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Monday, November 12, 2007

DRAFT The rich and famous prefer the euro

Definitely it seems that something is changing between the dollar and the euro. We've already seen "enemy" countries, like Venezuela and Iran, prefer to conduct their transactions in euros instead of dollars, and even supermodels such as Gisele Bündchen who wants to sign contracts only in euros because of the instability of the American coin. But changing attitudes about which currency is now the favorite are becoming more high profile: One of the most famous rappers in United States, Jay-Z, walks in his last video through the streets with tickets of 500 euros. Not 500 dollars, they are clearly bills of 500 euros. Besides, he does it in a Rolls-Royce, very European.

Maybe these facts can be symptoms of the new financial world situation, and the dollar can be stopping being the currency of world reference. The average citizen pays much more attention to people like Jay-Z (known also as the boyfriend of Beyoncé) than to Alan Greenspan. America needs a change in currency policy because, although a weak dollar helps exports (because it lowers the price of American goods for foreign buyers), it will eventually bring negative consequences to the economy in general because a weak dollar, an unstable dollar, makes America less attractive to foreign investment. Considering the warnings (Greenspan predicted real probabilities of recession in US), the foreign inversion is the best guarantee against of a financial crisis.

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