By contrast, the beautiful Ms Bündchen, a catwalk superstar, has a figure that turns heads and a head that turns figures. She looks like a million bucks but refuses to be paid in dollars. She has worked out that accumulating assets in a depreciating currency is a mug\’s game.
You did spot that she (or rather, her sister, who is her manager) denied the paying in euros story?
Behind the greenback\’s slide towards "toilet currency" status is a 25-year binge by US consumers and government, hell bent on spending more than they earn. Warren Buffett, the legendary investor, explains: "Our country has been behaving like an extraordinarily rich family that possesses an immense farm. In order to consume more than we produce – that\’s the trade deficit – we have, day by day, been both selling pieces of the farm and increasing the mortgage on what we still own… goodbye pleasure, hello pain."
Well, actually, no. The chickens that are coming home to roost are the effects of the dollar being over valued for the last decade or more. That over valuation is what has caused the trade deficit. The solution is thus that the dollar should fall in value relative to other currencies. Much as I personally hate it (the majority of my income is in $) that part of what is going on, the falling dollar, is in fact the solution, the right thing to be happening.