From the category archives:

world reserve currency

With the phenomenal growth in sovereign wealth funds over the past thirty or so years – but especially in the last ten – it’s good to stop and take a look at where this new investment phenomenon is at today in 2010.
Here’s a list of the current top 10 sovereign wealth funds around the world.* [...]

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Aside from American financial institutions and the Fed (the buyer of last resort), the largest buyers of US Treasuries and notes are all Asian countries.  You can probably guess which ones.
#1 – China
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China, more than anyone, is probably most concerned with the value of the US dollar and the stability of their US dollar investments.  [...]

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A gold tsunami is at our doorstep.  It’s not about a bubble, trade or even a wall of fear.  It might be partly some of each of those things, but that’s because it’s much, much bigger than each of those things.  And I’m no gold bug – nor do I keep a cabin hideaway full [...]

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There are two short-term advantages to a weak US dollar.
The primary advantage of purposefully driving the value of the US Dollar down, as Bernanke and Geithner both know, is that it makes US exports more attractively priced for foreign buyers.  This, of course, helps the US economy in theory (if more goods are purchased as [...]

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Each month, the US Treasury holds a week-long auction of US notes and bonds to foreign investors and the Fed.  In the past two years alone, there has been a record increase in monthly amounts of debt auctions from $18 billion to $44 billion a month.  But this is still nothing compared to this week’s [...]

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Gold has broke through some of its all-time highs today, October 7, 2009, reaching as much as $1043/oz.  But that is not the end of the excitement for all the gold bugs and other lovers and investors in the yellow metal.  Gold might be making a comeback as a contender for one of several currencies [...]

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The US dollar has served in the role of world reserve currency since 1944, but there is nothing intrinsic about the US dollar which requires that it – and not some other, new currency – continue to fulfill that function.  If anything, the long-term secular decline in the greenback since 2001, coupled with much more [...]

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