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For a very long time the U.S. dollar was highly valued and coveted in most of the countries of Europe, Asia, and Africa, but no more. Apparently the tide has turned and now it is American businesses that are accepting foreign currency, in particular the Euro. Businesses and shop owners in New York City, for instance, have begun accepting Euros and other foreign currencies such as pounds sterling and Canadian dollars in exchange for goods.

"We had decided that money is money and we'll take it and just do the exchange whenever we can with our bank," commented Robert Chu, owner of East Village Wines. "I'm happy if I take in 200 euros, because what I do is keep them," said Billy Leroy of Billy’s Antiques & Props. "So when I go back to Paris, I don't have to go through the nightmare of going to an exchange place."

The falling dollar has brought droves of European shoppers to New York City looking to take advantage of favorable exchange rates. This is the one possible silver lining in the inflationary cloud conjured up by the Fed's loose monetary policy over the last decade. By rapidly expanding the money supply, the Fed has diluted the value of the dollar. That makes goods made and sold in America cheaper for foreigners to purchase, and likely will cause an upsurge in American exports. 

Will that be enough to rescue American prosperity from the deleterious effects of the Fed's inflation of the money supply? Only time will tell.

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