Tuesday, October 6, 2009

Just a habit like saccharine

If you didn't live in the United States, would you want all your global assets denominated in dollars? Is the dollar enough safer than the euro or the yen that its role as the world's currency is more than a sixty-year habit?

I'll leave it to more knowledgeable people to explain fully how this affects our economy, but I doubt that the export benefits could possibly outweigh the debt detriments in an asset base as over-leveraged as ours is.

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