The Dollar is Killing me!

It seems that everyone in europe loves the fall of the Dollar. Everyone but me.

I don’t know how you guys in America are experiencing this. But over here in Switzerland everyone is amazed about the falling US-Dollar. Everyone but me!

I do most of my affiliate marketing stuff in America. Even there being more competition in the US market, I think the support that affiliate networks offer you as “small” affiliate in the states, shouldn’t be compared to the support that European affiliate networks offer you. In Europe, most affiliate networks don’t care a lot about you if you are not a big publisher.

I also have the feeling that American internet users are more open to buy or register on some site online. But I guess this also depends on what kind of niche you are working on.

Over here in Switzerland, our currency is still the Swiss franc (CHF). Currently 1CHF costs around $0.96 according to yahoo finance. That doesn’t sound pretty bad to for yet. Advertising in Swiss francs on Google AdWords and cashing in US Dollars still makes sense. It wouldn’t make any sense if I would be living in a country with the Euro as currency. I’d be losing a LOT of money. Thats why probably almost no one in Germany does American PPC stuff anymore.

But like I said: It doesn’t sound that bad for me YET.

Why do I tell you that? You just have to take a look at some graphs, check out some news stories and use your brain to tell that the US-Dollar is going downhill for many years to come.

If you look at the way that the US-Dollar has been going in the last years, specially compared to the very very strong Euro, you can tell something is wrong here. And even compared to the rather weakened Swiss franc, every idiot can tell you that if nothing does happen, the US-Dollar will be heading downhill for upcoming years.





Some reasons:

* The US Budget Deficit is reasonably higher compared to major EU Countries.
* The US still haven’t left Iraq and Afghanistan. Wars aren’t cheap.
* Oil price is rising and has already reached the $100 mark. The US is the most Oil-Dependent nation in the world.

Even though I think and hope that Mr. Change aka Obama will make it as the next president of the US, I don’t think he’ll be able to get your troops home from one day to another. I also don’t think that the election of Obama will bring in any major change to the way the US-Dollar is going.

Iraq war = expensive. Very expensive.

Think about it: Even by getting 95% of your troops home, the so called “problem Iraq” won’t be solved. Because unfortunately, the middle east is a very unstable region. And what we surely don’t want is an Iraq without any international presence. Such an Iraq couldn’t make it a month without an official civil war breaking out down there (even disregarding the fact that there is already a civil war going on in Iraq ATM.). Just think about what happened in the 60’s -80’s when all major European countries were leaving their old colonies. The only word that is able to describe such a thing is Chaos. And also keep in mind that civil wars still keep firing up from time to time in Africa.

Oh, and also don’t forget to keep in mind: The Iraqi police and military departments are still internationally regarded as very corrupt.

Iran anyone?

Another thing to consider is the possible US-Intervention in Iran. I really hope that Mr. Bush and his fellow clanmates won’t ever think again about invading Iran. Don’t get me wrong, I don’t have any sympathies with Iran. The opposite is the case. But if the US starts an intervention in Iran, the dollar probably will lose even more compared to the other currencies. Wars do cost. A lot. Don’t forget also the fact that Iran is sitting on one of the largest oil reserves in the world. It also is the 4th largest oil producer right now.

I hope I could give you a small insight why I think that the dollar is still going downhill for the upcoming years. Don’t judge me, I’m just a realist

Source $ Image: flickr