Friday, June 13, 2008

This Bud's for EU?

Passport, the blog by the editors of Foreign Policy, has a good post on why the potential purchase of Anheuser-Busch by a European corporation might be just the tip of an iceberg of buy-outs of U.S. companies by foreign investors.

As a non-beer drinker, I'm not emotionally involved in the sale of the Budweiser brand to foreigners, and I can see clearly that the key issue here is the fast drop in the exchange value of the dollar. See the chart below, which was provided by the U.S. Federal Reserve in its February 2008 report to Congress. Unless that trend is reversed soon, expect foreigners to own a whole lot more of America than just its beer.

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