Dollar Tumbles on Report of it’s Demise
October 7th, 2009 at 09:42am Bob Trojan
The price of gold is surging on world markets amid fears that the old economic order based on the supremacy of the US dollar could be breaking down.
A new spike has sent the cost of the precious metal to a level not seen before. The dollar slid sharply after yesterday’s report in The Independent that Gulf Arab states are secretly planning to stop trading oil in dollars, and a senior UN official said that the US should be stripped of its position as the main source of currency reserves for other countries.
The developments come on top of speculation that the Obama administration is operating a policy of benign neglect of the dollar, engineering a devaluation that could help repair some of the economic damage caused by the recession….see rest here… Gold
So will this be good for exporters? And make imported goods more expensive and maybe shift more production into the US?
2 Comments Add your own
1. QuentinK | October 7th, 2009 at 9:55 am
An economic lesson. The dollar’s value was always based on actual gold reserves. We cut that tie and when the dollar maintained it’s place we thought it had somehow gained some magic intrinsic value of it’s own. It did not. In the interim the price of commodities had become directly tied to the dollar, most importantly, oil. Now that it appears this stabilizing bar is being removed the dollar will have nothing to support it’s value and it will plummet. Hyper-inflation anyone? Strangely, our debt to China will actually be one of the dollar’s only saving graces.
2. DOA | October 7th, 2009 at 2:10 pm
GOLD does not go up…the dollar goes down.
want to fix the problem
VOTE RON PAUL
END THE FEDERAL RESERVE
SUPPORT AUDITTING THE FED.
THROW THE BANKSTERS IN PRISON
RESTORE SOUND MONEY TO AMERICA
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