Currency Disorder

Investors dumped dollars yesterday, sending the euro to a record high and putting the American currency at par with the Canadian dollar for the first time in more than 30 years. While the dollar has generally been drifting down against both currencies, along with the British pound, for much of this decade, its fall has gathered pace in recent weeks as traders foresee a slowing American economy while expecting more robust growth overseas. The Federal Reserve’s decision this week to cut interest rates put further pressure on the dollar by making investment returns in other countries comparatively more lucrative.

As American assets become cheaper to buyers overseas, foreigners may step up their purchase of businesses and land here, creating political and cultural tensions. Yesterday, a stock exchange from Dubai, on the Persian Gulf, announced plans to take a sizable stake in Nasdaq, drawing a mixed response in Washington. And a prominent private equity firm, the Carlyle Group, sold a minority stake to the Abu Dhabi government.The impact of the falling dollar is rippling through the world and American economies in numerous ways. It will give an edge to American manufacturers and has already helped lift exports by more than 11 percent in the first eight months of the year. Businesses with large foreign operations can expect a lift in profits when they convert their overseas earnings into dollars. On the other side of the equation, the decline in the American currency is helping push up commodity prices, most of which are denominated in dollars, and kindling fears that inflation could rise.

• JJ Commentary: It is the New World (Dis)Order’s goal to minimize nationalism, particularly the last remaining superpower, and they already control enough of the world’s finances to do so.