'The Greenback' has sent a wave of concern across the entire geography, with its free-fall against a basket of currencies. Everyone is concerned, some are surprised and others in fear:
- surprised at why Fed is letting the fall, and
- fear at the possibility of the US recession getting replicated around the world because of the falling greenback.
Since dollar is the most dominant currency for trade across the world. Its fall has led to increase in every commodity price across the board, from the gold, to the oil, and to the corn.
How does it help Uncle Sam?
Well it brings in extra exports, since goods exported by the US become more competitive in the global market, this is supported by the recent data indicating reduced Trade Deficit.
At the time when nothing seems working for Uncle, neither retail numbers nor consumer confidence, An increased export may be bringing in some hope to curb the shrink of economy to some extent.
Imagine this:
Liquid dollar is flowing all over the floor seeping to every nook and corner of economic prosperity, turning them all green. May be Uncle Sam understands globalization better than anyone else.
