Dollar Loses Dominance over Other Currencies
Five decades ago, America is on top of the world. It was a time of abundance. The produced were more than what any citizen could eat. Everything made in America is of superior quality.
American cars, buildings, telecommunications and so on where the envy of people around the globe. America was the star.
The best athletes and scientists were Americans. America raked in the majority of Olympic medals and Nobel Prizes. The dollar was good as gold or silver.
But now, the dollar is stripped 75 per cent of its value. A Swiss watch pricing SFr 400 will cost an American decades ago $100 to purchase it. That kind of watch now would cost $250 because the American dollar can only exchange SFr 1.60 for every dollar. The depreciation of the dollar means lowering of the standard of living.
Before travelling to Europe was very common. Buying antiques were just a minor passion. Art masterpieces, fashion items of Milan and Paris, Italian sports cars, villas in Riviera and Swiss timepieces are brought like giveaway gifts. At that time the dollar was far better valued than other currencies in the world. A dollar was worth two, three or even four times the value of francs, marks and pounds. That was before.
Long gone were the times we could travel abroad like royalties - prince and princess unaffected by the pinch of high prices. There were no serious barriers, and staying in five- star hotels or eating in classy restaurants was just common place.
Such a live style now is but only a fantasy now. Such an easy life was over upon the commencement of World War II. It was a war that gave America a facelift. Economic aids that were sent to these war-ravaged places soon made the nations raise themselves from the ruins. They aimed for a good life and strengthened their currencies. And as they rose, United States went down.
American business saw chances to make more money even at those drastic times when they contemplated on the changes in world economies and makeover in the value of the dollar compared to the other currencies. The sprouting economies in Europe provided an avenue not only for new markets for American goods and services but the probability to bring more profits in making strong the other currencies in a way that boosted profit when exchanged into dollars.
All average Americans with all their investable funds should also take actions in the same mindset. Engaging in foreign exchange is the answer to the falling dollar. When we do so there would be minimal changes on our lifestyle say five years from now when we invested correctly, the risk would pay off.