Dollar's long farewell

[marmar]

from NOW Toronto:



Dollar's long farewell
The world economy as we know it is in China's hands
By GWYNNE DYER

It's just straws in the wind so far. India's Ministry of Culture announces that foreign tourists can no longer pay in dollars when visiting the Taj Mahal and other heritage sites; they have to pay in good hard rupees.

Iran and Venezuela call for a joint OPEC statement on the weak U.S. dollar, and Saudi Arabian Foreign Affairs Minister Saud Al-Faisal warns that any public reference to the U.S. dollar's problems could cause the troubled currency to "collapse." Rap star Jay-Z's latest video shows our hero flashing a wad of euros, not dollars.

Only straws in the wind, but all in the past couple of weeks. For the majority of Americans who do not travel abroad, the only visible effect so far of the dollar's steep fall has been higher fuel prices at the pump. The Chinese imports that fill the big-box stores still cost the same because the Chinese yuan is still pegged to the American dollar. But that may be about to change, along with many other things.

At the beginning of 2003, one euro bought one U.S. dollar. Eighteen months ago, it bought $1.20. Now it's pushing $1.50, and there's no reason to think that it will stop there.

Three of the world's biggest oil exporters, Iran, Venezuela and Russia, are demanding payment in euros rather than U.S. dollars. Last week a Chinese central bank vice-director, Xu Jian, gave voice to the suspicion of others, saying that the U.S. dollar was "losing its status as the world currency." ......(more)

The complete piece is at: http://www.nowtoronto.com/issues/2007-11-29/news_story7.php

[Deja Q]

1. The US to the world: "We'll build you up, here are some jobs!" The world to the US:

"Thanks! We hate you royally and want to see your comeuppance, but thanks! Can we have some more jobs? Feel free to fire your own if you need to! Oh, and don't bet that the quality of our products will be as good or as safe..."

[yy4me]

2. China owns us, simple as that. Under this administration,

everything we held dear has changed. I don't know this country any more. I may be getting old but I can still read, think and understand and I don't like any of it.

Every time I get in trouble on the computer, I do a "System Restore" and give a sigh of relief. Wouldn't it be nice if there was a "System Restore" for the government? I know it is silly but we have no voice and it is frustrating. E-mails, calls, letters, all to no avail.

I wish we had an option like the British. Have a vote of confidence. Throw the bums out. I hope we make it until January 20, 2009. Somehow I think things will get a lot worse before then.

[ixion]

3. indeed... I would restore us to the pre 2k coup

back when we had surplus cash, no unPATRIOTic Act and a respectable international standing.