Demise of the Dollar

Oct. 12 (Bloomberg) -- "Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades."
http://www.bloomberg.com/apps/news?pid=20601087&sid=aA6_py_71g_o

It looks like the dollar is going Get your gold now while you still can.
The more they print the more worthless it becomes.

"The dollar's position as the world's leading reserve currency faces increased pressure as the financial crisis allows emerging economies greater influence on the world stage, analysts said.

A report last week in The Independent claiming that China, Russia and Gulf States are among nations prepared to ditch the dollar for oil trades has heightened the uncertainty surrounding the US currency's future."
http://rawstory.com/2009/10/us-facing-massive-economic-power-shift-with-dollars-downward-spiral/


http://www.youtube.com/watch?v=DyTr-EZJF-I&feature=fvhl

Well, aside from the political nature of this topic, it is a big concern. Maybe the US will become the new Africa (steel was first invented in Africa, and later in Europe, Africa was, until relatively recently, a big producer of the worlds grains, but now you see pictures of people scouring what were once extremely productive farm lands for a grain or two of wheat). Which would suck. Big time.

But, yeah, the phasing out of the dollar as a leading world currency would definitley doom us to becoming a third world nation. We might still be able to export our one manufactured good, inner spring mattresses.


...

I for one welcome our new overlords, and would like to politely remind them that, as a rather well known local figure, I could be of great service to recruitment for their cause.

John_Galt said:

Well, aside from the political nature of this topic, it is a big concern. Maybe the US will become the new Africa (steel was first invented in Africa, and later in Europe, Africa was, until relatively recently, a big producer of the worlds grains, but now you see pictures of people scouring what were once extremely productive farm lands for a grain or two of wheat). Which would suck. Big time.

But, yeah, the phasing out of the dollar as a leading world currency would definitley doom us to becoming a third world nation. We might still be able to export our one manufactured good, inner spring mattresses.


...

I for one welcome our new overlords, and would like to politely remind them that, as a rather well known local figure, I could be of great service to recruitment for their cause.

Click to expand...

I'm sure they would be glad to accept you as their slave.

"The Dollar Is Finished" -Gerald Celente
http://www.youtube.com/watch?v=h7oFl9XL7sg&feature=related

The implosion of the U.S bond market has been predicted for several years now, but just like a Roland Emerick disaster film it always seems to more hype and CGI than substance.

Right now the Chinese are propping up the Bond market, and in a classic case of a dog chasing it's tail also keeping the dollar from diving too fast. The chinese have expressed they plan on continuing to buy U.S debt as long as the U.S. allows for a generous trade deficit, along with letting the Chinese have their way politically on a lot of issues.

All of this right now is based on speculation on the recovery of the U.S. economy, and how fast it will happen. While U.S. debt is staggering, the world economy is still based on cash flow as opposed to debt ratios, and if the U.S, economy starts to rebound the dollar will continue to be the central currency.

*If* the U.S. economy continues to sputter, and Asian countries along with India continue to imrove their non-export GDP (speculative at best), then the dollar is doomed. Sorry, but I'm not convinced that the Euro is going much further either because just look at the debt of the biggest European economies. They just disguise it better

Oil producing countries have been threatening to drop the dollar as the standard reference for years, but so far they haven't due to inside pressure from Saudi Arabia. It wasn't China or Venezuela that kicked a certain rogue dictator's army out of Kuwait a few years ago - nudge nudge - wink wink.

Well known?



who is John Galt?

For the Underground. - Closed here.