On Monday we speculated that McDonald’s Big Mac would come to replace our Dollar as the world’s premier reserve currency.
Then on Tuesday The Wall Street Journal ledes their Money & Investing Section with:
Decades from now, the crisis of 2008 mightn’t be remembered as the last days of Bear Stearns and Lehman Brothers, but as the moment the dollar lost its undisputed No. 1 ranking among world currencies.
Meanwhile the President of France is pressing this very aggressively. I wonder why?
What was true in 1945 can no longer be true today,” Mr. Sarkozy said last week. “The dollar cannot claim to be the only currency in the world.
There is as yet no official confirmation that Big Mac is the leading candidate for Dollar V2.0, but if we Follow The Money we will sniff something other than French Fries cooking in the bistro.
According to Drew Hasselback in Canada’s Financial Post:
Rising food prices and declining consumer confidence are leading the French to abandon bistros for McDonald’s. About 3,000 independent restaurants filed for bankruptcy in the first half of 2008, according to Insee, which is France’s national statistics office. The number of filings was a record 27% higher than in the same period of 2007.
France is meanwhile emerging as McDonald’s biggest source of revenue outside of the United States. Sales at the company’s 1,115 outlets in France will rise this year to a record 3.35 billion euros, McDonald’s has said.
Can we next be looking at a French Nationalization of Micky D’s to turn around their economy and seize control of the new Global Reserve Currency?
And the term being floated for a new Reserve Currency, to replace “The Greenback”?
While Sarko’s chin isn’t a total show-stopper, I must say he does use it to great effect, as you can see in this poster.
Remember, YHIHF, OYYD.
Please hold the Frites.