The world is playing with the US dollar as though it is nothing more than a ragdoll. A website is asking who perpetrated the "sneak attack on the U.S. dollar this week." Is it a conspiracy?
On Thursday, according to FinancialTimes.com:
The greenback hit one-year lows against a raft of regional currencies. The dollar index, which tracks its value against a basket of six main currencies, hit a 14-month low in afternoon trading in New York....
Gold prices hit an all-time high for the third day in a row, on the dollar’s weakness. Base metals such as aluminium and copper jumped 4 per cent, while crude oil surged almost $3 to more than $70 a barrel.
Asian central banks intervened heavily in the currency markets on Thursday to stem the appreciation of their currencies against the US dollar amid fears that their exports could be losing ground against China....
Simon Derrick, at Bank of New York Mellon in London, said: “Other Asian central banks outside China are naturally looking to aggressively defend their competitive edge against undesirable currency strength as the dollar weakens.”
Earlier in the week, reports surfaced saying that world powers, Gulf Arab states, China, Japan and Russia are considering, and talking about, buying oil through a basket of world currencies, and dumping the US dollar. We know the discussions are going on. We know the United Nations is urging a one-world-currency.
In a radical report, the UN Conference on Trade and Development (UNCTAD) has said the system of currencies and capital rules which binds the world economy is not working properly, and was largely responsible for the financial and economic crises.
It added that the present system, under which the dollar acts as the world's reserve currency , should be subject to a wholesale reconsideration.But the question seems to be, was the US dollar attacked this week?
At the end of the day, a hefty dose of gold's stupendous intra-day strength and the dollar's major swoon came from nothing but intrigue and innuendo. Swirling rumours that oil-producing nations were, or are, secretly plotting to dump the dollar as a settlement vehicle for oil payments, lit a giant bonfire under the gold trading pits, and almost gave the gold bugs a tangible manifestation of their wildest dream come true: the one involving a coffin and the US dollar. Underscore: almost.
Bloomberg says this:
Even the most dollar-pessimistic sources we polled, following this morning's heavily rumour-laden media blitz about the topic do not envision a possible estrangement from the US currency as the price benchmark for oil before 2018 (!) rolls around, if then. So, if anyone thinks that the IMF meeting in Istanbul is but a ruse for euthanizing the greenback, we say - think again.
Note the exclamation point. As I reported earlier this week, there is plenty of reason to believe that the plan is to dump the dollar. So, if not now, then in 2018! The reason for the delay is probably due to investors needing time to get their money out of the U.S.
If it was gold traders this time, it will be Soros (or maybe it was Soros), and then it will be the Arabs and the Chinese. Listen up America. 2018 is 9 short years away, and what do you think will happen between now and then?