Dollar Doom: As Greek Riots Turn Violent, The Euro Gains On Dollar

Here is all the proof you should ever need that the US dollar is moving towards inevitable junk status. Today, the Greek citizens took to the streets to protest the massive government cuts that are coming their way and things took a violent turn. The people are protesting the upcoming government vote pertaining to the harsh austerity plans or budget cuts that Greece needs, so that it does not default on its debt. If the Greek government cannot pass the austerity plan, you are looking at the implosion of the whole euro-zone economy.

As traders worldwide were bombarded with images and reports of Greek violence and euro-zone chaos, you would think that the US dollar would have to gain in value on the euro today. Unfortunately, this was not the case. The euro actually gained on the dollar this morning. This is a result of traders thinking that despite the Greek problems, the euro is still more attractive than the dollar.

It looks as if the Greeks will most likely pass their austerity plans, but this should still send chills up the spines of all Americans. Even if Greece agrees to a massive budget cuts, Spain, Portugal, and possible Italy are going to go through the same nightmare next. In addition, Greece might not have the GDP to even pay the loans on its new settlement.

I think it is time Americans wake up because in my opinion, we are like southerners holding confederate bills on the eve of the conclusion of the Civil War.