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KILLFILE
Epicurean Intelligentsia
Articles Posted: 317; Links Seeded: 7950
Member Since: 2/2006Last Seen: 2/09/2010
Member Since: 2/2006Last Seen: 2/09/2010
10 Votes
21 Comments
Dollar loses reserve status to yen & euro
News Type: Event — Seeded on Wed Oct 14, 2009 8:39 AM EDT
Article Source: New York Postadvertisement
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.
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- Public Discussion (21)
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{"commentId":10072839,"authorDomain":"killfile"}
While I'd love to blame this on Bush the simple fact is that US Presidents have been persuing a weak dollar policy since Reagan. A weaker dollar means US exports are more affordable over-seas and, the reasoning goes, that helps the US economy.
Which is true... up to a point. And now we've reached that point.
{"commentId":10072839,"threadId":"701155","contentId":"3381352","authorDomain":"killfile"}
- 4 votes
#1 - Wed Oct 14, 2009 8:45 AM EDT{"commentId":10074604,"authorDomain":"nkycarbon"}
China pursues a hyper weak yuan policy (they struggle to keep the yuan lower in value than the dollar). So it depends on what the goal of monetary policy is.
{"commentId":10074604,"threadId":"701155","contentId":"3381352","authorDomain":"nkycarbon"}
- 2 votes
{"commentId":10076877,"authorDomain":"myriver"}
A weaker dollar means US exports are more affordable over-seas and, the reasoning goes, that helps the US economy.
I've never seen the logic angled that way, and it's never occurred to me that watching the dollar flail like it is can be a good thing.
Now that you mention it, however, I am supposing that if the "value" of exports already exported falls, the products might move more quickly?
{"commentId":10076877,"threadId":"701155","contentId":"3381352","authorDomain":"myriver"}
- 3 votes
{"commentId":10077080,"authorDomain":"DrKnow"}
This goes back to FDR.
{"commentId":10077080,"threadId":"701155","contentId":"3381352","authorDomain":"DrKnow"}
- 2 votes
{"commentId":10077227,"authorDomain":"bobnelsonfrance"}
River,
Any country that imports its food had better have a strong currency. Skyrocketing food prices are a recipe for disaster. That, of course, is not America's situation.
As the dollar falls, prices at Wal-Mart will rise, because they only sell Chinese production. But meanwhile, Boeing will be able to undersell Airbus. Boeing will be able to hire.
Gas prices will rise because Americans insist on importing petroleum and then burning it in huge quantities in ridiculously inefficient vehicles... but that is a social/political choice!
The only kicker here is that the Chinese may decide to buy Boeing....
{"commentId":10077227,"threadId":"701155","contentId":"3381352","authorDomain":"bobnelsonfrance"}
- 4 votes
{"commentId":10077302,"authorDomain":"myriver"}
I've been trained to prepare for out-of-control gas prices. My uncle, a veteran of the oil fields, warned me years ago of the signs to look out for. Last year was only the beginning of what we will see in the coming years.
{"commentId":10077302,"threadId":"701155","contentId":"3381352","authorDomain":"myriver"}
- 4 votes
{"commentId":10073673,"authorDomain":"a-s-n"}
Lets not forget that the USA is basically a nation of overextended debtors who buy everything on credit. Frankly Im amazed anyone wants our dollar anymore .... but then again, who would they sell all the crap they made to otherwise?
The real danger is when another large middle class appears (China, India, Russia) based not on debt but actual production we will see the dollar become worthless ..... but that is likely a generation away!
{"commentId":10073673,"threadId":"701155","contentId":"3381352","authorDomain":"a-s-n"}
- 5 votes
#2 - Wed Oct 14, 2009 9:42 AM EDT{"commentId":10074631,"authorDomain":"nkycarbon"}
but that is likely a generation away!
It would have to be a generation away. I'm not sure if anyone trusts the monetary policy in any of those countries.
{"commentId":10074631,"threadId":"701155","contentId":"3381352","authorDomain":"nkycarbon"}
- 2 votes
{"commentId":10091480,"authorDomain":"a-s-n"}
Amd ours is better??? Why cause the same guys who keep scamming it tell us so ....
Right now these otehr countries have a much better economic situation than we do ....
{"commentId":10091480,"threadId":"701155","contentId":"3381352","authorDomain":"a-s-n"}
{"commentId":10091741,"authorDomain":"nkycarbon"}
And ours is better???
It depends what you mean by better. In other countries needs of the government outweigh the needs of the market. Here the market rules with a puppet government. Where would you invest? Here is better. Where do you want to live? There is better.
{"commentId":10091741,"threadId":"701155","contentId":"3381352","authorDomain":"nkycarbon"}
- 1 vote
{"commentId":10095194,"authorDomain":"nofluer"}
Food, water, shelter. Everything beyond that is riches.
{"commentId":10095194,"threadId":"701155","contentId":"3381352","authorDomain":"nofluer"}
- 1 vote
{"commentId":10129246,"authorDomain":"a-s-n"}
Actually I would agree with you. Those countries have managed to avoid control by the banking interests that run our country .... it is interesting how the former commies have "used" our banks, but not fallen into the trap of our population .... I don't know about living there .... but its not going to be much good for long here!
{"commentId":10129246,"threadId":"701155","contentId":"3381352","authorDomain":"a-s-n"}
- 2 votes
{"commentId":10074449,"authorDomain":"bobnelsonfrance"}
C'mon, Killfile!
Be serious! What the #@*$%£§ do you mean by seeding an article from the New York Post on economics? I mean, if you want to seed something on the latest rapper/drug/basketball/motorcycle mess... the New York Post is probably a fine source. But economics???
;-))))))))))))
The New York Post's expertise on interest rate differentials and special drawing rights...
;-)))))))))))))))))))))))))))))
{"commentId":10074449,"threadId":"701155","contentId":"3381352","authorDomain":"bobnelsonfrance"}
- 1 vote
#3 - Wed Oct 14, 2009 10:24 AM EDT{"commentId":10074685,"authorDomain":"nkycarbon"}
I found the background on this Peter Schiff person interesting (I was trying to figure out what the ending quotes in the article was about). It's hard for me to trust an economist that is running for congress.
{"commentId":10074685,"threadId":"701155","contentId":"3381352","authorDomain":"nkycarbon"}
- 1 vote
{"commentId":10076571,"authorDomain":"bobnelsonfrance"}
Well.... at least there's the advantage the any poster is at least as competent on the subject as the author of the seeded article....
{"commentId":10076571,"threadId":"701155","contentId":"3381352","authorDomain":"bobnelsonfrance"}
- 2 votes
{"commentId":10129266,"authorDomain":"a-s-n"}
frankly, the mainstream sources of economics are pretty much puppets of the banking interests so maybe the post flies beneath their radar and can tell the truth once in a while?
{"commentId":10129266,"threadId":"701155","contentId":"3381352","authorDomain":"a-s-n"}
- 1 vote
{"commentId":10134368,"authorDomain":"bobnelsonfrance"}
Not so. The Financial Times (London) is the best source around. For economics, of course, but also for political commentary. Recommended!
{"commentId":10134368,"threadId":"701155","contentId":"3381352","authorDomain":"bobnelsonfrance"}
{"commentId":10077113,"authorDomain":"DrKnow"}
"Change we can believe in."
You better believe it, things have changed permanently.
{"commentId":10077113,"threadId":"701155","contentId":"3381352","authorDomain":"DrKnow"}
#4 - Wed Oct 14, 2009 12:23 PM EDT{"commentId":10077327,"authorDomain":"bobnelsonfrance"}
American profligacy goes back decades. Much as I personally enjoy blaming everything on Baby Bush, the fall of the dollar was programmed even before him...
Lemme see...
Who enshrined the Laffer curve? (Nowadays usually spelled "laugher"...)
{"commentId":10077327,"threadId":"701155","contentId":"3381352","authorDomain":"bobnelsonfrance"}
- 1 vote
{"commentId":10077764,"authorDomain":"beckylonneman"}
Our politicans have been trying to destroy America for years and they have finally succeeded. What good does it do to keep the dollar low when we have very little to export since we have outsourced everything? Now borrowing to keep our give away government running will be even more expensive.
{"commentId":10077764,"threadId":"701155","contentId":"3381352","authorDomain":"beckylonneman"}
- 1 vote
#5 - Wed Oct 14, 2009 12:48 PM EDT{"commentId":10078909,"authorDomain":"nofluer"}
Look, if the US Government were smart, they'd close down all the Mega-Banks and confiscate their assets, both foreign and domestic. They and AIG just pulled off a $50 TN securities fraud heist on the world markets - so they should have a LOT of cash SOMEWHERE!!!
And it was such a good scam, they're proceding with phase II of it (TARF). (I just posted a new art about why TARF is securities fraud, if you don't already know.)
{"commentId":10078909,"threadId":"701155","contentId":"3381352","authorDomain":"nofluer"}
- 2 votes
#6 - Wed Oct 14, 2009 1:30 PM EDT{"canLink":false,"threadId":"701155","isPrivate":false}
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