A month ago, I posted about the U.S. dollar being in trouble. Things have progressed in the short time since then, with a slew of new headlines culled from around the Net.
Let's start with the New York Post article Dollar Loses Reserve Status to Yen & Euro. In it, we learn that 63% of money being put into reserves by banks went to the Japanese Yen and the E.U. Euro in the last three months. Traditionally, around 66% would be put in the dollar, but only 37% was. Over at Bloomberg, they report the same while pointing out that world leaders are following through on their threats to diversify. Apparently, they don't approve of how U.S. economic woes are being handled by the new administration.
In another article at Bloomberg, they report that the dollar is down 10% against other currencies in the eight plus months Treasury Secretary Geithner has been in charge. In fact, they go so far as to call it the Obama Dollar. At this point, the current mess is now owned by the Obama Administration so I think the honeymoon is over. Meanwhile, the Pound Sterling is having problems as well, based on the fear that inflation is decreasing in the United Kingdom.
It looks like the shift from the Anglo currencies has finally begun, as the economies of the United States and Great Britain have lost the confidence of foreign investors. Interestingly enough, these are the two countries that enacted the biggest stimulus packages during the current economic downturn. I don't think this is a coincidence.
Runaway hyper inflation is around the corner, what with oil going up and consumers unable to spend more due to being tapped out on credit,with many losing jobs and giving up on full employment. I don't blame other countries bailing out on the dollar, as it is a race to get any kind of value back from what they sank into our treasury bonds before they become worthless. Talk of another stimulus will just continue the flight from the dollar and I think our political elites in both parties have failed the country and the world completely in how they've handled things.
It took a world war to bring the country out of the Great Depression. I hope that won't be required this time.
Reviews of movies, anime, and the occasional TV show mixed with warnings on Blogger spam. Also to be found are musings on whatever I am thinking about - all from the point of view of being left to watch everything from the sidelines of life.
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