July 17, 2008

Is the US Dollar about to crash?

There is a saying “That is has to get worse before it gets better” and this looks like what we are all going to have to look forward to over the coming months.

In particular the US economy is struggling not just with the financial problems hitting the mortgage and banking industry, but from foreign investors, or rather the lack of them. In order for the US economy to be able to balance their books they need around £300 billion worth of foreign investment.

But with the current climate there is little chance of them achieving this and so the prospect of the dollar going into freefall is very likely. If this happens the UK and other economies that are all reliant on each other will follow suit.

Source [Telegraph]