Dollar loses reserve status to yen & euro

The destruction of the dollar is happening faster than I expected. At this time, dollars account for about 62 percent of the currency reserve at central banks . THE LOWEST LEVEL EVER..

The world is dumping the dollar fast. As the article states the only way to stop the slide is to raise interest rates above the current 0% and stop the printing presses. This of course will hurt the stock market and stall any economic recovery. We are in for tough times ahead.

Ben Bernanke's dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency.

Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago.

Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record

Bernanke could go down in economic history as the man who killed the greenback on the operating table.

After printing up trillions of new dollars and new bonds to stimulate the US economy, the Federal Reserve chief is now boxed into a corner battling two separate monsters that could devour the economy -- ravenous inflation on one hand, and a perilous recession on the other.

"He's in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing."

Read More Here:
www.nypost.com...;jsessionid=65E301CF47ED50D15170F8D6530791C5

reply to post by Erasurehead


The greenback was poison and started to die under Greenspan, Bernake is the golden boy of Goldman Sach he is the Saviour of the economy, that is how the bankters will have him in history, after all if was under him that the Tax payer in this nation of the free got robbed without impunity.

Some may consider this off-topic.

[edit on 13-10-2009 by stevegmu]

reply to post by stevegmu


He should have clarified that its loosing its reserve status. I tend to agree with the OP the dollar is falling and its falling hard, yet everyone continues to paint a rosey red picture. Its like the boat is sinking and the occupants dont see nor care, only the rats are running for there life.

But of course the dollar is going to be replaced. This was the plan the whole time.

As I've said before, America's rank and place in the world will have to fall before the New World Order is placed, and we are half way there.

They will have to show that America was "irresponsible" to set examples as the model place in this world, and so a NWO will have to be placed.

However, a New World Order is a good thing because it allows acceleration in technology and fairness.

reply to post by Emerald The Paradigm


A new World Order is not a good thing, Unless it is elected by the people of Earth, Can you see anyone in the world who do not have democracys or republics giving up there power? No therefore a New World Order is BAD, because they are doing it Sneaky and behind the scenes.

I do agree for all of Americas Mistakes, we still are a beacon of Freedom, and in order do crush that you must crush America

Groupies--

One way out of this mess is to create TWO 'US-Dollars' one for Domestic use and one for International ForEx usage, both pegged separately. This was discussed apparently only lightly at the Bilderberg 2008 and again at Bilderberg 2009, but now it looks like this course of action might actually be taken seriously now...

I for one do not see a CRASH as much as a 'slow-burn' (envisage the frog in the pot, with the temperature rising one degree every 4 minutes, until he boils to death !) for the US Dollar and the greater US economy in 2009-2010 that is to say a gentler allowing of the standard of living in the US to slip slip slip slowly downwards -- rather than a nasty kerplunk on the head...the Elites (maybe we should call them USEFUL eaters !) do not want riots to ensue (that is until they have their infrastructure police firmly in place when inflation in the US starts to run upwards of 38% a year and the food distribution starts to get shall we say 'panicky' which suggests belts are going to be worn a llittle tighter this winter ... !

Some may consider this post off-topic.

[edit on 13-10-2009 by stevegmu]

Somehow I have the sneaking suspicion that things are being set up for a so that the dollar comes out on top when the SHTF.

There's too many weird things going on for it to not be.

Originally posted by stevegmu
If the US Dollar is still at 62%, and the Yen and Euro make up the other 38%, how did the Dollar lose reserve status? Last I checked, 62% is bigger than 38%.

I got the title from the article I linked to. I guess it should be "Dollar is losing reserve status to yen & euro".

and the Yuan (China currency)

however 62% is still pretty damn impressive........also keep this in mind.....when the dollar (falls) i.e dollar index tanks....the price of oil goes up....as the price of oil goes up .... more country's Foreign Central Banks Hold MORE $$$$$ so they can pay for oil bills. So we shall see

What is happening redistribution of wealth on a global scale. The planned decline of the US dollar is supposed to happen slowly over time so not to cause panic. Right now the dollar is teetering on the edge of a cliff, all it will take is for a major event to happen and it will fall right of the edge hard and fast.

Ive been really noticing this trend of economic news is really picking up as if they're pulling back the floodgates. Check out what G30 said:
www.abovetopsecret.com...
I'm wondering how many more tricks Berstanke has up his sleeve. Can't be too many. I mean at what point is this total illusion going to envelop reality?

Edit: I forgot to mention that this is an ed piece from NY Post so grain of salt.

[edit on 14-10-2009 by Moonsouljah]

Dow over 10,000 today.

I think maybe the PTB started all this crap to push out the dollar more slowly. They can't control everything though. I think they bit off more than they could chew and are loosing control of it.

When it falls off the cliff, what they don't want to happen, the people will rise up and put a perverbial end to all of it.

Somewhere still deep down. The people of America know how to work hard to get out of things.

If the Govt keeps wasting time on health care, crap and trade, etc and do not address jobs, it's going to bite them come spring. It will be a long hard winter on many folks.
A long time for them to get pissed off at what is going on. That is provided things hold until then.

But, as the OP has put it, it's going faster than expected. I think they have lost control of what they were trying to do.

Originally posted by grey580
Somehow I have the sneaking suspicion that things are being set up for a so that the dollar comes out on top when the SHTF.

There's too many weird things going on for it to not be.

i think you are right. All this excess money the Fed is printing is being bought mostly by the Fed itself. At one point in the future things will be stable enough to kill off the Fed and at that point the debt will be unwound and the economy will not have near enough dollars. Then the real stimulus can begin. They just need to set the table befor ethey do it.

I hope this isn't fantasy.

reply to post by j2000


I think you are right, and not to say there is going to be one, but Wars have a tendency to start at the end of winter beginging of Spring. So as Americans suffer this long harsh winter, it will fester and explode. To be honest I have no clue on whats going on anymore, it use to be real easy to follow ya know, ya remeber. Stock markets down, jobs cut people dont spend. Stock market up, people work, people spend. But DAMN the stock markets up, jobs are still being cut, and people are not spending any money. The goverment is saying everything is peachy, what the hell is really going on? SOMEBODY ANYBODY PLEASE TELL ME.

reply to post by j2000


I can't believe the DOW hit 10K today. I expected a correction to happen already so it does surprise me that it hit this level so fast. Something does not seem right though, usually when the market is soaring gold price go in the other direction. Not this time. Both the stock market and gold have been flying high.

I found this video on a danish bank, that is having a little tv broadcast site.

A banker is interviewing Marc Faber on the dollar and on how he thinks the finacecrisis is just the begining.

It is in engligsh:
jyskebank.tv...


AUM

Fed eyes dollar drop, but hews to low-rate pledge

NEW YORK (Reuters) - Federal Reserve Chairman Ben Bernanke, in a rare comment on the U.S. dollar's value, on Monday acknowledged the currency's slump was raising some prices, but said other factors restraining inflation were winning the day.

While showing he was not indifferent to the dollar's slide, Bernanke said tight credit and a weak job market would weigh on the economy's recovery and he repeated the Fed's pledge to keep interest rates exceptionally low for "an extended period."

"We are attentive to implications of changes in the value of the dollar and will continue to formulate policy to guard against risks to our dual mandate to foster both maximum employment and price stability," he told the Economic Club of New York.

The Fed chairman said the central bank's commitment to its dual objectives, along with the strength of the U.S. economy, would help ensure that the dollar was strong and a source of global financial stability.

Screw you Bernanke! God I hate this man so much. He is so clueless, and if he's not, he's a damned criminal.

reply to post by grey580


Exactly, somewhere, someone is saying "What took you so long?"

The complete disregard to the value of the dollar by our own government to smells fishy now. Likewise, the disregard of the common folk in lieu of bailing out the elite is equally puzzlng.

Destroy our wealth, inflate our debt in an effort to _______?

There has to be more to it than simple stupidity.

[edit on 16-11-2009 by BuffaloJoe]