by Finian Cunningham
Writer, Dandelion Salad
East Africa
Crossposted from PressTV
December 1, 2013
Image by Dandelion Salad via Flickr
The escalation of military tensions between Washington and Beijing in the East China Sea is superficially over China’s unilateral declaration of an air defense zone. But the real reason for Washington’s ire is the recent Chinese announcement that it is planning to reduce its holdings of the US dollar.
By Mike Whitney
Information Clearing House
October 21, 2009
The dollar is not going to crash. In fact, many economists believe that the dollar will rally when the Fed ends its quantitative easing program (QE) sometime in early 2010. The Fed is on track to buy nearly $2 trillion dollars of mortgage-backed securities, US Treasuries and agency debt. In other words, the Fed is printing money and pumping it into the housing market to keep the market from collapsing. This keeps interest rates low, but it also weakens the dollar. When the program ends, long-term interest rates will rise and the dollar will strengthen.
By Mike Whitney
Information Clearing House
October 19, 2009
The dollar is not going to crash. There may be grumblings in foreign capitals and “secret meetings” between finance ministers but, for now, the dollar appears to be safe.
Foreign countries don’t trade in dollars because they like America. They do it because they have no choice. If they want oil, they need dollars; it’s as simple as that.
It’s great to talk about a “basket of currencies” replacing the dollar, but that’s still a work-in-progress. It might happen, or it might not; no one really knows. What’s clear, is that we still live in dollar-centric world where paper claims on wealth are arbitrarily increased at will by a handful of unelected officials at the Federal Reserve. It’s a process which relies more on Gutenberg than moral authority.
video no longer available.
Wakeymedia3 on Jun 11, 2010
The once mighty U.S. Dollar has now become a currency without any visible means of support. The results of that are plain for all to see. The end of the American Empire is now within sight.
What the USA could have been and what it has actually become are worlds apart.
The whole world looks on as this giant becomes insane and disintegrates. Added: February 16, 2008
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