For the last two months I have been talking about the death of the dollar. My conclusion, along with others who watch the financial world, is government policy has placed the dollar at risk in the global market. The days of the U.S. Dollar acting as the world reserve currency is coming to an end, which will have negative long term effects on the U.S. economy.
While there is no one single reason that I have come to this conclusion, it is clear that the economic indicators are lining up for such a situation to occur. The speed of such an event is unpredictable, some people are saying within the next year while others are pointing for the death to take place over the next decade. In the end there is no single answer, and a number of events dictate if (or when) such a thing would even happen; however, economic analysts are calling for the dollar to depreciate 6.4 percent versus the euro next year unless the U.S. changes economic policy soon.
It is one thing for bloggers and economic watchers to call out trends, it is another when economists who work in the financial market to point out the problem. Without action by the Fed (raising rates, cutting funds) the dollar is in trouble on the world market.
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