Wednesday, March 19, 2008

from the "ch-ch-changes" dept.

So the "stupid" war is having a profound effect on the US economy. And, because economies tend to be linked, it's having a profound effect on everyone.

The US Dollar is tanking and now comes word that some forex bureaux are refusing to take the US Dollar because it's falling so fast that they'll lose money. Sounds like the Zimbabwean Dollar!

But could the US Dollar, once the defacto currency of world travellers, actually collapse?

A documentary that aired recently on Dutch television asked that question. From BoingBoing:
"The documentary was based on a script made by an economist who was assigned the task to make a 'what if' scenario about how the dollar could crash within 24 hours. Americans are living beyond their means and Asia is currently financing that. But eventually the Asians/Europeans will stop financing the USA and then the bubble will burst."

That's not good...

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