DOLLAR TAKES ANOTHER DUMP
From
this post:
Mr Fan said the real problem the world faced today was an overvalued dollar, not only against the renminbi but against all major currencies. "The main responsibility for this imbalance lies with the US Treasury, which is printing too much money," he said.
Analysts said with 70 per cent of China's reserves thought to be in dollars and Chinese officials making noises about the currency's overvaluation, there was a chance that the country was considering a fundamental change in reserve allocation.
The dollar was then sent tumbling on Thursday after Zhou Xiaochuan, governor of the People's Bank of China, said the country was "considering lots of instruments" to diversify its foreign exchange reserves.
That's right folks -- unload those dollars now, avoid the rush... meanwhile, Gabor Steingart of Der Spiegel uses a
compelling metaphor for the US economy:
The Americans are enjoying the present at the cost of selling off ever larger chunks of their future. Arguably, the imminent economic crisis is the most thoroughly predicted one in recent history. Rather than refuting the crisis, the current US economic boom merely heralds it.
Biologists have observed similar phenomena in plants contaminated by toxins. Before they wither, they produce one last batch of healthy shoots -- to the point that they can hardly be distinguished from healthy plants. Some speak of a panic bloom.
Meanwhile, there's now a site called
Dollar Collapse, which suggests that "you too!" can profit off of the collapse of the dollar. How? You're going to profit by making a lot of dollars? Spend those dollars NOW, while they're still worth something...
