World Monetary Systems are decoupling from the American Dollar!
Our Dollar has declined in value 5.7% since Obama took office. Nations like China and Russia have started promoting other currencies instead of the US Dollar. The $Trillions of dollars that Obama is spending is putting the US deeper into debt. His shakey management of the US Economy is weakening the value of the US Dollar. The Legacy Loan program is a fractionalization of 100 Billion Dollars into 1 Trillion! That means that the FED is just printing up money to finance its funding of nearly bankrupted lenders. The systemic problems underlying the economic meltdown are NOT being addressed by this current Administration. The Mortgage Industry is serving up 650,000 Foresclosures and climbing, Over 95 Banks have closed. and the FDIC is now in the red. The FDIC can no longer meet it's minimum Reserve Ratio of 1.15% Bank Holdings/Outstanding Debt. All this withstanding, major World powers are trying to distance their economies from the United States. Russia is suggesting that a new SDR (Special Drawing Rights) become the globally recognized reserve currency, and the ramifications for the US Dollar are serious. China has announced their concerns as well. The following excerpt from China daily illustrates this point...China daily Oct 6, 2009
"In his press briefings to journalists at home and abroad after the conclusion of this year's session of the National People's Congress (NPC), Premier Wen Jiabao expressed profound concern about China's formidable dollar-denominated assets in the US and asked the Obama administration to take measures to ensure their safety. The timely response from the White House aimed at reassuring China, however, did not stop the Treasury Department's large-scale buying back of US national debt on March 20. The move resulted in a drastic devaluation of the dollar, exacerbating concerns of other countries, including China, over the safety of their US assets.
Afterwards, Zhou Xiaochuan, governor of China's central bank, called for the establishment of a new international reserve currency to replace the dollar, a proposal that has received a warm response from other world members and financial institutions. However, the dismissive attitudes of Obama, Geithner and Federal Reserve Chairman Ben Bernanke indicate that such wholesale reform of the global financial system is still a major challenge."
Feel Free to add relevant links to this expanding economic crisis. ~DJS
"In his press briefings to journalists at home and abroad after the conclusion of this year's session of the National People's Congress (NPC), Premier Wen Jiabao expressed profound concern about China's formidable dollar-denominated assets in the US and asked the Obama administration to take measures to ensure their safety. The timely response from the White House aimed at reassuring China, however, did not stop the Treasury Department's large-scale buying back of US national debt on March 20. The move resulted in a drastic devaluation of the dollar, exacerbating concerns of other countries, including China, over the safety of their US assets.
Afterwards, Zhou Xiaochuan, governor of China's central bank, called for the establishment of a new international reserve currency to replace the dollar, a proposal that has received a warm response from other world members and financial institutions. However, the dismissive attitudes of Obama, Geithner and Federal Reserve Chairman Ben Bernanke indicate that such wholesale reform of the global financial system is still a major challenge."
Feel Free to add relevant links to this expanding economic crisis. ~DJS
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