James McKee

Government Shut Down Could Be Trouble for USD



Posted: Sunday, April 03, 2011

by James McKee
http://www.forex.tradingcharts.com

It is no secret that Republicans and Democrats have gotten along less now then every before, but the difference between today and yesterday is a far more vulnerable America.  Job loss and a poorly aided economy have continued to plague the American government and the American people, new groups such as the tea party have sprang up and demanded that the budget be cut at all costs.  The result of this has been a fifty billion dollar budget cut that is being squabbled over to the point of a possible Federal government shutdown in Washington D.C..  If the US government does shut down the US dollar will find itself dropping against other majors on the online forex exchange.

Currently both Republicans and Democrats are unsatisfied with the budget and as such have been going back and forth demanding accommodation on their perspective.  The government is, however coming down to the wire and as it does a government shut down looms.  Many government programs and facilities will be shut down if a new budget is not passed by this Friday, and for many this is a scary prospect.  The main issues that contribute to the bloated budget of the United States are not being discussed, things like Social Security have not yet been put on the chopping block.

Even if the United States does avoid a government shut down there is still the need to truly address their budget in a way that is proactive.  If the US does not take proactive steps to cut the budget in much larger ways than the USD will be slumping on the online forex exchange.  Only time will tell whether or not the US government can reach a consensus, but at any rate the die has been cast and there is now the possibility of real disaster.

Author is a Forex trader and financial analyst residing in Denver, Colorado.  To stay up to date on all the latest developments in the financial world and beyond be sure to check out online forex trading regularly.
This Article has been viewed 415 times. (Not updated in real-time.)
No comments yet.
We want your comments! If you can read this, you don't have javascript enabled, so you can't use this comment system. Please enable javascript.