Much more: http://thesilicongraybeard.blogspot.com ... -more.htmlThe Slippery Slope Just Tilted A Bit More
Did you see that China and Russia have decided to drop the dollar altogether and trade in their own currencies? This is not a complete abandonment of the dollar, just an agreement that all dealing between their two countries will be carried out in their own currencies. To enable this, they will allow exchange rates between them to be set by an open market.
As I've previously reported, China has been getting rid of their dollars. They are doing so in a prudent manner, so that their dollars don't become worth sheets of Charmin in their hands, but they are clearly doing so. This is probably best seen as another step to the BRIC, the composite currency apparently on the way to replacing the dollar as the world's reserve currency. BRIC is an abbreviation of Brazil Russia India China, the four nations whose currency will make up the BRIC.
In a related story, JP Morgan predicts the dollar will likely become the world's weakest currency as a result of the Federal Reserve Quantitative Easing programs.
â€œThe U.S. has the worldâ€™s largest current-account deficit but keeps interest rates at virtually zero,â€ Sasaki said at a forum in Tokyo yesterday. â€œThe dollar canâ€™t avoid the status as the weakest currency.â€
The Communist, Russia and China, two world super powers have decided to drop the dollar and trade in their own currencies. This isn't going to end well for us. Zimbabwe here we come!