The Federal Reserve has committed to keeping interest rates low for the near future, and this has resulted in the US dollar being soft on the online forex exchange. The recent decision to raise the debt ceiling while attaching strings has not faired well among investors, and this has prompted a lot of movement not only against the dollar but stocks as well. This has prompted many to take a second glance at the United States as a place to do investing; it has become a toxic wasteland where many people are concerned. The simple fact is that nothing seems to be working for the US, and until something gives the USD is going to continue to have trouble. The impact of a soft dollar causes the entire global economy to suffer; the world's largest consumer nation is down for the count.

This means that the United States government really needs to reconsider the tactics it is using, and it needs to move forward by making big changes. The US needs to examine its spending in the sectors of Social Security and other public aid programs, and it also needs to consider cutting its military spending. Both of these budget items could stand to undergo a very serious audit at all levels, allowing them to continue on as they have will only bring the country to its knees. While no one wants to see anyone else in pain, the time has come for America to begin making the big sacrifices...and there is simply no longer a way around that.

The US is looking at austerity measures at least as bad as those being faced by Europe, and already the repercussions of those decisions are being felt everywhere. The tactics employed so far have only drawn out the current issues, and have done nothing to fix the problem. By moving to a dovish tone the Federal Reserve Bank has only shown the true amount of vulnerability where the USD is concerned, and this is not a good thing by any means. There has to be a consolidation in the near future of epic proportions, and the United States needs to work hard to pay its bills. If this is not accomplished in a responsible and prompt manner, the US may become a third world country. Once the US falls it will be a domino effect that ripples all around the world, and every country will be in trouble.