People & Power - Death of the dollar 2

[Jesus Jones]

Max Keiser: Follow the Money

Interesting info if you haven't seen already.

[barbaro]

Thanks for the Thread and youtube, JJ.

I am a follower of Paul Craig Roberts. He's the founder of Reaganomics, and has been saying these things for quite some time.

It seems to be happening right in front of us.

[Jesus Jones]

Yes i have read many reports and info of Roberts. He definately tells it like it is.

[baldrick]

Japan economists call for 'Obama bonds'
By Kosuke Takahashi

TOKYO - Japanese economists, increasingly concerned that the United States might seek to pay its enormous and growing debt obligations in a weakened US dollar, are looking to the possibility of US Treasuries being issued in yen.

The US government needs to borrow at least US$1 trillion in the coming year, excluding the US Treasury's $700 billion plan to bail out the financial and other industries, said Kazuo Mizuno, chief economist in Tokyo at Mitsubishi UFJ Securities Co, a unit of Japan's largest publicly traded lender by assets. That amount is likely to grow as the US government continues to rescue failed parts of the economy and has to raise more debt - that is, issue



government bonds, or Treasuries - to fund such rescues.

Since 2004, when the amount of the government bond issuance reached an annual average of $400 billion, 94% of new buyers of US government bonds have been foreigners, Mizuno told Asia Times Online.

One measure of the increased concern at the ability of the United States to finance its enormous deficits in the future is the rising cost of credit default swaps bought as protection of Treasury debt. These traded near a record high on Tuesday, with benchmark 10-year contracts on Treasuries increased to 42 basis points, or 0.42 percentage points, from around 20 in early September. The contracts have also risen from below two basis points at the start of the credit crisis in July 2007.

While it remains unlikely that the US government will default on its debt, a weaker dollar would ease the burden of payment on existing debt.

In the past few months, the US dollar has strengthened against other major currencies, with the notable exception of the yen, even as the country has been at the epicenter of the deepening financial crisis. That dollar strength is not expected to last.

Asia Times Online :: Japan News and Japanese Business and Economy

when will the dollar start its slide ?

[Rural Surin]

interesting video JJ. Always keeping us abreast of alternative info. I've been of the opnion for some time now that the "change" is coming sooner than we expect. There is a movement, of sorts, to eventually allow the US dollar to retire from it's hierarchy as the standard for monetary exchange values. So we would be looking for a new monetary unit as the difinitive standard of value. Who {or what} would take it's place? Any logical or reasonable intelligent guesses as whom this "new" foundation might be...??