The U.S dollar is shrinking as a percentage of the world’s currency supply, raising concerns that the greenback is about to see its long run as the world’s premier denomination come to an end.
When compared to its peers, the dollar has drifted to a 15-year low, according to the International Monetary Fund, indicating that more countries are willing to use other currencies to do business.
While the American currency still reigns supreme — it constitutes $3.72 trillion, or 62 percent, of the $6 trillion in allocated foreign exchange holdings by the world’s central banks — the Japanese yen, Swiss franc and what the IMF classifies as “other currencies” such as the Chinese yuan are gaining.
“Longer term, of course, countries are going to diversify away from the dollar if they can. There are more favorable investment opportunities out there if you can catch yield,” said Christopher Vecchio, currency analyst at DailyFX, a trading firm. “Despite the increase in risk to the U.S. dollar and Treasury, investors still feel safest at home.”
But the Federal Reserve’s successive quantitative easing programs, which have created $3 trillion in new greenbacks, continue to spur worry over the dollar’s status.
The Federal Reserve’s massive easing campaign will produce a crisis for the economy, says famed investor Jim Rogers.
“The central bank has been printing staggering amounts of money, and the government has been spending a lot of money because they wanted Mr. Obama to get re-elected,” he tells Newsmax TV in an exclusive interview. “That’s still spilling over into the economy.”
Central banks across the world are matching each other virtually ease for ease, notes Rogers.
“We should all be terrified of what has happened, because governments around the world are printing huge amounts of money and spending huge amounts of money,” he says. “The debts are going up like a rocket. This is going to end very badly,” notes Rogers, author of the new book “Street Smarts: Adventures on the Road and in the Markets.”
FRANKFURT (MarketWatch) — The world’s central banks last year bought 534.6 tons of gold in 2012, the most since 1964, as global gold demand hit a record value level, the World Gold Council said Thursday in a quarterly report. Purchases by central banks for the full year rose 17% compared with 2011, while fourth-quarter purchases of 145 tons marked a 29% rise from the same period a year earlier. “Central banks’ move from net sellers of gold to net buyers that we have seen in recent years has continued apace,” with official sector purchases across the world now at their highest level for almost half a century, said Marcus Grubb, managing director for investment at the World Gold Council. In value terms, total gold demand in 2012 was $236.4 billion, an all-time high, the council said.
You’ll likely recall Hugo Chávez’s repatriation of Venezuelan gold in late 2011 – a decision that was widely believed to be motivated by fears of US sanctions and frozen assets. Chávez, however, said the move was to “safeguard against volatility in financial markets.” Admittedly, Chávez’s decision did not hold the same weight as Germany’s in the eyes of the world. Germany is an ally of the US, after all. However, having repatriated his gold just months before Europe’s debt crisis took hold, it’s hard to dismiss the foresight demonstrated by the 15th-largest gold holder in the world.
CLICK ON CHART TO ENLARGE
The U.S. Dollar has lost over a third of its value inside of the 10-year falling channel above, leaving it little to brag about as it continues to create a series of lower highs! Over the past year the US$ has held on a small rising support line….
Today world renowned money manager Felix Zulauf told King World News that global stock markets are careening toward a 1987 style market collapse situation. Stock markets plunged in 1987, and the world is at risk of that situation developing once again according to Zulauf. Felix Zulauf, founder of Zulauf Asset Management and 20+ year Barron’s Roundtable panelist, also said gold will head to new all-time highs during the coming market chaos.
This is the first of a three part written interview series that will be released on King World News today. In these interviews the legendary money manager discusses why he believes central planners will fail, how this will lead to systemic collapse, gold repatriation, what investors should be doing with their money right now, how they can protect themselves going forward, and much more.
V’s Alert: The World Economies Have Officially Gone Dumpster Diving. A Currency Race to the Bottom Where Everyone Loses & the Banksters Win
Wow what an opening to a new year. Anyone one who has been following my posts on this site knows I have been calling for a currency war for some time now. You would also know that on my Jan 11th interview on the Hagmann and Hagmann radio show I detailed the coming chaos in Japan, its economic implosion and the push to go to war with China. Also detailed was the Feds backroom deals with the eurobanks. So where do we stand today? Well The funny thing in all of this and what I want you to follow in the next few weeks is this:
Paul informs the Bloomberg host that the loss in purchasing power from currency devaluation in a currency war devastates the middle class, and cancels out any slight benefit that you might be getting temporarily in terms of trade.
Paul also states that one day soon people around the world will reject all fiat currencies, and we will move into an age where people want to buy hard assets, and that this has already started with real estate, gold, & silver.
Paul’s full interview on the coming economic collapse is below: