The America dollar has now hit a new 26 year low in the value as measured against European currency such as the British Pound. Worldwide concerns about the huge American trade deficit and also the subprime mortgage market and it's sleazy impact on the American economy is helping to raise doubts about the health and value of the American dollar in general for the world currency markets. The dollar has hit a new low against the European Euro as well.
In addition to the shrinking value of the American dollar as compared to other world currency, the value of foreign held U.S. Treasury bonds and securities continues to only increase where Japan now holds $612.3 billion dollars in bonds, while China now holds $420.2 billion in bonds, as of the first quarter of 2007. Both nations now hold such a high dollar value of U.S. bonds that they can now help to virtually dictate the terms of foreign trade legislation that congress writes both by their sheer power of bond holdings and skillful use of lobbyists and trade negotiators. Americans who frequently use credit cards may also be surprised that their high interest rate payments may actually be headed off to some foreign bank in Toyko or Bejing as well.
Unfortunately, while many Americans spent July 4 engaged in competitive eating, beer drinking, flag waving or firing off fireworks, the rest of the industrialized world didn't have the day off, and instead worked hard. The U.S. has now become largely like a giant Wal-Mart, selling the goods that other nations such as China produce, and having moved from a manufacturing based economy to one of mere consumption and merchandising.
Anthropologists and archaeologists will tell you that every past civilization was able to at least produce their own pottery. In the case of our society, that pottery will all be marked with tags as "Made In China" when the ruins of our society are unearthed.
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