A currency's market value is linked to the overall economic health of the country issuing it, and the comparative health of other countries' economies. But how do you appropriately value a currency when the economic health of all major issuers is very much in doubt?
The Shaky Currencies Poem
The U.S. dollar long rode high,
The world queued up Sam's bucks to buy;
But as recession shrinks our pie,
Past dollar traders say 'bye-bye.'
(Dollar, euro, yen.
Down one goes again)
West Europe's leaders weren't coy
About their euro golden boy;
They said it would bring EU joy,
Though many now think 'twas a ploy.
(Dollar, euro, yen.
Another's down again)
Japan's domestic savings rate
Long kept the yen from beggar's gate;
But in a massive quake's sad wake.
That notion's getting a remake.
(Dollar, euro, yen.
Will one shine again)
When currencies are misbehavin'
And markets deem them less worth savin'
You start to sense a widespread cravin'
For real money, a true safe haven.
(Dollar, euro, yen.
Gold looks good again)
*****
©2011 Michael Silverstein
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