If things weren't bad enough in the Europe, the Super Committee's proposal on deficit reduction did not find common ground over the weekend. The super committee includes congressional leaders from both major political parties. Their goal is to find strategies to cut 1.2 trillion dollars of U.S. debt over the next fiscal year. These recommendations are scheduled to be presented to congress by Wednesday. As with all things political and involving money in the United States, decisions are either delayed or poorly made. This is how the United States got into this mess in the first place. The debate between Republicans and Democrats on this issue is on which programs or government projects should be cancelled or supplied with less funding.
As expected, US stock futures have tumbled. Despite the ongoing deficit crisis in the US, the dollar continues to strengthen against Euro. This is because Moody's investors have given a grim assessment on the French economy. This country is considered the backbone of the Euro-zone, and continues to be relied upon by other European countries like Greece, Spain, and Italy for bailout assistance. Warren Buffett, arguably one of the best financial investors of all time, reportedly believes that the Euro is not viable and will fail to survive. This may be an excellent opportunity for Forex Traders to invest in the USD, which is expected to strengthen over the short to medium term.