The Amero….coming soon?
November 20th, 2007With the meltdown in the US $ has come a raft of stories about the end of the greenback as we know it. Messrs Chavez and Ahmadinejad have been whooping it up at the recent OPEC summit and gloating over the demise of the $ etc etc. Well not everyone agrees with their opinion on the matter but clearly the $ has had a major kicking and there are now other options on the table for currency reserves such as the Euro and now more than ever the Yuan though it’s not fully convertible.
Already some well known investors such as Jim Rogers are looking elsewhere to put their money. Last year he called the US recession and the $ decline. Interestingly he saw the Euro as disappearing within 15-20 years as it was a “political currency”. I never though it would last 10 years so it’s done well. He also recently said he would like to put all his money into Yuan…wouldn’t we all?
But there has also been plenty of chatter about new currency unions….Asian? or what about a NAFTA based system?
It’s called the Amero, a union between the US, Canada and Mexico. It’s an interesting project, overrun with innuendo and conspiracy theories. As Jim Rogers says political currency unions never last (the same goes for free trade agreements).
Whatever the merits of the Amero, it’s clear that the geo-currency axis is shifting to incorporate more players. It could make for some interesting times ahead in the global currency markets.
Tags: amero, currencies, forex, money, Uncategorized
November 29th, 2007 at 2:50 am
[...] on from my post on the Amero I came across this article which explores the fallout for the $ from the current financial crisis. [...]
July 24th, 2009 at 4:55 am
[...] Drawing Rights (SDRs), a Commodity Backed Currency (CBC) or an Energy Backed Currency (EBCU). Even the Amero could be a [...]