Posted on 10/13/2009 6:59:10 PM PDT by bdw300
"Dollar loses reserve status to yen & euro By PAUL THARP
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, said the International Monetary Fund.
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."
Investors and central banks are snubbing dollars because the greenback is kept too weak by zero interest rates and a flood of greenbacks in the global economy.
They grumble that they've loaned the US record amounts to cover its mounting debt, but are getting paid back by a currency that's worth 10 percent less in the past three months alone. In a decade, it's down nearly one-third.
(Excerpt) Read more at nypost.com ...
So, the supply of dollars goes way, way up, and the demand for dollars goes way, way down.
That can’t be good.
And it’s only the beginning. Obama is not done yet.
Soon someone on TV will say “Its Bush Fault”.
why are congressmen igoring the real problems we face and spending so much time on healthcare we cant afford...its against our constitution anyway....but commerce and a strong currency is supposed what they work towards.
Re my previous post:
Just to let the reader know - that original link I posted was in a thread that was pulled (because the thread article was from Bloomberg), so by another Freeper’s request, I’ve reposted it in a different thread if anyone needs to access it again.
Here is that new link:
“Fool’s Gold” http://www.freerepublic.com/focus/news/2361698/posts?page=15#15
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