How far has the mighty fallen? The news for the dollar keeps getting worse by the day. Even as the feds are almost explicitly saying they wont cut (by now, the fed has fooled us twice so we know better).
You've probably heard all the stories about dollar not being accepted at Taj Mahal. With Rupee gaining 12 percent against dollar, it's no wonder they don't accept the dollar.
Maldives was another country where people did not like to accept dollar. Brazillian Super-model Gisele Bündchen wants to be paid in Euro. Jay-Z is flashing Euros and not dollar in his latest videos.
Now, some OPEC members want to switch to Euro as oil's pricing basis. Iran and Venezuela want to switch currencies. Iran is already accepting Yen from the Japanese. While Irans and Venezuela's purpose may be political, it could have very negative effects on the dollar.
Saudi Arabia is against this idea, at least for now. But with inflation rising fast, its own peg to dollar.
UAE and Qatar are already planning to switch to a bucket of currency to curb inflation. Kuwait has already changed to a basket of currencies.
It looks like everyone is abandoning the dollar peg. It's in danger of losing it's status as world currency.
I would think since so many people are shorting the dollar, there might be a little bounce. But the bounce may just be temporary. In the long run, there is only one way for the dollar - down.
No comments:
Post a Comment