Next is for the dumpage of US$ to accelerate.
The only question remaining is, 'Will there be a panic sell off?'
Lets cross our fingers and pray that there is not.
Wag the dog?
It would be interesting to think about how a revalued yuan would play out in China and elsewhere. In some ways it's almost the mirror image of the overvalued SE Asian currencies in 1997.
Here's comes stagflation again.
As long as the Chinese keep buying our securities to back up the Yuan, we're in good shape. Or, our politicians and fellow citizens can simply demand less spending.
The title of the article is very misleading. it is big difference of giving the impression that central banks are going crazy after the Euro (which will stop to exist in 15 years) and dumping the US dollar the currency of the most powerful economy in the world.
NB: EU GDP of 2004 decline from an anemic 1.8% to more anemic 1.6%. On the other hand the US GDP grew by an average of 4%.
Hate to tell ya, but it was bound to happen. Going off the gold standard was just the beginning. It just took longer than expected. The banks will grow flusher with all the coming foreclosures? Just wait until China and Japan pull the rug out from under us!
While we wage a War on Terror, an economic war is being waged upon us. EU, China, Russia, Oil States are willing allies in the fight against us.
tmp02...FYI Bump
Ever see the movie "Rollover?"
Revelation 18
1After this I saw another angel coming down from heaven. He had great authority, and the earth was illuminated by his splendor. 2With a mighty voice he shouted: “Fallen! Fallen is Babylon the Great!
She has become a home for demons and a haunt for every evil[a] spirit,
a haunt for every unclean and detestable bird. 3For all the nations have drunk
the maddening wine of her adulteries. The kings of the earth committed adultery with her,
and the merchants of the earth grew rich from her excessive luxuries.”
4Then I heard another voice from heaven say: “Come out of her, my people,
so that you will not share in her sins,
so that you will not receive any of her plagues; 5for her sins are piled up to heaven,
and God has remembered her crimes. 6Give back to her as she has given;
pay her back double for what she has done.
...
11“The merchants of the earth will weep and mourn over her because no one buys their cargoes any more–
Good, it will force the morons in congress to start thinking about cutting government.
We live in an interdependent world. At the end of the day, the banks are going to do what the politicians tell them to.
Nobody is going to want to scuttle their economies just to spite the US. They won't go out of their way to help the Americans, but they won't risk their own necks.
The cheaper dollar is going to help exports. It's already having that effect in Europe. It'll also help tourism too.
We are still the big trading partner on the block.
The central bank is withdrawing reserves?
Just print more money to make up the difference!!
I submit the currency issue is just another front of the war with europe.
The euro is in danger so they are trying to outflank the dollar.
They can't beat the USA with bullets so the eurozone is trying to beat the USA with paper. (its the french revolution all over again, no principles just bloody power grabs.)
Get the Fed out of the US...let them dump dollars...they will be worth less.....then pay the fed off with those worthless dollars.
Then back our currency with something of value....all the while getting the FED the hell out of here so they cannot drain us of our wealth.
GW Bush is doing the right thing...talking about getting rid of the enforcement arm of the Fed---the IRS.
Doing away with this screwy tax system....getting rid of the FED and the Income tax....The US will become the economic superpower giant of all time......especially if we get of the oil kick and get into other forms of energy.