Dollar loses reserve status to Yen and Euro
"Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago."
Who cares, right? All that international banking stuff is boring. Why should the average Joe trying to support his family give a crap? Read on--
"After printing up trillions of new dollars and new bonds to stimulate the US economy, the Federal Reserve chief is now boxed into a corner battling two separate monsters that could devour the economy -- ravenous inflation on one hand, and a perilous recession on the other."
That ought to get your attention if you care at all about your future. But there's more--
"Investors and central banks are snubbing dollars because the greenback is kept too weak by zero interest rates and a flood of greenbacks in the global economy.
"They grumble that they've loaned the US record amounts to cover its mounting debt, but are getting paid back by a currency that's worth 10 percent less in the past three months alone. In a decade, it's down nearly one-third."
Now go back and take another look at that web page I posted yesterday. Where do you think that money is coming from that is financing our debt?
More important, what do you think is going to happen when all those international investors decide that American Debt is a bad credit risk?
Brace yourselves, folks. This is going to be a bad ride...