There is much more going on than the dollar and our bonds.
By Daniel at 10 June, 2009, 8:41 pm
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There are 12 nations, including the U.S. that the IMF says will try to borrow $10.2 trillion and there isn’t enough money for what we want to borrow (about $2 trillion this year.
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Europe Is Being Held Together With Duct Tape | Print |
Written by Justice Litle, Editorial Director, Taipan Publishing Group
The dollar is not the only currency with crash and burn potential. The euro, too, is looking like an eventual candidate for oblivion.
Among its many other sins, the greenback is a press hog. The world’s reserve currency, loved and loathed as it is, simply gets most of the ink these days.
In that light many a U.S.-based commentator, not least your cynical Taipan Daily scribes, have repeatedly waxed eloquent on the long-run death of the dollar.
But in our zeal we sometimes forget that, in order for the dollar to die, it has to die relative to other fiat currency offerings… and some of those others are looking pretty sick too.
http://www.taipanpublishinggroup.com/taipan-daily-061009.html
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The issue is that account positive nations will do much better than either the U.S. or Europe. This is not just an economic power shift from the U.S. Europe has not been that competitive (in all nations) either.
We are seeing more and more of the emerging market trade going to emerging market nations and less to the U.S. and Europe. Yes, they are still significant buyers of exports but things are changing rapidly as the world pours more investment money into the emerging market and commodity nations and less into the U.S. and Europe.
China, Russia, Brazil and India are holding the first BRIC summit next week - anyone want to guess what they’ll be talking about? Here’s a clue:
http://www.reuters.com/article/bondsNews/idUSN1040024820090610
And, like Russia, Brazil has announced it’s investing in IMF bonds as well:
http://in.reuters.com/article/businessNews/idINIndia-40228820090610
The U.S. is digging its own grave.
This is not a recession. It is a shift in economic power and the ramifications of this could last for years, if not decades.
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