I caught the following story. Now everyone is in a blather because the Canadian dollar and the Euro are climbing on the US Dollar.
There is a fear amongst the 'money people' that the Saudis and Iran may trade in Euro's only.
SO why is this a fear? I thought for the reason that if they started dealing in Euros it would make the $ cheaper simply because it wasn't in as high of demand, which is a rather straight forward, but maybe this writer is on to something.
I would like to add that the Federal Reserve is making a ton of money off of the war in interest that we'll eventually have to pay back. This happens with every war. You need money to fight them and big private banks are the only source.
That's an article about Iraqs money and how it is now completely worthless espcially to the Iraqis. Right before the war 1 Iraqi dinar was worth $3 US dollars. We crippled their money. The US did not have to make their money worthless by creating more of it. But now it's cheap, and bankers can buy up as much as they please.
It is said, no proof just yet, that Saddam Hussein wanted to trade in Euros and the result is the current occupation.
"a long habit of not thinking a thing wrong, gives it a superficial appearance of being right, and raises at first a formidable outcry in defense of custom. But the tumult soon subsides. Time makes more converts than reason."
Posts: 1944 | Location: Beautiful New Paltz, NY | Registered: 04 July 2006
Nation's utilizing the dollar as their foreign currency reserve are watching the values of their reserves decline on a weekly, and sometimes daily basis.
The choices are: prop the dollar up by purchasing more of them, or switching currencies or bearing the decline in the purchasing power of their reserves.
A rapid switch would cause it to decline even faster. I look for a rather slow switch-over unless there is a sudden panic to protect assets.
The dollar, as a major reserve currency, will probably become a thing of the past. Since the Fed creates it out of nothing, it will then no longer be any more acceptable on the world market as is the Mexican Peso. We'll have to buy a major currency with it, and use that one for our international purchases...just like Mexico does. Effects on U.S. living standards will be dramatic unless we start producing our own goods again.
Retired Monk "Ideology is a disease"
Posts: 3412 | Location: denver co | Registered: 17 April 2007
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