Dwindling dollar: World may sneeze on US cold

[OhioChick]

MUMBAI: On March 23, unnoticed by many, the US Federal Reserve quietly stopped publishing the quantum of broad money (referred to as M3) in the US economy.

Simply put, this meant the central bank will not reveal the amount of currency it pumps into the system each year. So, it will now be impossible to distinguish dollar inflows to US economy and new currency that the Fed would print.

So, the Fed, fear analysts, could covertly fund its near $800 billion budget deficit and $700 billion balance of payment deficit, which are more than India's GDP.

These fears have prompted the dollar to plummet to multi-month lows against euro and yen and could seriously impact confidence in the world's favourite currency.

http://timesofindia.indiatimes.com/articleshow/1506648.cms