The Downfall Of The Us Dollar??

[Mr Lee]

Could this be the beginning of the end for the US dollar? Central banks shifting away from weakening US currency by Bloomberg CENTRAL banks are diversifying away from the dollar more aggressively amid predictions that the US currency will weaken further on mounting signals the United States will keep interest rates lower than other nations. The US dollar accounted for 37 percent of the $115-billion foreign reserves central banks amassed in the second quarter, after adjustment for exchange-rate changes during the period, compared with 52 percent in the euro, according to a Barclays analysis of data that the International Monetary Fund released on Sept. 30. That was the first time that the dollar

[Mik]

Collapse of the Greenback? Will the Dollar get an "Arab Oil Shock"?by F. William EngdahlGlobal Research, October 8, 2009Arab oil producing nations and the some world's largest oil consumers including China and Japan are reliably reported to be secretly planning a long-term exit from pricing their oil trade in dollars. If true, it would spell the death knell for the dollar as world reserve currency and for the USA as global economic power.Ever since Washington tore up the Bretton Woods treaty in August 1971 and went onto a "dollar paper reserve system" instead of a dollar backed by gold, the United States, as the world's most powerful military power, has been able to dictate financial terms to the world. Nations like Japan and later China, dependent on US export markets, would dutifully invest their trade surplus dollars into US Government debt, in effect financing wars such as Iraq or Afghanistan they opposed. They saw no choice. Arab oil producing countries, under US military pressure, were forced to sell oil only in dollars, a direct prop to the dollar when the US economy was in terminal decline. That may be rapidly about to come to an end.According to a leaked report from Arab Gulf oil producers, there have been a series of secret meetings in recent months between the major Arab oil producers, including Saudi Arabia, and reportedly also Russia, together with the leading oil consumer countries including two of the three largest oil import countries - China and Japan. Their project is to quietly create the basis to end a 65-year long "iron rule" of selling oil only in US dollars. As I document in my book, Mit der

Edited October 9, 2009 by M.Morey