Tweet Hail The Mighty Dollar?
Why do you think George is looking so sad? Could it be something along the lines of a call out of some nations for a uniform global reserve currency other than the dollar?
Now there is no real immediate risk to the dollar in it's current roll, and the calls out of countries like Russia and China are more of a warning than an actual expectation that a new currency could take the dollars place.
While these countries were making those comments, EU Commissioner Joaquin Almuniathe was making the statement that he didn't see any need for "major structural changes in the role the dollar plays today as a major reserve currency".
The problem lies in the fact that China is the largest creditor of the United States and we rely heavily on them to buy our bonds that will help us to fund our deficit, keep interest rates low and help us to get out of recession. Earlier in the month Chinese Premier Wen Jiabao made statements to the effect that China was worried about their holdings of U.S. government debt, and that the United States had to do whatever it took to remain creditworthy.
These are strong statements indeed, and are a shot across our bow from our largest financier. I don't think that anyone would make statements like this lightly, and to me it represents a sharp commentary that needs to be heeded!
North Korea Update
WASHINGTON -North Korea is loading a Taepodong rocket on its east coast launch pad in anticipation of the launch of a communications satellite early next month, U.S. officials say. U.S. counterproliferation and intelligence officials have confirmed Japanese news reports of the expected launch between April 4 and 8.