An Introduction

Hi. Welcome to BourGroup and my blog. Phil

Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.

I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.

"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.

Friday, November 9, 2007

Reserve Currency - the US dollar

I do read a lot about the dollars fall (and it is at its lowest point to the basket of other currencies as it has ever been), but it does fluctuate based on market forces. It has been low before, too. And high. I also do read that the US dollar will fall from its status as the world's reserve currency. I don't believe this is possible in the short-term (Former Fed Chairman stated that the Euro could conceivably become the world reserve currency by 2020). Even so, Great Britain's pound sterling used to be the world's reserve currency in the 18th and 19th centuries and now represents only 2% of the total. England seems to be doing fine. But look at this table below and you will see that the US dollar is still more than 2.5 times larger than the nearest competitor - the Euro. Quite a long way to go to be overtaken. And if it is in danger of no longer being the reserve currency for the world at 65%, what were the dangers and repercussions when it was only 59% of the total in 1995. Don't listen to "hype" and look at historical facts.

From Wikipedia, I found the following table of information: (click here)