Monday, October 29, 2007

The Falling Dollar

There's an article on Bloomberg, Dollar's Demise Can Be Seen Even in the Maldives. People don't realize that it's been the policy of the Bush administration to devalue the dollar. This has some benefits that I don't completely understand the consequences of. As I understand it, it's ok as long as the dollar doesn't collapse because no one wants a devalued currency.

It's inconceivable to me but yes, a Canadian dollar is now more than a US dollar. If you're a US tourist to Canada or to several Caribbean islands I've been to, they often take US dollars as currency. I'm guessing not so much in Canada anymore. The article starts out by saying not so much anymore in the Maldives. In addition, "some states that long pegged their currencies to the dollar are scrapping the policy -- like Kuwait -- while others are quietly considering it."

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