Monday, October 12, 2009


From via Drudge comes this alarming report of heavy pressure on the greenback as foreign central banks begin to shift their reserves away from the dollar.

It will be exceedingly difficult to muster up any sympathy for Democrats who lose their seats in 2010 and 2012 as a result of their economic and financial betrayal of their constituents in their mindless pursuit of Obama's utopian fantasies.

Dollar facing 'power-shift': analysts

The dollar's position as the world's leading reserve currency faces increased pressure as the financial crisis allows emerging economies greater influence on the world stage, analysts said.

A report last week in The Independent claiming that China, Russia and Gulf States are among nations prepared to ditch the dollar for oil trades has heightened the uncertainty surrounding the US currency's future.

The dollar slumped against rivals last week in the wake of the British daily's controversial report.

"The US dollar is being hurt by the continued talk of a shift away from a dollar-centric world," said Kit Juckes, an analyst at currency traders ECU Group.

"Three conclusions stand out very clearly. Firstly, the shift in economic power away from the G7 economies is continuing. "Secondly, there is a growing acceptance amongst those winners that one consequence of this power shift will be to strengthen their currencies.

"And finally, as long as the US economy is not strong enough for any rise in interest rates to be conceivable for a long time, the dollar's underlying downtrend will remain in place," added Juckes.

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