So is the status of the dollar as the world’s reserve currency in jeopardy?  A valid question as the US runs up a $1.7 trillion dollar deficit, 10% employment, and contracting GDP figures.  Despite these grueling realities, in our opinion here at Notes , the short to medium term outlook on the dollar remains strong.  In the long term, however, we expect a slow, painful dollar demise.  Here’s why:

Many think that inflation will kill the dollar in the year ahead as the government and Federal Reserve create trillions of new dollars out of thin air.

Louis Basenese says those calling the death of the US dollar as the world’s reserve currency are forgetting one vital detail: there is no alternative right now. In addition, more global rate cuts, de-leveraging and uncertainty should sustain the current dollar rally for a while longer. Louis selects three ways to profit from this trend.