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Dollar's Dominance to End: Hedge Fund Titan Dalio
CNBC ^ | 3/3/2011 | Natalie Erlich

Posted on 03/03/2011 12:49:59 PM PST by FromLori

The dollar's dominance in the world will diminish, due to increased pressure from emerging markets to raise interest rates to slow their economies over the next 18 months, Ray Dalio, founder & CIO of Bridgewater Associates told CNBC.

"It's inevitable that the dollar's role as the world's currency will diminish from the dominant world currency to one of a few," he said.

"It will fade probably fairly quickly so the United States which accounts for almost two-thirds of the reserves will probably go down to 50 percent of the world's reserves and it will have an effect on lending," he added.

Due to a new world order of indebted developed nations including the United States, the countries of the Euro Zone and Japan, and growing emerging economies which now account for 53 percent of the global economic growth, monetary policies in rising economies are "inappropriate," Dalio said.

"If you have currencies that are linked, you have interest rates that are linked, and it's created totally uneconomic behaviors in those countries," he said. "This is going to be the next big seismic shift."

By 2012, it will become "intolerable" to maintain those currency links, Dalio said. By keeping those currencies linked and keeping interest rates the same, it has made it a "one way street for investors," he added.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: bloomberg; china; constitution; currency; dollar; economy; obama; reserve
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1 posted on 03/03/2011 12:50:05 PM PST by FromLori
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To: FromLori
China "Attacks The Dollar" - Moves To Further Cement Renminbi Reserve Currency Status
2 posted on 03/03/2011 12:51:17 PM PST by FromLori (FromLori">)
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To: FromLori
China attacked the dollar
3 posted on 03/03/2011 12:53:14 PM PST by FromLori (FromLori">)
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To: FromLori

Destroying our currency to inflate our way out of debt is really what this is all about.

Stupid is as stupid does.


4 posted on 03/03/2011 12:53:28 PM PST by DB
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To: DB

. .what this is all about, . . and has been in the small print of the plan from the get go.


5 posted on 03/03/2011 12:55:14 PM PST by de.rm (It is better to know some of the questions than all of the answers)
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To: FromLori

interest rates are raised to slow the economy? Why the hell do you want to slow the economy. The real reason is to slow inflation


6 posted on 03/03/2011 12:57:33 PM PST by 4rcane
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To: All
Poor fromLori cannot make up her mind.

She made a career bashing bankers, hedge funds, the Fed for all sins of the world, but now a hedge fund manager has to be listened to.

What's the link?

As long as the article is negative about the U.S. and especially our financial system, fromLori will post it.

I wonder how many posts it'll take for cursing of "bankers," Wall Street and the Fed to begin.

One, two...

7 posted on 03/03/2011 12:57:54 PM PST by TopQuark
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To: FromLori
No one needed to “attack” the dollar. Sorry, but the U.S. bought this on itself. You can't expect to retain reserve currency status; while massively devaluing the dollar, in an attempt to inflate your way out of debt (by “printing” money). Blame Obama.
8 posted on 03/03/2011 12:58:01 PM PST by USFRIENDINVICTORIA
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To: USFRIENDINVICTORIA

bought = brought


9 posted on 03/03/2011 12:59:19 PM PST by USFRIENDINVICTORIA
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To: FromLori
There appears to be cracks showing in the "full faith and credit" backing of the U.S. government in our fiat currency.


10 posted on 03/03/2011 1:00:57 PM PST by OB1kNOb (You just proved that advertising works by reading this message!)
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To: FromLori

In about a year, the Dollar Index Futures (a normalized relative value of the US dollar vs. other currencies) has decreased from 88 to about 76 today. That is over a 14% drop.


11 posted on 03/03/2011 1:02:37 PM PST by mlocher (USA is a sovereign nation)
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To: DB
Destroying our currency to inflate our way out of debt is really what this is all about. And what does that have to do with the dollar being a reserve currency, DB?

And, why are you blaming the currency? Bernanke does not have to inflate at all. Will you put up with 20% unemployment for a few years?

What it's abut is not destruction of our currency but reform of our economy into a socialist one while calling it recovery. This is perpetrated by Congress and the President. That's who destroys the economy, not the Fed. That's where your anger should be directed. Bernanke must obey laws passed by Congress just like everybody else.

12 posted on 03/03/2011 1:03:20 PM PST by TopQuark
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To: TopQuark

Yeah, you, Top Quark!

No one is stopping you from posting POSITIVE stories on the banks, or the FED.

Is all you can do is whine?

And posting to ALL is cowardly. Are you a coward? Afraid to post your own threads, eh?


13 posted on 03/03/2011 1:03:24 PM PST by TruthConquers ( Delendae sunt publicae scholae)
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To: TopQuark

Congress and the FED and the over 100 years of socialist policies going back to 1913, the founding of the FED.

Here watch this and be educated:

http://www.youtube.com/profile?user=theamericandreamfilm&annotation_id=annotation_996700&feature=iv


14 posted on 03/03/2011 1:07:20 PM PST by TruthConquers ( Delendae sunt publicae scholae)
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To: OB1kNOb
cracks showing in the "full faith and credit" backing

Is this just a pretense to post a picture you like?

Otherwise, what's the connection with the topic at hand and what cracks are you talking about?

15 posted on 03/03/2011 1:07:20 PM PST by TopQuark
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To: TopQuark

HA ha ha ahahahaha!

You need new glasses there NoQuark.

Are you really that dense?


16 posted on 03/03/2011 1:09:30 PM PST by TruthConquers ( Delendae sunt publicae scholae)
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To: USFRIENDINVICTORIA
Sorry, but the U.S. bought this on itself. You can't expect to retain reserve currency status; while massively devaluing the dollar, in an attempt to inflate your way out of debt (by “printing” money). Blame Obama.

What a pleasure! Thank you for bringing sanity to this board. These "conservatives" are so inflicted with the leftist view --- and the corresponding hate of all symbols of capitalism (finance, banks, Wall Street, etc.) --- that the cannot hear a word of what you say unless you dirty those symbols. Most of them don't understand a word of finance or economics, but when did that stop socialist-minded people from defamation.

Thank you again for your post. It tempts me to drop everything and escape to Victoria, where sanity appears to reign...

17 posted on 03/03/2011 1:14:12 PM PST by TopQuark
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To: TopQuark

You are MORE THAN WELCOME to post and, even promote, fed policies, administration policies and legislative policies that YOU feel promote business growth, debt reduction or any other economically beneficial policies...feel free...personally, I will look forward to your economic insights that indicate these policies are promoting economic GROWTH...bring it on...


18 posted on 03/03/2011 1:14:55 PM PST by demsux (Obama: THE job destroyer)
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To: TopQuark; FromLori

Don’t be a punk. Post to fromLori if you want to insult him/her.


19 posted on 03/03/2011 1:17:55 PM PST by perfect_rovian_storm (The worst is behind us. Unfortunately it is really well endowed.)
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To: demsux; TopQuark
personally, I will look forward to your economic insights that indicate these policies are promoting economic GROWTH

I wouldn't hold my breath if I were you.

20 posted on 03/03/2011 1:22:30 PM PST by perfect_rovian_storm (The worst is behind us. Unfortunately it is really well endowed.)
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