Tuesday, July 07, 2009

Here's The Real Reason The Dollar Is Screwed

While dramatically oversimplified this does bring a very good point to light: namely that as other countries improve their transparency and governance, the US dollar loses its relative advantage. There is more to the article, but the below quote catches the flavor well.

Here's The Real Reason The Dollar Is Screwed:(from Clusterstock)
"...what's the real reason to fear a dollar decline? It's that governments around the world are more stable and transparent than they used to be, meaning more currencies are worth 'holding in the mattress.' It still is, for the most part, that no matter where you are, it makes sense to hold some US Dollars as a reliable store of value. But maybe now you'll carry some Brazilian Real or Singapore Dollars. Basically, the real issue is current and growing Dollar competition, a trend that doesn't look likely to abate."

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