Dollar Loses Reserve Status

Quote:Ben Bernanke's dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency.

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Investors and central banks are snubbing dollars because the greenback is kept too weak by zero interest rates and a flood of greenbacks in the global economy.

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Economists believe the market rebellion against the dollar will spread until Bernanke starts raising interest rates from around zero to the high single digits, and pulls back the flood of currency spewed from US printing presses.

"That's a cure, but it's also going to stifle any US economic growth," said Schiff. "The economy is addicted to the cheap interest and liquidity."

Economists warn that a jump in rates will clobber stocks and cripple the already stalled housing market.

"Bernanke's other choice is to keep rates at zero, print even more money and sell more debt, but we'll see triple-digit inflation that could collapse the economy as we know it.

"The stimulus is what's toxic -- we're poisoning ourselves and the global economy with it."

That's great news for the US. We have totally screwed ourselves. When is our Savior/President going to solve this?

Don't forget that congress is mulling another stimulus (or death to the American economy) package.

Hello Double Digit Inflation... in an election year as well!

Obama's spending policies are reckless and irrational. Possibly a deliberate attempt by the Messiah to tank the dollar, leading to some global currency that he and his buddies would adore.

(10-14-2009 11:52 AM)WMD Owl Wrote:  Hello Double Digit Inflation... in an election year as well!

Obama's spending policies are reckless and irrational. Possibly a deliberate attempt by the Messiah to tank the dollar, leading to some global currency that he and his buddies would adore.

Soros? possible.

I believe the article mentioned possible triple digit inflation.

All good news to the one-world Dims.

This should make Obama sh!t bricks but it won't. He's got his $$$ and is set for life. I wonder how many euros he'll get per speech when he's out of office?

Spending out the ass didn't start with Obama, although he has kicked it up a few notches.

(10-14-2009 02:16 PM)ETSUfan1 Wrote:  Spending out the ass didn't start with Obama, although he has kicked it up a few notches.

So true. Obama didn't start the fire but he is sure dousing it with plenty of gasoline.