May 22nd, 2012

US Dollar | It Drowns While Gold Grows!

US Dollar is drowning while gold goes upUS Dollar

The US dollar is no doubt struggling, and has been devalued for quite some time. What is the solution for the US economy? If we don’t know what else can we do? As we see the value of the US dollar go down we watch the price of gold go up. So, what does this mean, and how do we prepare for an uncertain tomorrow?

The Value of the US Dollar

So, what is the value of the US dollar? Right now, we can honestly say that it isn’t a dollar, and that is bad for those of us who say it only costs a dollar! It is true that the US dollar can be measured in different ways, but what are those ways? It somewhat has to do with exchange rates, so let’s talk about what those are, and how those affect us.

The exchange rate has to do with rates in foreign countries and how it measures up to or rather converts to the US dollar. Although exchange rates are only one thing, these 3 things usually correlate to each other. The tough reality is that no matter how we measure it, the dollar is losing value fast.

Why? First of all, it’s no secret that the US has more than $15 trillion dollars in debt and counting. The large debt will also cause the US to raise taxes which has already been in the works. Any who invest and hold dollars, may continue to do so until the economy starts to recover.

US Dollar and Treasury Yields

If you are wondering, treasury yields is another way to measure the US dollar. This is usually referring to the amount of money you make on a treasury note. These are sold by the US government in order to help pay for the US debt. These yields are often measured by supply and demand, so what does that tell you?

Whenever yields increase, so do the interest rates, and this is also referring to mortgages too. This is when it is more expensive to buy a home, and in general it puts new meaning to prices going up. China has always been a big buyer of these treasures, but they are threatening to not buy them at all.

That speaks volumes about what is happening in the US economy and how other countries have the ability to hold us hostage. It’s a hard reality, but it’s one worth exploring. Don’t you think?

US Dollar and Foreign Currency Reserves

Did you know that if the US dollar is down that it takes foreign currency reserves, or forex to support it? Is it any surprise then that we are captive to foreign countries and what they bring to the table? The guidelines on these are strict, and thus they are only held by banks and government authorities.

Can you see why this one is constantly in debate? Gold is a currency, and it’s still being mined; this is why it holds its value and is increasing. Are you ready to gain a better understanding of how our country can get to a better place and prepare for what is coming with the US dollar?

If you desire to learn more about gold, and how the US dollar is impacting this gold rush, then CLICK HERE today!




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