"The Big Lie Today" by Greenspan on the US Dollar

[cthrumatrix]

Greenspan he says he saw "no evidence of foreign Central Banks dumping the US dollar".

What does he call OPEC countries shifting their currencies to the EURO...? The weakness in the dollar is caused by our weak "US balance sheet"...hence countries don't like losing money and shifting out of the dollar.

If we lose the dollar as the "petro currency"....Look Out!

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Oil Exporters Behind Weak Dollar-Soros
Mon Feb 21, 2005 05:23 AM ET


By Mona Megalli, Gulf Economics Correspondent

JEDDAH, Saudi Arabia (Reuters) - Moves by Middle East oil exporters and Russia to switch some revenue from dollars to euros lie behind the U.S. currency's weakness, and a further rise in crude prices could prompt more declines, the billionaire investor George Soros said on Monday.

Soros told delegates to the Jeddah Economic Forum that the dollar's fall should help to lower the U.S current account and trade deficits, but warned that a fall beyond an undisclosed "tipping point" would severely disrupt markets.

The U.S. current account deficit is more than five percent of gross domestic product despite the currency's three-year slide. The dollar, however, has staged a comeback recently, gaining about 3.6 percent against the euro and three percent versus the yen so far this year.

"The oil exporting countries' central banks ... have been switching out of dollars mainly into euros and Russia also plays an important role in this. That is, I think, at the bottom of the current weakness of the dollar," Soros said.

snip

http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=7687384


So ...who is right? Greenspan or Soros?

[gizmo1979]

1. He was on a roll today wasn't he?

He also warned that congress had better hurry up with SSI reform.I think the man has sold his soul.

[Warpy]

5. What soul?

The man's a Randorrhoid.

[cthrumatrix]

2. another pertinent comment by George Soros on dollar & Oil price

The higher the price of oil the more the dollars there are to be switched to euro (so) the strength of oil will reinforce the weakness of the dollar," he said. "That is only one factor, but I think there is such a relationship."

sma eabove link

[EVDebs]

3. US dollar de facto pegged to oil means

That in less than 35 years the dollar and the oil it is pegged to will be either worthless or of infinite value, depending on alternative fuels.

At 1 trillion barrels of oil reserves (check an almanac) or thereabouts, and with current daily consumption at around 80 million barrels, you do the math.

[cliss]

4. Alan Pondscum is a dangerous old man.

If I had any lingering doubts about the Old Crony's loyalty, they are all gone now.

The decrepit old fool is nothing but a Bald-headed shill for the BeelzeBush administration. Everything that comes out of his denture-filled mouth is propaganda.

And why? He didn't need to. The Fed is completely separate from the government, it can do whatever it wants. Why would he do this?