EUR/USD Goes Bullish Again

On the heels of various policy decisions that have caused fear the world over many are doubting the dollar, and while this is no surprise the fact that they Euro almost reached a high of 1.5 against the dollar is staggering. The USD has not done this poorly on the online forex exchange in quite some time, and while there are many who speculate as to why this is occurring no one can know for certain. The United States has experienced an irregularly large amount of turbulence in recent months, and state governments have begun instituting heavy cutbacks to their budgets.

The Federal government has also begun to spend a good deal of time instituting their own cutbacks; however, until the United States becomes serious enough to make cuts to Social Security and the military change is unlikely. The US and its citizens must become much more serious about paying off the debt it has accrued in order to accommodate real change in the country. Once the United States has paid back its debts to large countries such as China chances are that things will go much better for the country in the long run. There has to be a point at everyone pays their bills, otherwise there is a good chance that it will be necessary to declare bankruptcy.

The Euro is looking good for the time being, but as agreements to institute much more serious austerity measures become known to European citizens there is a good chance of riots. Riots have already rocked France and England in recent months and there is a very good chance that if austerity measures instituted shut down schools that there could a serious backlash. Such a backlash would mean certain doom for a good deal of Europe with regard to its stability, these demonstrations have already been experienced throughout the continent.

The state of California has already begun to witness serious backlash from its citizens in response to educational budget cuts. These responses have been everything from teachers protesting at the capitol to students chaining the doors of college buildings shut. While this has caused a certain degree of media attention it has also brought about a good deal discontent among citizens in the state. Little to no resolution has been achieved through budget cuts so far because it is not enough, there have to be much deeper cuts and a clear timeline for when we will be out of debt.