Skip to comments.Look for 2012 to be the year of the dollar (Worldwide Currency wars favor the greenback)
Posted on 12/30/2011 6:52:57 AM PST by SeekAndFind
At a meeting in London last month I listened with mild amusement as a senior sales executive discussed the rollout of a banking campaign to promote the rise of Chinas renminbi as a global currency.
Advertising in the U.S. would make little sense, as Americans arent ready to believe in much less prepare for the inevitable day when the Chinese currency overtakes the U.S. dollar as a major reserve currency, ran the strategy, detailed by the executive with the requisite cultural dig.
Its certainly just coincidence that the U.S. Dollar Index DXY is up more than 4% since that meeting, while the China story line has degenerated into a series of ominous collapse scenarios for 2012, much like the Europe and emerging-markets stories.
Indeed, if the crises of the past several months have taught us anything, its that despite the allure of a new Asian currency champion, despite the potential for the European project to be saved, despite the weakness of the dollar and the gains in gold over the last decade, when large institutional investors truly get scared, they buy U.S. dollars.
They buy dollars when European banks look weak. They buy them when U.S. banks look weak. They even buy them when the U.S. loses its triple-A credit rating at Standard & Poors, because, after all, what else are they going to buy? The dollar index is up more than 6% since that early-August rating reduction, which provoked such anxiety at the time.
And this week, as investors bide time until the markets come back to life in January, the dollar is the only game in town. The thing to watch for is whether the dollar maintains its strength when the scary, end-of-year headlines are gone and Europe and China begin a fresh effort in 2012
(Excerpt) Read more at marketwatch.com ...
Time to dump Gold!
Yeah, yeah. And our President and Congress are squandering this most valuable commodity our country has!
The dollar sucks. It’s just that the others suck even more. The euro is circling the drain, nobody trusts China, Japan is moribund, and no other country is big enough to provide a replacement for the world reserve currency.
You are right. The Chinese currency will never replace the US Dollar because the Chinese are not honest, have slave labor, care nothing about anything but money and will lie cheat steal adn murder to get it.
Now, things have been going down a disgusting direction in the United States with liars and murderers from the top down here too, but as yet our culture is not as depraved as the Chinese one, although we have a lot of cleaning up to do.
I would not doubt this had not the American people shown such astonishing and monumental stupidity in electing Barak Obama to the Presidency with a Democrat Party supermajority in the U.S. Congress and compounded this stupidity by tolerating the destructive policies and downright insanity that they foisted upon the U.S.A.
The staggering national debt maliciously established by these people cannot be ignored.
Neither can the decadence, manifested under the misnomer "liberalism", that has America in a death grip, and its tolerance by the American people be ignored.
And neither can the devastating effect of the national press, which serves as a propaganda machine for the Democrat Party and the forces of decadence, committed to propaganda and mendacity rather than truth for its own sake and the bringing of truth to the public, be ignored.
And of greatest importance: the fault of the American people themselves, in tolerating these evils and the dangers that they pose, can neither be ignored, excused, nor disregarded. This is itself the greates single threat to the U.S.A., its future, its survival, and its children.
The possibility of an American resergance cannot be dismissed, but neither can the astonishing stupidity of the American electorate and the mortal danger that this threatens.
By that argument, you should cancel your life insurance because you’re recovering from the flu.
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