The Dollar vs The Euro

Tom Campbell from UC Berkeley believes that the Euro has replaced the US dollar as the currency of choice in the world.  OPEC, Japan, and China have diversified their sovereign holdings from dollars to Euros.  He believes that long term interest rates will rise due to a increase in demand of dollars due to increase in deficit spending.

He suggests that America will be increasing our sale of exports in capital intensive goods which we have a comparative advantage in.  As the dollar continues to slide, US exports will continue to rise.


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