Posted tongue-in-cheek as a header image for excerpts from a Smart Money article entitled "
How to Profit From the Shrinking Dollar":
The dollar has dropped 5.8% against the world's major currencies in 2011, according to the Federal Reserve's trade-weighted index, its worst start to a year since 1995. It is trading at a 29-year low against Australia's dollar, and only recently bounced off a record low against the yen. Even the euro, which is still wrestling with the possible default of Greece and Ireland, has gained 10% against the dollar this year.
The main drivers of the dollar's weakness, say economists, are the twin pillars of economic intervention: monetary and fiscal policy. "The market is concerned about the deficit and the Fed," says Jessica Hoversen, fixed-income and foreign-exchange analyst for MF Global Holdings Ltd.
Most worrisome in the short term: monetary policy. While the Federal Reserve in June will end its program of buying bonds to boost the economy, Chairman Ben Bernanke said Wednesday that the Fed will keep interest rates low for an "extended period"—even as central banks around the globe raise rates to head off budding inflation...
Yet most analysts expect the dollar's weakness to continue. "I can't imagine a scenario where all the players in Washington actually do the hard thing and arrest the decline of the dollar," says J. Michael Martin, chief investment officer of Financial Advantage Inc., an investment advisory in Columbia, Md. "Our working assumption is that the dollar will continue to be debased."
Here's how to play the weak dollar wisely...
With details at the link.
Nice bit of humor! By the way, I plugged 2 euros into my currency converter widget, and it says that at today's exchange rate the result is $2.902. Close enough.
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