Two words: Obama and Bernanke.
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That damn printing press!
Obama bamboozled millions... gave them the old 'okee doke.'
Posted on 03/01/2011 4:41:17 PM PST by EBH
For decades the dollar has served as the world's main reserve currency, but, argues Barry Eichengreen, it will soon have to share that role. Here's why—and what it will mean for international markets and companies.
The single most astonishing fact about foreign exchange is not the high volume of transactions, as incredible as that growth has been. Nor is it the volatility of currency rates, as wild as the markets are these days.
Instead, it's the extent to which the market remains dollar-centric.
But as astonishing as that is, what may be even more astonishing is this: The dollar's reign is coming to an end.
The impact of such a shift will be equally profound, with implications for, among other things, the stability of exchange rates, the stability of financial markets, the ease with which the U.S. will be able to finance budget and current-account deficits, and whether the Fed can follow a policy of benign neglect toward the dollar.
(Excerpt) Read more at online.wsj.com ...
OPEC Has Already Turned to the Euro...The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data.
GoldMoney Alert
February 18, 2004
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US Imports of Crude oil
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|||||
|
(1)
|
(2)
|
(3)
|
(4)
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(5)
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(6)
|
|
Year
|
Quantity (thousands of barrels)
|
Value (thousands of US dollars)
|
Unit price (US dollars)
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Average daily US$ per € exchange rate
|
Unit price (euros)
|
|
2001 |
3,471,066
|
74,292,894
|
21.40
|
0.8952
|
23.91
|
|
2002
|
3,418,021
|
77,283,329
|
22.61
|
0.9454
|
23.92
|
|
2003
|
3,673,596
|
99,094,675
|
26.97
|
1.1321
|
23.82
|
We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.
As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.
Printing billions at a time, with no buyers, tends to lessen the value.
Printing billions at a time, with no buyers, tends to lessen the value.
Hiccup?
Bookmark.
I just hope nobody mentions gold on this thread because its upatriotic and you can’t eat it.
Why the Dollar’s Reign Is Near an End.
Two words: Obama and Bernanke.
The day of the dollar is coming to an end.
Find out why by buying my book on Amazon.com.
Only $29.95
Putting a radical-marxist muslim-sympathizer arab-loving-kenyan in charge of the US economy... what could go wrong?
Two words: Obama and Bernanke.
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That damn printing press!
Obama bamboozled millions... gave them the old 'okee doke.'
I haven’t seen any gallows humour more hilarious than that picture...
If it were, we'd see that:
1. All the talk about the demise of the Euro after the Greek crisis scared the h-ll out of euro-holders. That fear is not going to subside soon.
So, please do tell a complete story.
What does Bernanke have to do with acts of Congress? Why don't you include Goldman Sacks, CEOs and bonuses as well?
I call crap on this one.
America has been the leader of the free industrialized west for commerce and ideas. The language of business? English and dollars $$$$US$$$.
What is everyone going to do ? Learn Chinese? So we can duplicate everyone else’s ideas? EU...combined to compete with the US. Those ME jackasses who want to bomb us every opportunity? What have they created?
Global brainpower is in the US irrespective of what obama and his musli marxists want to try to tell us. That brainpower will still be there after Obama and his detractors passe like a stool in the night.
Over the last couple of hundred of years, we built the infrastructure ALL are envious of.
The best predicator of the future is the past.
Well, that's okay, so long as it's quantitative easing. /s
I once thought as you do, until Nov. of 2010.
What happened at that time...? Not the election results...
The bi-lateral trade agreement between Russia and China that dropped the dollar.
Here are ten of the main reasons, but there are plenty of others:
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