Lately in the news, I have been seeing a ton of articles on the California Drought. I can tell you that the last major drought in the United States like this was in the 20’s. What did that lead to you might ask? Well the Great Depression!
In a news piece I saw yesterday on Bloomberg News. We can expect this Drought to last for the next Decade! Think about that for just a few seconds…
This could have a major impact on the future of not only the California Economy but the World Economy. California is home to Silcon Valley, massive wine export and many other things. California is also one of the largest economies in the world, if it wasn’t part of the US. Not only could the dollar take a slide, but the US economy could take a slide as well.
In other news, the US economy continues it’s climb after poor manufacturing numbers last week. I would expect the EUR to continue to fall closer to 1 to 1 with the dollar.