Dollar Reaches Breaking Point / Power Shift – It’s Going Down!

Dollar Reaches Breaking Point as Banks Shift Reserves

LINK: http://www.bloomberg.com/apps/news?pid=20601087&sid=aA6_py_71g_o

“The diversification out of the dollar will accelerate,” said Fabrizio Fiorini, a money manager who helps oversee $12 billion at Aletti Gestielle SGR SpA in Milan. “People are buying the euro not because they want that currency, but because they want to get rid of the dollar. In the long run, the U.S. will not be the same powerful country that it once was.”

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Dollar facing ‘power-shift’: analysts

LINK: http://www.breitbart.com/article.php?id=CNG.ee8e6856c300b312ea0f64a4522381ca.481&show_article=1

“Three conclusions stand out very clearly. Firstly, the shift in economic power away from the G7 economies is continuing. “Secondly, there is a growing acceptance amongst those winners that one consequence of this power shift will be to strengthen their currencies.

“And finally, as long as the US economy is not strong enough for any rise in interest rates to be conceivable for a long time, the dollar’s underlying downtrend will remain in place,” added Juckes.

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Bob Chapman recommends (per The Power Hour interview on 10/12/2009):
 – Get out of CD’s
 – Leave only 3 months worth of money in banks (to pay bills) if individual
 – Leave only 6 months worth of money in banks (to pay bills) if individual
 – Move to / increase gold and silver reserves

The Group of Seven (G7) Will Let the Dollar Fall!

LINK: http://www.forbes.com/2009/10/05/dollar-g7-yen-markets-currencies-foreign-exchange.html?partner=popstories

 

The Group of Seven (G-7) will let the dollar fall.

The heated climate before the Istanbul meeting led some to expect global policymakers to take a stand, but despite the strong tone, Andrew Wilkinson, senior market analyst at Interactive Brokers, said it was short on action. “It invites investors to test the dollar’s lines of resistance in order to see what response, if any, might be forthcoming in the event of a further fall in the value of the dollar,” Wilkinson said.

The dollar’s loss of value over the past six months has been a cause for concern for the world’s financial chief’s, Wilkinson said, and reasonably so because the greenback’s instability threatens financial markets and economies. (See “Playing The Downward Dollar.” and “Harrison Sees A Dollar Boom.”)

The problem with intervention is that it would only be partially effective, especially if the U.S. isn’t on board. The Treasury Department would never admit this, but for the time being it’s in the country’s interest to keep its currency low because it stimulates exports for the economy’s manufacturing base and lowers the value of the debt that the Treasury is piling up.

[more at link posted above]