Fri 2010-02-26 10:45 EST

Saudi Central Banker Confirms that US Dollar is on its Deathbed | The Underground Investor

In Hong Kong, Mohammed al-Jasser, the head of the Saudi Arabian Monetary Authority affirmed that the US dollar's role as the world's reserve currency is coming to an end when he stated, ``The dollar is still preeminent in its role as a reserve currency.'' We should recall former US Federal Reserve Chairman Alan Blinder's statement, ``The last duty of a central banker is to tell the public the truth'' (PBS's Nightly Business Report, 1994) and thus be astute enough to realize that the often hollow words of Central Bankers serve as a contrary indicator of the truth...

deathbed; Dollar; Saudi Central Banker Confirms; Underground Investor.

Jesse's Café Américain Tue 2009-12-01 10:06 EST

Morgan Stanley Fears UK Default in 2010

Jesse

As you may recall we are bears on sterling, and view the UK as the Iceland of the G20.The monetary policies of the Bank of England were as bad as those of the Greenspan - Bernanke Fed. The difference is that the UK does not hold the world's reserve currency as a captive source of revenues. As an aside, we see that Bank of England advisor and economic franc-tireur Willem Buiter has decided to seek greener pastures as chief economist with Citi in the States. Timely exit. Bravo, Willem.

2010; Jesse's Café Américain; Morgan Stanley Fears UK Default.

zero hedge Thu 2009-11-19 10:22 EST

The Dollar And The Deficits

Great read from C. Fred Bergstein, Director of the Peter G. Peterson Institute for International Economics, on the role of the dollar in the current environment: the paper reviews both positive and negative implications for the dollar as the world's reserve currency, what that has meant, the impact adverse actions have had upon the United States and how to progress forward.

Deficit; Dollar; Zero Hedge.

The Big Picture Fri 2009-10-23 09:03 EDT

Dick Alford on Opportunities Lost by the Fed

Richard Alford (via Chris Whalen)

Against a backdrop of continued financial fragility and extraordinary policy actions, policymakers are discussing re-balancing global growth, restoring financial stability, and the future of the Dollar as the world's reserve currency. In 2005, Edwin Truman proposed a list of policy measures that if followed would have reduced the US external imbalance and placed the reserve status of the Dollar on better footing. Truman's proposal differed from the standard litany of US fiscal discipline, Dollar adjustment, and increased demand in surplus countries. It called upon the Federal Reserve to slow the growth in US demand. More recent research, by Shin and Adrian, suggests that if the Fed had heeded Truman's prescription, then monetary policy would have also mitigated the recent turmoil in financial markets...

Big Picture; Dick Alford; Fed; opportunity lost.

Jesse's Café Américain Thu 2009-10-08 16:28 EDT

Gold: Until the System Is Reformed and Trust Is Restored

Jesse

Gold has obviously broken out of a big inverse Head and Shoulder formation, possibly an ascending triangle if you prefer that for reliability. In combination, as they often are, this is a powerful sign of buying pressure, accumulation and a sharp rise in price...despite the obvious efforts of the monied interests to disparage it publicly while accumulating it privately, is rising because the US dollar is being used badly, is being weakened by the failing schemes of a corrupt combination of the government and financial interests...gold is telling us...the era of the US Dollar as the world's reserve currency is over...

gold; Jesse's Café Américain; reform; restore; Systems; trust.

naked capitalism Sun 2009-09-13 15:35 EDT

Is economic boom around the corner?

Edward Harrison of Credit Writedowns

...growth underpinned by high debt accumulation and low savings can continue for a very, very long time. In the United States, by virtue of America's possession of the world's reserve currency, an increase in aggregate debt levels has been successfully financed for well over twenty-five years...it is wholly conceivable that we could experience a multi-year economic expansion on the back of renewed monetary and fiscal expansion...Marc Faber: ``Don't underestimate the power of printing money''...but NDK continues to ``disrespect the power of printing money. There are few transmission mechanisms to get that printed money into the real economy.'' pebird comments (paraphrasing Faber?): The US (and Europe) per capita wealth must be driven down to a global benchmark - that is what globalization means. Which is easier - bringing 800 million Chinese plus 500 million Indian workers up to Western standards or 400 million Western workers down to global standards?

corner; economic boom; naked capitalism.

Tue 2009-04-21 00:00 EDT

Jesse's Café Américain: The Decline of the Dollar as the World's Reserve Currency

Jesse's Café Américain: The Decline of the Dollar as the World's Reserve Currency

decline; Dollar; Jesse's Café Américain; world's reserve currency.