Is The Us$ Destined To Collapse?

[flying]

Hahah Speak of the devil...albeit a new one...Cant say I blame them

http://www.arabianbusiness.com/568241-tehr...dollar-for-euro

Tehran dumps dollar for euro

Iran's President Mahmoud Ahmadinejad has ordered the replacement of the US dollar by the euro in calculating the value of the country's Oil Stabilisation Fund (OSF).

The edict, issued on Sept 12, follows a recommendation by the trustees of the country's foreign reserves, Iran's English-language daily The Tehran Times said on Monday, citing Iran's semi-official Mehr News Agency.

The move was taken because the government wishes to protect itself from the fragility of the US economy and the weak dollar.

The OSF, which forms part of Iran’s foreign exchange reserves, is a contingency fund set aside to cushion the economy against fluctuating international oil prices.

Story continues below ↓

advertisement

It is also used to help both the public and private sectors with their hard currency needs by extending loans.

Press TV meanwhile reported that following the switch the interest rate for facilities provided from the foreign exchange reserves is to be cut to 5 percent from 12 percent.

Since its introduction in 1999 by the EU the euro has gained popularity internationally and there are now more euros in circulation than the dollar.

[flying]

As for the USD...I am interested to see if 76 holds. If not it could be a fast drop to 72 no?

Which would put the EUR back up to 1.55-60 and the THB to 30.

Gold seems to a non-believer under 1035 though which is a concern.

Yes, Interesting to watch to say the very least...

Well it dipped under 76 a little while ago...75.92

As for gold...yes I expected a more violent week with swings of $50 a day in either direction.

But I am not complaining as it shows good strength & stability so far.

[teletiger]

when did Iraq demand EUR for crude???

2000

that was just nonsensical propaganda of Saddam. the restrictions imposed after "desert storm" made sure that whatever crude he was allowed to sell and what products he was allowed to buy was invoiced in USD.

"On November 6th of 2000 Iraq became the first country to receive all of its oil export payments in euros instead of American dollars. This switch was estimated to cost Iraq $270 million dollars, but Iraq had since actually come out on top due to the rise in the value of the euro, which was actually probably influenced by Iraq’s decision to use the euro as its foreign exchange currency".

http://www.rationalrevolution.net/war/opec_iraq_euro.htm

Regards.

[Naam]

I could have sworn I read somewhere he did & actually profited after initial loss.

converting the peanuts sum of USD10bb held in UN escrow yielded indeed a handsome percentage profit but was still peanuts in real money. by the way, timing for the conversion was near perfect.

but only naïve souls think that "EUR/USD" was the reason for Gulf War II. the idea of the puppet masters -combined with political pressure from the 51. state* of the GNoE™- was "first the iraqi oil fields, then we deal with the mullahs and the rest of the gulf states will comply anyway". alas, things turned out being "slightly" different and not according to planning.

* known only to Midas and my [not so] humble self

[kosh]

As for the USD...I am interested to see if 76 holds. If not it could be a fast drop to 72 no?

Which would put the EUR back up to 1.55-60 and the THB to 30.

What amaze me is the thai baht going up even against the dollar.

If the BOT is buying dollars to get that stupid results they have choosen to ruin the country....

If it is by market demand ok, thailand is a small country.....

[britmaveric]

Thai baht should be increasing against the dollar - expect 35-36 soon.

[chiang mai]

I expect to win the lottery soon also!

[badge]

DXY has support at 75.6, 74.5 and 74

[Naam]

Is The Us$ Destined To Collapse?

not this week!

[flying]

http://www.telegraph.co.uk/finance/comment...-supremacy.html

HSBC bids farewell to dollar supremacy

The sun is setting on the US dollar as the ultra-loose monetary policy of the US Federal Reserve forces China and the vibrant economies of the emerging world to forge a new global currency order, according to a new report by HSBC.

[Naam]

HSBC bids farewell to dollar supremacy

The sun is setting on the US dollar as the ultra-loose monetary policy of the US Federal Reserve forces China and the vibrant economies of the emerging world to forge a new global currency order, according to a new report by HSBC.

three out of four normally cited "vibrant" emerging economies (China, India, Brazil) have currencies with attached harsh restrictions, i.e. CNY, BRL and INR cannot be traded offshore. presently the "vibrant ones" might be able to forge a lot of things but definitely not a global currency or a global currency order.

[cloudhopper]

three out of four normally cited "vibrant" emerging economies (China, India, Brazil) have currencies with attached harsh restrictions, i.e. CNY, BRL and INR cannot be traded offshore. presently the "vibrant ones" might be able to forge a lot of things but definitely not a global currency or a global currency order.

EXACTLY! Every country attempts to manipulate the value of their currency, but those that don't even allow their manipulated currencies to be freely traded on the open market don't stand a chance of becoming part of a common global currency, puff pieces by Xinhua notwithstanding.

[Naam]

EXACTLY! Every country attempts to manipulate the value of their currency, but those that don't even allow their manipulated currencies to be freely traded on the open market don't stand a chance of becoming part of a common global currency, puff pieces by Xinhua notwithstanding.

but nice feeds for journàsslists

[teletiger]

Every country attempts to manipulate the value of their currency, but those that don't even allow their manipulated currencies to be freely traded on the open market don't stand a chance of becoming part of a common global currency, puff pieces by Xinhua notwithstanding.

So.....If a country floats it's currency, it then tries to manipulate it.......and if it pegs it, (protects it from manipulation) it's also manipulating it? Did I get that right?

What's the difference?

One obvious difference is that a pegged currency is protected from outside manipulation. Ask Mexico, Argentina, (twice) Russia, SE Asia, el al what it's like to have your currency devalued. Huge social upheaval, nationalized banks, swathes of unemployed, social degredation, years of hardship for the populace.....and for what or why? Because a group of moneyed investors have enough leverage to short your currency? Just because they can?

A few hundred people in the Hamptons celebrate, whilst millions sit amidst shattered dreams in Mexico.

Never wise to be short humanity in any market.....especially the one coming.

Regards.

[lannarebirth]

Never wise to be short humanity in any market.....especially the one coming.

The Mother Of All Margin Calls.

[Naam]

Thai baht should be increasing against the dollar - expect 35-36 soon.

is it about time to stop your bullshit?

[britmaveric]

^Just as valid as the other BS on this thread.

[badge]

[...]Huge social upheaval, nationalized banks, swathes of unemployed, social degredation, years of hardship for the populace.....and for what or why? Because a group of moneyed investors have enough leverage to short your currency? Just because they can?

A few hundred people in the Hamptons celebrate, whilst millions sit amidst shattered dreams in Mexico.

[...]

All part of the Human Condition.

People have been taking advantage of each other, in one way or another, since time began.

[LaoPo]

Dollar's days as the world's only reserve currency could be numbered

Thursday, 24th September 2009

Economists are calling for changes, but many question whether the Chinese yuan is suitable for the job

Jessica Mead

Excerpt:

"But while China might be calling for a greater use of SDRs, Nouriel Roubini, professor of economics at the Stern School of Business at New York University (and the man named Doctor Death for his gloomy pronouncements before the financial crisis), says that the Chinese government is paving the way for the yuan’s ascendance. He goes further, arguing that China is in fact better placed than the US to provide a reserve currency for the 21st century thanks to its large current account surplus, focused government and the fact that it lacks many of the economic worries that have plagued the US.

Even the US Treasury’s economic and financial emissary to China, David Dollar, has argued in the past month that it makes sense for China to diversify its huge stockpile of foreign exchange reserves, saying that it is healthy to have a wide and different type of reserve currencies.

While some diversification into euros and sterling has occurred over the past 10 years, the US dollar has lost very little ground. Back in 1999, countries held 71 per cent of their allocated foreign exchange reserves in dollars, and just 18 per cent of reserves in euros. Today, 26 per cent of allocated FX reserves are in euros."

<snip>

"Even if the yuan could not become a world reserve currency, it is sometimes suggested that it could take that role in Asia, especially among countries which trade with China. Other regions could also follow suit: the Economic Community of West African States plans a common currency, although plans were recently put back until 2015.

The euro is the obvious choice for EU countries, while the rouble could do the same job for Eastern Europe. In a world with many economic powerhouses, it might make sense for there to be a number of different reserve currencies. For now, the dollar is still top dog, but radical changes could be afoot."

From: http://www.cityam.com/markets-and-investme...x88ril6kcs.html

Whatever happens: change will take place, sooner or later and the exclusive over-dominant role of the USD will fade, slowly but definitely

LaoPo

[britmaveric]

Unlikely I forsee the yank dollar being king for next few decades at the very least.

[badge]

Unlikely I forsee the yank dollar being king for next few decades at the very least.

I agree. Its nothing for anyone on TV today to worry about.

[LaoPo]

Unlikely I forsee the yank dollar being king for next few decades at the very least.

I agree. Its nothing for anyone on TV today to worry about.

I'm not worried; I don't have any dollars/assets in $'s

LaoPo

[Donnyboy]

Unlikely I forsee the yank dollar being king for next few decades at the very least.

till they introduce the Amero

[teletiger]

'At 5 to 1.

Regards.

[flying]

Unlikely I forsee the yank dollar being king for next few decades at the very least.

If in 1933 one USD was worth $1 ...what is is worth today?

At one time the USD was backed by gold....what is it backed by today?

Having answered those two questions...you still see it being King for decades to come?

If so I wonder who that King's subjects will be?

Does this King have any clothes at all

Edited September 26, 2009 by flying

[teletiger]

The dollar has lost 95% of it's value since the creation of the Fed. (1913)

If that burn rate stays as is.....then another 5 years.....??

Regards.

Edit: Which in turn would suggest a gold price of $700.

Edited September 26, 2009 by teletiger

[Naam]

Unlikely I forsee the yank dollar being king for next few decades at the very least.

If in 1933 one USD was worth $1 ...what is is worth today?

At one time the USD was backed by gold....what is it backed by today?

Having answered those two questions...you still see it being King for decades to come?

If so I wonder who that King's subjects will be?

Does this King have any clothes at all

check other currencies, compare with USD, switch on brains and start thinking

p.s. that too applies for Teletiger.

[teletiger]

Quite right Naam. My figure was value to US citizens.

Against other Fiats the $ has fared much better. (or they've fared much worse) Being as it was $6+ at one stage compared to Sterling.

Put it up against a "store of value" such as gold. Even gold at $300 infers an 80%+ loss.(maths?) Gold being valued at $35 after the great "gold grab".

Regards.

[flying]

check other currencies, compare with USD,

Switzerland,

1933 4.0265 Franc = $1

2008 1.0816 Franc = $1

Germany ( hard to compare Euro took over )

1950 4.1950 Deutsche mark =$1

1999 2.0840 Deutsche mark =$1

But I know what you mean. Yes many other fiats have gone the same way as the USD. So you agree with BM then? USD king for decades to come?

[badge]

Seems a rather petulant question Flying

USDs dominance is far too prolific to dethrone. It would take such almighty chaos in financial markets to induce a switch, that under those circumstances its likely everything would crumble, even perhaps jewelry metal.

Im sure USDs day will come, but not in our lifetimes. And if it were, it wouldnt be nice.