…….explains in very simple terms why the US Dollar will remain the world’s reserve currency for the indefinite future.
The chart was ripped from this page at the center for arms control. Also, let’s check out the fun stats these guys use to pep up their article.
- The United States spends more than the next 45 highest spending countries in the world combined.
- The United States accounts for 48 percent of the world’s total military spending.
- The United States spends on its military 5.8 times more than China, 10.2 times more than Russia, and 98.6 times more than Iran.
- The United States and its strongest allies (the NATO countries, Japan, South Korea and Australia) spend $1.1 trillion on their militaries combined, representing 72 percent of the world’s total.
I know this post is not directly LatAm related but as the US dollar plays such an important role down here you need to know why the dollar prophets of doom are wrong to get a full handle on the Americas, both North and South. For sure the greenback might weaken some, (in fact i’m expecting it to weaken a bit in 2009) but there’s no way in the Creator’s Great and Mysterious Universe that the world will abandon the USA and its currency while it holds the biggest stick in the playground. The subject of finances is not just about financial things, you know.
Any further questions?