Sunday, February 22, 2009

USD

"The U.S. needs to show some proof they have a plan to get out of the fiscal problem," said Ernesto Zedillo, the former Mexican president who helped steer his country through a financial crisis in 1994. "We, as developing countries, need to know we won't be crowded out of the capital markets, which is already happening."

Zedillo said that Washington, unlike most other countries, had the option of simply printing more money, because the dollar was a reserve currency for the rest of the world.

Over the long run, that could force long-term interest rates higher and drive down the value of the dollar, undermining the benefits that come with its special status.

What is of your opinion? I think it make sense.

How the rest of the world have to print more money? Deposit in gold or some equivalent in value.

How US print more money? Selling future inflations, control the world and force the world to use USD in trading and currency.

In fact, the US dollar is losing its face value more and more each day.

Well, thats why we have so many wars and fights in Middle East and around the world.

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