I've read countless articles on the future status of Dollar as the world's reserve currency. None of them strike me as "clear thinking" -- they are all too gloomy and doomed. The worst comparison was to the fall of Roman empire caused by hyper-inflation and over-extension of its army and Government expenditures. Sounds familiar? Yes, but I only consider that as fun reading as it doesn't have any concrete analysis behind it.
Then, I found this commentary from Michael R. Sesit, titled Dollar Reserve Status Is Tale of Fading Glory. While it didn't provide any concrete analysis as well, it did have basic logic and reasoning that are very close to my own. He doesn't think the dollar is going to lose its world's reserve currency any time soon, but it is on the course of doing so if the Government kept its course of spending and name-your-price-tag bailouts. It's fascinating knowing that many countries are doing business in currencies other than the world's reserve currency. I'm not sure where this would take us, but it would be an interesting study for the economic historians in the future.
posted by jason @ 4:05 PM
0 Comments:
Post a Comment
<< Home