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The dollar's decline: from symbol of hegemony to shunned currency

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posted on Nov, 17 2007 @ 05:33 AM
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The dollar's decline: from symbol of hegemony to shunned currency


news.independent.co.uk

The decline of the dollar, symbol of US global hegemony for the best part of a century, may have become so entrenched that some experts now fear it is irreversible.

"An American businessman over here who is given the choice would take anything but the dollar," David Buik of Cantor Index said yesterday. "I would want to be paid in yen, and if not yen then the euro or sterling.

Korea's central bank has urged shipbuilders to issue invoices in the local currency and take precautions against the weakened dollar, and three of the world's big oil exporters, Iran, Venezuela, and Russia, are demanding payment in euros rather than dollars. Iran insisted that Japan should make all its payments for oil in yen, rather than dollars.
(visit the link for the full news article)




posted on Nov, 17 2007 @ 05:33 AM
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It's alarming to read the amount of countries who are now dropping the dollar, especially big oil exporters.

With the rise of the Euro, it won't be long until the UK decides to join the Eurozone (hopefully, we do it in the next five years).

Also, China is now the third largest economy in the world. It's expected to over take Japan within the decade. Not long before China becomes the largest economy in the world.


news.independent.co.uk
(visit the link for the full news article)



posted on Nov, 17 2007 @ 06:45 AM
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From Monday morning the Indian authorities are going to stop accepting the dollar from foreign tourists wishing to visit some of India's most famous landmarks, such as the Taj Mahal.

news.bbc.co.uk...

And that from a country which only 30-40 years ago was still very much part of the under developed world.

Dollar ? No thanks.



posted on Nov, 17 2007 @ 07:18 AM
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It seems reasonable to me.

Isn't the conventional wisdom in investing to,
'Diversify. Diversify, Diversify" ??

the dollar will/should share the world stage with other currencies
it's only common sense at this time to have a basket-full of currencies
in the treasury, considering the debt the US has amassed in the last 7
years with no-end-in-sight


that makes sense for the macro-economics of nations & blocs of nations,
but not for the micro economics of a personal portfolio



posted on Nov, 17 2007 @ 07:26 AM
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Personally, I'd rather be paid in Yen...lowest interest rates...Very attractive from a carry trade point of view with regard to the higher value resource based currencies...

Peace



posted on Nov, 17 2007 @ 08:19 AM
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reply to post by infinite
 


Is no only Business men dumping the dollar but the wealthy elite in America are doing the same to save their investments even models like Brazilian super model Gisele Bundchen required the $30 million she earned during the first half of this year to be paid in euros.

Is no only nations dumping the dollar but invidual wealth holders doing in the same.

This will add up to the steady decline of our currency.


Gisele is not alone in her forecast of the dollar's fate. The First Post, a British paper, reports that Jim Rogers, a former partner of billionaire George Soros, is selling his home and all possessions in order to convert all his wealth into Chinese yuan.


www.creators.com...

Are this people traitors? no they are just investors.



posted on Nov, 17 2007 @ 08:38 AM
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Yeah,

Jay-Z has dumped the dollar too, switched to Euro's. Expect more to switch over in coming days.



posted on Nov, 17 2007 @ 08:59 AM
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Honestly you guys, do any of you really want to be paid in dollars these days? (Especially you marg6043, since you seems rather patriotic)

The dollar is kinda (to put it mildly) sliding down you know. It's like taking a pay cut during inflation. Wait a minute, it is taking pay cut during inflation.



posted on Nov, 17 2007 @ 10:02 AM
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I told my husband that he should demand to be paid in Euros or the Yuan by his company.

If this was possible, you would not believe how much more he would be making . . . how about 40 thousand more on top (without going into details) .


Even he was surprised about this revelation.



posted on Nov, 17 2007 @ 10:24 AM
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reply to post by marg6043
 

He could demand to be paid in Yuan!
How could that be, enlighten me please. Just give a little description about the company.

ps: is that 40.000 euros or yuan. if yuan, you're screwed



posted on Nov, 17 2007 @ 01:19 PM
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Hey if the wealthy investors do it and are doing it, why no the rest of the hard working Joes in America.

This is only to tell how much you can get away with if you are part of the elites in this nation.

Meanwhile the rest of the population have to suffer the mistakes of the elites.



posted on Nov, 17 2007 @ 01:43 PM
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I hope this crushes western style fractional reserve banking, but I'm afraid it will just lead to the Amero in the short run.


I love this video. Explains everything:



video.google.com...



[edit on 17-11-2007 by dionysius9]



posted on Nov, 17 2007 @ 01:58 PM
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Originally posted by marg6043
Hey if the wealthy investors do it and are doing it, why no the rest of the hard working Joes in America.

This is only to tell how much you can get away with if you are part of the elites in this nation.

Meanwhile the rest of the population have to suffer the mistakes of the elites.


The difference is the elite usually have much more open options to go where they can actually spend that currency. The average American can only spend dollars except for a few isolated cases. When Target starts accepting euro's as payment i may rethink it, but for now I only want dollars.



posted on Nov, 17 2007 @ 09:57 PM
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Originally posted by infinite
Also, China is now the third largest economy in the world. It's expected to over take Japan within the decade. Not long before China becomes the largest economy in the world.


On that note:


For more than half a century, Americans could take for granted that the world economy would orbit around them. No longer. The USA today produces about 30% of world output at market prices. That figure already is down significantly from about 46% in the aftermath of World War II, when European and Japanese factories lay in ruins. And it is headed lower still as China and India continue their ascent.

Over the next generation, fast-growing developing nations are expected to see a significant uptick in their share of world output from 23% today to about 33% in 2030, according to a recent World Bank study.
USA Today 02/08/2007

Unless the US can begin creating more capital in the form of manufactured goods or natural resources, I just don't see a way out of our worsening situation. In fact all I can really see is just an increase of service oriented professions. That US workers will end up employed at call centers representing foreign businesses is not that hard to imagine. In other words, I have no doubt that countries who have managed to retained their manufacturing sectors with minimal outsourcing of jobs will continue to hold on to them. Countries like Japan, Germany, Italy, and the United Kingdom, and we will be the country that fields their customer support issues.

With the growth of Asian countries like China, Singapore, South Korea, and others I just don't see how in the world the US will ever regain its economic dominance. I don't think it will. At least not in the next hundred years. The only way to stave off further decline is to get to back into outer space and start harvesting natural resources from space before any other countries do. That's the only way out I see, and that's not guaranteed because we've squandered nearly 40 years of being in the lead of the space race, potential foreign business investment into space prospecting, and now the largest growth economies of developing nations are in the beginning stages of their own space programs. And Japan has more plans than mapping the Moon in high definition, that's for sure.

The main obstacle to any sort of meaningful recovery here in the US is foreign business investment. It just ain't happening as much as it has in the past. The demand for skilled labor has dropped even though wages for skilled labor has increased. Soon there's going to come a time when the demand slows way down, unless confidence is somehow renewed in the viability of the US. The housing market bust that accompanies the sub-prime mortgage nightmare correlates directly to decreased demand for skilled labor in the form of construction jobs. If we're not building, then we're not building, and that's just another metaphor for more bad news for the US. The good news is that its not the end of the road for much of the rest of the world. Far from it.


For centuries, trade and commerce were rooted, not in the USA or Europe, but in more distant parts of the globe. In 1820, for example, today's "developing" countries were the acknowledged economic powers, accounting for 68% of the world economy, according to economic historian Angus Maddison. As late as 1870, the Chinese economy was almost twice as large as that of the United States.

Viewed from this vantage point, the contemporary emergence of countries such as China or Brazil represents less a new phenomenon than a reversion to history's norm.

"We still hold onto notions that are dear to us but wrong," says van Agtmael. "We will not always be the center of the world."
USA Today 02/08/2007

In other words the party here in the U.S. is just about over. The smart and able are already jockeying for invites where new parties are just beginning. Better to be fashionably late than not to arrive at all.



posted on Nov, 17 2007 @ 11:07 PM
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If the dollar keeps going down, the US might start producing more. Hell we might start exporting oil, instead of importing it. Maybe some of those factories that went to Mexico and China because it's cheaper will come back to the states.

Just some thoughts. Looks to me like a two-sided coin. Maybe it's not all bad.



posted on Nov, 17 2007 @ 11:09 PM
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the fed may have to change policy direction and start raising intest rates (which will help the dollar strengthen)

If you read between the lines ( on Bernake's last two speeches) Bernanke has hinted at a change in inflation attitude and a shift toward inflation targeting which looks at total inflation more than CPI, as well as stating that grading inflation targeting going forward will be at least partially based on meeting total inflation benchmarks.
this change in inflation perception will make it look higher than the CPI perspective investors have gotten used to , which will make rate cuts more difficult to justify (at least rationally)

This may be to just slow the markets already pricing in rate cut's going forward and be an attempt to slow the dollar decline (which is gaining momentum with country's and the rich and famous.

the stock market would tumble if interest rates are raised, but this is the tuff medicine they need, the only question mark is how bad would a market fall (which would be broad cast on cnn, cnbc 24/7) impact consumer sentiment as well as psychology, and possibly kill consumer spending. This is a no win for the fed.

[edit on 17-11-2007 by cpdaman]



posted on Nov, 17 2007 @ 11:11 PM
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" It's not over 'til it's over" (Berra). Get rid of the garbage, wipe the slate clean.

Plenty of time left for redemption. ---------PC



posted on Nov, 17 2007 @ 11:12 PM
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Originally posted by infinite
Jay-Z has dumped the dollar too, switched to Euro's. Expect more to switch over in coming days.


It's not like he can buy anything with that in the US
. Sure, that is a good move in the international realm, but not domestically, right?





posted on Nov, 17 2007 @ 11:24 PM
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A opec meeting was accidentaly broadcast earlier, which cited a Saudi official saying that they must not publicly discuss the declining dollar because that could cause a collapse, which in turn would hurt OPEC by weakening it's purchasing power ( which is in dollars).

loose lips sink ships


i wonder if the federal reserve have been talking with OPEC?

one thing is for certain no one wants to be left holding dollars should they free fall, and the first person (or group) that sells them off would get the best return (since the value would have yet to plunge) OPEC may be able to diversify away in private (due to a potential dollar collapse being a national security issue) which may be kept private

[edit on 17-11-2007 by cpdaman]



posted on Nov, 17 2007 @ 11:42 PM
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Originally posted by they see ALL
It's not like he can buy anything with that in the US
. Sure, that is a good move in the international realm, but not domestically, right?


Thing is, people are beginning to just buy straight from China. For awhile it's been just a few businesses, but now people are catching on -- and are finding it MUCH cheaper to just get their housing, equipment, products etc. straight from the likes of China/Asia. As long as you hold on to a bit of USD 'chump change' for food & groceries, the prospect of converting to the Yuan for example, seems quite tasty.



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