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Don’t Run From the U.S. Dollar’s Reign

Don’t Run From the U.S. Dollar’s Reign

2011-05-05
Source: Investment U


by Carl Delfeld, Investment U’s Emerging Markets Expert
Thursday, May 5, 2011

The greenback gets no respect these days. In April alone, the U.S. dollar fell 3.8 percent against a basket of leading currencies. Today, it hit a dismal three-year low. This was in the midst of the S&P “warning” about America’s AAA status.

Jim Rogers even recently suggested that the dollar could go to the value of confetti. Other investors are predicting that the U.S. currency is on its last legs.

Well, I hate to burst their bubble… The U.S. dollar is going to stay on top through the twenty-first century for two reasons: Its lack of competitors and its flexibility.

The Basic Characteristics of a Durable Reserve Currency

Both are important factors to observe after you look at the three basic characteristics of a durable reserve currency:





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