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Swedish Central Bank Dumps Dollar

Thanks to a corrupt government and an insanely greedy Fed, America is fast approaching a full-scale economic crisis of epic proportions.
[F]undamentals turned sharply bearish for the dollar this week. On a day devoid of any US economic data, we were surprised to see a fresh wave of selling on news from Sweden [that its] central bank [has] cut their dollar reserves by 17 percent and increased their euro reserves by 13 percent.

Russia took this opportunity to add their two cents by saying that the dollar was not the “absolute” reserve currency and the country’s trade and current account deficits could affect’s it attractiveness in the future.

Data from Switzerland also indicates that the central bank has reduced the share of dollars in its reserves and instead has increased its share of yen reserves. This comes on the heels of comments by Iceland on Wednesday about their possibility of abandoning the volatile Krona in favor of the more stable Euro.
Any move against Iran now will send our economy into a tail-spin.

22 Comments:

At Saturday, April 22, 2006, Anonymous Anonymous said...

Sh*t!!! We're in it now.

 
At Saturday, April 22, 2006, Blogger qrswave said...

I'll say! There's only one way out of this madness.

America must take control of its monetary system away from the FED, which is nothing but a front for greedy international bankers.

 
At Saturday, April 22, 2006, Anonymous Anonymous said...

Equally as silly to put money in the yen though. The euro is a better play.

 
At Saturday, April 22, 2006, Blogger qrswave said...

Thanks for the tip, anon. But, you're missing the point. We're trying to get rid of moneychangers here - not advise them!

Nevertheless, thanks for sharing your thoughts...I know you mean well...:)

 
At Saturday, April 22, 2006, Anonymous Anonymous said...

You should give up.. we have full control. Soon sites like this will be no more.

Your on notice-

 
At Saturday, April 22, 2006, Blogger qrswave said...

go ahead, make my day...:P

 
At Saturday, April 22, 2006, Anonymous Anonymous said...

As the economy continues to collapse we can only blame 4$ a gallon Bush and the Republican controlled Congress all oil company toadies. War is a great way to redistribute wealth from we the people to the megarich and the well connected. We have hit the point of no return with the debt-there isn't a tax increase big enough to get this country out of the hole it is in. Sit back and enjoy the collapse of the us economy.Too much damage done to reverse course - TITANTIC.

 
At Sunday, April 23, 2006, Blogger qrswave said...

but, there is something we can do - REASSERT our sovereignty, write off all interest-related debts to international financiers, and take control of our money supply again.

The only way to save our nation is through bankruptcy reorganization and nationalization of our money supply, so that money serves the people of this nation and not the other way around.

 
At Sunday, April 23, 2006, Anonymous Anonymous said...

"You should give up.. we have full control. Soon sites like this will be no more.

Your on notice-"

This post MUST have been made by Bush himself! It's "YOU'RE", (contraction for you are) not "your".

George, you're an illiterate redneck.

www.thefairandbalancednews.com

 
At Sunday, April 23, 2006, Anonymous m_astera said...

This article is a little unclear about the Yen. The sources I read said that Sweden dumped the dollar and the yen. The last paragraph above is talking about Switzerland, though, I guess. A bit unclear.

Another funny thing is that all of the financial papers in the US are saying that Sweden lowered its US dollar reserves by 17%. What they actually did was lower their US dollar holdings from 37% to 20% of their portfolio. By my old-fashioned arithmetic, 17 is 46% of 37, so they dumped 46% of their dollars. Big difference there.

m_astera

 
At Sunday, April 23, 2006, Blogger qrswave said...

many thanks, m_astera, for pointing that out! Typical of those liars to not know their math, or to know it and lie anyway.

hey, nice one, anon 1:13! That's scary though, bush, here? gives me the heebee- jeebees

 
At Sunday, April 23, 2006, Anonymous The Swedish guy said...

Is this Sweden or Switzerland? Things from Sweden are Swedish and things from Switzerland are Swiss. Sweden is in the north of Europe and Switzerland in the alps.

 
At Sunday, April 23, 2006, Blogger Citisucks said...

The economy is going to get really bad. But hopefully people will wake up and the revolution will take out the corporate terrorist bankers.

 
At Sunday, April 23, 2006, Anonymous Anonymous said...

"Data from Switzerland also indicates that the central bank has reduced the share of dollars in its reserves and instead has increased its share of yen reserves."

This is a very populist statement! What was your source of (dis)information?

USD: Q1 2006*: 34.9% / Q4 2005 35.0%
EUR: Q1 2006*: 47.1% / Q4 2005 46.3%
JPY: Q1 2006*: 3.1% / Q4 2005 1.9%
Source: SNB (www.snb.ch)
* data published on 20th april 2006

 
At Sunday, April 23, 2006, Anonymous Anonymous said...

i guess justice will be served...
its payback time for 400 years of devil worship.

 
At Sunday, April 23, 2006, Blogger qrswave said...

Anon Apr 23 12:20 said:

"This is a very populist statement! What was your source of (dis)information?"

You make a very good point. You can never tell why information is "released."

But, the numbers you posted (assuming those are percentages of foreign currencies on reserve) are not inconsistent with the statement. So, I'm not sure that I understand your point.

Also, it would be great if you could you include a link to the specific page.

 
At Sunday, April 23, 2006, Anonymous Anonymous said...

@qrswave
Yes, these are the percentages of foreign currencies on reserve (after conversion into Swiss Francs).

This is the link to the specific page (sorry, only available in german and french).
http://www.snb.ch/d/publikationen/monatsheft/aktuelle_publikation/pdf/statmon_DF/A3_2_Devisenanlagen_der_SNB.pdf

Yes, the Swiss National Bank did reduce the share of dollars. To use this marginal change as an argument in this context is not inconsistent but populist (at least in my opinion). If, then the SNB has reduced the share of dollars in favor of EUROS - but this is not what your statement says.

I share your opinion that "America is approaching an economic crisis", but you cannot use the slight change of USD in the reserve of SNB as an argument.

Please, be precise - otherwise you endanger the credibility of your whole message.

 
At Sunday, April 23, 2006, Blogger qrswave said...

"To use this marginal change as an argument in this context is not inconsistent but populist"

Anon, fair enough.

But, I think you're confusing the report, which says that SWEDEN's central bank dumped dollars, NOT Switzerland's.

The nominal reduction in Swiss dollar reserves only illustrates a broader trend.

 
At Sunday, April 23, 2006, Blogger lindbergh said...

It makes sense for foreign central banks like Sweden's to "dump" some dollars from their portfolios. This is far from earth-shattering news -- and the move was probably predicted by some analysts before it happened.

Sweden has taken a somewhat independent economic course the last few years -- as in retaining the krona -- vs adopting the euro as their primary currency demonstrates. But like every other central bank who's reduced their dollar holdings, it wouldn't be done without foreknowledge that the world's major central banks will very likely intervene. That is, to buy up dollars to protect the dollar holdings they already have. This is definitely "business as usual" in terms of the world's central banks and their policies. So why are people getting hot under the collar every time some country dumps dollars?

It's that one's concerns about a possible run on the dollar are not without foundation. We've hit two major bumps in the road with the dollar as the world's reserve currency.

Militarily, we have already -- and will continue to -- create profound disturbances in the oil market. And -- as the price of oil goes up -- so does the US's trade imbalance. At a certain breaking point -- say oil at $100 a barrel -- real panic could set in about a world-wide recession leading to a complete collapse of the dollar. A petroeuro would then become a necessity.

One should remember that the reason we went into Iraq and now threaten Iran is that they've proposed trading oil in petroeuros instead of petrodollars. What is seldom seen or mentioned -- at least in our MSM -- is that maintaining the dollar as the world's benchmark currency has made political sense only for the United States and practically no one else besides the OPEC countries in the Gulf. When it stops making economic sense for the rest of the world the dollar might get royally roasted by a drop of 40% or more in value during a genuine panic -- plus the US will find itself having to buy oil in euros like everybody else.

The drop in our standard of living would be breathtaking.

Of course, what central banks also do is raise interest rates on their currencies to start "drying up" an excess on the world market. If that doesn't make the required adjustment then the central bank will have to devaluate the currency. Other central banks feel screwed (by someone now trading cheaper dubloons for the expensive ones they owe) and this is sometimes how trade wars start. China knows if all else fails it has a huge potential market to its north (Russia). It won't need us to buy their junk forever, anyway.

Sweden is probably hoping the Americans have finally gotten "the message." It may be easy for the Fed to raise interest rates when you already need to sell $3Billion a day in securities just to stay afloat. Of course, higher rates will shrink the US economy for a good while and we'll be buying much less from overseas -- since we'll be paying a lot for oil no matter what. But if Sweden is also hoping that the US raises tax rates and cuts federal spending I don't know what planet they've moved to. Certainly NOTHING like any of this will happen in an election year, save possibly for a modest increase in interest rates.

And nothing like having: 1) an intellectually lazy MBA for President who does not want to hear bad economic news, and 2) a real "team player" in Ben Bernanke as Fed Chairman. Seems like once upon a time the Fed Chairman was supposed to be politically independent from the presidential administration. I must have read that wrong somewhere when I was in school.

pelle

 
At Sunday, April 23, 2006, Blogger qrswave said...

Bernanke IS politically independent from the president - he answers to international bankers, just like Greenspan before him.

 
At Monday, April 24, 2006, Anonymous Anonymous said...

my 2 cents here.....
with US huge X trillion dollars Deficits, and the treasury bills are owned by non-US entities i.e China, technically US is as good as any country to be financially controlled by IMF.
Unthinkable ??? Wake up!!!

 
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