[news] The coming currency shock

[Resist!ca]

"The reason for the collapse [of the US dollar] is the huge stock of reserve currency held by foreigners. When other countries conclude that their hoards of dollars represent claims that the US cannot meet, dollar dumping begins. Financing for US debt dries up; interest rates rise; imported goods become unaffordable and living standards fall. Flight from the dollar is already underway. During the past two years, the US dollar has declined 52% against the new European currency, the Euro. This decline is striking in view of the sluggish European economy and the fact that many analysts regard the Euro as merely a political currency."

URL: http://resist.ca/story/2004/11/19/21343/054