America acknowledges Greenback’s decline

The Globe and Mail is reporting that Ben Bernanke has acknowledged that the Greenback will decline in value.

This has great implications for all cross-border business and international trade. In the context of sovereign insolvency, the decline of the greenback will change how sovereign states choose to back their currencies. Modern international trade has never operated without a steadfast greenback, so we are entering a new era of modern trade.

The decreasing value of the Greenback will almost certainly result in increased export productivity from the U.S., which is central to their ability to pay off their foreign currency obligations.