Wednesday, May 29, 2013

DEATH OF THE DOLLAR?

From CNBC.  The average person does not focus on this issue but if the dollar loses its preeminence as a world reserve currency, it will require extensive belt-tightening by Washington in order to pay off the massive debt the US has accumulated.

The U.S dollar is shrinking as a percentage of the world's currency supply, raising concerns that the greenback is about to see its long run as the world's premier denomination come to an end.

"The No. 1 security issue we have as a nation is the preservation of the U.S. dollar as the world's reserve currency," said Michael Pento, president of Pento Portfolio Strategies. "It's a thousand times more important than a nuclear bomb being tested by North Korea. It's a thousand times more important that we keep the dollar as the world's reserve currency, and yet we are doing everything to abuse that status."

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