USA tends to wake up when the population find out that there is a crisis, so even if there is a huge recession, you still got intellectual capital, smart people etc., which will not simply emigrate. There are many reasons why the dollar will not go down to zero. I'm still relatively young, so buying stuff in USA at a low price is a good retirement investment.
As a good friend told me, the dollar exchange rate has always been between 3 and 12, and right now it's at 5 (DKK/US$). When he has made trips to USA during his life, he usually bought the dollar at 5, and it's above 5 now. DKK has been tied to Euro and Deutschmark for many, many years.
If you look at the US$ exchange rate since US$/Euro was at it highest, it looks like a big disaster. But if you look further into the past, it's not that bad, yet. US$ needs to fall x2 in order to look really, really bad.
Don't misunderstand me - I agree that there is some unhealthy economic policies in USA, and I see the biggest problems as too much import, too little exports and too little taxes. These need to be fixed in order to get Ben out of the trap, and this is a job for politics, not for the CB. |
