I have nothing against the Peso of other countries such as Mexico and the Philippines but if the US doesn't get it's act together the US Dollar isn't going to be valuable enough to buy 1 of either. While the US is in an ideological game of chicken, the value of it's currency is slipping away. It seems obvious to the American public that both raising taxes and cutting spending is necessary but all of this is lost on the Republicans and Democrats as they try to stake their positions and prepare to get elected again in 2012. Though what will be left to get elected to lead is hard to imagine if this doesn't get sorted out. While they talk again and again about an August 2nd deadline the world has already given up. Right now traders a fleeing the dollar like so many rats leaving a sinking ship raising the price of gold and driving up other currencies like the Canadian dollar. As this flight from the US Dollar accelerates it may not matter whether a solution on the "debt crisis" is found or not. By the end the dollar might be worthless and inflation might already be accelerating to a point where the US economy can never recover.
Of Course failing to find a solution to the debt crisis is unthinkable. If a solution is not found social security checks won't go out, soldiers won't be paid and millions across the country will be out of work as hundreds of federal agencies will be forced to close.
The suggestion that this is all just "an American Problem" is pure fiction. If the American economy sinks the rest of the world is going to go down with the ship.
