What is your money worth?
Wednesday, March 12, 2008 at 05:25PM 
Behind all of the noise surrounding Obama-mania there is an ominous crisis brewing on the economic horizon here in the United States. The U.S. greenback is in dire straits, falling 25% or more against major currencies since 2002. The Euro closed at 1.53 against the U.S. dollar this week, and there are forecast that it may go as high as 1.55 against the dollar within the week. This is really not anything new but, seems to be swept under the carpet by main stream media. Many of us go to work everyday for this very greenback that's worth-less almost on a daily basis, yet most are oblivious to the plight of the economy, our economy, meaning your money. You see the weakening of the dollar, every time you see prices go up, which is a response to the falling dollar. In essence companies are selling their products at a higher price to try and recoup the loss caused by the falling value of the dollar.
The Federal Reserve Board, the central bank here in the U.S. has been cutting interest rates in previous years to hedge against the rising tide of inflation. The very thing that’s being used as a tool to fight against possible runaway inflation is actually part of the reason the value of the dollar is falling. Another cause of the fall of the dollar is the mortgage crisis. The mortgage crisis is a worldwide issue felt not only here in the U.S., but by 26 other countries. In September 2007 the Bank of England (their central bank), bailed out Northern Rock Bank England’s eighth largest, due to a “run” on Northern Rock Bank when news broke on a 31% slump wiping out 900 million Pounds Sterling, due in large part to the mortgage crisis. A "run" occurs when clients of a bank, all show up at its doorstep to withdraw their money, and of course the bank doesn’t have the liquid funds to pay out to the rush of clients, thus the intervention by the Bank of England to supply the liquid funds needed to pay to its clients. This hasn’t happened since 1916!
On the other hand farmers that export, and export businesses in general are doing quite well as the decline in the value of the dollar represents lower cost products for other countries to import. Even further some stores in New York City are beginning to accept foreign currency in exchange for sales and making the currency exchange at their bank at a later date, if at all.
But, this is only a small gain thats a speck of light in a dark tunnel. Because the value of the once “almighty dollar” is falling so steadily many foreign investors are dumping investments they have here and running towards the Euro. This look towards the Euro began with Saddam Hussein selling part of his Petro Dollar (U.S. greenback) and buying Euros when the Euro was at $.98 to the dollar, and began accepting the Euro in exchange for Iraq’s oil rather than the dollar in 1999. In December 2004 the Federal Reserve stopped publishing the M-3 report that tracks the amount of bills circulating within the U.S., March 2005 Iran began the work on the Iranian oil Bourse on the French stock exchange on the Iranian island of Kish, in a attempt to create an oil marker (price setting) based on the Euro.
This all leads to what appears to be the demise of the U.S. dollar that has no other value, no precious metals to back it, other than the power of continued circulation and U.S. military strength. Could the mere mention of OPEC countries studying the use of another currency as the paper of choice for the buying and selling of oil rip the U.S. economy? Prince Saud Al Faisal was overheard during a private meeting with OPEC countries, including Iran and Venezuela this past November saying this very thing.
With this economic storm looming, why have Hillary, Barak not to mention “I don’t understand the economy they way I should” McCain said what they intend to do about our economic crisis? I don’t believe they are interested in the issues we regular Joe's and Joetta's face on a daily basis. Remember, they are all very wealthy, and don’t have to contend with the same monetary issues everyday people face. What will your savior Obama do? Spread more war using private security companies to keep the dollar circulating? Can you say Blackwater? I mention Obama, since he is the front runner and most Black folk are pulling for him to win without so much as a question about the mose pressing thing in our lives. NAFTA is not the reason for our current rise in oil prices that is a base for driving up all prices, Mr. Obama. Tell us what you're going to do about this!
