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Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars.
The demise of the dollar
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Comments
I thought Obama was going to solve all of our problems. Shortly after the election, a black man took note of my anti-Obama bumper sticker and became outraged. He told me "It's going to take a black man to get us out of this mess!".
It can't get much worse than this, and you liberals can't blame Bush anymore.
RightWingInc.com
Anti-Obama Bumper Stickers
This was in the making way before Obama came onto the scene, please stop watching Fox News and see whats happening around the world because of US interference without blinkered eyes...
Why not close the Federal Reserve and close the Empire down for starters?
What's the worth of a greenish paper note for which the printing presses roll (lately, pushing out trillions) to help prop up the economy whenever a magnificient bubble bursts (said bubble having been created by earlier printing runs) or whenever a war in faraway lands has to be deficit-financed? With which you, as an exporting country, are paid - but when you want to buy up some solid US companies with all your accumulated monies you are actually forbidden to so ("it's strategic and all that")?
I think people are slowly waking up to the fact that the greenback is missing a few zeros on its denominations. Look up the expression "not worth a continental". Legend has it that it was British counterfeiting that did for that kind of paper money. Guess what - it was government printing wut done it.
I guarantee that dollars will still be used to trade oil in 2020, either directly in as part of a basket.
I guarantee oil will not be priced in renminbi in 2020.
I guarantee that the U.S. economy will grow more than 2% per year on average through 2020, and that the Chinese economy will not grow 10% on average.
I guarantee that the U.S. debt-to-GDP ratio will be markedly better than it is today. (And today it is no worse than most of its peers.)
I guarantee that in 2020 there will be two powers that matter - the U.S. and China - with America retaining its predominance and a China that stands head and shoulders above all others after the U.S. And I guarantee that in 2020 there will be at most two other powers - the EU and India - who will be economically greater than all others after the U.S. and China, but who will wield far less influence. Russia will have less influence in 2020 than it does even today. The idea that the ruble would become a currency of importance is absolutely bizarre.
Weaker than Jimmy Carter and our least experienced President, but yet, very shrewd. In your predictions you miss one important fact: connect the dots. He [Obama] told us his game plan many many months ago. Open your eyes and see, stop the blinking!
Fisk is too clueless to have cashed in himself so all he's got in his hand now is his dick:
The old fool is being jerked around constantly, first by the CIA and Mossad and now by forex sharks. What a pitiful end for what was once a brilliant and courageous reporter.
Fisk can plead that he's an old fool, what's the Indy's excuse? The credibility of this paper was already scraping the bottom now it's sucking dirt.
BTW Obamasux, the vulgar language only makes you look juvenile.
From this day on - 1 Bushel of ANY type of GRAIN from the U.S.A will cost 1 Barrel of Oil.
Dwayne Seibert
Sure, Dwayne Seibert. Whatever you say. Like other countries don't produce grain? Bwaaahahaha!
If this thesis is even partially right, we can expect sterling to be sold off even more urgently than the dollar. The euro will start to look very attractive if London starts to go the way of Dublin and Reykjavik.
British Euro-scepticism comes at a dangerous time.
And it really has little to do with Reagan/Bush/Obama. The fiscal tectonic plates have been shifting for some time. What really matters are the millions of consumer decisions.
But go ahead. Send this article to 50 of your friends blaming "President Obama that socialist is trying to kill the dollar". Let's continue the current TV-based idiocracy we live in.
sheesh!
You don't have to question his impartiality; he wears his bias on his sleeve as a badge of honor, though new readers drawn here by Matt Drudge linking this site (yet again) may unfortunately not be aware of this. The Independent is a virtual cheerleader for doomspeaking on America, jostling with The Guardian and actually beating it in terms of the degree to which it permits its writers to veer off into fiction. All of the clustered pieces around this topic that you see here spring from the same well.
Realizing the world was embarking on something new and mind-boggling, elite money managers, with especially strong support from U.S. authorities, struck an agreement with OPEC to price oil in U.S. dollars exclusively for all worldwide transactions. This gave the dollar a special place among world currencies and in essence “backed” the dollar with oil. In return, the U.S. promised to protect the various oil-rich kingdoms in the Persian Gulf against threat of invasion or domestic coup. This arrangement helped ignite the radical Islamic movement among those who resented our influence in the region. The arrangement gave the dollar artificial strength, with tremendous financial benefits for the United States. It allowed us to export our monetary inflation by buying oil and other goods at a great discount as dollar influence flourished.
http://www.lewrockwell.com/paul/pau
Looks like he is succeeding.
And liberals are "offended" by Rush wanitng this to fail?
You're trying to get so much anger out all at once that all we are getting is jibrishhh.
Everyone knows this is why Saddam had to be punished.
You can't blame this on Obama. How would Bush have prevented this?
It's been on the cards. Everyone has been waiting to switch the reserve currency to Euros for a long time. Europeans have been kind of polite about it but they know how to bide their time... something they learned from the Chinese. I was never about who runs the World today, it's about who can protect their rear end in the future. The EU knows this... we invented diplomacy, remember? When our Colonial Empires collapsed we realized what it takes to stay in there, stay protected (hence the word "protectionism") whilst the Big Boys fight it out. Britain, unfortunately always wants to be a Big Boy, with a big army and a big special relationship.
Now watch the experts pull their strings. This is a done deal. Iran and Venezuela wil be on board, China will respect its agreements with the EU. The US will have the choice between humble pie and nuclear warfare. They will choose the first because the devil is no longer in charge. It will all be fine.
I hope all those smarty pants who have been objecting to
our entry into the Euro will not feel too bad about it; even
Gordon Brown can make mistakes ....
Like selling our gold for a pittance.
The USA is being proped up by Chinese money. You are talking as though the USA is in control. Expect to see the USA take the back seat as an ex-superpower not by choice but as a necessity...
You've touched on an important point that is ignored by the America-declinists and, certainly, by Mr. Fisk: the story is probably legitimate, meaning it's probably actually happening. The Chinese are not going to do something that destroys their economy and the vast majority of their national wealth. Nations may make painful choices to come out stronger in the long run, but not China in this situation. The reality is that this is not something that will crash the dollar. As I pointed out elsewhere, the idea that the dollar's value rests on oil being priced in dollars is a complete and laughable meme - one so ignorant that even Osama Bin Laden himself discussed it after 9/11.
Oil does not dictate demand for dollars. Repeat that 25 times. Look it up. Look up the value of oil exports. Look up the total value of foreign exchange transactions on a daily basis.
Oil does not dictate demand for dollars.
"US itself will probably take it's biggest economic hit in history"
The U.S. will probably come out in a much healthier fiscal position in the medium-to-long term, as will other nations.
America has been the lighthouse of the world where up till now you could work hard and keep what you earned and your just reward for hard work. This is not greed, it is called freedom.
Looks like the world order is changing in front of our eyes. All superpowers die and now its the turn of the USA as we gradually see power move from the West to the East.
Shame that Blair aligned the UK with the USA. Most of the world is pissed off with the USA and obviously that includes the UK too, for our recent killing of many hundreds of thousands of civilians in Muslim countries. Not to mention the USA/UK support for the Israeli invasion/beat-down of Gaza.
Recently, many Muslim countries are boycotting Western products and services, in favour of Chinese and Russian ones and consumer/white goods from Korea and Japan.