Much has been said and written about the US budget and trade deficits and that, as a consequence of these, the US dollar is following a one-way street down hill. After all, even the richest of the rich source Forbes, Bill Gates of Microsoft and Warren Buffett of Berkshire Hathaway are short the greenback, diversifying or hedging their bets into other currencies. However, to take the euro as the most eligible alternative currency to protect against further depreciation of the US dollar has not been a profitable trade for most of the period since the beginning of 2004. While the calendar year 2004 saw the euro appreciate by 7.9%, theĀ first half of...