All the World’s a (Financial) Stage

In the last few years we have all seen what upheaval in world credit markets and currencies can do. More recently, we are seeing the potential collapse of smaller countries that do not have the ability to finance their own bailouts as the United States has seemingly managed to thus far.

But we are also in a time of the beginning of international product launches and entertainment tours. So I thought that it would be a good time to mention that in times of fundamental currency fluctuation, it is good to re-examine our contracts. Look back at them now, because things that were settled in price months ago may now be settled in terms of a currency with significantly less value. If you have the opportunity, you should be thinking about a clause which measures against a world benchmark, such as gold, rather than currencies which are currently in question. One of the most talked about methods of financing, for instance, a European bailout is through currency inflation. This is a time when anyone doing international business becomes a currency speculator of sorts, and should be watching the changes in the world market. Just a word to the wise.