Brother Can You Spare A Euro
Below is a MRR and PLR article in category Finance -> subcategory Wealth Building.
Brother, Can You Spare a Euro?
Since its debut in 2002, the euro?"a complex creation that replaced the currencies of 12 European nations, including France, Germany, and Italy?"has consistently outperformed the U.S. dollar. Initially, the euro matched the greenback but soon fell to about 86 cents per dollar.
Fast forward to November 11, 2007, and the euro is valued at 1.46 U.S. dollars, making it 46% stronger than the American currency.
The decline of the dollar is puzzling and historically unprecedented. It has reached a 26-year low against the British pound and a 33-year low against the Canadian dollar.
So, what has caused this downward spiral? Throughout the last century, every U.S. President and Treasury Secretary consistently emphasized a strong dollar as a core policy. As recently as October 10, shortly before the G-7 Summit, both the President and Treasury Secretary reiterated this stance.
Treasury Secretary Henry Paulson, a former Chairman of Goldman Sachs, stated, "I feel very strongly that a strong dollar is in our nation's interest."
However, actions to support the dollar, such as strategic buybacks, are noticeably absent. Some speculate that the U.S. may be content with a weaker dollar because it boosts exports, making them more affordable internationally?"resulting in a 15% increase.
The pressing question is, what if the dollar continues to slide? Is there any safety net?
Don't count on it. Secretary Paulson has recently added a new perspective: currency values should reflect competitive markets and underlying economic fundamentals. Unfortunately, these fundamentals are currently weak in the U.S. The mortgage crisis and a $576 billion war expenditure have stretched the economy thin, positioning the U.S. as the largest debtor nation.
Consider the implications for retirement savings when converted into declining dollars. The purchasing power of these savings is diminishing. Unlike many foreign citizens, Americans lack accessible options to keep funds in euros, as few U.S. banks offer this flexibility. However, some German institutions like Deutsche Bank and online banks like EverBank are now providing accounts in other currencies for Americans.
Brother, can you spare a euro?
For more, see "The Incredible Shrinking Dollar" at [www.collectivewizdom.com](http://www.collectivewizdom.com).
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