The Decimation Of The Dollar
The U.S. dollar deteriorated again this week, as banks worldwide reportedly opted to make the Euro and the Yen their reserve currency. The Judiciary Report has been warning for the better part of the year, about the dangers of the U.S. Treasury printing up excessive sums of money and the inflationary and budgetary risks it poses.
U.S. President Barack Obama
This was a time for the government to save, not spend. A tax increase of a few percent on the rich, would have brought in more government income, to balance things out. The government is piling up too much debt with too little income to compensate for the drastic spending.
Dollar loses reserve status to yen & euro
Last Updated: 3:16 AM, October 13, 2009 - 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.
Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago.
Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record, said the International Monetary Fund. Bernanke could go down in economic history as the man who killed the greenback on the operating table.
After printing up trillions of new dollars and new bonds to stimulate the US economy, the Federal Reserve chief is now boxed into a corner battling two separate monsters that could devour the economy -- ravenous inflation on one hand, and a perilous recession on the other.
"He's in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing."...
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...
http://www.nypost.com
