reserve currency

No love for the dollar

Submitted by on

A lot can happen in two weeks. Normally the foreign exchange market for developed nations move like glaciers. But in these days of global warming even glaciers are breaking speed limits.
Less than two weeks ago the World Bank President had some interesting things to say regarding the dollar.

"The United States would be mistaken to take for granted the dollar's place as the world's predominant reserve currency," Mr. Zoellick told the School of Advanced International Studies of Johns Hopkins University.
In his strongest comments yet in the debate over the dollar's reserve-currency status, Mr. Zoellick said that, "looking forward, there will increasingly be other options to the dollar."

For 65 years the American dollar has been the world's reserve currency. Practically as good as gold. So Mr. Zoellick's words might be considered controversial.

The 3 Ds: Deflation, Debt & the Dollar

Submitted by on

Warren Buffet warns on U.S. debt.

If we leave aside the war-impacted years of 1942 to 1946, the largest annual deficit the United States has incurred since 1920 was 6 percent of gross domestic product. This fiscal year, though, the deficit will rise to about 13 percent of G.D.P., more than twice the non-wartime record. In dollars, that equates to a staggering $1.8 trillion. Fiscally, we are in uncharted territory.

This is Scary, Possible Currency Crisis

Submitted by on

currency exchange Economist

 

Every day another story, fact, detail makes my eye balls pop out, but some hair raising reads are worse than others.

The oh shit headline, Europe on the brink of a currency crisis meltdown:

Currency pegs are being tested to destruction on the fringes of Europe’s monetary union in a traumatic upheaval that recalls the collapse of the Exchange Rate Mechanism in 1992.