[Marxism] Interesting Article on Dollar Collapse in WSJ

Matthew Russo russo.matthew9 at gmail.com
Fri Oct 9 17:29:06 MDT 2009


 While this scenario may come to pass, such a move would not be risk free by
a long shot.  Should the USD fall and remain below historic "support" levels
- I think 79 on the JPY - then the so-called "reserve currency" status of
the USD would come under further stress as the world market moves into
uncharted waters at a time when quite a few maps are lacking in the crisis
currently being traversed.

In particular every commodity still exclusively denominated in USD would
take a devaluation hit, or else USD prices must rise - but this latter is
not an automatic given. So Washington's Persian Gulf satrapies, for example,
would take a hit.  I suppose these latter could be filed under "7) we get
the currency traders, the funds with huge dollar resources, resources
estimated by the Financial Times to vastly exceed the combined dollar
reserves of Asian and European central bankers..." as the petro trade is
another rent-extraction racket, no different in essence from the exactions
of the paper exchange markets.

-Matt

[Marxism] Interesting Article on Dollar Collapse in WSJ
To: "Activists and scholars in Marxist tradition"
       <marxism at lists.econ.utah.edu>
Message-ID: <32FCF7B198724E6490AB231A59190A70 at dmsthinkpad>
Content-Type: text/plain; format=flowed; charset="iso-8859-1";
       reply-type=original

Today's WSJ has this front page story:  US Stands By as Dollar Falls

" The dollar fell to a 14 month  low against other currencies Thursday,
intensifying a trend  that the Obama administration has publicly suggested
it opposes-- but which it appears prepared to tolerate quietly.



More information about the Marxism mailing list