Aug. 19 (Bloomberg) -- Pacific Investment Management Co., the world’s biggest manager of bond funds, said the dollar will weaken as the U.S. pumps “massive” amounts of money into the economy.
The dollar will drop the most against emerging-market counterparts, Curtis A. Mewbourne, a Pimco portfolio manager, wrote in a report on the company’s Web site. The greenback is losing its status as the world’s reserve currency, he said.
“Investors should consider whether it makes sense to take advantage of any periods of U.S. dollar strength to diversify their currency exposure,” Mewbourne wrote in his August Emerging Markets Watch report. “The massive amounts of U.S. dollar liquidity produced in response to the crisis” have helped reduce demand for the currency, he wrote.
The Dollar Index, which tracks the greenback against a basket of currencies, touched 78.823 today, the lowest this week. It has fallen 12 percent from this year’s high in March as U.S. authorities pledged $12.8 trillion to combat the recession. China, the world’s largest holder of foreign-currency reserves, and Russia have both called for a new global currency to replace the dollar as the dominant place to store reserves.
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ReplyDeleteThe cracks in the dam just got a little larger and the Fed is running out of fingers!
ReplyDeleteIt's sad because the US Dollar looks so official, you know? Like when you look at it with the design n everything and the fancy spiderweb floral stuff around the edges and the pictures on the back n stuff. I mean compared to other currency like Jamaican money for instance, or the Euro.
ReplyDeleteThe American dollar just has that cool look and shape and size and feel and color to it..like it's the only real money in the world.
The dollar certainly does look "official," but we're not really a serious country anymore, so it makes sense that we go to the european clownish-looking currency, along with being devalued.
ReplyDelete"Redeemable in Gold" When that went away so did any legitimacy.
ReplyDeleteWithout giving a speech about it, the dollar states that the 'new order is now complete.' The core of the elite's control is the fiat money system. Fractional reserve banking. Money changing. Creation of debt and money out of thin air.
Everytime now I pay for something those thoughts go through my mind. The fiat monetary banking system is like a giant cancer throughout of lives.
The one thing I have decided to do is focus less on materialism and more on living a happy life while I can anyway. Living below my means, no debt, etc. Old truck vs new car. After all, money and things really do not make you happy - that is a deception most get snagged into in the lives.