Tuesday, October 13, 2009


It looks like the world is in the process of quickly moving away from the dollar as the world reserve currency. So what will the Fed do? They can raise interest rates to attract investors. This will quickly show just how solid the so called "recovery" is as the market collapses and home sales just stop happening. Or, they can print money faster, devaluing the debt along with the dollar. This will lead to hyper inflation.

Either way, it sucks to be us.

"Ben Bernanke's dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency.

Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago.

Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record, said the International Monetary Fund."

New York Post

Bookmark and Share

No comments:

Post a Comment