Right now, the economy is terrible. we're trying to improve it, but as it stands progress is kind of slow.
But somehow, even though America is very nearly in a depression, the dollar is making huge gains on the world exchange market. The Australian dollar, which a week ago stood at 98 cents had a 30% drop, and is remaining in the 60-70 cent range, and the Euro has droped from $1.60 to $1.36. How is it the dollar is doing so well, when the economy is tanking?
Apparently, its because investors around the world are scrambling to get to the US, because most of the other leading markets are doing far worse. Treasury securities are a favorite right now, because they are backed by the "full faith and credit of the United States government." And when the Chinese stock exchange dropped by 60%, the Saudi Arabian by 40%, and the Russian by nearly 50%, the US gained a great opportunity to bring in many new investors and to bolster the economy, all because of that gaurantee. America, strange as it seems, is now one of the safest places to invest.
Thursday, October 9, 2008
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