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December 2, 2008 12:05:03 PM CST

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Weaker Dollar Revamps World Economy

Posted Dec 24, 07 11:04 AM CST in Business 

(Newser) – A declining US dollar is sparking changes worldwide, drawing jobs to the States and spurring sales of US goods, but also ending an age of rich Americans abroad and hurting economies that are pegged to the note. Its 7-year, 40% drop against the Euro is no short-term slide either, experts say. Even Jay-Z is touting Euros in his new video, "Black Magic," which extols lavish Manhattan lifestyles.

As Americans limit buys of imported goods, foreign companies like Airbus are taking advantage of cheap US labor, and some countries are pushing to trade currencies other than the age-old dollar. "The dollar was the dominant force in world economics for 100 years,” says economist Fred Bergsten. “All that is now changing."

Source Washington Post

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A woman walks past businesses that cater to high-end luxury item consumers along Rodeo Drive in Beverly Hills, California. The weakened US dollar has increased the flow of foreign tourists shopping in...   (Photo by David McNew/Getty Images)
Gina Vieira, right, of Toronto, and daughter Cairo, 10, shop for clothing in J.C. Penny at the Walden Galleria in Cheektowaga, N.Y. in this Nov. 23, 2007 file photo. With the Canadian dollar, known as...   (Associated Press)
Mary Thomson, left, and Linda Daly, right, both from Fort Erie, Ontario, talk during a break from shopping at the Walden Galleria Mall in Cheektowaga, N.Y., Wednesday, Nov. 14, 2007. The Canadian dollar,...   (Associated Press)
The new Airbus A380 lands at Sao Paulo International Airport Monday, Dec. 10, 2007. Airbus plans to move some production work to the US to take advantage of cheap labor.   (Associated Press)
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