posted on May, 28 2009 @ 10:37 AM
Professor Roubini, of New York University's Stern business school, believes that while such a major change is some way off, the Chinese
government is laying the ground for the yuan's ascendance.
Known as "Dr Doom" for his negative stance, Prof Roubini argues that China is better placed than the US to provide a reserve currency for the 21st
century because it has a large current account surplus, focused government and few of the economic worries the US faces.
About a year and a half ago...maybe longer we heard talk of Chrysler and GM going bankrupt.
Now we are hearing increasing talk concerning the death of the US Dollar.
Here is a different take on the issue from the Asian times.
Insanity gone rampant
By The Mogambo Guru
Telegraph.co.uk had the headline "China's yuan 'set to usurp US dollar' as world's reserve currency" for an article by James Quinn.
I thought the headline would refer to how it is inevitable that China would not be long in getting rid of the requirement to use the US dollar to
settle international contracts and accounts, as the American currency is the depreciating currency of a bunch of morons who are so stupid that we have
a fiat currency and horrendous inflation in prices despite the fact that our Own Freaking Constitution (OFC) requires that the dollar be equivalent to
a weight of gold or silver so that we would NOT have
We are barely getting used to the idea of the Socialism wave in the US and now the other socialists are getting rid of the US dollar. LOL
As the Dollar Continues to Collapse, Where Will You Put Your Money?
This piece follows a previous article, in which I warned against shorting equities -- despite the fact that I believe the stock market is going to
fall dramatically, at least in real terms (which I'll again expand upon later). As usual, my cautious outlook prompted a flurry of emails from
readers asking what they should be doing with their money in order to prepare for the impending firestorm of rising prices that will derive from the
inflationary printing and unprecedented credit-easing governments worldwide are foisting on their citizens.
It's important to note that, although I refer to "the" collapse of the dollar and Treasuries, these events are not going to happen in one minute,
or one day, or even one week. Indeed, since I started writing about this scenario in December, the government has done so much to try to reverse the
course of this trend, and yet the cracks have widened, and the dollar and Treasuries continue their inexorable march downward. Even though I don't
believe, however, there will be any particular event that will trigger the collapse, I do believe it will accelerate with time -- ultimately exploding
in a quick, catastrophic climax.
On a related note, you may want to pay attention to the fact that Treasuries and gold seem to be decoupling from their heretofore nearly direct
inverse relationship with equities. What does this mean? Mainly, in my eyes, it decries the old notion that, just because the stock market goes down,
people will run to Treasuries as a safe haven; apparently the so-called "risk-free" rate of return isn't so risk-free anymore. Likewise, it would
seem that, just because the stock market is going up, people aren't necessarily dumping gold. And this lends credence to my theory that investors not
only expect inflationary pressures to drive stocks higher in nominal terms (but not real terms), but also that, in order to really survive rising
prices, gold is one of the best places to be.
Gold looks to be bullish.