The day is fast approaching when the US dollar will no longer carry any significance internationally.
Argentina and Brazil, South America’s two largest economies, will drop the U.S. dollar in favor of a regional currency in their bilateral trade starting in October 2007, Argentine Economics Minister Felisa Miceli said.
The countries’ transition to a new currency, as yet unnamed, is part of a pilot project by the South American continent’s major trade alliance, Mercosur, to replace the U.S. currency in internal transactions with money of its own, Miceli said.
The combination of a weakened dollar and foreign stock markets that consistently have outperformed the American market has given American investors the push to put record amounts of money into overseas securities.
The trend is an alarming one. There is every likelihood this could lead to a financial meltdown that would have serious implications for the world economy.