Dollar Declines as Nations Mull Reserve Currency Alternatives

Dollar Declines as Nations Mull Reserve Currency Alternatives

www.bloomberg.com

June 2 (Bloomberg) -- The dollar weakened beyond $1.43 against the euro for the first time in 2009 on bets record U.S. borrowing will undermine the greenback, prompting nations to consider alternatives to the world’s main reserve currency.

(visit the link for the full news article)

Looks like they are preparing us for a major deleveraging of the dollar. Now that the mainstream media is carying the story will people start believing the economy is way worse than what we are being told?

If the dollar continues to fail and foreign countries start calling in our debt how will we survive. I keep thinking in the back of my head how much a "Red Dawn" scenario is becoming more plausible every day. Nations will want something, probably land.

www.bloomberg.com
(visit the link for the full news article)

I am begining to wonder if this new borrowing from the IMF is an attempt at moving debt from the volitile hands of other nations to a "group" that will not call in the debt. The article below talks of dollar deleveraging and other nations looking for a new reserve currency. This could mean other nations are preparing to call in our debt.

I mentioned this in a similar thread earlier today. Here is the exchange rate from today and one year ago:

June 2, 2008: $1 = .64€, 1€ = $1.55

June 2, 2009: $1 = .70€, 1€ = $1.43

xe.com

The dollar is doing better now than it was at this time a year ago against the euro. Last year, there were times where the exchange rate was much worse than even what it was last year on this date.

In any event, I think if the euro becomes twice as much as the dollar, that's when to get worried.

reply to post by octotom


The biggest difference now is the global state of the economy. If it were not for the fact that so many nations are now in over their heads with bail outs of corporations, the decline of the dollar would be on par with current inflationary standards. Now we have a bigger problem. A year ago the other nations that hold our debt are broke as well and might come calling for money.

Listen to Ron Paul.

We're destroying our currency. That is why people like him because he's trying to tell us what is going to happen but the media doesn't promote it...although they do have him on...but it never comes up again after. It's blown over and only those who are willing to check up on this for their own..will they see it.

They need to talk about this!

Gas is up 45 cents in my hometown in one week....that's nuts.

Billions of dollars worth of shipping buisness has been lost over the last 7 months. This equates into less fuel being used thus decreasing demand almost exponentially. Yet with the demand going down and the price going up I would be willing to bet that the oil companies are rolling in dough. My first thought would be to blame this on inflation but I honestly feel it is something more sinister than that.

Originally posted by David9176
Listen to Ron Paul.

We're destroying our currency. That is why people like him because he's trying to tell us what is going to happen but the media doesn't promote it...although they do have him on...but it never comes up again after. It's blown over and only those who are willing to check up on this for their own..will they see it.

They need to talk about this!

Gas is up 45 cents in my hometown in one week....that's nuts.

Same here. Gas is climbing fast here. It's interesting that when gas is expensive, the stock market soars.

reply to post by Manwin


I just heard on the news a min ago that Michigan, Indiana, and one other state (can't remember) had seen the highest rise in gas prices in the nation.

Michigan is already in dire straits.....highest unemployment in the country plus GM bankruptcy...Michigan is in HUGE trouble.

Unfortunately I live there...they also just announced that the city I work in is cutting 1 million dollars from their police budget....the neighborhood I work in is prone to violence.

When I was working nights I used to hear gun shots at least once a week....

Great.

Just keeps getting better and better right?

Even further proof of a constructed failure of our economy. Why would they not just distribute the cost across the states?

As the deleveraging occurs it will further the inflationary problems. It seems that as the inflation from the bailouts starts to rear it's ugly head, US debt holders will continue to find alternatives so as to not lose their assets so to speak.

Trends will continue to devalue our dollar.
Currency will pretty much worthless...leaving value only to those items that are actually concrete. There will be an American liquidation..along with hyperinflation.

Is it wise to transfer some of our own dollars to euros? Isn't that what the rich elites are doing?

reply to post by Jessicamsa


It would be very ill advised to transfer one fiat currency to another. If you want to save the value then you buy goods prior to inflation.

According to the info from a source Bob Chapman of the international forecaster received, the americans embassies in the world received the order and money to buy LOCAL currencies to last at least a year or more...

They say the dollar has between 120 and 180 days before it's over... the source is in the State Department...

Just saying... maybe false, maybe true.

reply to post by Vitchilo


Can you provide a link to your source? If so this could be some very bad news. If true it would at least give us some time to prepare. I would love to see a copy of that order, as would many other on here.

I hate it when predictions come true...so many people, myself included, have been harping about this for so long that it is starting to become annoying. And now here we are.

Hope the ones who didn't listen enjoy the ride. It's going to be long...

[edit on 3-6-2009 by projectvxn]

I just got through checking the futures market and guess what, the dollar is further being deleveraged. It seems that there has been a trend over the last 5 days for the dollar to be losing major value across other major currencies. These changes are fast and large.

The dollar declined even more today. I wonder if the poster above is right. Will we see a decline and decimation of the dollar in the next 6 months?

Listen guys and gals, the "S" is getting ready to hit the "F". It doesn't take a pig farmer to realize that. I would like to see and hear about more people getting prepared for it than talking about weather or not this is finally it, cuz' guess what?..........IT IS!!!!

We all know exactly where this is all going. It has been in the works for a long long time. I don't mean to frighten anyone or be so blunt but there seems to be an aire of doubt or disbelief on these threads and I am here to tell you this ain't no joke. You will have no one to blame but yourself if you are standing there with your peepee in your hands when the "S" goes down.

Love you all and hope we can make it through this.

[edit on 3-6-2009 by Jesus H Christ]

Originally posted by David9176
reply to post by Manwin

 

I just heard on the news a min ago that Michigan, Indiana, and one other state (can't remember) had seen the highest rise in gas prices in the nation.

Michigan is already in dire straits.....highest unemployment in the country plus GM bankruptcy...Michigan is in HUGE trouble.

Unfortunately I live there...they also just announced that the city I work in is cutting 1 million dollars from their police budget....the neighborhood I work in is prone to violence.

When I was working nights I used to hear gun shots at least once a week....

Great.

Just keeps getting better and better right?

I live in southern Warren on the border of Detroit I hear fully automatic weapons every night.