Dollar seen losing global reserve status

[mamboni]

Dollar seen losing global reserve status

By Jack Farchy in London


The US dollar will lose its status as the global reserve currency (http://www.ft.com/cms/s/0/c1cd29c2-33c9-11e0-b1ed-00144feabdc0.html)over the next 25 years, according to a survey of central bank reserve managers who collectively control more than $8,000bn.

More than half the managers, who were polled by UBS, predicted that the dollar would be replaced by a portfolio of currencies within the next 25 years.
That marks a departure from previous years (http://www.ft.com/cms/s/0/c897518a-7e5f-11df-94a8-00144feabdc0.html), when the central bank reserve managers have said the dollar would retain its status as the sole reserve currency.

UBS surveyed more than 80 central bank reserve managers, sovereign wealth funds and multilateral institutions with more than $8,000bn in assets at its annual seminar for sovereign institutions last week. The results were not weighted for assets under management.

The results are the latest sign of dissatisfaction with the dollar as a reserve currency, amid concerns over the US government’s inability to rein in spending and the Federal Reserve’s huge expansion of its balance sheet.

“Right now there is great concern out there around the financial trajectory that the US is on,” said Larry Hatheway, chief economist at UBS.
The US currency has slid 5 per cent so far this year, and is trading close to its lowest ever level against a basket of the world’s major currencies.

....

Robert Zoellick, president of the World Bank, last year proposed a new monetary system (http://www.ft.com/cms/s/0/5bb39488-ea99-11df-b28d-00144feab49a.html#axzz14dKEeR16) involving a number of major global currencies, including the dollar, euro, yen, pound and renminbi.

The system should also make use of gold, Mr Zoellick added. The results of the UBS poll also point to a growing role for bullion, with 6 per cent of reserve managers surveyed saying the biggest change in their reserves over the next decade would be the addition of more gold. In contrast to previous years, none of the managers surveyed was intending to make significant sales of gold (http://www.ft.com/cms/s/0/b9859c7e-c99b-11df-b3d6-00144feab49a.html)in the next decade.
Central banks have bought about 151 tonnes of gold so far this year, led by Russia and Mexico, according to the World Gold Council, and are on track to make their largest annual purchases of bullion since the collapse in 1971 of the Bretton Woods system (http://www.ft.com/cms/s/0/cbc02e10-7637-11e0-b4f7-00144feabdc0.html), which pegged the value of the dollar to gold.

The reserve managers predicted that gold would be the best performing asset class over the next year, citing sovereign defaults as the chief risk to the global economy.
The yellow metal has risen 19.5 per cent in the past year to trade at about $1,500 a troy ounce on Monday, buoyed by the emergence of sovereign debt concerns in the US as well as eurozone debt woes.

http://www.ft.com/cms/s/0/23183a78-a0c6-11e0-b14e-00144feabdc0.html#axzz1QWjfJJ13

[LuckyStrike]

It's only a matter of time, I really don't see why it has taken 40 years for the world to realize the dollar is worthless. In the meantime it's positive news for precious metals buyers.

[osoab]

It's only a matter of time, I really don't see why it has taken 40 years for the world to realize the dollar is worthless. In the meantime it's positive news for precious metals buyers.

Nordic? did you change your name?

[LuckyStrike]

Yeah

I wanted to on the old forum but it wasn't possible.

But with vbulletin GSUS all things are possible.

[osoab]

A little more info on the Zoellick (http://gold-silver.us/forum/Robert%20Zoellick). Even though from Wiki, this gives a rough outline. What better sob to give a timeline of the demise than one of the puppets?




After leaving government service, Zoellick served from 1993 to 1997 as an Executive Vice President (http://en.wikipedia.org/wiki/Vice_President) of Fannie Mae (http://en.wikipedia.org/wiki/Federal_National_Mortgage_Association).[10] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-Results-9)[11] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-USTDRC-10) Afterwards, Zoellick was appointed as the John M. Olin (http://en.wikipedia.org/wiki/John_M._Olin) Professor of National Security at the U.S. Naval Academy (http://en.wikipedia.org/wiki/United_States_Naval_Academy) (1997–98); Research Scholar at the Belfer Center for Science and International Affairs (http://en.wikipedia.org/wiki/Belfer_Center_for_Science_and_International_Affair s) at the John F. Kennedy School of Government (http://en.wikipedia.org/wiki/John_F._Kennedy_School_of_Government); and Senior International Advisor to Goldman Sachs (http://en.wikipedia.org/wiki/Goldman_Sachs).[8] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-USTR-7)[11] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-USTDRC-10)
Zoellick signed the January 26, 1998 letter[12] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-autogenerated3-11) to President Bill Clinton (http://en.wikipedia.org/wiki/Bill_Clinton) from PNAC (http://en.wikipedia.org/wiki/Project_for_a_New_American_Century) that advocated war (http://en.wikipedia.org/wiki/Iraq_War) against Iraq (http://en.wikipedia.org/wiki/Iraq).
During 1999 Zoellick was, for a short period, the head of the Center for Strategic and International Studies (http://en.wikipedia.org/wiki/Center_for_Strategic_and_International_Studies) (CSIS).[13] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-12)
During 1999, Zoellick served on a panel that offered Enron executives briefings on economic and political issues.[14] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-PKArchive-13)
In the 2000 U.S. presidential election (http://en.wikipedia.org/wiki/United_States_presidential_election,_2000) campaign, Zoellick served as a foreign policy advisor to George W. Bush as part of a group, led by Condoleezza Rice (http://en.wikipedia.org/wiki/Condoleezza_Rice), that called itself The Vulcans (http://en.wikipedia.org/wiki/The_Vulcans). James Baker (http://en.wikipedia.org/wiki/James_Baker) designated him as his second-in-command—"a sort of chief operating officer or chief of staff"—in the 36-day battle over recounting the vote in Florida (http://en.wikipedia.org/wiki/Florida).[15] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-14)
[edit (http://en.wikipedia.org/w/index.php?title=Robert_Zoellick&action=edit&section=6)] U.S. Trade Representative (2001–5)

Zoellick was named U.S. Trade Representative at the beginning of the younger Bush's first term; he was a member of the Executive Office (http://en.wikipedia.org/wiki/Executive_Office_of_the_President_of_the_United_St ates), with the rank of Ambassador. According to the U.S. Trade Representative (http://en.wikipedia.org/wiki/Office_of_the_United_States_Trade_Representative) website, Zoellick completed negotiations to bring China and Taiwan (http://en.wikipedia.org/wiki/Taiwan) into the World Trade Organization (http://en.wikipedia.org/wiki/World_Trade_Organization) (WTO); developed a strategy to launch new global trade negotiations at the WTO meeting in Doha (http://en.wikipedia.org/wiki/Doha), Qatar (http://en.wikipedia.org/wiki/Qatar); shepherded Congressional (http://en.wikipedia.org/wiki/United_States_Congress) action on the Jordan (http://en.wikipedia.org/wiki/Jordan) Free Trade Agreement and the Vietnam (http://en.wikipedia.org/wiki/Vietnam) Trade Agreement; and worked with Congress to pass the Trade Act of 2002 (http://en.wikipedia.org/wiki/Trade_Act_of_2002), which included new Trade Promotion Authority.[8] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-USTR-7) He also heavily promoted the Central American Free Trade Agreement (http://en.wikipedia.org/wiki/Central_American_Free_Trade_Agreement) over the objections of labor (http://en.wikipedia.org/wiki/Trade_union), environmental (http://en.wikipedia.org/wiki/Environmentalism), and human rights (http://en.wikipedia.org/wiki/Human_rights) groups.[16] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-15)
Zoellick played a key role in the U.S.-W.T.O. dispute against the European Union (http://en.wikipedia.org/wiki/European_Union) over genetically modified foods (http://en.wikipedia.org/wiki/Genetically_modified_food). The move sought to require that the European Union comply with international obligations to use science-based methods in continuing its moratorium on the approval of new genetically modified crops within the E.U.[17] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-16)



Deputy Secretary of State (2005–6)

On January 7, 2005, Bush nominated Zoellick to be Deputy Secretary of State (http://en.wikipedia.org/wiki/United_States_Deputy_Secretary_of_State).[18] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-Archives-17) Zoellick assumed the office on February 22, 2005. The New York Times (http://en.wikipedia.org/wiki/New_York_Times) reported on May 25, 2006 that Zoellick could soon announce his departure. Zoellick agreed to serve as Deputy Secretary of State for not less than one year. He was seen as a major architect of the Bush administration (http://en.wikipedia.org/wiki/Presidency_of_George_W._Bush#Administration_and_Ca binet)’s policies regarding China.
On September 21, 2005, Zoellick created a major stir on both sides of the Pacific by giving a remarkably candid speech to the National Committee on U.S.-China Relations. In the speech, he not only introduced the notion of China as a "responsible stakeholder (http://en.wikipedia.org/w/index.php?title=Responsible_stakeholder&action=edit&redlink=1)" in the international community but sought to allay fears in the US of ceding dominance to China.[19] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-NBR-18)
In addition, Zoellick chartered a new direction in the Darfur (http://en.wikipedia.org/wiki/Darfur_conflict) peace process.[20] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-19) During a trip to a Darfur (http://en.wikipedia.org/wiki/Darfur) refugee camp (http://en.wikipedia.org/wiki/Refugee_camp) in 2005, he wore a bracelet with the motto, "Not on our watch." Zoellick was seen by many as the administration's strongest voice on Darfur. His resignation catalyzed groups, such as the Genocide Intervention Network (http://en.wikipedia.org/wiki/Genocide_Intervention_Network), to praise his record on human rights issues.[21] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-Intervention-20)
[edit (http://en.wikipedia.org/w/index.php?title=Robert_Zoellick&action=edit&section=8)] President of the World Bank (2007–present)


If 25 years is what they are telling the sheep, what is that in real terms?

[osoab]

Cool, glad you are sticking around. I'm glad you used the same avatar.

[MNeagle]

glad you're back

[mamboni]

A little more info on the Zoellick (http://gold-silver.us/forum/Robert%20Zoellick). Even though from Wiki, this gives a rough outline. What better sob to give a timeline of the demise than one of the puppets?



If 25 years is what they are telling the sheep, what is that in real terms?

I'd say that the dollar has 5-10 years left as reserve currency.

[osoab]

I'd say that the dollar has 5-10 years left as reserve currency.

I am guessing shorter 1-2 years tops, but many have been predicting the demise for years and decades. I see enough tools in place now that the swift demise could be ushered in without the sheep skipping a beat. And if they did skip a beat, well......

[Trinity]

Yeah I say sooner also. 3 to 5 years maybe. Things go for a long time then change very quickly. I still remember reading articles in magazines back in the mid to late 1980's predicting the Unification of Germany would probably happen in twenty years. It happened 3 years later. Same with the collapse of the Soviet Union, at the time they were saying it would eventualy weaken. 4 years later it was over.

[mamboni]

Yeah I say sooner also. 3 to 5 years maybe. Things go for a long time then change very quickly. I still remember reading articles in magazines back in the mid to late 1980's predicting the Unification of Germany would probably happen in twenty years. It happened 3 years later. Same with the collapse of the Soviet Union, at the time they were saying it would eventualy weaken. 4 years later it was over.

Excellent points, excellent. Now, where was that telephone number for BLANCHARD?

[Libertytree]

If it collapsed tomorrow would anyone here be surprised? I know I sure as hell wouldn't.

[mick silver]

it will not collapsed as lone as this country keeps taken over other countrys . we will be the new boss of the world