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America has rediscovered the importance of a strong dollar

After policy Bush penalized the greenback, the illusory hope of recovering competitiveness on international markets and heal the strong U.S. trade deficit , with the 'Obama is now coming to a street renewed interest in a firmer U.S. dollar.

In this post
can find some reasons to support this recovery in the euro dollar cross.

economist J. Frankel, already in 2006 had drawn attention on the changing role of the dollar in the international context writing in his paper:

"The greenback is senpre was the main currency in which they are denominated international reserves and the U.S. have always played the role of World Bank, and recipients of large capital flows.

They also experienced significant gains due to ' appreciation of certain foreign currencies and have the great privilege of earning on its activities abroad with a rate of return greater than what they pay on their bonds ( carry trade).

than in the past but today there is a currency that is able to act as a leader in international reserves , since it holds many of the characteristics essential for this role, is the euro.

The cost for the U.S. hegemony of the euro could be very high. "

Frankel understood then, four years ago, the risks that lurk in the loss of value dollar, which after a peak of 0.82 against the euro had fallen to a minimum of 1.60, effectively halving its value against the euro.

From a standpoint of capital flows, America now has a primary need, therefore, continue to attract foreign investors (since the U.S. not spare) to finance the growing debt and What better than a loss of credibility of the European Union to avert euro capital?

Perhaps it explains the repeated downgrade the creditworthiness of countries made by the euro (americane. ..) Rating agencies , while the U.S. retains the triple A, or the excellence, despite the appalling speed multiplication of their debt . This

without wanting anything away from the blindness of many European countries, that with a strict fiscal policy are also not putting them in the tunnel of no return due to the bitter end.