India Joins Russia, China in Questioning U.S. Dollar Dominance

India Joins Russia, China in Questioning U.S. Dollar Dominance

www.bloomberg.com

July 4 (Bloomberg) -- Suresh Tendulkar, an economic adviser to Indian Prime Minister Manmohan Singh, said he is urging the government to diversify its $264.6 billion foreign-exchange reserves and hold fewer dollars.

“The major part of Indian reserves is in dollars -- that is something that’s a problem for us,” Tendulkar, chairman of the Prime Minister’s Economic Advisory Council, said in an interview yesterday in Aix-en-Provence, France, where he was attending an economic conference.

(visit the link for the full news article)

This appears to be a recurring theme in recent times, and at the very least is something we all need to be paying close attention to...

More and more countries, seeing the endless fiscal irresponsibilities and borrowing from the U.S. are begining to advocate a pulling away from the dollar, and a switch to an alternative currency.

How will this effect the already struggling economic situation within the U.S. as it plays out? Again, something to pay careful attention to people---There is a global power play going on right now on the financial front, and this could effect us all...

www.bloomberg.com
(visit the link for the full news article)

More of this BRIC stuff huh?

Well, it was inevitable. Empires rise and empires fall.

Originally posted by brokenheadphonez
More of this BRIC stuff huh?

Well, it was inevitable. Empires rise and empires fall.

The big question of course is will the Empire go out with a bang, or with a whimper?..

interesting times indeed

Oh don't worry the economy is getting better, they just "misread" it.

I don't know what our administration is thinking. They keep spending trillions of dollars and pass policies that will kill the economy. Yet, the politicians sit up on TV day after day saying that we really need to pass this legislation. Meanwhile across the pacific all the countries our jobs have been outsourced too are in negotiations to dump the dollar.

I guess they think people aren't paying attention and they are very very wrong.

The scary thing is this whole economy pattern follows the solar cycle sine wave pattern..

Wow, this is going to get a lot worse.

Our political leaders don't really have as much influence as we like to give them credit for, as they are simply men and women, just like us..

Originally posted by brokenheadphonez
More of this BRIC stuff huh?

Well, it was inevitable. Empires rise and empires fall.

Boy, you should have seen the arrogance that some Americans continued to spread until recently. Three years ago, I already said this was about to happen, but most people continued to believe that American supremacy was infinite. Obviously, the majority now thinks differently but it's not all that surprising. A deficit is beneficial for a superpower like the US, but not when the deficit is as huge as it currently is.

America has been spending more than it actually could for decades, the Fed could easily print more money and the world knew the US would pay off their debts anyway. That has now come to an end. With the huge deficit, the economic downturn and poor economic outlooks, treasury bond buyers are beginning to question the Dollar's status as world reserve. Without these countries, the US cannot continue to live as it currently does - spending spending spending and pay with borrowed money.

I've always said that the US is a young superpower, particularly when Americans bashed European countries for being weak. What I'm trying to say is that no good comes from haughtiness. It seems that US supremacy is short-lived. One hand it's good to see the arrogance to an end, on the other hand I'd rather have America as superpower than China.

There are interesting times to come.

It's all coming together before our very eyes.

We have been abandoned by TPTB. Used up and spit out like old chewing gum.
They are off to open a new pack of gum!

We are on our own now.

I asked a Chinese friend what he thought of the BRIC.

It sent a chill down my spine when he matter of factly replied: "We will lead the others to rule the world."

Also, as much as I hate it when people shirk personal responsibility, it's really not the fault of the American people...

I mean, the yanks have destroyed their education system, dumbed down and fattened up their population - and for Joe sixpack, there really isn't any viable alternative.

Nature and nurture are powerful forces.

Well, it doesn't seem to be getting any better for the dollar. Everyday we are hearing moans and groans from the likes of China, Russia, Brazil, and now a trusted ally India. My goodness, has the United States got themselves' in a bottleneck. The dollar is being assaulted by all sides. I'll say it as I have in the past, doing business with China is like doing business with the Soviet Union although the Soviet Union was never as savvy as the Chinese. All the international community did when jolly old tricky Dickie (Richard Nixon) opened China was take an ugly decrepit woman (Mao's China), gave her a make-over (international business relationships), and bought her a designer dress (ways of capitalism), but take that away; and you get that ugly woman again with all her imperfections (Hard-line Communism and a virulent distaste for the West). The Emperor (China) never changed-- he just has new clothes.

The US sealed it's own fate by taking the cheese offered by China and unfortunately that cheese was laced with strychnine. It is only a matter of time before the Chinese and the rest of their co-op pull the plug on the dollar. They figured out how to effectively destroy the United States without firing a shot. These tactics are in the "Art of War," and the Chinese have been playing this strategy against the West like a piano. The Chinese are letting greed and opulence devour the United States.

"Thus those skilled in war subdue the enemy's army without battle .... They conquer by strategy." Sun Tzu 2,400 years ago.

They saw the United States' addiction to the "green eyed monster," (money) and they used it against the United States. In other words, the Chinese are the heroin dealer (debt financiers) and the United States' are the junkie and the United States' have insatiable urge for it's fix (international credit). It is only a matter of time before the junkie gets a hot dose (an abrupt dumping of the dollar). I'm an American and I really feel sad at how the US has painted itself in a corner, however, we cannot deny the brilliance of China's strategy.



[edit on 5-7-2009 by Jakes51]

reply to post by DimensionalDetective


Russia and Brazil, seeking to reduce their dependence on the dollar, announced plans to buy $20 billion of bonds from the International Monetary Fund and diversify foreign-currency reserves.

Here is Japan news
Japan should consider diversifying its foreign reserves away from the dollar and buying International Monetary Fund bonds, the top finance official in the opposition party said.

“In the medium to long term, we need to do what we can to avoid the risk of currency losses or economic turbulence that could result if the dollar were to swing,” Masaharu Nakagawa, the shadow finance minister in the Democratic Party of Japan, said in an interview in Tokyo on July 9. “Many countries are starting to diversify their reserves.”


Read More here:
thenexteconomy.blogspot.com...