How Would US Bank Nationalization Impact the US Dollar?
Are you wondering what could happen if there is US Bank Nationalization? People from all over the world have been wondering too! They say that US Bank Nationalization might happen and this may not be a good thing for the US Dollar. Why? This is because it increases the liabilities and debt of the Federal Reserve of the United States, thus, increasing the debt also of the taxpayers. Now you wouldn’t want that to happen would you? What happened in the past? The fluctuation and recovery of gold prices tells the people that fear has in fact returned to the market. And when US Bank Nationalization happens, equities would be driven lower, but this occurrence may also drive the capital out of the US dollar. In February of the year 2008, when the Northern Rock has been nationalized by the government of the United Kingdom, the British pound decreased in just 3 trading days. Even though the US dollar recovered over the news the United States government was taking over Freddie Mac and Fannie Mae
