SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: gregor_us who wrote (25202)1/24/2005 4:51:31 PM
From: regli  Read Replies (2) of 110194
 
This shifting is very significant and in my opinion extremely bearish for the dollar. What I found of particular interest is the quote:

“More than 90 per cent of central bank reserve managers said that the income from reserve management was "important" or "very important".”

This tells me that political considerations are starting to play a bigger role even for central bankers, not surprisingly as the profits from central banks often filter into government coffers. Given how the U.S. is viewed in many of dollar holding countries and then have to sell dollar losses on reserves to the public looks to become a bigger issue.

I therefore wouldn’t be surprised to see more shifts out of dollar reserves accompanied by significantly increased trade in currencies like the Euro. New political alliances will result in closer economic ties and cooperation.

I soon expect an announcement of Russian crude deals with the EU in Euros perhaps followed by an EU China arms sales agreement using Euros as the settlement currency.

Combined with the concerns about U.S. fiscal management, it might only take a few of these symbolic developments to cause a serious problem for the dollar as they will signal a new era in reserve management and therefore the official demise of the U.S. dollar as the single reserve currency.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News