Speaking with Max Keiser’s On the Edge, Currency Wars author Jim Rickards says, the collapse of Lehman Brothers and the Fed‘s response to the crisis convinced China to no longer trust the United States and the dollar-based reserve scheme. Get my next ALERT 100% FREE In the past, the thinking among the world’s central banks focused upon the dollar as an anchor for relative valuations of other currencies trading against it. That was a bad idea, according to Rickards. “We trust the United States to maintain the value of the dollar, so we’ll anchor it [other currencies] to the dollar,” he says. “That trust was misplaced, beginning, really, around 2010.
Monday, September 24, 2012
Jim Rickards: Dollar Reaches “Pre-Avalanche Moment”; Expect $7,000 Gold Price
Breaking US Dollar Collapse News
What's Behind the Decline of the US Dollar?
This is one the of the best and simplest explanations we have seen:
The U.S. dollar's downward slide is accelerating as low interest rates, inflation concerns and the massive federal budget deficit undermine the currency. - Wall Street Journal, April 23, 2011Interestingly, the Federal Reserve is responsible for, or an active participant in all three of these factors.