It’s a little remarkable when the CEA chairman under Bill Clinton talks about the end of the dollar as a reserve currency. Bloomberg:

The dollar’s role as a good store of value is “questionable” and the currency has a high degree of risk, said Nobel Prize-winning economist Joseph Stiglitz. “There is a need for a global reserve system,” Stiglitz, a Columbia University economics professor, said at a conference in Bangkok today. Support from countries like China should ensure orderly discussions on a new reserve system, he added.

The dollar has lost 12 percent since March 5 against an index comprising the euro, yen and four other major currencies. China, the world’s largest holder of foreign-currency reserves, and Russia have both called for a new global currency to replace the dollar as the dominant place to store reserves.

“The current reserve system is in the process of fraying,” Stiglitz said. “The dollar is not a good store of value. Right now, the dollar is yielding almost no return and yet anybody looking at the dollar has to say there’s a high degree of risk.” The dollar will weaken as the U.S. pumps “massive” amounts of money into the economy

So even though the political and economic fantasy of Obamacare is in trouble, there’s all the rest of Obama’s wild and reckless spending still to think about.

This entry was posted on Saturday, August 22nd, 2009 at 6:04 am and is filed under Democrats, Republicans, business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.