Comments on: A cabal plotting against the dollar? http://blogs.reuters.com/breakingviews/2009/10/06/a-cabal-plotting-against-the-dollar/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: disillusioned http://blogs.reuters.com/breakingviews/2009/10/06/a-cabal-plotting-against-the-dollar/comment-page-1/#comment-207 Wed, 07 Oct 2009 13:17:51 +0000 http://blogs.reuters.com/columns/?p=483#comment-207 Having the dollar as the world reserve currency comes with many advantages:

1) Gives the dollar credit, no pun intended, even when the US govt decides to print money from thin air.

2) The fact that all commodities are priced and traded in dollars forces people to buy dollars to trade. This automatically shields the dollar by providing a perpetual artificial demand for the dollar.

3) The ability to print dollars freely at will and run up ridiculous deficits allows the US to wield a big economic (and political) stick at institutions such as the IMF, WB, UN etc. By using this stick the US influences policies of such institutions in it’s favour.

Without these advantages it would be very difficult for the US to maintain its superpower status in a world where the geopolitical landscape would have been quite different.

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By: Tom Perry http://blogs.reuters.com/breakingviews/2009/10/06/a-cabal-plotting-against-the-dollar/comment-page-1/#comment-198 Wed, 07 Oct 2009 09:37:05 +0000 http://blogs.reuters.com/columns/?p=483#comment-198 It matters very little whether Oil is ‘priced’ in a basket of currencies or if oil bourses are sometimes denominated in local currencies. AS long as the oil countires have to convert to dollars to buy the things they want, the dollar remains the reserve. This is a phenomenon way beyond the ability of squabbling nations to change.

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By: Gaspard http://blogs.reuters.com/breakingviews/2009/10/06/a-cabal-plotting-against-the-dollar/comment-page-1/#comment-197 Wed, 07 Oct 2009 09:01:22 +0000 http://blogs.reuters.com/columns/?p=483#comment-197 One of the best articles in a long time. Just one or two things:

“Providing reserves and exchanges for the whole world is too much for one country and one currency to bear”. – did this actually happen and does it hold water ? From what I understand, a reserve currency holds only benefits which are marginal. Again, why the need for a reserve currency at all ?

‘But that does not mean that switching to a world of multiple reserve currencies will be quick or easy, and it will not necessarily solve the problem of fluctuating revenues for the major oil-exporting countries’ – OPEC ‘fluctuates/manipulates’ output in barrels, the dollar does not fluctuate THAT much. The last time I checked the Saudi Riyal was pegged at 3.75 to the dollar.

Gold, as an asset, presumably has a credit in the Capital account, so I would not be surprised if there are transfers to the financial and current account. Maybe that soldier got a golden handshake and promoted to a captain in Afghanistan.

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By: Mark Rowe http://blogs.reuters.com/breakingviews/2009/10/06/a-cabal-plotting-against-the-dollar/comment-page-1/#comment-196 Wed, 07 Oct 2009 05:06:39 +0000 http://blogs.reuters.com/columns/?p=483#comment-196 Mtn_Trvlr, I’m glad you are not my banker or accountant. At 480 grains per Troy ounce I make the $5 gold coin at around 132 grains just over a quarter, well short of the 160 grains for one third of an ounce. That makes the rest of your calculations and rant devoid of credibility

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By: Drew http://blogs.reuters.com/breakingviews/2009/10/06/a-cabal-plotting-against-the-dollar/comment-page-1/#comment-195 Wed, 07 Oct 2009 04:30:14 +0000 http://blogs.reuters.com/columns/?p=483#comment-195 In 2000 Saddam Hussein had the audacity to start selling Iraq’s crude oil on the international market for euros. No matter how “monstrous” Saddam may have been, the reason we invaded Iraq was not to avenge 9/11, find WMDs, overthrow a “monstrous” dictator, or grant Iraq the “blessing” of democracy. We invaded to protect the global primacy of the paper Federal Reserve Note. Alfred Adask

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By: Thinker http://blogs.reuters.com/breakingviews/2009/10/06/a-cabal-plotting-against-the-dollar/comment-page-1/#comment-194 Wed, 07 Oct 2009 04:17:09 +0000 http://blogs.reuters.com/columns/?p=483#comment-194 The Federal Reserve System, like the World Bank, is a blight on the U.S. and world economies, and tantamount to financial subversion and economic sabotage. Allowing the U.S. economy to become a system of debt, and again, the World Bank continuing this theme across the globe, has made wage slaves of us all.

Each time another tenth is committed to debt, each in turn becoming 10 loans, and allowing the U.S. Government to increase their spending by reducing the value of the dollar in your wallet rather than suffer public disdain over increased taxes. Inflation is a fancy term for the decrease in the value of the dollars in your wallet as a result of Government spending monies they don’t have (bonds/bills issued, new money printed, the base value remains unchanged = your dollar buys 3.5% less each year).

The Federal Reserve and Corporate systems are a disease, and our country has it bad – a terminal case in my opinion. Find capitalism or profit motive (aka greed) in the U.S. Constitution… that’s a falsehood. We are a Federal Republic made up of Governing States, which we the citizens control, yet we have no control. The vote has been replaced with the dollar, and politics is merely a distraction, every predetermined and paid for by Corporation granted citizens’ rights by your own Supreme Court.

Our country was bought by the corporations decades ago, and their short sighted fiscal year thinking is evident in the poor state of our economy. End the Federal Reserve system, end corporate ownership of everything from life to thinking (water and air are next), and restore our society to one based on natural cooperation, conservancy, and balance, where we actually make something of value and earn our standard of living. Debt to fund short term desires, fueled by an ever increasing consumption of our natural resources, will bring about our early demise.

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By: Dennis Barrett http://blogs.reuters.com/breakingviews/2009/10/06/a-cabal-plotting-against-the-dollar/comment-page-1/#comment-192 Wed, 07 Oct 2009 03:29:05 +0000 http://blogs.reuters.com/columns/?p=483#comment-192 If banks want diversified holdings, they really only need to offer the option to their depositors. If banks offered the option to convert deposits, and then made similar transactions as needed to meet deposit requirements for individual currency accounts, the bank’s holdings verses depositor holdings would not be affected by fluctuations in currency, while banks would come to have diversified reserve holdings. Everything would be public regarding the transition, and customers would be impressed with their banks, not feel betrayed by them. Banks intuitively should have reserves in the nominal currency of their depositors’ deposits.

Banks would probably even profit from offering the option, because they would naturally charge a conversion fee, probably a set percentage of the conversion rate, to cover short-term fluctuations in currency. Some banks already offer currency conversions, at time of sale, when customers use bank cards in foreign countries. Adding multiple currency accounts would merely elaborate on that service, while making currency conversion type investments more widely available.

The only difference between such a system and the image painted by the article is that currency diversification would be decided by depositors, not banks, which eliminates the underhanded feeling of it, but introduces the concern for consumers’ competence. Still, it would be neat to be able to get foreign currencies from my own bank. It would certainly make me feel better about doing international business, and could potentially improve the global economy significantly, simply with it’s psychological encouragement of international commerce.

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By: Charles Janeway http://blogs.reuters.com/breakingviews/2009/10/06/a-cabal-plotting-against-the-dollar/comment-page-1/#comment-191 Wed, 07 Oct 2009 00:43:24 +0000 http://blogs.reuters.com/columns/?p=483#comment-191 If you’d bought dollars for sterling in 1913 (the apparent “golden age” of the dollar since when everything has supposedly been downhill) you – or your offspring – would be very very rich today.

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By: Geotopia http://blogs.reuters.com/breakingviews/2009/10/06/a-cabal-plotting-against-the-dollar/comment-page-1/#comment-190 Wed, 07 Oct 2009 00:11:22 +0000 http://blogs.reuters.com/columns/?p=483#comment-190 All the chatter of, by, and against the Federal Reserve aside, the value of the dollar is not it gold backing or the lack thereof, nor in the amount of debt held in dollars. At the end of the day, only one thing concerns the holder of a dollar, and that is whether it is safer to hold a dollar than a ruble or yuan. And that isn’t about how many dollars have been printed, it’s the qualitative notion of the backing of the faith and credit of the US government. When the government of the US looks weak and that the Rule of Law might not hold up against fiscal and social shenanigans, that’s when the dollar gets pounded. The rest of the graph is ambient noise. That this is so is evident when the Chinese first announced their outrage at US debt and then quietly resumed buying treasury notes from the US. After 200 years, it’s still the ONE safe place to put your money because of comparative freedom and transparency in the markets.

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By: tom cavanaugh http://blogs.reuters.com/breakingviews/2009/10/06/a-cabal-plotting-against-the-dollar/comment-page-1/#comment-188 Tue, 06 Oct 2009 22:36:27 +0000 http://blogs.reuters.com/columns/?p=483#comment-188 What about all that gold that SUPPOSED to be at fort knox? at todays rates(over a thousand U.S. DOLLARS an ounce),. doesnt any econmist have any ideas about it?? or…are those rumors true about high security convoys leaving the repository at odd hours of nite. a soldier who wrote his family about this hasnt been heard from since

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