By Ambrose Evans-Pritchard 6:05PM GMT 25 Mar 2009
The dollar plunged instantly against the euro, yen, and sterling as the comments flashed across trading screens. David Bloom, currency chief at HSBC, said the apparent policy shift amounts to an earthquake in geo-finance.
"The mere fact that the US Treasury Secretary is even entertaining thoughts that the dollar may cease being the anchor of the global monetary system has caused consternation," he said.
Mr Geithner later qualified his remarks, insisting that the dollar would remain the "world’s dominant reserve currency … for a long period of time" but the seeds of doubt have been sown. LINK...
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One ounce of Gold today is exactly the same as one ounce of Gold a century ago. The big difference is the number of paper dollars it takes to purchase that ounce of Gold.
"The rise in Gold is NOT about the rise in Gold, it's about the USD losing confidence as the World's Reserve Currency!" BK
