Jim Grant: The World Is Abandoning the US Dollar

Thursday, 14 Oct 2010 01:01 PM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The United States has piled on so much debt that world is going to abandon the dollar, says Jim Grant, founder and editor of "Grant’s Interest Rate Observer."

“By the numbers, we are more encumbered now than we have ever collectively been,” Grant tells the Business Insider.

The United States debt has soared to the point where people can expect to see the dollar get the same reaction as in the 1970s, Grant tells the Business Insider. He said that European hoteliers in the Carter years would ask American tourists if they could pay in anything but greenbacks.

“The world has expressed preference for currencies not called the dollar. It’s happened,” he told the Business Insider.

Economists often grab headlines disagreeing with one another about the fate of the U.S. economy, with some experts such as Paul Krugman arguing for more stimulus to kick-start a recovery while others, such as Niall Ferguson, arguing debt is already out of hand.

For Grant, nobody knows what is going to happen.

“My perspective is that people in this business may be experts on up to what has happened up until this minute, but we and the cab driver are all equally ignorant about what will happen,” he says.

“Nobody knows anything.”

The only thing for sure is that the world will avoid the dollar.

If the world continues to invest in dollars given U.S. debt levels, cash injections and low interest rates, “they would be an unusual set of creditors.”

The dollar has fallen recently, including hitting a 15-year low against the yen after sluggish unemployment figures increased expectations that the government will inject cash into the economy, which weakens the currency.

“The market is in a state of anxiety over what’s likely to come from the Fed,” Lee Hardman, a foreign-exchange strategist at Bank of Tokyo-Mitsubishi UFJ in London, tells Bloomberg.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

World's Richest Up $7 Billion as Alibaba CEO Ma Surges on IPO

Friday, 19 Sep 2014 20:01 PM

The world's 400 richest people added $6.5 billion to their collective net worth this week as Alibaba Group Holding Ltd.  . . .

Hulbert: 'Overheated' IPO Market Makes it Hard to Judge Alibaba

Friday, 19 Sep 2014 19:40 PM

Chinese Internet giant Alibaba has experienced a phenomenally successful debut, with shares rising as much as 47 percent . . .

Alibaba Soars 40% in Debut: 'We Want to Be Bigger Than Wal-Mart'

Friday, 19 Sep 2014 16:18 PM

Alibaba debuted as a publicly traded company Friday and swiftly climbed nearly 40 percent in a mammoth IPO that offered  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved