Think the dollar is dead?
Bloomberg provides a reality check (though unfortunately no chart):
For all the concern over the $1.6 trillion U.S. budget deficit and record debt load, the dollar is as valuable now as 35 years ago.
Measured against a basket of currencies from the Group of 10 nations proportioned by how they trade against each other, the greenback is up about 3 per cent since 1975, according to Bloomberg Correlation-Weighted Currency Indexes. That was four years after the Bretton Woods agreement, set up in 1944 to link currencies to the price of gold, collapsed. The U.K. pound has dropped 34 per cent and the Canadian dollar has fallen 6 per cent.
Already, it’s easy to anticipate the protests, notably from gold bugs who will scoff at comparing one fiat against a group of other fiats (all mere worthless paper). Still, absent the post-apocalyptic Water World dreams of gold’s biggest fans, currency is what we got for most transactions.
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