Sterling hits $2.10 as dollar is dumped (UK)

[katty]

more: http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/11/07/bcndollar107.xml

Sterling hits $2.10 as dollar is dumped
By Richard Blackden
Last Updated: 11:02am GMT 07/11/2007

Sterling has pushed through the $2.10 barrier for the first time in 26 years after the Chinese government indicated it is prepared to diversify some of its huge foreign-exchange reserves.

China threatens 'nuclear option' of dollar sales
Dollar crunch puts gold centre stage
Oil, gold and euro surge to records

The pound stormed to as high as $2.1021 in trading in London, a level not seen since the early Thatcher era, and many currency experts now predict it go higher despite signs that the UK economy is slowing.

China has $1.33 trillion of foreign-exchange reserves
The greenback's renewed weakness was sparked by comments from Cheng Siwei, vice chairman of China's National People's Congress, who suggested China will diversify some of its $1.33 trillion (£660bn) of foreign-exchange reserves.

Mr Siwei told a conference in Beijing: "We will favour stronger currencies over weaker ones, and will readjust accordingly."

[Amonester]

1. Methinks Cheap Sui doesn't like the idiot threats darth & his little king

mumble about Iran (and Venezuela) very much...

Take THAT, war criminals!(?)

(or is it a "warning" to HRC?)

[James Delinis]

2. Any idiot

Could have predicted this as early as the summer of 2004 when oil prices went through the roof, that this would follow. It's funny that the masters of the universe on Wall Street are truly dumb people.

[soothsayer]

4. One reason oil prices are going up now is because the dollar isn't worth anything

and so many folks still use petrodollars (we have an oil-standard based economy now that we're off the gold standard). A real mess!

[EVDebs]

8. But the US is still the largest arms dealer and food merchant

which makes the 'great game' dicier. Just who bailed out the former USSR's grain crops ? And there has been talk of a 'food weapon' to counter the 'oil weapon'.

[flyarm]

3. DAMN ..I am leaving for London late next week..its going to be damn expensive i fear! eom

[sce56]

5. This would be great for US tourism

This would be great for US tourism if it weren't for the fact that entry to the US now involves threats to your liberty and freedom if your name is similar to a terrorist you might get a free all expense paid vacation to a Torture cell in a third country!

[tom_paine]

6. Yep. We are a beacon of totalitarianism and increasing poverty

Give me your tired, poor and huddled masses so we can put 'em in a Homeland Security Detention Camp.

[EVDebs]

7. The yuan has been pegged to the dollar so what will happen now ?

Hopefully the yuan will approach its REAL value. Looks like the Chinese are about to form a circular firing squad to me ! As for the glee in watching the dollar fall, just think about this:

United States — GDP: $13.13 trillion (2006 est.) (purchasing power parity)
according to https://www.cia.gov/library/publications/the-world-factbook/geos/us.html
---------------------------------------------------------------------------------------- = 20%
GWP (gross world product): $65.95 trillion (2006 est.) (purchasing power parity)
According to https://www.cia.gov/library/publications/the-world-factbook/print/xx.html

So, if the rest of the world wants to attack the dollar -- with about 2/3rds of that 20% of world GDP being made up from US consumption-- I'd say if the rest of the world wants to shoot themselves in the foot by economically attacking the US, they ought to find better ways to commit economic suicide that are faster.