January 18, 2007

Dollar falls as data show U.S. investors buy abroad

So, it seems that the US dollar is becoming increasingly less valuable in teh world economy. Do not take this to mean that your debt solution is going to be a futile effort. In fact, this is probably the best time to get out of debt, since as soon as you are out of it, and you are used to saving mechanisms that you used to get out of debt, then it will be time to start making investments.

This article shows one possible reason as to why the dollar is falling. Something to consider in lieu of the times:

"The theme of diversification away from the dollar is still a concern," said Matthew Kassel, director of proprietary trading at ING Financial Markets. "In the very short-term there is going to be less demand for the dollar."


It appears that Iran has had some sucess in starting this trend of countries "diversifying" their currency reserves. With less demand for the dollar, there could very well be good investment opportunities after you get out of debt. The dollar, our researchers tell us, will not fall completly out of demand, and there are various reasons for this which we are getting to the bottom of, even as this post is being written.

Therefore, don't panic if you read that the dollar is becoming worthless, and foreign currencies are gaining. Keep up your good skills at reducing your debt, and all will pay off in the end.

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