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What Drives Currencies As we mentioned, currency prices around the world are set purely on individuals’ supply and demand for that currency around the world. This supply-and-demand system stems from the need to facilitate global trade of goods, services, and capital. However, there are other drivers behind the world’s major currencies that create this effect. And while currencies move and change prices based on a whole host of obscure relationships that are best left to the professionals to analyze, there are several factors that contribute to the demand of currencies around the world.

That’s a 95 percent devaluation of your money. And there really is no bottom. Just think about it for a minute. If you take $1,000 and devalue it by 90 percent, you have $100. Devalue that by 90 percent and you’re left with $10. Take away another 90 percent and you have $1. Another 90 percent and you’re down to a dime. Then a penny. Then fractions of a cent. And the news hasn’t gotten any better in recent years. Just during your lifetime, the dollar has declined heavily. S. dollar lost an average of 73 percent of its purchasing power against most major currencies!

C. The American Dream: Gone Global While America’s “third generation” was busy divvying up the spoils of over a century of innovation and economic success, a new, hungry, first generation was being born in the corners of the globe. Ravaged by years of war, living at the far reaches of the global political scene, they were born in Vietnam, Singapore, and India. indd 30 6/28/10 7:47:52 AM Passing the Wealth Baton 31 were born in Brazil and China and Eastern Europe. And for the most part, they were born in or surrounded by abject poverty.

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Accounting Principles 1 by Speedy Publishing

by Ronald

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