Indian Magazine in Melbourne Australian indian magazine in Sydney indian community magazine in melbourne Indian Newspaper Magazine in Melbourne Indian Magazine in Sydney Bollywood News Magazine Australian indian News in melbourne Image Image Image

Made in India Magazine | November 27, 2020

Why Choose Us We Are An Audited Publication. Advertise With Us.

Select a Page
Scroll to top

Top

No Comments

IS THE US DOLLAR STILL THE SAFEST BET?

IS THE US DOLLAR STILL THE SAFEST BET?
Deepak Gopalakrishnan

For as long as the US Dollar has been the world’s reserve currency, it has been the ultimate safe haven bet. But geopolitical and economic reasons are gaining traction which might just displace it from the coveted position.

The US Dollar is going up, up and up. It is the ultimate safe haven in the world of investing, because the US Dollar is the global reserve currency, which means that if and when there will be a currency crisis, the US Dollar will be the last one standing. So in a fearful, nervous economy like ours today, the US Dollar remains strong.
This affects America’s trade and balance sheets, though. The process of Quantitative Easing, which happened over three iterations over the last four years, is a means of pumping printed money into the economy in an effort to weaken the dollar, so that America can become competitive in terms of manufacturing and other businesses. But the more they print, they stronger the dollar becomes. In their bid for inflation, The Federal Reserve bank has tried to cheapen their currency over the last five years, but have only succeeded in inflating asset bubbles, in stocks and real estate.
The bubbles are getting bigger and bigger by the day. And yet no one knows when they will pop.
The US Dollar has always remained the ‘safest trade in the world’, but now, with a currency crisis looming, there is a good chance that confidence in the dollar will break, and that the values will revert to the mean, as they often do in the financial world. The only problem is that one cannot tell when this will happen. It could happen tomorrow, or it could stay off for the next five years.
The other thing to notice is the falling oil price, which is being artificially kept low by the Middle East. This is deflationary, which means the real value of US debt will only go up in the next few years. That is likely to put further downward pressure on the dollar.
So this might just be the time to take another look at ‘the safest bet in the world’.

You may also like:
Tom Hanks and Rita Wilson
The story of Tom Hanks and Rita Wilson’s battle with COVID-19
Best Books of 2018
The Best Books of 2018 – Must Read Books
10 BEST HOLLYWOOD MOVIES OF 2018
10 best hollywood movies of 2018
Advertise in Indian Magazine
Why Do You Need the Right Business Expense Insurance?
benefits of watching movies with subtitles
Why Keeping the Subtitles On While Watching Shows and Movies is a Good Idea
Firangi Movie Review - Indian Magazines in Melbourne
Firangi Movie Review

Submit a Comment

    Enquire About Advertising With Us

    error:
    Read previous post:
    5 STEPS TO DEALING WITH WORKPLACE CONFLICT

    Almost all of us have had a bad run-in with our bosses at one time or the other during our...

    Close