As your dads or moms might have told you, the American dollar has been at a major low for a long time. It even dropped to USD $1.30 for 1.00 Euro and USD $2.00 for 1.00 pound. That means you can trade one Euro for 1.3 American dollars, or one English pound for two American dollars.

In Whyville terms, a one-month Why-Pass costs $5 USD, 2.50 pounds or 3.85 Euros at an exchange rate like this.

Why does this happen?

As I said in my last article, The Meaning of Economy, American jobs are going to places like China and Mexico. If the jobs go so overseas, not many people have money. Another big factor of the dollar's low is the losses of big companies like Microsoft and Wal-Mart.

There are other causes as well, which I invite you to investigate. (Editor's Note: Yes, please do!)

What are the bad results of the crisis?

In the U.S., the bad result of the continued crisis is that you won't be able to afford many imported products -- stuff from other countries -- for Christmas, because they will cost more and more and more.

The bad result of the crisis in Asia is that more than half the people who have U.S. dollars in their bank accounts will lose money if they cash them in, because the U.S. dollar is not worth as much as it used to be.

What are the good results of the crisis?

The good results mainly apply to people outside of the U.S. The good results are:

1. Canadians and other people who have longed to get a Why-Pass can get one for a cheaper price now. (Buy one now, because the U.S. dollar is going back up!!)

2. Companies that buy directly from the U.S. can get cheaper prices on goods.

3. People visiting the U.S. around the time of this crisis will save money compared to other times.

If this going to get better for the U.S. any time soon?

Fortunately, yes. The U.S. dollar is getting stronger and it will soon come back from its crisis, experts say. Then most of the factors I listed will start to go in reverse.

Sincerely,
Gopal200

Sources for rates:
My Dad and Mom
http://www.bloomberg.com

Editor's Note: Good article, Gopal200! I hope more writers will explore this and other economic topics, from the global picture to the things that directly affect your wallet or purse or allowance!