Delenda Carthago
2nd August 2011, 17:16
Kiss the dollars you are missing goodbye...
International Monetary Fund Managing Director Christine Lagarde said the dollars standing as the worlds main reserve currency may be diminished as U.S. lawmakers fail to lift the nations debt limit.
The U.S. currency has had an exorbitant privilege because it was the reserve currency that most central banks had, Lagarde said in an interview on PBSs Newshour yesterday. If there was a dent in this exorbitant privilege and the confidence that most people have towards the dollar, it would probably entail a decline of the dollar relative to other currencies.
U.S. lawmakers are negotiating to raise the nations $14.3 trillion debt limit by Aug. 2 to prevent a default. The Dollar Index, which tracks the currency against those of six trading partners, slid to an eight-week low this week.
The delay may cause doubts in the mind of those people who reserve currencies as to whether the dollar is effectively the ultimate and prime currency of reserve, Lagarde said.
The US government is in a dead end and the only way for them to save their banks is printing more and more(and more) dollars. Up until its not gonna worth its own printing. Given the fact that the Euro dont look that good either, I suggest we start investing in gold, guns, and food.
http://img705.imageshack.us/img705/3464/gold20ceiling20old.jpg
International Monetary Fund Managing Director Christine Lagarde said the dollars standing as the worlds main reserve currency may be diminished as U.S. lawmakers fail to lift the nations debt limit.
The U.S. currency has had an exorbitant privilege because it was the reserve currency that most central banks had, Lagarde said in an interview on PBSs Newshour yesterday. If there was a dent in this exorbitant privilege and the confidence that most people have towards the dollar, it would probably entail a decline of the dollar relative to other currencies.
U.S. lawmakers are negotiating to raise the nations $14.3 trillion debt limit by Aug. 2 to prevent a default. The Dollar Index, which tracks the currency against those of six trading partners, slid to an eight-week low this week.
The delay may cause doubts in the mind of those people who reserve currencies as to whether the dollar is effectively the ultimate and prime currency of reserve, Lagarde said.
The US government is in a dead end and the only way for them to save their banks is printing more and more(and more) dollars. Up until its not gonna worth its own printing. Given the fact that the Euro dont look that good either, I suggest we start investing in gold, guns, and food.
http://img705.imageshack.us/img705/3464/gold20ceiling20old.jpg