Thursday, November 15, 2007

Dollars aren't a girl's best friend?


It has been widely reported that the world’s best paid supermodel, Gisele Bündchen, has stipulated that companies are to pay her in euros instead of US dollars over fears of the latter’s shrinking value. According to the reports, Ms Bündchen demanded to be paid in euros to represent Pantene hair products for Procter & Gamble Co., and similarly for her contract with Dolce & Gabbana to promote it’s The One perfume. The dollar has lost 34% of its value since 2001, and dollar reached its lowest level against the sterling since 1981 in early November.

Ms Bündchen’s agent has denied the stories, but even if they were true, her client would not have been the first prominent public figure to bet against the dollar—Warren Buffet has been vocally bearish on the dollar in October, albeit under much less attention from the press.

Tangent’s take:
  • Does it make any economic sense for someone based in NYC to not accept US dollars?
  • If everyone is betting against the US dollar, does it really matter that it’s value keeps on sliding?
  • If everyone is betting against the US dollar, shouldn’t it have weakened to the point it can’t get any weaker?
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Amazingly, picture is available on Wiki Commons. ie. free to use.

2 comments:

Avnish said...

well as economists, we all know that whatever currency u accept doesnt matter because u can immediately exchange that for another currency. wat matters is wat currency u hold ur wealth in.. i suggest she tk d dollars n convert them to euros..

kelly chen said...

Perhaps also relate to that oil is pegged to the dollar, but since it is very hard for oil exporting countries to do exactly what gisele did, they have pushed the price of oil up like crazy. i am not an expert on this but you may be?

I'm cartooning this as "No. Bitch!" with Gisele turning down her dollar for the Euro. Will be put up soon.