7 Countries Considering Abandoning the US Dollar

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7 Countries Considering Abandoning the US Dollar (and what it means)
November 6th, 2007

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By Jessica Hupp

It’s no secret that the dollar is on a downward spiral. Its value is dropping, and the Fed isn’t doing a whole lot to change that. As a result, a number of countries are considering a shift away from the dollar to preserve their assets. These are seven of the countries currently considering a move from the dollar, and how they’ll have an effect on its value and the US economy.

Saudi Arabia: The Telegraph reports that for the first time, Saudi Arabia has refused to cut interest rates along with the US Federal Reserve. This is seen as a signal that a break from the dollar currency peg is imminent. The kingdom is taking “appropriate measures” to protect itself from letting the dollar cause problems for their own economy. They’re concerned about the threat of inflation and don’t want to deal with “recessionary conditions” in the US. Hans Redeker of BNP Paribas believes this creates a “very dangerous situation for the dollar,” as Saudi Arabia alone has management of $800 billion. Experts fear that a break from the dollar in Saudi Arabia could set off a “stampede” from the dollar in the Middle East, a region that manages $3,500 billion.

South Korea: In 2005, Korea announced its intention to shift its investments to currencies of countries other than the US. Although they’re simply making plans to diversify for the future, that doesn’t mean a large dollar drop isn’t in the works. There are whispers that the Bank of Korea is planning on selling $1 billion US bonds in the near future, after a $100 million sale this past August.

Thanks a million, Presidents Bush and President Reagen.

it turns out that the have-mores are a greedy bunch of whores, who steal every possible dollar that they can. However, even pre-Reagan we have the Nazi-loving Bushistas who forked out for torture of the Jews and the almighty dollar banking system. George and Neil and the whole slimy bunch are nothing but parasites on the world's money tit...despite their obvious incompetence.

"...the Bank of Korea is planning on selling $1 billion US bonds in the near future, after a $100 million sale this past August. "

That is nothing. Sounds big, but the US Treasuries market is enormous...$1B can be sold with minimal market impact....now if you were to sell $1T....hmmm....