The US consumer is no longer all-powerful – and it’s time to ‘re-balance’
By Edward Helmore
FIRST POSTED SEPTEMBER 29, 2009
The post-G20 fall-out continues. Robert Zoellick (former Goldman Sachs Exec)president of the World Bank, warned yesterday that America's days as an unchallenged economic superpower are numbered and that the dollar is likely to lose its No. 1 spot as the global reserve currency to the euro and the Chinese renminbi.
"The United States would be mistaken to take for granted the dollar's place as the world's predominant reserve currency," he warned, offering the euro as a "respectable alternative" for international transactions and predicting that the renminbi would "evolve into a force in financial markets".
Some commentators believe Zoellick is being purposefully provocative. At the same time, he's amplified the main lesson of the Pittsburgh summit: as the global economy undergoes a kind of de-centralisation, so the global system of currencies will shift.
There is growing belief that the US consumer is blown out as the pre-eminent engine of global economic growth
Zoellick's larger point has been made many times before: while the dollar remains the global currency of choice today, the US lack of discipline over spending and its budget deficits will ultimately diminish or even collapse the currency.
LINK HERE
China, Russia and other countries calling to replace the $$ and now the world bank President and as previously nothing happened so will this time. Its all talk talk and no action. $$ is not going to collapse, that a guarantee.
ReplyDeleteuh huh...whatever mindless above says.
ReplyDeleteuh huh... ditto above...
ReplyDeletewhen you least expect it, expect it...
The dollar along with everyone's:
ReplyDeleteIRAs
Savings
Checking
Mutual Funds
Annuities
Are toast.
The people hit hardest will be those who saved. The careless will actually fair better.
October 26th.
ReplyDeleteOK Folks time to back to reality. If you look at what happened last night when the stock market fell, what happened to the US $ and Gold? US $ Gained and GOLD price FELL. Are you surprised? I am not....
ReplyDeleteIf the US $ is dead as most of you delusional think, then after the stock market fell last night people should be rushing to buy more GOLD but no they all went for the $$ and ditch Gold.
EA, collecting negative articles on the web does not make you an ECONOMIC ANALYST, if you understood at least 1% of the economy you would not post 3/4 of the articles on this blog.