For the first time since 1976, the Canadian dollar has risen in value to one U.S. dollar. At the same time, according to the Associated Press, the U.S. dollar hit a new all-time low against the euro, and long-time lows against the British pound and the Indian rupee.
It’s not hard to figure out why this is happening. Overextended personal credit, a national debt exceeding $9 trillion, and years of trade deficits with the rest of the world are eroding confidence in what was once the world’s reserve currency.
An Ohioan President, William McKinley, led the United States to prosperity during his Presidency (1897-1901) by insisting on a sound dollar backed by gold. It appears that the idea that banks can create money whenever they wish is proving not to be such a good idea…
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