The Truth Will Set You Free .....
Even the global governance intelligentsia are starting to warn of US dollar doom.
UN sees risk of crisis of confidence in U.S. dollar
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."
Rob Vos, a senior UN economist involved with the report, said if emerging markets "massively start selling off dollars, then you can have this risk of a slide in the dollar.
"We're not saying the collapse is imminent, but the factors are further building up that we could quickly come to that stage if other things are not improving quickly on other fronts — like the risk of the U.S. not being able to service its obligations," he told Reuters.
H/T - UN Skittish on US Dollar
They aren't the only Keynesian groupies issuing dire warnings either.
At the World Economic Forum last January in Davos, Switzerland, uber-insider Robert Rubin warned his fellow globalist elite:
The risks of our fiscal position are serious and multiple. And while these risks become more severe over time as our debt position worsens, all of these either have begun to materialise or could do so in the near term ...
[O]ur national security capacity is under pressure – with the chairman of the joint chiefs of staff calling the deficit our greatest national security threat.
Most dangerously, there is a risk of disruption to our bond and currency markets from the fear of much higher interest rates due to future imbalances or from fear of inflation because of efforts to monetise our debt.
Growing out of our fiscal morass over time without policy action would require inconceivable rates of growth ...
Pimco's Bill Gross warned his investors:
[The U.S.] is employing instruments and vehicles and policies that smack of desperation. We are not looking at a default here, but at years of accelerating inflation, which basically robs investors and labor of their real wages and earnings ... Ultimately creditors and investors are at the behest of a central bank and policymakers that will rob them of their money.
Recently on Fox News' Bull & Bears, former Goldman Sachs technical analyst, Charles Nenner, said:
I told my clients and pension funds and big firms and hedge funds to almost go out of the market, almost totally out of the market." He also predicts a major war.
For more analysis by Gross and Nenner see: U.S. Economic Meltdown.
Meanwhile, as our Democratic and Republican "leaders" play budget games with each other and spew meaningless propaganda, America's economy continues to crumble and the federal government debt bomb readies to explode.
Don't kid yourself about the severity of the economic bind we're in either. It's serious, it's dire, and partisanship won't change a damn thing.
Everyday we wait, the Democrats and Republicans will keep kicking the can down the road. And the more they kick, the more incredibly painful the next crash will be ... The Next U.S. Crash Will Be Like the Collapse of the Soviet Union.