By James McKee
The American government’s policies were causing serious damage prior the Obama administration taking office; whether or not we can recover from the hole we have already dug for ourselves remains to be seen. The decline of the United States economy and its negative impact on the USD has been being felt for years now. Subsequently the purchasing power of the dollar has been hindered dramatically causing a rise in prices for Americans who buy less causing businesses to lose money. This whole vicious cycle has resulted in exponential loss of American jobs and a growing fear among foreign investors when they consider business with America.
This lack of both foreign and domestic dollars in the market place causes markets to shrink or even disappear entirely. Many American companies have folded up entirely due to the abundant problems being seen in the investment markets and a growing fear of losing absolutely everything. The USD has suffered alongside the ailing banks in America that have suffered huge losses as a result of decreased consumer activity. While the stock market has not crashed like it did in the 1920s Americans are feeling a new type of economic depression and one that relies on a lack of spending power through a lack of credit.
Instead of Americans changing their spending habits we have seen even more declaring bankruptcy causing a dramatic shift in the value of the USD causing an even deeper downtrend. The acts undertaken by the US Federal Reserve (quantitative easing especially) have sunk the value of the USD and caused serious problems for the currency and the US economy as well. Recently both Democrats and Republicans have begun measures that would trim the budget deficit over the next several years however it is just not enough. Many believe that the decline of the USD is only beginning, those on the forex currency exchange should stay tuned to the US economy for more changes.
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.