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EconoMeter panelists dissect the almighty dollar


Sunday, October 9, 2011

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Kelly Cunningham, National University System
Answer: No

No investment within a country retains value when the currency on which it is based falls. The spiraling debt crisis now underway could develop into a major currency crisis starkly altering exchange rates. With the global economy on shaky ground, central bankers around the world are meddling with currencies at an alarming rate. As a result the danger of currency declines threatens all investments. It is becoming clear the U.S. economy is not recovering. What the markets have yet to grasp is recession this time will likely accompany high inflation and greater risks for currencies collapsing.