TENT ABOUT TO COME DOWN ON US DOLLAR RESERVE STATUS
by Bill Holter
SilverDoctors.com
APRIL 2, 2013
Australia recently announced a deal struck with China where they will trade and settle in local currencies WITHOUT the use of Dollars. This “type” of deal is now becoming more common as the writing on wall for all to see is that no one wants to be “stuck” with Dollars. This poses a problem, a big problem for the U.S. as demand for Dollars is falling of a cliff at the same time supply (by necessity) has exploded. This situation of course was evidenced last year as the Fed was “forced” to buy nearly 70% of Treasury issuance…because there were no other buyers. In a sense this is becoming a self sustaining negative feedback circle where the Fed must purchase a larger percentage of issuance …because investors (trading blocs) see the over supply and reduce purchases further.
There is one last leg left to the chair that should it break, the whole tent will come down.
The Rest…HERE
