Supermodel 'rejects dollar pay'

[Rubber Duck]

The world's richest model has reportedly reacted in her own way to the sliding value of the US dollar - by refusing to be paid in the currency.
Gisele Bündchen is said to be keen to avoid the US currency because of uncertainty over its strength.

The Brazilian, thought to have earned about $30m in the year to June, prefers to be paid in euros, her sister and manager told the Bloomberg news agency....

http://newsvote.bbc.co.uk/1/hi/business/7078612.stm

[jacksonm]

She and I both...

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[bwhhisc]

How f*cking ridiculous. Just a publicity hound IMO.
Take the damn check to the bank and exchange it for whatever currency floats your boat.

[jacksonm]

Originally Posted by bwhhisc

Take the damn check to the bank and exchange it for whatever currency floats your boat.

You mean other countries beside the US still use checks?

Anyhow, you may recall the time when the Ruble was not accepted by most people in Russia... And today, Baltic countries have very strict laws about the importation of foreign currency.

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[domainguru]

Originally Posted by bwhhisc

How f*cking ridiculous. Just a publicity hound IMO.
Take the damn check to the bank and exchange it for whatever currency floats your boat.

Probably staged payments for a long-term contract, so a reasonable business decision.

[touchring]

Originally Posted by domainguru

Probably staged payments for a long-term contract, so a reasonable business decision.

I'm still using dollars because i'm worried about the psychological impact if i use euro.

I think i'll just revise my price list and stay with the dollar. This might give a perception of lower price.

[Rubber Duck]

This story actually trivalises an important issue.

If you are contracting into the future you need to know the value of the remuneration that you are contracted to received. This is especially true for any company whose cost are denominated in currencies other than dollars. This is going to be a potential deal breaker in many instances, not least for lenders to the US market. Once of the underlying reason that China does not want to devalue the Yuan is that the huge debt owed by the US are denominated in dollars. By appreciating its currency it would in effect be writing down a considerable chunk of that debt. This may not sound like the US government's problem, but it is. Lenders are not going to lend for small returns for huge risks. If the Fed does not raise interest rates substantially lenders will walk away unless the debts are denominated in currencies other than the dollar, thus intensify the Credit Crunch. This is Judgement Day. Something has to give, and it will be the US that is forced to compromise.

The next big break with convention is likely to be OPEC pricing in dollars. If it don't suit them, they won't do it.

[yanni]

Originally Posted by Rubber Duck

The next big break with convention is likely to be OPEC pricing in dollars. If it don't suit them, they won't do it.

Isn't this the reason we had the Iraq war? Saddam was threatening to move to Euro?

Iran has been saying the same for sometime. 'S why they're the next target...

[Rubber Duck]

Well it sounds more plausible in retrospect than WMD.

Originally Posted by yanni

Isn't this the reason we had the Iraq war? Saddam was threatening to move to Euro?

Iran has been saying the same for sometime. 'S why they're the next target...

[jacksonm]

Originally Posted by Rubber Duck

Well it sounds more plausible in retrospect than WMD.

So far the Euro has been the weapon of mass destruction.

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[yanni]

Imagine what would happen worldwide if OPEC et al moved away from the almighty buck.
...

[Rubber Duck]

Originally Posted by yanni

Imagine what would happen worldwide if OPEC et al moved away from the almighty buck.
...

I believe it is just around the corner.

[yanni]

Problem is the economic reprecussions will have a worldwide effect.

[Rubber Duck]

I am not convinced that it will have much impact on global growth. It is just some of us are likely to see a lot less of the profits.

[Drewbert]

Iran is already taking Euros for oil. They've been doing that for a while now.

[touchring]

Russia is backing Iran for now, so are the Europeans. The situation is quite different from Iraq.

[Rubber Duck]

Well you may depend Russia is not asking for dollars, and I expect most people are very happy to hold the Yuan right now!