Robert Fisk on the Gulf ‘Ditching the Dollar’

[D-Mack]

[ST]

Re: Robert Fisk on the Gulf ‘Ditching the Dollar’

Nice find, D-Mack. Interesting, especially after so many immediate outright dismissals of the story.

[D-Mack]

Re: Robert Fisk on the Gulf ‘Ditching the Dollar’

Saw it this morning, but couldn't post it because I had no login on that computer.

We live in interesting times.

[don]

Re: Robert Fisk on the Gulf ‘Ditching the Dollar’

I've always found Fisk to be an interesting and reliable source for the Middle East. He's lived there for some time and has many connections with the principal players. Regardless of his personal political positions, his information is generally well above the NYTimes or the "news" stations.

[Diarmuid]

Re: Robert Fisk on the Gulf ‘Ditching the Dollar’

Nice find, D-Mack. Interesting, especially after so many immediate outright dismissals of the story.

Tin foil hat on

This imo is all about creating the narrative - This narrative is ongoing on a number of different levels. I heard on French TV after Rio won the olympics that this was maybe an indication of decline of the Empire :rolleyes:

emperical data and fundamentals are important but not nearly as important as how we think and what we believe en mass (it is why perma bears loss - they look at the data but do not take into account the pervailing feeling and beliefs imo) as soon as and if that narrative becomes *real* in enough peoples minds - nothing will save the dollar. I am sure there is hell alot of money to be made and power to be garnered in the transition from one global currency to another if your positioned for such an event.

[ST]

Re: Robert Fisk on the Gulf ‘Ditching the Dollar’

Front page Financial Times website tonite:

Obama under fire over falling dollar

By Edward Luce and Krishna Guha in Washington
Published: October 7 2009 19:37 | Last updated: October 7 2009 19:37

The sharp fall in the US dollar is giving ammunition to the critics of the Obama administration and fuelling broader concerns about the erosion of America’s reserve currency status.

Republican politicians have highlighted the dollar’s slide as evidence of waning US power. On Wednesday, Sarah Palin, the Republican former vice-presidential candidate, added her voice to those who have expressed concern over the consequences of rising US indebtedness and dependence on foreign oil.

“We can see the effect of this in the price of gold, which hit a record high today in response to fears about the weakened dollar,” she wrote on her Facebook site.

Most economists attribute the recent surge in the gold price to the actions of a few speculative investors hedging against inflation fears in the US. And they point out that the far deeper US bond markets show no sign of concern over inflation. Indeed, analysts say that the dollar’s slide stems more from investors’ growing appetite for risk and the prospects of interest rate rises elsewhere.

Over the past six months, the dollar has fallen 11.5 per cent on a trade weighted basis.

Tim Geithner, the US Treasury secretary said this weekend that the US will do “everything necessary” to maintain confidence in its currency. “It is very important to the United States that we continue to have a strong dollar,” he said. “We recognise that the dollar’s important role in the system conveys special burdens and responsibilities on us and we are going to do everything necessary to make sure we sustain confidence.”

However, angst about the dollar extends beyond conservative political circles. Last week, Robert Zoellick, the president of the World Bank, warned that recent warnings from the Chinese and other major US creditors over US indebtedness could worsen in coming months.
“The United States would be mistaken to take for granted the dollar’s place as the world’s predominant reserve currency,” Mr Zoellick said. “Looking forward, there will increasingly be other options to the dollar.”

Much of today’s debate echoes the traditional political response in the US whenever the currency depreciates. But it is now accompanied by warnings from America’s creditors, many of which are widely rumoured to be eyeing large US purchases of real assets such as property and companies.
“The dollar has always been a testosterone issue among America’s political classes,” says Norm Ornstein, a veteran analyst at the conservative American Enterprise Institute. “This time there may be a legitimate debate to be had over the dollar’s reserve status, but Sarah Palin is not qualified to participate in it.”

While the latest swoon in the dollar is attracting attention, analysts say thait needs to be put in context. In trade-weighted terms, the dollar is essentially back to where it was the start of the financial crisis on August 9 2007, according to Federal Reserve data.

EDITOR’S CHOICE

Breitbart shapes conservative agenda - Oct-07


Alarm over debt draws together diverse coalition - Oct-07


Blog: Money-supply - Oct-07


Mighty dollar turns a paler green - Oct-04

[rabot10]

Re: Robert Fisk on the Gulf ‘Ditching the Dollar’

"Tim Geithner, the US Treasury secretary said this weekend that the US will do “everything necessary” to maintain confidence in its currency. “It is very important to the United States that we continue to have a strong dollar,” he said. “We recognise that the dollar’s important role in the system conveys special burdens and responsibilities on us and we are going to do everything necessary to make sure we sustain confidence"

Should be in the Jokes thread

[jimmygu3]

Re: Robert Fisk on the Gulf ‘Ditching the Dollar’

"Tim Geithner, the US Treasury secretary said this weekend that the US will do “everything necessary” to maintain confidence in its currency. “It is very important to the United States that we continue to have a strong dollar,” he said. “We recognise that the dollar’s important role in the system conveys special burdens and responsibilities on us and we are going to do everything necessary to make sure we sustain confidence"

Should be in the Jokes thread

You're doing a heck of a job, Brownie! Er, ... Geithy!