What to Expect When the Reign of the U.S. Dollar Comes to an End
by Martin Hutchinson, Global Investing Strategist
Money Morning
Lloyd Blankfein has got it all wrong again.
Speaking last week, the Chief Executive of Goldman Sachs (NYSE: GS) claimed that if the “fiscal cliff” of tax increases and spending cuts go into effect on January 1, the U.S. dollar would lose its reserve currency status.
As the Vampire Squid’s representatives often do, Blankfein actually has it backwards.
Contrary to what Blankfein thinks, a legitimate movement to deal with the fiscal cliff would cut the federal deficit in half, make the country more or less solvent and strengthen the dollar.
However, the problem is that the fiscal cliff involves pain. And since politicians like to delay pain as long as possible, the chances are good the fiscal cliff will be postponed again.
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2012-10-09 10:22:53
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