Soros: "the end of an era based on the dollar"

#1
http://www.reuters.com/article/gc07/idUSL2381516320080123

Billionaire investor George Soros said on Wednesday the world is no longer willing to accumulate dollars.

"Financial markets do need a sheriff ... The rest of the world is unwilling to accumulate dollars," he told a panel discussion at the World Economic Forum in Davos.

"The present crisis is the end of an era based on the dollar as the international currency. We need a new sheriff, not Washington consensus."
This high profile crook likely knows what he says about. The cnut wrote in FT

http://www.ft.com/cms/s/0/24f73610-c91e-11dc-9807-000077b07658.html

Globalisation allowed the US to suck up the savings of the rest of the world and consume more than it produced. The US current account deficit reached 6.2 per cent of gross national product in 2006.
...
Although a recession in the developed world is now more or less inevitable, China, India and some of the oil-producing countries are in a very strong countertrend. So, the current financial crisis is less likely to cause a global recession than a radical realignment of the global economy, with a relative decline of the US and the rise of China and other countries in the developing world.

The danger is that the resulting political tensions, including US protectionism, may disrupt the global economy and plunge the world into recession or worse.
 
#2
KGB_resident said:
http://www.reuters.com/article/gc07/idUSL2381516320080123

Billionaire investor George Soros said on Wednesday the world is no longer willing to accumulate dollars.

"Financial markets do need a sheriff ... The rest of the world is unwilling to accumulate dollars," he told a panel discussion at the World Economic Forum in Davos.

"The present crisis is the end of an era based on the dollar as the international currency. We need a new sheriff, not Washington consensus."
This high profile crook likely knows what he says about. The cnut wrote in FT

http://www.ft.com/cms/s/0/24f73610-c91e-11dc-9807-000077b07658.html

Globalisation allowed the US to suck up the savings of the rest of the world and consume more than it produced. The US current account deficit reached 6.2 per cent of gross national product in 2006.
...
Although a recession in the developed world is now more or less inevitable, China, India and some of the oil-producing countries are in a very strong countertrend. So, the current financial crisis is less likely to cause a global recession than a radical realignment of the global economy, with a relative decline of the US and the rise of China and other countries in the developing world.

The danger is that the resulting political tensions, including US protectionism, may disrupt the global economy and plunge the world into recession or worse.


...The writer is chairman of Soros Fund Management
Sounds to me like someone trying to hedge a bet.
 
#3
Firstly, everyone turns to gold during a downturn anyway.

Secondly, China is heavily reliant on its exports to build its infrastructure so a recession in the west would have a devastating effect.

Russia is reliant on its fossil fuel exports so the coming recession will probably see the bears grounded again.
 

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