Tuesday, Oct 06, 2009

This will colapse America and the UK finacial Syesyem

The demise of the Dollor: The demise of the dollar

The yanks will go to war over this. They will dispose democratically elected governments and assassinate people before the see the dollar's demise. If it does ever happen America will be facing an era of austerity like we faces after the second world war. It was the collapse of sterling as 'THE' trading currency that was the last nail in the coffin of Pax Britania. It could be the first nail in the coffin of Pax Americana.
This would certainly cause a House price crash (and all asset price crash) across the USA and UK. It would be very grim for all of us, but I fear that it will end up in war.

Posted by the number cruncher @ 10:17 AM (1548 views)
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1. jack c said...

See also article from yesterdays FT - http://www.ftadviser.com/InvestmentAdviser/Investments/News/article/20091005/1fa96ff8-ad0f-11de-9695-00144f2af8e8/Dollar-losing-ground-to-gold.jsp

The dollar is unlikely to remain the reserve currency of choice as China overtakes the US as the world's leading economy, according to Ted Scott, director of UK strategy at F&C Asset Management.

Tuesday, October 6, 2009 10:12AM Report Comment

2. jack c said...

BBC business now providing report - "Dollar falls on oil plan report"


Tuesday, October 6, 2009 10:35AM Report Comment

3. Rthsrth said...

Your spelling sucks

Tuesday, October 6, 2009 10:37AM Report Comment

4. This comment has been removed as it was found to be in breach of our Blog Policies.


5. icarus said...

"They will dispose democratically elected governments." Unfortunately for them this leaves intact most of the governments concocting this anti-dollar plan.

Tuesday, October 6, 2009 11:26AM Report Comment

6. mrflibble said...

Don't worry, no matter how weak the Dollar gets Sterling will always be weaker!

Tuesday, October 6, 2009 11:28AM Report Comment

7. debtfree said...

Amazing how just a few weeks ago the dollar was to big to fail and wouldn't lose it's reserve status for years... of course, this normally comes from the 'gold is in a bubble' crowd.

Tuesday, October 6, 2009 11:52AM Report Comment

8. alan said...

@ jack c,

This has been building slowly for a long, long time. There have been a lot of articles posted here, as you will have noticed. I won't try and reproduce the history here. There are many reasons and they are fairly complex - the Economist is an excellent source.

The dollar surely won't be replaced overnight, but I think we are watching a train crash in slow motion.

Tuesday, October 6, 2009 12:02PM Report Comment

9. the number cruncher said...

icarus @ 3

Are you referring to those dastardly dictatorships in Brazil, Germany and France?

Tuesday, October 6, 2009 12:11PM Report Comment

10. rumble said...

"Those behind this one were doubtless planning to sell gold for dollars - until the hoax was exposed..."
Gold price doesn't think it's a hoax, maybe within an hour.

Tuesday, October 6, 2009 12:45PM Report Comment

11. uncle tom said...

The Saudis have gone out of their way to rubbish this story - and we've been here before..

..every so often, someone tries to cook up a scare story that will influence the markets, and the rumour that oil will no longer be traded in greenbacks is a classic that has been played several times now..

Those behind this one were doubtless planning to sell gold for dollars - until the hoax was exposed...

Tuesday, October 6, 2009 12:50PM Report Comment

12. rumble said...

It would be US against the world. They can barely cope with Iraq and Afghanistan militarily, we saw their assassination skills with Castro, they can do nothing, not even economically.

Tuesday, October 6, 2009 12:54PM Report Comment

13. mountain goat said...

The dollar will disappear one day but first we have to deal with the small fact that there are $700 trillion of dollar IOU's in the world's financial system that need to be settled or paid back. When panic hits again the dollar will rocket.

Tuesday, October 6, 2009 12:56PM Report Comment

14. rumble said...

8 comes after 9... can we get an admin onto this post order issue?

Tuesday, October 6, 2009 12:58PM Report Comment

15. jack c said...

@ alan (Tuesday, October 6, 2009 12:02PM) - thanks for the input. I posted up the additional links for information purposes as there does appear to be mounting commentary on this topic. I must admit it seems unthinkable to have the US $ replaced overnight (to use your words) - I'm therefore going to sit safely on the fence with this one and see how things unravel.

Tuesday, October 6, 2009 01:02PM Report Comment

16. quiet guy said...

@Uncle Tom

"The Saudis have gone out of their way to rubbish this story - and we've been here before.."

Fair enough but if the Saudis are sitting on a big pile of dollars, then they have a big incentive to talk up the dollar for now, don't they? I don't pay much attention to Russia, who will always play mischievously with the USA when they can, but China appears to be serious about converting its dollars into assets with long term value.

Tuesday, October 6, 2009 01:09PM Report Comment

17. mountain goat said...

More commentary here http://ftalphaville.ft.com/blog/2009/10/06/75836/the-world-and-the-dollar-reacts-to-robert-fisk/

Tuesday, October 6, 2009 01:21PM Report Comment

18. mander said...

The world needs rules with regards to money creation. Creating money in unlimited amounts and for anybody without economic sense is the problem here.

Tuesday, October 6, 2009 02:52PM Report Comment

19. alan said...

Q: is anyone paying attention?
A: Gold $1043.20


As for how it will play out...Please make up your own minds, I've just suppled a link....

Tuesday, October 6, 2009 03:56PM Report Comment

20. drewster said...

Mish disagrees with this story, and he's right. It doesn't matter which currency oil is traded in, since currencies are easily tradable and fully fungible.

Mish: Ridiculous Hype Over Secret Oil Meetings
Once again everyone is hyperventilating over "secret" moves to trade oil in currencies other than the US dollar.
Supposedly Robert Fisk knows the plans but "Americans have not discovered the details".

Such "secret" talks surface about once a year and nothing ever happens. Yet, even if these talks led to actual actions, they are irrelevant for the simple reason it does not matter one iota what oil is priced in.

Ten Simple Facts

1) Oil is priced in dollars.
2) Oil trades in Dollars and Euros right now in spite of the pricing unit being dollars. OPEC has recently admitted this fact.
3) Clearly oil does not have to be priced in Euros to trade in Euros, or for that matter priced in Yen to trade in Yen. The same applies to any major currency.
4) Neither Venezuela or Iran hold any dollar reserves. To the extent that either is taking trades in dollars, there is clearly nothing forcing them to hold dollars. By extension there is nothing forcing any OPEC country to hold dollars if it doesn't want to.

The full post is well worth a read. In particular he debunks Fisk's warning of war. Nice to see some common sense on the internet!

Tuesday, October 6, 2009 04:14PM Report Comment

21. crunchy said...

I remember trying to tell paul about the dollar and he was not having it. Well paul I was right. Food shortages next.

Don't you just love the Crunch.

Tuesday, October 6, 2009 04:44PM Report Comment

22. debtfree said...

Crunchy, social disorder to follow the food shortages .. ?

Tuesday, October 6, 2009 05:23PM Report Comment

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