The Case of Declining Dollar and Federal Reserve

Have you ever wondered how much the US Dollars has declined against major currency since the current president was inaugurated on January 21, 2001? The number is mind-boggling.

US Dollar - Euro from Jan 22, 2001 (1.0656) - Jun 27, 2008 (0.6339)
Dropped 40.51%

US Dollar - British Pound from Jan 22, 2001 (0.6827) - Jun 27, 2008 (0.5018)
Dropped 26.50%

US Dollar - Chinese Yuan from Jan 22, 2001 (8.2781) - Jun 23, 2008 (6.8634)
Dropped 17.09%

US Dollar - Canadian Dollar from Jan 22, 2001 (1.5026) - Jun 27, 2008 (1.0108)
Dropped 32.73%

US Dollar - Australian Dollar from Jan 22, 2001 (1.7969) - Jun 27, 2008 (1.0411)
Dropped 42.06%

US Dollar - Singaporean Dollar from Jan 22, 2001 (1.7367) - Jun 27, 2008 (1.3631)
Dropped 21.51%

I am not suggesting President alone is the only one responsible for the declining US Dollar. Federal Reserve should take plenty of heat for its fiscal policy. Why in the world does the Federal Reserve even exist? To bail out the so-called “struggling” Financial company like Bear Sterns?

If financial institution like Bear Sterns went under because of the sub-prime lending and Citibank had to write off tons of bad loans, you would think the financial industry was the main victim. But if you think about it. Aren’t the borrowed-money will make it back to the financial institution anyway? Borrower borrows money from the bank to pay the seller. Seller uses the money to pay the outstanding mortgage. And who owns the mortgage? The financial institution.

The Federal Reserve has no business bailing out companies from going under; the same way I don’t think the government should be in business of bailing out homeowners for buying a property they cannot afford. Where is accountability? You have the Federal Reserve ponies up $30 billions to help out JP Morgan buying out Bear Sterns. Keep printing money Bernanke and let’s see how low US Dollar can go.

So who is actually profiting from this fiasco? The way I see it, it’s the financial institution. They get the money from the Federal Reserve they do not deserve to buy out companies who went under and as a result, they become even more powerful than they once were. So when the financial industry tells you there is a crisis, take it with a grain of salt.

Don Harrold says it best on this video below. Subscribe to his Youtube Channel and listen to what he has to say. You will see his perspective on how the Wall Street keeps giving you one bad advise after another and making money at the expense of YOU and your hard earned money.