spending power is obviously on a portion of US manufactured product, but the bulk of spending is on imported product - resulting in further increases in trading deficits.
Add with the traditionally high funding by taxpayers money in areas of defense plus the current "war" spending - any finance director of a corp would cut his throat.
Currency exchange is reflecting these factors plus plenty more. It's not sustainable.