USD will go to zero"? There's a 13 trillion economy underlying that currency! I have seen many other currencies, much more weaker than the USD, and with much weaker underlying economy supporting that never have gone down to zero.
Nigerian naira, Brazilian old currency Cruzeiro, Thai Baht, Peso Argentino...
They were all currencies of mismanaged economies, lousy financial systems, useless governments... none have gone to zero. Why? because there is an economy underlying those currencies. They are means of exchange of real goods and services.
The USD, along with the US economy, in the whole scheme of things, and given enough time will lose its importance. But that is much different than saying it will disappear, melt away or vanish.
Want a proof? The capital that is spreading more evenly is USD moving out of the US. When say, CALPERS, invest outside the US, it is not contributing to the USD demise. It's recognizing that there are better ways to invest USD to provide profits that will be repatriate as USD back into the US economy. |
