Nbadan
11-27-2004, 05:48 PM
Foreign Interest Appears to Flag as Dollar Falls
By EDMUND L. ANDREWS
Published: November 27, 2004
WASHINGTON, Nov. 26 - Investors and market analysts are increasingly worried that the last big source of support for the American dollar - heavy buying by foreign central banks - is fading.
The anxiety was on full display Friday, when the dollar abruptly slid to a record low against the euro after a report suggesting that the Chinese central bank might start to reduce its holdings in the American currency.
Though Chinese officials later denied the report, and the dollar recovered, analysts say the broader trend is that foreign governments are becoming less willing to finance the growing debt of the United States government....
***
"There is an emerging consensus that banks around the world are moving to expand their reserves of euros at the expense of dollars," said Laidi Ashraf, chief currency analyst at MG Financial Group in New York.
The Bush administration has essentially condoned the dollar's decline. At meetings with foreign ministers last week, the Treasury secretary, John W. Snow, repeated the American mantra of support for a "strong dollar" but also for letting "market forces" determine exchange rates....
NY Times (http://www.nytimes.com/2004/11/27/business/27dollar.html)
It is amazing to me how few people in this country have any idea about what's coming. Thanks to the corporate media, tens of millions of Americans' lives will be changed "in the twinkling of an eye", without their foreknowledge or proper education.
Other countries are moving fairly slowly on this, so as not to throw their own citizens' lives into complete disarray, as the global currency switches from the dollar to the Euro -- or even a mixture of currencies. But thanks to the Neocons, most Americans will be sitting there scratching their heads after all this is over, wondering what the hell happened?
By EDMUND L. ANDREWS
Published: November 27, 2004
WASHINGTON, Nov. 26 - Investors and market analysts are increasingly worried that the last big source of support for the American dollar - heavy buying by foreign central banks - is fading.
The anxiety was on full display Friday, when the dollar abruptly slid to a record low against the euro after a report suggesting that the Chinese central bank might start to reduce its holdings in the American currency.
Though Chinese officials later denied the report, and the dollar recovered, analysts say the broader trend is that foreign governments are becoming less willing to finance the growing debt of the United States government....
***
"There is an emerging consensus that banks around the world are moving to expand their reserves of euros at the expense of dollars," said Laidi Ashraf, chief currency analyst at MG Financial Group in New York.
The Bush administration has essentially condoned the dollar's decline. At meetings with foreign ministers last week, the Treasury secretary, John W. Snow, repeated the American mantra of support for a "strong dollar" but also for letting "market forces" determine exchange rates....
NY Times (http://www.nytimes.com/2004/11/27/business/27dollar.html)
It is amazing to me how few people in this country have any idea about what's coming. Thanks to the corporate media, tens of millions of Americans' lives will be changed "in the twinkling of an eye", without their foreknowledge or proper education.
Other countries are moving fairly slowly on this, so as not to throw their own citizens' lives into complete disarray, as the global currency switches from the dollar to the Euro -- or even a mixture of currencies. But thanks to the Neocons, most Americans will be sitting there scratching their heads after all this is over, wondering what the hell happened?