The Endangered US Dollar

The US dollar will not be the world's default currency for that much longer....
For decades the US dollar has served as the world's default currency. The phrase "sound as a dollar" has expressed the faith and confidence of generations, not only of Americans, but people worldwide.

That situation is coming to end, and the consequences will be far-reaching.

an interesting "hint" as to the real reason for the coming attack on Iran in this article also.........
http://www.museletter.com/archive/149.html

The US dollar will not be the world's default currency for that much longer....
For decades the US dollar has served as the world's default currency. The phrase "sound as a dollar" has expressed the faith and confidence of generations, not only of Americans, but people worldwide.

That situation is coming to end, and the consequences will be far-reaching.

an interesting "hint" as to the real reason for the coming attack on Iran in this article also.........
http://www.museletter.com/archive/149.html

The US dollar will not be the world's default currency for that much longer....
For decades the US dollar has served as the world's default currency. The phrase "sound as a dollar" has expressed the faith and confidence of generations, not only of Americans, but people worldwide.

That situation is coming to end, and the consequences will be far-reaching.

an interesting "hint" as to the real reason for the coming attack on Iran in this article also.........
http://www.museletter.com/archive/149.html

Russian Central Bank Switches to Euro-Dollar Basket in Targeting Ruble
February 04, 2005
http://www.mosnews.com/money/2005/02...cybasket.shtml

Russian Central Bank Switches to Euro-Dollar Basket in Targeting Ruble
February 04, 2005
http://www.mosnews.com/money/2005/02...cybasket.shtml

Russian Central Bank Switches to Euro-Dollar Basket in Targeting Ruble
February 04, 2005
http://www.mosnews.com/money/2005/02...cybasket.shtml

I for one believe the US dollar will continue to fall as the Euro will become the "unofficial" world currencey replacing the greenback.

I'm expecting various countries to try and precipitate the fall of the US$. Iraq sold oil for Euros and we saw how nasty the US can be in reaction. The Europeans, especially France and Germany, are getting more and more angry with Bush beligerence. They are beginning to make deals with the Chinese. If the Americans don't back off of Bush's "You're either with us or you're with the terrorists" line, they may form a stronger bloc and deliberately push the dollar aside. Now, Bush can go after small states like Iraq; it's quite another thing to go up against Europe and China.

The US$ has been a bubble for many years. It is now starting to come down. It will naturally come down even more. The bubble is letting out some air. However, if Bush keeps going around threatening everyone, someone is going to puncture the balloon and let all the air out. Then, the US$ will be worth nothing.

Canada had better stop depending on trade with the US.

It happened before.

I remember when the Canadian dollar was a $1.10 US. I remember when Diefenbaker dropped our dollar down to 95 cents US. It was called the Diefendollar for years.

We are merely observers in the greater scheme of things.

I remember that. Remember the rubber money?

Anybody who thinks that a low Canadian dollar is a good thing ought to look at Third World curencies. If a low currency was good, then Belize would be one of the richest countries and Switzerland would be poor.

The US$ has been over valued for years. This is primarily because international investors have lacked good alternates. The Euro is now a good alternate.

Exactly, Mooseskin. It's just the transition period that a little challenging. Our short-sighted politicians, many with ties to US-owned corporations, have been pretending that a high dollar is bad ever since they sold us out in the original FTA. The USA's predatory trade practices are causing them to back away from that, very slowly, right now.

Has anyone got an idea where we are going with these currency adjustments?

If the US dollar continues to drop compared to the Euro, will our politicians maintain the $C at the same comparative difference with the US dollar?

I know they say our dollar is floating but does anyone really believe that?

The reason for the US dollar being the defacto World Currency is based upon the fact ANYONE can buy USA Real Estate or Stocks and the isolated nature of the US from the Rest of the World (Meaning no wars or revolutions in quite some time (150 years) inside its borders).

The Euro has a history of only 5 years with no component currency country which uses the Euro having a track record of stability rivaling the US, Canada or UK! Dollars and Pounds, Yessir, pay me in something that has a track record!

The drug lords and gun runners are switching...that spells bad news for the greenback.