It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Thank you.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Oct. 12 (Bloomberg) -- Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades . . .
“Global central banks are getting more serious about diversification, whereas in the past they used to just talk about it,” said Steven Englander, a former Federal Reserve researcher who is now the chief U.S. currency strategist at Barclays in New York. “It looks like they are really backing away from the dollar.”
Originally posted by standerHow the Nobel Peace Prize laureate Barack Obama is going to handle the violent outburst of dissatisfaction among the people who will be no longer able to receive various government benefits and less than minimum social security is not clear.
Originally posted by infinite
The question, of the Dollar "breaking point", will be highlighted if there is a significant move to diversify oil.
Both oil exchanges, London and New York, trade in Dollars. The Euro will only become the global reserve if the United Kingdom joins the currency - which is highly unlikely currently.
As of November 2008, with more than €751 billion in circulation, the euro is the currency with the highest combined value of cash in circulation in the world, having surpassed the U.S. dollar.
Originally posted by dawnstar
it's also a neat little trick when one wants to get out of thier debts for pennies on the dollar. Heck our houses might even be worth what we paid for them again, at least in dollar terms. It's just the dollar ain't gonna be worth much when you go to the store shopping!
Originally posted by stander
Oct. 12 (Bloomberg) -- Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades . . .
www.bloomberg.com...
Flush’ With Dollars
“The world is currently flush with the U.S. dollar, which is available at no cost,” Kind said.
“If there’s a turnaround in U.S. monetary policy, there will be a change of perception about the dollar as a reserve currency.
The diversification has more to do with reduction of concentration risks rather than a dim view of the U.S. or its currency.”
www.smh.com.au...
But serious people are troubled. Robert Zoellick, president of the World Bank, said last week that "the US would be mistaken to take for granted the dollar's place as the world's predominant reserve currency".
And even a political sympathiser of Obama's has warned that America could be about to suffer "a punishing dollar crisis".
the International Monetary Fund and World Bank, whose President Robert Zoellick recently warned that the United States should not "take for granted" the dollar's role as preeminent global reserve currency.
Meanwhile at a G20 summit in Pittsburgh last month, world leaders unveiled a new vision for economic governance, with bold plans to fix global imbalances and give more clout to emerging giants such as China and India.
Following the summit, US Treasury Secretary Timothy Geithner repeated Washington's commitment to a strong dollar.
But last week the finance chief was left to watch as traders used The Independent's report as an opportunity to push lower the troubled US unit.
The report "has helped concentrate the minds of traders and investors alike, and has given them another excuse to take the dollar lower," GFT Global Markets analyst David Morrison told AFP.
"Despite what the Fed and other central bankers say, a weaker dollar is desirable because it is necessary to rebalance the global economy.
"As long as the decline is gentle and orderly, then they're happy. But aggressive selling would spook the markets," he added.
Zoellick said that although the global economy may be pulling out of the worst recession in six decades, risks remain high, including from government plans to withdraw economic stimulus and debt rollovers that could be combined with a rise in interest rates.
"We have no guarantee that the private sector, the main producer of jobs, will kick in. It is still not clear who will replace the US consumer as a source of demand," the former US trade representative said.