Tavakoli On the Reserve Currency Discussions
by ilene - October 7th, 2009 4:28 pm
Guest Post: Tavakoli On the Reserve Currency Discussions
Courtesy of Jesse’s Café Américain, and special thanks to Janet Tavakoli.
Here is a commentary from Janet Tavakoli on the Robert Fisk article in yesterday’s Independent.
It is remarkably well grounded and thoughtful in its analysis and is well worth reading.
This is a guest post at Le Café Américain, but links to her site and other important essays are contained herein.
Her insights are a welcome palliative to some of the astonishingly shallow commentary we have seen and heard from the financial media.
Of course we would agree that this discussion has been ongoing for many years, as such a discussion fills the void in the evolution of global finance after the breakdown of the original Bretton Woods Agreement, and the closing of the gold window by Richard Nixon.
The point which we have made, perhaps not nearly so well, is that the actions of the Fed and the Treasury over the last ten years have brought the world to what appears to be a tipping point, something that will finally precipitate a change in what has long been a de facto equilibrium; a sea change if you will.
A major precipitant to the current action appears to be the quinquennial rebalancing of the SDR, which will be occurring in 2010. That, and the widespread financial fraud which Wall Street perpetrated on foreign investors, which has been seriously underplayed by the American media.
This is the scenario which was forecast here in 2005, when it became apparent that Greenspan and his governors, together with the Treasury, were not going to act in a manner that would promote a sustainable environment for the status quo.
And further, that the serial sociopaths on Wall Street would keep pushing their luck to the limit, face-ripping their way around the world with our trading partners and creditors until they hit the wall in the form of a break in confidence and an irreparable loss of trust, triggering a significant financial blowback.
Although there was some hope that Obama and his economic team might be able to turn the tide, that hope is fading quickly. And so here we are today.
China Defaults, Currency Basket Threatens Dollar
TSF – October 6, 2009
By Janet Tavakoli
Robert Fisk exposed revived discussions by the Gulf States, China, France, Japan, Brazil, and Russia to…
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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...
Ilene is editor and affiliate program
coordinator for PSW.