Dollar being ditched worldwide

I just received an email from a good friend containing three jawdropping news stories. These just go to show the unbelievable speed of what is all happening behind the scenes; highly informative in the light of the Fed printing trillions of dollars by buying up obligations the last weeks, the US financial overseers seem to fight an onslaught of capital destruction with their only weapon to do it -printing money. As a lot of people following the big markets have noticed, this is how the financial system, house prices and stock prices can implode, but not cause the deflation of the Great Depression. But the questions of who will finance the debt, what will happen to the dollar, and what will replace the wealth being pulled out of investment in third world countries remain unanswered.


Foreign debt purchases fall sharply in January

Offshore banking centers sell Treasurys; central banks sell agencies
SAN FRANCISCO (MarketWatch) - A big jump in foreign sales of long-term U.S. securities raised concerns Monday that the U.S., in the midst of a massive debt issuance to fund its economic revival plans, may run into trouble getting other countries to finance its deficit.


U.N. panel says world should ditch dollar

LUXEMBOURG (Reuters) - A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.

Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.


China backs talks on dollar as reserve -Russian source

MOSCOW, March 19 (Reuters) - China and other emerging nations back Russia's call for a discussion on how to replace the dollar as the world's primary reserve currency, a senior Russian government source said on Thursday. Russia has proposed the creation of a new reserve currency, to be issued by international financial institutions, among other measures in the text of its proposals to the April G20 summit published last Monday.

Calls for a rethink of the dollar's status as world's sole benchmark currency come amid concerns about its long-term value as the U.S. Federal Reserve moved to pump more than a trillion dollars of new cash into the ailing economy late Wednesday.