Investments are all relatively based. That is, they compete with one another for resources or investment money. The US$ competes with other currencies and investments. What makes anyone think that the other world currencies are fundementally stronger than the US$? Perhaps gold as it now is in a money behavior mode? But other fiats? I dont see it. The first worlds share equal problems of aging demographics and escalating deficits. Emerging markets like China need a host to sell to. History has a strong correlation to the senior currency being chronically strong after a global credit bust like we’re going through right now. Look for more Euro infighting and protectionism from everyone as this unwinding keeps going. With every drop in the markets, the US$ should bounce up. IMO.
