The USD dollar has flirted with parity many times against currencies it once held a distinct advantage over. USD-CAD and AUD-CAD have breached this mark several times but have had trouble holding it. This means the US has indeed lost it's once dominant position over these nations which have literally outgrown the US in many ways especially in trade policy and trade relations.
The aud-usd flirted with parity back in 2008 but the aussie proved not to be ready back then and it led to a major fall. Maybe parity is not the goal of all nations vs the USD but it is an inevitable reality with the great trade deficits that exist with America losing it's prominence. 2011 will answer that question if the US decoupling is being fulfilled as many economist have predicted and parity is not just tested but reversed to favor other nations that were very low on the totem pole compared to the great land of opportunity prior to the US housing collapse or some call this period "The Great Recession".
No comments:
Post a Comment