For how long can the US dollar hold on to its reputation as a safe haven? For the past sometime now we have been witnessing a paradoxical situation with respect to the world's reserve currency. Considering that the US has accumulated massive debt and the government is printing money at the drop of the hat, the dollar should be losing value. But that has not been happening. Indeed, the dollar has gained against currencies such as the Euro. The only reason for this is that the Eurozone has been in a worse shape than the US. The dollar by itself does not seem to have much merit. And at some point in time, investors are going to realise this and look to invest in non-dollar denominated assets. The fast approaching fiscal cliff- combination of tax hikes and spending cuts is not helping matters either. All of this means that the US government needs to urgently come up with a solution that will reduce spending if the longer term prospects of the dollar are to stay intact.