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It is happening: Dollar Reaches Breaking Point as Banks Shift Reserves

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posted on Oct, 12 2009 @ 04:41 AM
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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.”

www.bloomberg.com...

The snowball is about to change into an avalanche ready to bury the redistribution of wealth managed by the US Government. How 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.


[edit on 10/12/2009 by stander]




posted on Oct, 12 2009 @ 04:50 AM
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reply to post by stander
 


And, what makes you think that the social safety net is gonna be going anywhere.
Na. they are gonna tax the hades out of any and all who might have a little money, keep digging for those off shore bank accounts, audit any and all who they think are living a little better than they should! They'll cut the military, cut education, cut everything else first.
If the dollar goes, who knows even you might not be wanting them to cut the safety net. Since you might be depending on that unemployment check, the food stamps, ect also!

Of course in some states, the whole net is just gonna crumble due to their hopeless financial state. But, in those states, most of those with the means are leaving in droves anyways.



posted on Oct, 12 2009 @ 04:53 AM
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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.


Don't be such a wise guy. America wants to boost her export, hence it's required the dollar to weaken a 'little'.



posted on Oct, 12 2009 @ 05:03 AM
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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!



posted on Oct, 12 2009 @ 05:04 AM
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I was telling folks a year ago to buy stock in "Dollar"stores and any fast food restaurants that has a dollar menu. If the fed does not raise interest rates anytime soon then it will start to look like an intentional act of destroying the dollar.



posted on Oct, 12 2009 @ 05:18 AM
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reply to post by cloakndagger
 

but' if they raise interest rates, the arms of all those homes are gonna skyrocket, and well, more bad debt on the bank's books, more bailouts, weaker dollar, let's start the cycle all over again!



posted on Oct, 12 2009 @ 06:49 AM
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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.



posted on Oct, 12 2009 @ 06:54 AM
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And who do you think will be there to pick up the pieces?

Who owns the food pantries and the homeless shelters?

Guess who is instituting bio scan info to get shelter and food?

Jumping through the inter-faith hoop. That's what's coming.



posted on Oct, 12 2009 @ 07:13 AM
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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.



Isn't that one of the main reasons with the Lisbon Treaty?

All European members must now accept the €uro, even the Brits!

I mean there's nothing you can do about it really, it's too late for that!

The Lisbon Treaty is now sadly a reality for all of us! - so in a near future both you Brits and us Swedes & Danes etc will finally & unfortunately adopt the €uro


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.

en.wikipedia.org...

But if we are talking a new reserve status here since Russia & China and Brazil are also players in this game, the SDR will be the new world reserve currency basket.


[edit on 12-10-2009 by Chevalerous]



posted on Oct, 12 2009 @ 07:40 AM
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The globalists want to weaken the dollar by using dirty tricks and media claims. It is a lot easier to do it that way, rather than a straight out devaluation.

If the US govt devalued the dollar - then those countries holding reserves in it would be really pissed - the globalists can devalue it this way, and say - hey it wasnt anyone in particular - it was market forces.

The globalists want to use the SDR - because that transfers regional central bank currency power right to an international institution they control - the IMF is a vile piece of crap - and everyone should riot before accepting their filthy fiat currency - but of course, people are ignorant and believe what they are told - they probably think the IMF is a great idea, and the SDR is a wonderful thing.

I wish the Russians and Chinese would just start lobbing nukes around - and assassinating globalists - but it appears they are neck deep into this crap as well anyway - the globalists are inside CHina and Russia by the looks of it.



posted on Oct, 12 2009 @ 07:48 AM
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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!


Very well put. Star for you.

The dollar is falling faster than a rock in a pond.

Want proof? Go to the store look at the price of bags of candy and shake your head in awe.

5 years ago a 1lb bag of candy cost 3.99, today they cost 7.99, anyone else see the problem with that?



posted on Oct, 12 2009 @ 08:35 AM
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the devaluation train appears to have left the station for the start of the 4Q 2009......it may be time to watch the bond market..........see the $ bond market is HUGE.....and we can't let rates get to high cause that will be very bad....

So long as banks don't lend then the FED can keep QE on high and purchase endless amounts of Treasury debt keeping rates low....

and as long as the unemployment rate is high and business enviornment shakey the banks won't lend.....so....even with the fed monetizing the debt this will limit consumer inflation

then there is the 4'th Q earnings season.....when the swine flu will co-incidentely mutate



posted on Oct, 12 2009 @ 09:16 AM
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reply to post by Jazzyguy
 


That's good to know. But I still won't buy inferior American automobiles no matter how cheap. Germs and Japs FTW!






posted on Oct, 12 2009 @ 09:18 AM
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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...




i'd point out that later in the article you cite in the OP,
one will read this statement:


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.”



besides the shrewd countries with big wads of USDs (think China here)
are busy buying up businesses/properties/etc. in the USA
so, nobody is throwing their dollars away...
but when the USD sinks to the low .72 high .60s then the rush to unload will become a global shift event as everyone will be going to a real asset such as gold & precious metals to retain value as the global monetary system shifts to ????????



posted on Oct, 12 2009 @ 09:54 AM
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will be interesting to see if the dollar goes below 70 by new year's...

And i wonder what that will do to heating oil and gasoline costs.....gee that would hurt the "recovery"?

seems policy makers a dancing on a knives edge



posted on Oct, 12 2009 @ 10:18 AM
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Obama's peace shattered as dollar takes a pounding


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".
www.smh.com.au...

And lest we forget we were warned by the big boys...


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.

www.google.com...



[edit on 12-10-2009 by burntheships]



posted on Oct, 12 2009 @ 10:41 AM
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reply to post by cpdaman
 


Yes and considering this you have to wonder if the US economy would be in a real and sustainable recovery right now if it had not been for the bank bailouts and stimulus. High fuel prices or the need to raise interest rates could lead to the same problems that caused the crisis in the first place. If people can't pay off their mortgages and debt it's back to square one.



posted on Oct, 13 2009 @ 12:47 AM
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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.

www.google.com...

Zoellick, dude, you need to make up your mind. What do you want to replace: the US Dollar or the US consumer?
In the latter case, I know about a perfect substitute:
dummidumbwit.files.wordpress.com...



posted on Oct, 13 2009 @ 09:52 PM
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Very Alarming stuff!
Rense had this linked:

www.nypost.com...

Granted its the New York Post it paints a grim picture. The Dollar is waning. Bernanke can't be human or heavily medicated to withstand the pressure of orchestrating all of this.



posted on Oct, 13 2009 @ 09:57 PM
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reply to post by dawnstar
 


I think your wrong on one point the military.

Those in power need the military to protect them from the masses. It would in my opinion be a mistake to cut the military funding and in turn cut the man power associated with such cut backs. If anything you would see a rapid redeployment of troops in and around America. Just my thought on it.



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