dagblog - Comments for "Why the Dollar's Reign Is Near an End "

Okay, I'm wide awake now so

Beetlejuice — Fri, 04 Mar 2011 12:44:11 +0000

In reply to Why the Dollar's Reign Is Near an End

Okay, I'm wide awake now so here are my talking points:

Sarkozy urges less international reliance on the dollar. url : http://www.dw-world.de/dw/article/0,,14760921,00.html
Pay China First - Republicans' wild plan to avoid US debt default url : http://tpmdc.talkingpointsmemo.com/2011/01/pay-china-first----republican...
IMF calls for dollar alternative url : http://money.cnn.com/2011/02/10/markets/dollar/index.htm
US Dollar Index url : http://www.investopedia.com/terms/u/usdx.asp

The dollar is not only washed up, no one really wants to deal with it especially when GOPer's are making policy...that scares the shit out of them.

One of the big beefs the U.S.

acanuck — Fri, 04 Mar 2011 02:59:53 +0000

In reply to You just would have to open a

One of the big beefs the U.S. has with Iran is that for three years it has refused to sell its oil in dollars. Which makes sense, since its market is mostly Europe and China. Like Iran, I'd bet on the euro or yuan appreciating before I'd bet on the U.S. dollar. And how do Republicans deal with such threats to its reserve-currency status? Propose laws to ban its "replacement," as if that would change any realities on the ground or affect the actions of any other country. Morons.

Just think what would happen

Resistance — Fri, 04 Mar 2011 02:08:09 +0000

In reply to You just would have to open a

Just think what would happen in the US if there were no bids for U.S. Treasury securities. Or there weren't enough to break even or whatever. They'd have no choice but to raise taxes.

Do you know if US treasuries were selling very well, before the housing crash?

Would investments in housing, reduce demand for US treasuries?

You just would have to open a

Beetlejuice — Fri, 04 Mar 2011 01:25:13 +0000

In reply to Why the Dollar's Reign Is Near an End

You just would have to open a can of worms just as I'm heading off to bed, Donal!

But here's a few interesting tidbits:

1. With the dollar, euro and yuan all trading in liquid markets and all seen as safe havens, there will be movement into all three of them in periods of financial distress

If the euro and yuan are equal to the dollar then there's nothing stopping anyone in the world from demanding payment in euros or yuan rather than dollars. So how much would a barrel of oil cost the US if it the price was set in euros? Look at #2 for the answer.

2. American companies will have to cope with some of the same exchange-rate risks and exposures as their foreign competitors.

That's it in a nutshell! If you think a BMW is expensive now, just wait til you see the sticker price in euros then look at the exchange rate risk. And the same for oil too!

But what GOPer's in Congress have yet to understand, toying with the budget makes them there foreigner's queezy and if they had a chance they'd dump their need for U.S. Treasury securities. Just think what would happen in the US if there were no bids for U.S. Treasury securities. Or there weren't enough to break even or whatever. They'd have no choice but to raise taxes.

I got a lot of other articles on the subject I'll post here later when I wake up.

What happens with the dollar

EmmaZahn — Fri, 04 Mar 2011 00:51:27 +0000

In reply to Why the Dollar's Reign Is Near an End

What happens with the dollar will depend to a great extent on what our oligarchs want to happen.

Most disturbing indication of what that may be is this sentence from the article:

In January the Bank of China began offering yuan-deposit accounts in New York insured by the Federal Deposit Insurance Corp.

We are insane.

dagblog - Comments for "Why the Dollar's Reign Is Near an End "

Okay, I'm wide awake now so

One of the big beefs the U.S.

﻿Just think what would happen

You just would have to open a

What happens with the dollar

Just think what would happen