The United Nations warned on Wednesday of a possible crisis of confidence in, and even a “collapse” of, the U.S. dollar if its value against other currencies continued to decline.
In a mid-year review of the world economy, the UN economic division said such a development, stemming from the falling value of foreign dollar holdings, would imperil the global financial system.
The report, an update of the UN “World Economic Situation and Prospects 2011” report first issued in December, noted that the dollar exchange rate against a basket of other key currencies had reached its lowest level since the 1970s.
This trend, it said, had recently been driven in part by interest rate differentials between the United States and other major economies and growing concern about the sustainability of the U.S. public debt, half of which is held by foreigners.
“As a result, further (expected) losses of the book value of the vast foreign reserve holdings could trigger a crisis of confidence in the reserve currency, which would put the entire global financial system at risk,” it said.
The 17-page report referred at another point to the “still looming risk of a collapse of the United States dollar.”
In a mid-year review of the world economy, the UN economic division said such a development, stemming from the falling value of foreign dollar holdings, would imperil the global financial system.
The report, an update of the UN “World Economic Situation and Prospects 2011” report first issued in December, noted that the dollar exchange rate against a basket of other key currencies had reached its lowest level since the 1970s.
This trend, it said, had recently been driven in part by interest rate differentials between the United States and other major economies and growing concern about the sustainability of the U.S. public debt, half of which is held by foreigners.
“As a result, further (expected) losses of the book value of the vast foreign reserve holdings could trigger a crisis of confidence in the reserve currency, which would put the entire global financial system at risk,” it said.
The 17-page report referred at another point to the “still looming risk of a collapse of the United States dollar.”
Could affect
ReplyDeleteMight affect
May trigger
A likely scenario may be
Fuck man - why will the truth not suffice?
We DON'T know
PERIOD
This "coming collapse" talk is propaganda.
ReplyDeleteThe dollar hegemony has been in a terminal insovency death spiral since 2008 .
America cannot sell enough treasuries now to thev rest of the world to clear its old Ponzi debt problems and then finance even more deficit financing ,printing paper to socialise the trillion dollar past losses and continuing bailouts of the finance sector.
Falling government tax revenues are not enough to pay for government services welfare and wars.
Trillions of counterfeit dollars are now printed every year as america prints fake paper "profitability"with assets of the finance sector and the dud bond assets held at the Fed for the taxpayer to pay off valued at fantasy levels in a fantasy 'accounting" and rating system.
not printed, just digitally entered-easy now that this is how currency is
ReplyDeleteon a windy day a lady was going to market with a bushel basket of paper money and she fell scattering her money, hurrying to pick it up she turned her back on the basket...LOL
a zimbawai billion note for 2 oranges, days wages for a loaf of bread, that is the course the whole world is on