Worthless Dollar

The U.S. dollar has once again dropped in value due to European inflation. The ever reaching gap in the dollar compared to the euro, pound and yen is rendering American money more and more worthless overseas. Just recently the euro jumped to $1.5982, the British pound reached $1.9771 from $1.9708, and the dollar is now worth only 101.96 Japanese yen compared to 102.04 yen. As the interest rates in Europe climb to 3.6%, the United States Federal Reserve is cutting back rates due to the housing slump. Europe's high rates are intended to work against inflation and help the economy reach a settling point whereas the lowering U.S. rates are meant to weigh on the dollar so that when trades are made with other countries, the traders get better returns. Hopefully the aims at correcting the changes in the economy will pull through as the country is still fearful of the direction it is headed. The noticeable difference in the American and European economies makes one wish for relatives or friends overseas who could maybe purchase a gallon of milk that wouldn't cost $5 or fill up their car with gas for less than $50.