DOLLAR LOSES Reserve Status to Yen & Euro

[peaceandlove]

Dollar Loses Reserve Status to Yen & Euro

By PAUL THARP
Posted: 1:44 AM, October 13, 2009

Ben Bernanke's dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency.

Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago.

Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record, said the International Monetary Fund.

Bernanke could go down in economic history as the man who killed the greenback on the operating table.

Continues: http://www.nypost.com/p/news/business/dollar_loses_reserve_status_to_yen_hFyfwvpBW1YYLyk SJwTTEL%3Bjsessionid%3D65E301CF47ED50D15170F8D6530 791C5

[Steve_A]

Hi peaceandlove,

It seems that the US Dollar is really losing ground. This is more obvious against softer currencies like the Brazilian Real as the fluctuation is more extense. Yesterday it was 1 US$ for 1,74BR$ which may not mean too much to some people, but only six months ago it was 1 US$ for 2,70 BR$ a drop of over 30%!

Of course we can credit a bit of this due to the fact that Brazil is exporting more oil and the influx of Dollars is mounting, however the Brazilian government is one of those which want s to deal in local currencies with Argentina, China and European countries.

The need for so many Dollars is weakening, thus the value will go down. It's great for Brazilain travellers who can still buy air tickets in US$ and can visit the US for less money than they would to visit a Brazilian resort!

I think for some emerging countries they will start to take control of the world markets and the traditionally strong countries will have to take a back seat for a while.

It's not the first time that this has happened, although it is the first time due to greed and stupidity.

Best regards,

Steve



Dollar Loses Reserve Status to Yen & Euro

By PAUL THARP
Posted: 1:44 AM, October 13, 2009

Ben Bernanke's dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency.

Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago.

Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record, said the International Monetary Fund.

Bernanke could go down in economic history as the man who killed the greenback on the operating table.

Continues: http://www.nypost.com/p/news/business/dollar_loses_reserve_status_to_yen_hFyfwvpBW1YYLyk SJwTTEL%3Bjsessionid%3D65E301CF47ED50D15170F8D6530 791C5

[pineal-pilot-in merkabah]

looks like cliff high is right with his 25th october date and fullford thinks end of month too:zip:

[Sarahmay]

Yep, here it comes.

[peaceandlove]

Hey Steve,

I think for some emerging countries they will start to take control of the world markets and the traditionally strong countries will have to take a back seat for a while.

Sounds like a plan.


Is The Dollar Doomed?

Monday, October 12. 2009
Posted by Karl Denninger

When Bloomberg runs articles like this Dollar Reaches Breaking Point as Banks Shift Reserves http://www.bloomberg.com/apps/news?pid=20601087&sid=aS2s2mhDVBSM , you have to wonder....

Oct. 12 (Bloomberg) -- Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two-quarter rout in almost two decades.

Flush with printed reserves, I might add.

World leaders are acting on threats to dump the dollar while the Obama administration shows a willingness to tolerate a weaker currency in an effort to boost exports and the economy as long as it doesn’t drive away the nation’s creditors.

Tolerate? I'd argue that this is a formal policy of the administration (and the last one too), not a matter of "tolerance."

That Congress allows this is a raw dereliction of their duty as set forth in The Constitution; they seem to be entirely blind to the willful destruction of currency value that is taking place.

This is not the first time, I might add. Go look at what happened in the 80s with regard to our currency....

America’s currency has been under siege as the Treasury sells a record amount of debt to finance a budget deficit that totaled $1.4 trillion in fiscal 2009 ended Sept. 30.

Oh wait - maybe it is Congress. Hmmm.... who is it that passes revenue bills again? That would be Congress. Who passed the budget? That would be Congress. Who has control of the debt ceiling?

That would be Congress.

Oops.

Continues Extensively: http://market-ticker.denninger.net/archives/1507-Is-The-Dollar-Doomed.html

[Fredkc]

...the Obama administration shows a willingness to tolerate a weaker currency in an effort to boost exports and the economy as long as it doesn’t drive away the nation’s creditors.

What a complete and total farce. Quackery and incompetence.

[peaceandlove]

Dollar Falls to 14-Month Euro Low

AFP 1 day ago

LONDON — The dollar hit a 14-month low against the euro Thursday on fears that US interest rates would remain super-low for a long time and as a stock market rally sparked appetite for riskier assets, traders said.

At 0615 GMT, the European single currency reached 1.4968 dollars, the highest level since August 2008. The euro later pulled back to 1.4935, up from 1.4922 dollars late in New York on Wednesday.

Against the Japanese currency, the dollar firmed to 89.65 yen from 89.40 yen on Wednesday.

Minutes from the US Federal Reserve's most recent interest rate meeting indicated that US borrowing costs would likely remain low for some considerable time, according to analysts.

Minutes from the September 22-23 meeting published on Wednesday showed Fed officials see a recovery underway from recession but one "restrained" by high unemployment and difficult credit.

"The US dollar remains flat on its back and has all the hallmarks of a patient ready for open heart surgery," said MF Global analyst Manus Cranny.

Continues: http://www.google.com/hostednews/afp/article/ALeqM5giamikXVx7JyN7kij1u4P2oxt2fQ