The only nation that can ruin the dollar is America. Bernacke, Geitner, Zoilick have gone on record - dollar reserve status is toast. Why? Americas financial obligations are ridiculous and unsustainable. Washington knows this. The only way out is debasement. Fuck our debtors. Fuck grandpa. Ruin the dollar. This will be preceded by the Last Great Bubble, and an incredible destruction of private American Wealth.
And Bernacke, Geitner and Zoilick proclaiming the end of reserve status, is also a "Bear trap"???? Keep dreaming.
I agree that government is the biggest problem facing the dollar. But with every crisis there are winners and losers. You have to be able to profit from any fiscal situation. I would find it hard to stomach betting against the US, considering that was were I was born. I've lost complete confidences in the people of the US, as they are becoming increasingly weak and dovish. Either way God bless America.
I LOVE America. Doesn't mean our Leaders won't trash the Dollar and throw us under the bus to save their own ass. Washington is OWNED by Special Interests. If Corporate America can get another few wars out of it, 300$ oil and another bubble for Wallstreet, its a Lock. America has become a slow-motion garage sale. Broken into pieces and auctioned off to the deepest pockets.
Wasn't a stunt exactly like this the start of the movie "Rollover"? Except then it was the Arabs who held all our Tbills, and they started exchanging them for Gold.
The interesting part is having part of the basket as gold. I wonder if the percentge of the basket that is gold will adjust up when one or more of the fiat currencies, as they must, begin to lose substantial value against the other currencies. I guess the other countries sniffed out the FED's plan to devalue the dollar while it is still the reserve currency. The FED wanted foreign exporters to take on a lot of the loss that's needed to make US debts manageable. Not gonna happen. Now, what's left of the American middle class will bear the full brunt of this dollar devaluation that will start soon. The upper class and corporations, as always, will be bailed out.
I cannot wait to see what happens when the Fed replies "Ok, then we'll make sure that all that money you're getting through AIG (Europe) somehow doesn't find it's way through to you again."
looks like the dollar is ready to rally and short squeeze all the bears for months... when all news and sentiment is bearish... you know what happens...
<B>Saudi Bank Governor Denies Talks to Replace Dollar </B>(Update1) Share | Email | Print | A A A By Camilla Hall Oct. 6 (Bloomberg) -- Saudi Arabia hasnât held talks with other oil producers and major consuming nations such as China on moving away from the dollar as the currency used to buy and sell oil, Saudi Central Bank Governor Muhammad al-Jasser said. Al-Jasser, speaking to reporters in Istanbul where heâs attending an International Monetary Fund summit, was denying a report in the London-based Independent newspaper, which said today that Gulf oil producers and customers including China and Brazil had held secret talks on phasing out the dollar in oil pricing. The Independent report is âabsolutely incorrectâ and there has been âabsolutely nothingâ of that nature discussed between Saudi Arabia and other countries, al-Jasser said. The dollar pared losses against the euro following al- Jasserâs comments, trading at $1.4713 as of 7:52 a.m. in London, from $1.4648 in New York yesterday. It weakened to $1.4749 earlier on the Independent story. It was at 89.34 yen, from 89.53 yesterday, after falling to 88.86. The Independent report, which cited unidentified Gulf officials and unidentified Chinese bankers, said that government ministers and central bank officials from Russia, China, Japan and Brazil had held meetings to discuss the plan, which it said is due to be introduced by 2018. Japanese Finance Minister Hirohisa Fujii said at a news conference in Tokyo today that he âdoesnât know anything about it,â when he was asked about the newspaper report. To contact the reporter on this story: Camilla Hall in Dubai at chall24@bloomberg.net Last Updated: October 6, 2009 03:06 EDT Oman, UAE, Japan, Russia, Algeria all denied it too so far