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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (31563)	11/2/2010 10:20:05 AM
From: SG	1 Recommendation Respond to of 71454

Silver...it isn't just for the Lone Ranger any more. SG

To: ggersh who wrote (31563)	11/2/2010 10:54:41 AM
From: John	Read Replies (1) \| Respond to of 71454

QE2 risks currency wars and the end of dollar hegemony telegraph.co.uk excerpt: The Fed's "QE2" risks accelerating the demise of the dollar-based currency system, perhaps leading to an unstable tripod with the euro and yuan, or a hybrid gold standard, or a multi-metal "bancor" along lines proposed by John Maynard Keynes in the 1940s. China's commerce ministry fired an irate broadside against Washington on Monday. "The continued and drastic US dollar depreciation recently has led countries including Japan, South Korea, and Thailand to intervene in the currency market, intensifying a 'currency war'. In the mid-term, the US dollar will continue to weaken and gaming between major currencies will escalate," it said. David Bloom, currency chief at HSBC, said the root problem is lack of underlying demand in the global economy, leaving Western economies trapped near stalling speed. "There are no policy levers left. Countries are having to tighten fiscal policy, and interest rates are already near zero. The last resort is a weaker currency, so everybody is trying to do it," he said. Pious words from G20 summit of finance ministers last month calling for the world to "refrain" from pursuing trade advantage through devaluation seem most honoured in the breach. --- None of the financial journalists or government economists today are intelligent enough to declare that the world's governments are already engaged in a global currency war, for the same reasons that they are unable to identify the beginning and endings of recessions and depressions until many months or years after the fact. One should not expect to see a headline in the USA Today, or any other U.S. newspaper, that screams "Currency War!" in big, bold letters across the top of the front page. Without question, the world is emersed in a global currency war, and it has been for the better part of the year. According to every metric available, the war is escalating.