Paper dollar woes and good reading
Cheap money is bad money. The Dollar is cloning itself and the US dollar dilution, or perhaps delusion, should be a top priority concern. We are heading towards a rolercoaster first quarter 2010 and solid foundations need to be in place.. which they aren’t.
Wall Street Journal has a memorable read in “Requiem for the Dollar”. Quote
“But now the world is losing faith, as well it might. It’s not that the dollar is overvalued—economists at Deutsche Bank estimate it’s 20% too cheap against the euro. The problem lies with its management. The greenback is a glorious old brand that’s looking more and more like General Motors…”
and
“You get the strong impression that Mr. Bernanke fails to appreciate the tenuousness of the situation—fails to understand that the pure paper dollar is a contrivance only 38 years old, brand new, really, and that the experiment may yet come to naught. Indeed, history and mathematics agree that it will certainly come to naught…”
The article is a long read and well worth the visit. WSJ Requiem for the Dollar
Related posts:
- Is a weak dollar beneficial to global recovery?
- FOREX-Euro rallies from 4-year low vs U.S. dollar
- Citi AIG tax and dwindling returns
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