While this scenario may come to pass, such a move would not be risk free by
a long shot. Should the USD fall and remain below historic "support" levels
- I think 79 on the JPY - then the so-called "reserve currency" status of
the USD would come under further stress as the world market moves into
uncharted waters at a time when quite a few maps are lacking in the crisis
currently being traversed.
In particular every commodity still exclusively denominated in USD would
take a devaluation hit, or else USD prices must rise - but this latter is
not an automatic given. So Washington's Persian Gulf satrapies, for example,
would take a hit. I suppose these latter could be filed under "7) we get
the currency traders, the funds with huge dollar resources, resources
estimated by the Financial Times to vastly exceed the combined dollar
reserves of Asian and European central bankers..." as the petro trade is
another rent-extraction racket, no different in essence from the exactions
of the paper exchange markets.
-Matt
[Marxism] Interesting Article on Dollar Collapse in WSJ
To: "Activists and scholars in Marxist tradition"
<marxism@lists.econ.utah.edu>
Message-ID: <32fcf7b198724e6490ab231a59190...@dmsthinkpad>
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Today's WSJ has this front page story: US Stands By as Dollar Falls
" The dollar fell to a 14 month low against other currencies Thursday,
intensifying a trend that the Obama administration has publicly suggested
it opposes-- but which it appears prepared to tolerate quietly.
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