Dollar no longer global default currency as confidence in US falls

The American stock market is having a good year. From its low point of 677 on 9 March 2009, the S&P 500 index has recovered by over 60%.

The US accounts for over 25% of world GDP, with just 5% of the world’s population. It is the powerhouse of the global economy, but despite its size, remains remarkably dynamic. This is largely because it pursues free market policies, which encourages enterprise and reduces unemployment. Compared to the euro area, over the last decade, the US has enjoyed twice the level of GDP growth and accrued half the level of unemployment. The US has suffered through the credit crisis but its peak to trough GDP decline through the recession is likely to be significantly lower than the reduction in eur...