US Dollar Hits Fresh Lows Against British Pound, Euro

American tourists in London have become objects of pity. The poor people – they’ve come all the way over here, say the locals, and now they don’t have the money to enjoy themselves. Monday, the dollar touched a 26-year low against the English currency. The dollar has dropped well below 2-to-the-pound.

Tourists go about in a state of shock and awe. When they buy a hamburger they find that it costs as much as a rib-eye steak at home. They hop in a taxi and wish they had refinanced their home before making the trip. At the Savoy or Claridge’s, before giving customers their bills, bellhops are positioned directly behind them, to catch their wallets as they fall.

America’s markets were closed on Wednesday for the 4th of July celebrations. But America’s money was marked to market all over the planet. Wherever it showed up, it was greeted warmly – but not quite as warmly as a month ago.

While dropping below the 2-to-the-pound level in London, on the continent, the greenback lost ground too. At US$1.36 to the euro, it is near its all-time low.

The dollar seems to have the weight of the entire world financial system on its shoulders. And what a system it is!

We are amazed. We are flabbergasted. We don’t see how it can continue.

And yet, as a dear reader tells us below…we’ve been saying that for a while…and the Great Reckoning may not come for another 40 or 50 years!

Or sooner…

Bill Bonner
Markets and Money

Bill Bonner

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America’s most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind Markets and Money.
Bill Bonner

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