The American Peso
I hear from Ewan that Canadians, who are now heading south to the States to buy cheap goods after years of Americans heading north, are referring to the United States dollar as the ‘American peso’. I only mention it because a random search for the phrase ‘American peso’ brings up a particularly prescient article from the Mises Institute’s blog from back in 2004; do take a read.
xD.
December 17th, 2007 at 12:58 pm
Where the dollar has failed is as a store of value.
The Russians are usually a pretty good barometer and U.S. dollars ar not the hard currency any more. It’s Euros and people are backing the Rouble more so than earlier.
December 17th, 2007 at 9:20 pm
Yes, that’s probably true. What would be interesting would be if people started trading oil in euros rather than dollars; that could cause a whole load of upsets.
IMHO, a lot of the problem comes from the US’ own overseas economic policies or, rather, its ‘our way or the highway’ attitude, that has led to China and now South America (through the Banco del Sur/Banco del Sul) means that large amounts of currency, denominated in dollars, is outside any effective US control.