US Political Divergence and the Forex Exchange. The United States is currently undergoing a good deal financial turmoil as of late, and the result has been a good deal of civil unrest. The Occupy Wall Street movement has spread throughout the United States and the rest of the world, and has created a good deal of hatred towards large corporations and the banking system. Such feelings have actually manifested in riots, damage to public and private property, and a number of other violent crimes. Currently many are speculating that the movement is costing the entire country tens of millions of dollars. This fact has not fallen on deaf ears and has created a good deal of concern in the international community for the USD on the online Forex exchange, and while it has not impacted price as of yet it just might in the near future.
No one thought much of the London riots until they tore the city apart, and at that point, the British pound began to suffer in a big way. There is no limit to the amount of damage that can be done to the economy if this movement is left to continue going on as it has. In Oakland, a California man was put into a coma by a stray tear gas canister, while countless others in other cities have been injured through various non-lethal weapons employed by the police. Such circumstances have lead to a very bad interpretation of the way the United States is handling the discontent of their citizens, and this does not bode well for future foreign perception.
Being able to distinguish between the short-term and long-term problems the US faces by way of its citizens is something economists really need to consider. The protestors throughout the country have actually begun to target banks and other financial institutions for acts of vandalism and intimidation. Various banks have been openly harassed and had windows knocked out in addition to having graffiti spray painted onto them. Such occurrences have prompted more aggressive responses by the police force; however, to think that these attacks will not influence the decision making practices of banks would be ignorant. It is exactly this thought process that will likely create continued indifference to this movement and allow it to spiral further out of control. Unfortunately there is not a lot that can be done at this point outside of arrest and other somewhat violent responses.
The author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to stay up to date with the latest Forex quotes.