♠ Posted by Emmanuel in Trade
at 4/28/2007 07:08:00 PM
Here is an interesting piece from Reuters tackling the issue of whether a dropping dollar is a sign of America's diminished financial standing in the international political economy. I have some problems with it such as mentioning that pricing oil in euros would cause the US more hardships, but it is a thought provoking read nonetheless:The United States may have no military equals, but the challenges to its financial power have become impossible to ignore.A stark reminder came on Friday when the weakening dollar slumped to a record low against its main rival, the euro, after the U.S. economy recorded its fourth consecutive quarter of below-trend growth. The euro hit a record high of $1.3680.
The strength of the dollar is more than just a matter of bragging rights. Experts say the consequences of its long-term decline could have deep significance - for average Americans and for the country's position as an unrivaled global power.
