The dollar fell to its lowest level since November against the currencies of six U.S. trade partners on bets the European Central Bank will be more aggressive than the Federal Reserve about controlling inflation.
The euro rose against the dollar on speculation ECB President Jean-Claude Trichet may indicate this week a readiness to increase borrowing costs while Fed Chairman Ben S. Bernanke may signal economic stimulus will continue. Sweden’s krona climbed to a 30-month high after Riksbank Governor Stefan Ingves said interest rates may be raised at every meeting this year.
“The big driver for the euro has been short-term interest- rate differentials, which had moved against the dollar,” said Paresh Upadhyaya, head of Americas G-10 currency strategy at Bank of America Corp. in New York. “Since the beginning of the year it’s been pretty much a one-way trend.”
IntercontinentalExchange Inc.’s Dollar Index, which tracks the greenback against six currencies, decreased as much as 0.7 percent to 76.756, the lowest level since Nov. 9, before trading at 76.893 at 5 p.m. in New York, down 0.5 percent. The gauge, which is weighted 57.6 percent on euro movements, fell 1.1 percent in February. Read more…
AFP – The International Monetary Fund called for a weaker dollar to help the United States reduce its deficits with the rest of the world and rebalance the global economy, in a report released Wednesday.
In the report prepared for a Group of 20 finance chiefs meeting last week, the IMF said that its calculations showed the dollar remains “on the strong side” of medium-term fundamentals, while the euro and the Japanese yen were “broadly in line” and several Asian currencies, including China, were undervalued.
To address global imbalances, the G20 should allow the dollar to Read more…
The IMF is trying to move the world away from the U.S. dollar and towards a global currency once again. In a new report entitled “Enhancing International Monetary Stability—A Role for the SDR“, the IMF details the “problems” with having the U.S. dollar as the reserve currency of the globe and the IMF discusses the potential for a larger role for SDRs (Special Drawing Rights). But the IMF certainly does not view SDRs as the “final solution” to global currency problems. Rather, the IMF considers SDRs to be a transitional phase between what we have now and a new world currency. In this newly published report, the IMF makes this point very clearly: “In the even longer run, if there were political willingness to do so, these securities could constitute an embryo of global currency.” Yes, you read that correctly. The SDR is supposed to be “an embryo” from which a global currency will one day develop. So what about the U.S. dollar and other national currencies? Well, they would just end up fading away.
CNN clearly understands what the IMF is trying to accomplish with this new report. The following is how CNN’s recent story about the new IMF report begins….
“The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world’s reserve currency.”
That is exactly what the IMF intends to do.
They intend to have SDRs replace the U.S. dollar as the world reserve currency.
So exactly what are SDRs?
Well, “SDR” is short for Special Drawing Rights. It is a synthetic currency unit that is made up of Read more…
In a shocking new interview, Donald Trump has gone farther than he ever has before in discussing a potential economic collapse in America. Using phrases such as “you’re going to pay $25 for a loaf of bread pretty soon” and “we could end up being another Egypt”, Trump explained to Newsmax that he is incredibly concerned about the direction our economy is headed. Whatever you may think of Donald Trump on a personal level, it is undeniable that he has been extremely successful in business. As one of the most prominent businessmen in America, he is absolutely horrified about what is happening to this nation. In fact, he is so disturbed about the direction that this country is heading that he is seriously considering running for president in 2012. But whether he decides to run in 2012 or not, what Trump is now saying about the U.S. economy should be a huge wake up call for all of us.
Trump says that the U.S. government is broke, that all of our jobs are being shipped overseas, that other nations are heavily taking advantage of us and that the value of the U.S. dollar is being destroyed. The following interview with Trump was originally posted on Newsmax and it is really worth watching….
Now, you may or may not think much of Donald Trump as a politician, but when a businessman of his caliber starts using apocalyptic language to describe where the U.S. economy is headed perhaps we should all pay attention.
The following are 12 key quotes that were pulled out of Trump’s new interview along with some facts and statistics that show that what Trump is saying is really happening. Read more…
Last year was an absolutely fascinating time for world currency markets. The yen, the dollar and the euro all took their turns in the spotlight. Each experienced wild swings at various times, but the overall theme that we saw was that faith in paper currencies is dying. The biggest reason for this is the horrific sovereign debt crisis that has swept the globe. The United States, Japan and a whole host of European nations are all drowning in debt. The U.S. and Japan are both steamrolling toward insolvency, and several European nations would have already defaulted on their debts if they had not been bailed out. So which of the major currencies of the world is going to crash first? Will one (or more) of the big currencies fall before the end of 2011? Once one major currency collapses will the rest start to fall like dominoes? The truth is that the world has never seen a sovereign debt crisis of this magnitude in all of human history. Almost the entire globe is drowning in a sea of red ink and it has brought us right to the brink of financial disaster.
So which of the currencies of the world is going to be the first to come crashing down? Well, let’s take a quick look at the yen, the euro and the dollar…. Read more…
“The current international currency system is the product of the past,” Hu noted in answers to questions submitted to his foreign ministry office by The Wall Street Journal and the Washington Post.
BEIJING—Chinese President Hu Jintao emphasized the need for cooperation with the U.S. in areas from new energy to space ahead of his visit to Washington this week, but he called the present U.S. dollar-dominated currency system a “product of the past” and highlighted moves to turn the yuan into a global currency.
“We both stand to gain from a sound China-U.S. relationship, and lose from confrontation,” Hu said in written answers to questions from The Wall Street Journal and the Washington Post.
Hu acknowledged “some differences and sensitive issues between us,” but his tone was generally compromising, and he avoided specific mention of some of the controversial issues that have dogged relations with the U.S. over the past year or so—including U.S. arms sales to Taiwan that led to a freeze in military relations between the world’s sole superpower and its rising Asian rival. Read more…