Subscribe in a reader(Bloomberg) -- “The most accurate dollar forecasters predict the world’s reserve currency will continue sliding even when the Federal Reserve begins to raise interest rates, which policy makers say is an “extended period” away.”
Our dollar really isn’t worth a dollar or worth as much in other countries as it once was. Bloomberg has a list of forty-six financial companies that predict our dollar will take a 5.3% slump compared to the Euro on the foreign exchange. Once you could trade our dollar for $1.58; now you only get $1.49 for it. That makes the dollar worth .9053 on the home front. Many people don’t consider a .0947 cent decrease is nothing to worry about but with the cost of rising goods and the decreasing cost of the dollar, can we have an accurate inflation rate and the real cost of a dollar?
Callum Henderson, of the Singapore-based global head of foreign-exchange strategy for Standard Chartered said “History tells us the dollar shouldn’t start rising on a sustained basis until 12 months after the Fed starts to lift rates. The dollar will remain weak until the Fed’s rates rise above the competitors.”
With healthcare and bailouts and all the projects the United States wants to take on, plus the cost of war one can only see printing of more money to cover the cost. With the printing of more money the value of the dollar can only get worth less and less; while inflation will get more and more. The prospect of our dollar being worth a dollar looks very long term.
