An Attack on the Dollar?

Following is a link to a very interesting article about an article: http://www.politico.com/news/stories/1009/28091.html. Though 'thinly sourced,' Robert Fisk's piece on the 6th ( http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html ) sure got the attention of the financial world, and was possibly the stimulus for gold's recent run (see 10.7.2009 post). Although a dramatic sell off of the dollar is possible, it would likely take a significant time period to unwind the massive positions held by states such as China and Saudi Arabia. Therefore, although there could be pain in the long term, it is unlikely that the impact would be as dramatic as Black Wednesday ( http://en.wikipedia.org/wiki/Black_Wednesday ). That said, if Fisk is correct on his 2018 transition date, the dollar's recent downturn will only get worse. Possibly much worse.

1 comment:

  1. Here is today's latest on the topic: