Wall Street Warns Tim Geithner That The Dollar Is Starting To Lose Its Reserve Status

Tyler Durden's picture




 
0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 08/03/2011 - 14:56 | 1521564 Cdad
Cdad's picture


Wall Street Warns...

Huh?  Wall Street represents perpetual dollar selling...which threatens the US dollar as reserve currency status.  This one is rich.

We will never get out of this with these same crooks at the helm.  There is simply no way the US can normalize as long as this banking cartel remains intact.

We are so screwed.

Wed, 08/03/2011 - 14:58 | 1521577 BaBaBouy
BaBaBouy's picture

 

GET + GOLD ...

Wed, 08/03/2011 - 15:19 | 1521647 redpill
redpill's picture

The fact that there are not currently viable alternatives to the U.S. dollar..."

 

My stack of gold and silver looks pretty viable to me, bitchez.

Wed, 08/03/2011 - 15:42 | 1521719 SheepDog-One
SheepDog-One's picture

PM viability, bitchez.

Wed, 08/03/2011 - 22:27 | 1522704 Ahmeexnal
Ahmeexnal's picture

This post is a half lie.

The dollar is gaining in real terms.

Anyone not holding dollars will be crushed.

But please make sure the dollars you hold are pre 1964 dimes, quarters, halves and dollar coins only.

 

Wed, 08/03/2011 - 15:59 | 1521780 SilverRhino
SilverRhino's picture

Argentum and Aurum work just fine bitchz

Wed, 08/03/2011 - 16:28 | 1521893 bernorange
bernorange's picture

The cited Bloomberg article also states:

"The U.S. currency’s portion of global currency reserves dropped to 60.7 percent in the period ended March 31, the least since March 1999, International Monetary Fund data showed. It was 61.5 percent in the fourth quarter of 2010. The euro’s share rose to 26.6 percent, from 26.2 percent, while the yen was unchanged at 3.8 percent of the total. A category the IMF calls “other currencies” rose to 4.7 percent from 4.4 percent and is up from 3.6 percent in the first quarter of 2010."

I'm going to go out on a limb and guess that gold is counted under "other currencies".

Wed, 08/03/2011 - 17:00 | 1521990 Doc Occ
Doc Occ's picture

"Winter is coming!"  --Lord Eddard Stark from A Game of Thrones

We have reached the point of diminishing returns from all of these "stimulus" Ponzi schemes:  U.S. QE & "TARP" for the termite-infested and rotting TBTF banks; EU bailouts of peripheral debtor nations; Japanese roads/bridges to nowhere; half-empty Chinese buildings and malls, etc. 

Most everyone is beginning to realize it, except for the die-hard Keynesian "bank-government" cabals.  Why do we listen and allow bank and investment executives to take government posts over and over again?  It's like a rotating army of foxes guarding, nay--grooming and cultivating the hen house.

Slowly, but surely, the appetite for even more Ponzi schemes is reaching an end:  economically and politically.  Unfortunately, this house of cards will fall and fall hard.  There is no longer a soft landing.  We only have the spectres of hyperinflation or massive debt deflationary collapse.

"You know nothing, Geithner, Bernanke, Trichet!"  --adapted from A Game of Thrones

P.S.  Gold is good if we go the hyperinlationary route; not so good in a deflationary spiral.  Always good are steel and food.  Ask the Lannisters.

Wed, 08/03/2011 - 15:01 | 1521589 BaBaBouy
BaBaBouy's picture

 

QE3 = More Fiats Money For Sacks ...

 

More Food Stamps for the US Sheeple ...

Wed, 08/03/2011 - 15:04 | 1521602 Crisismode
Crisismode's picture

Consolation Prize - - -

The Euro will tank about 7 days before the USD does.

 

"The way Europe is operating right now, it's what I called recently 'cognitive dissonance,'" or "basically doing the same thing thinking they're going to get a different outcome," Scott Minerd, CIO of the fixed-income firm Guggenheim Partners, said in an interview on CNBC Tuesday.

Hey, we've got our very own Cognitive Dissonance here on ZH.

What do you think of them using your Trademark, CD?

Wed, 08/03/2011 - 15:18 | 1521643 Crack-up Boom
Crack-up Boom's picture

As I'm certain ZH's CD knows very well, Scott Minerd misused the term "Cognitive Dissonance".  What he meant was "insanity" - doing the same thing over and over, but expecting a different result.   "Cognitive Dissonance" means something very different.

Wed, 08/03/2011 - 15:12 | 1521609 Reptil
Reptil's picture

And that's the kicker:
Wall Street runs up debt, creates impossible position, creates atmosphere of fear (TBTF), the Gov. bails them out, Wall Street pockets that cash, instead of putting it into the economy, the economy tanks, because there's a loss of production capabillity, the end of consumerism, and now the homeowners have to pay the banks AGAIN, while everything except Stocks depreciates, the dollar is unable to grow out of the debt, and then Wall Street warns the Gov. at first and then is kind enough to lend the Gov. that money. All of this, while the banks charge the Gov. (and taxpayer) interest, in all the different transactions, all in imaginary money, in bank computers.

All while the various characters hop from Gov. to Bank position. (since they're the experts and know best)

Same trick they're now trying to pull in Europe: A classic "fast-change trick". A triple one actually.

Wanna play?

http://www.youtube.com/watch?v=jTuy2MsevC8

 

 

Wed, 08/03/2011 - 15:16 | 1521635 eureka
eureka's picture

So does this mean that in order to save USD as world currency Jamie & Lloyd will tell Bernank to not print?

Hahahahaha, auw my tummy, hahahahah...

Wed, 08/03/2011 - 16:36 | 1521926 Snidley Whipsnae
Snidley Whipsnae's picture

Nah... Jamie and Lloyd want to be on record as saying 'We warned ya'...

Wed, 08/03/2011 - 16:23 | 1521875 cranky-old-geezer
cranky-old-geezer's picture

It's a "gentleman's" game called Loot America.

Wed, 08/03/2011 - 15:14 | 1521628 problemfixr
problemfixr's picture

Get serious.  Didn't you read the article?  JPM and Goldman Sucks are at the helm.  Lighten up a bit.

Wed, 08/03/2011 - 15:23 | 1521664 SheepDog-One
SheepDog-One's picture

This is like Mayor McCheese warning about the poor nutritional value of McDonalds food!

Wed, 08/03/2011 - 15:36 | 1521684 Cheesy Bastard
Cheesy Bastard's picture

Mayor McCheese was assassinated.  7 sec video.

 

http://www.youtube.com/watch?v=97jvsBWkMuo

Wed, 08/03/2011 - 23:02 | 1522789 tsx500
tsx500's picture

+++

Wed, 08/03/2011 - 15:33 | 1521690 Logans_Run
Logans_Run's picture

The more things change, the more they stay the same...that is, until they don't! Got Gold?

Thu, 08/04/2011 - 04:11 | 1523078 OldPhart
OldPhart's picture

Ya know, with all the theft of infrastructure wire, houses being stripped, and items such as manholes being stolen for scrap value; does anyone care to predict when we start seeing wholesale grave looting for gold teeth, jewelry, etc?

Wed, 08/03/2011 - 15:36 | 1521701 HelluvaEngineer
HelluvaEngineer's picture

Cdad, looks like the 'ole burrito is gonna rally for a few more days.

Wed, 08/03/2011 - 15:59 | 1521774 macholatte
macholatte's picture

 

 

When we walk away from global warming, Kyoto, when we are irresponsibly slow in moving toward AIDS in Africa, when we don't advance and live up to our own rhetoric and standards, we set a terrible message of duplicity and hypocrisy.
John F. Kerry

We didn't become the most prosperous country in the world just by rewarding greed and recklessness. We didn't come this far by letting the special interests run wild. We didn't do it just by gambling and chasing paper profits on Wall Street. We built this country by making things, by producing goods we could sell.
Barack Obama

We're in a giant car heading towards a brick wall and everyone's arguing over where they're going to sit.
David Suzuki

Capitalists are no more capable of self-sacrifice than a man is capable of lifting himself up by his own bootstraps.
Vladimir Lenin

Capitalism is the legitimate racket of the ruling class.
Al Capone

I rob banks for a living, what do you do?
John Dillinger

 

Wed, 08/03/2011 - 19:35 | 1522346 NumNutt
NumNutt's picture

Uh ok, and your point is.....

Wed, 08/03/2011 - 16:16 | 1521849 Tim White
Tim White's picture

They want the pensions, IRA's, & 401K's & for us all to eat cake...

Thu, 08/04/2011 - 01:03 | 1522997 Freddie
Freddie's picture

The C*** S***kers on Wall Street helped finance Hope & Change.  F them!

Wed, 08/03/2011 - 14:56 | 1521567 financeguru500
financeguru500's picture

Aren't these the same banks that needed bailouts just a few years ago?

Wed, 08/03/2011 - 14:57 | 1521570 Buckaroo Banzai
Buckaroo Banzai's picture

"But, wait a second... Isn't Ben Bernanke debasing the dollar precisely for the benefit of the members of the TBAC? And considering that he has done such a tremendous job, is it a little hypocritical to be taking the USD devaluation in one hand, and complaining about it with another? Perhaps someone less jaded than us can answer."

It's not hypocrisy, it's called deliberate deception. These people are out to destroy the world monetary system and replace it with a One World Fiat Currency. Step One of that plan is destroying the dollar.

These arrogant shitbags are pretty sure they can do this without anyone noticing what is really going on, and to their credit, they are mostly correct.

Wed, 08/03/2011 - 16:12 | 1521837 Ghordius
Ghordius's picture

Hey, Grand Plans are for people that can restrain themselves. They don't plan ahead, they are banksters treating every next bonus as their last.

They are vampires explaining to their victim that she should excersise more, eat more healthy food, vitamins, the works....

Wed, 08/03/2011 - 15:03 | 1521571 hedgeless_horseman
hedgeless_horseman's picture

 

 

 

“The idea of a reserve currency  elected officials is that it is built they are elected on their strengths, not typically that it is they are ‘best among poor choices'...”

 

More theory meets reality.

Wed, 08/03/2011 - 14:57 | 1521572 r101958
r101958's picture

They always have had a firm grasp of the obvious (well, most of the time....ok, some of the time).

Wed, 08/03/2011 - 14:57 | 1521573 Cognitive Dissonance
Cognitive Dissonance's picture

“The fact that there are not currently viable alternatives to the U.S. dollar is a hollow victory and perhaps portends a deteriorating fate.”"

Hogwash!

You don't need an alternative. You simply need to stop the debasement and back it with something more stable than madmen who own a printing press. Say.....um....let me see, I have it right here on the tip of my tongue.

I got it.........GOLD.

Wed, 08/03/2011 - 14:59 | 1521581 Earl of Chiswick
Earl of Chiswick's picture

Now you wouldn't be talking your book, would you?

Wed, 08/03/2011 - 15:02 | 1521593 Cognitive Dissonance
Cognitive Dissonance's picture

Talking my pocketbook. Is that what you mean?

My 'book' is set up long the madmen's eventual destruction of all fiat. And has been that way for nearly 10 years.

Wed, 08/03/2011 - 15:43 | 1521729 Bob Paulson
Bob Paulson's picture

More people make their trades based on what Cognitive Dissonance says than Jim Cramer.

Wed, 08/03/2011 - 23:11 | 1522807 tsx500
tsx500's picture

he's talking common fucking sense, first of all.   also economic history.

Wed, 08/03/2011 - 15:22 | 1521660 Crack-up Boom
Crack-up Boom's picture

You're right, but they're deliberately defining the problem so that gold isn't one of the solutions.   

Wed, 08/03/2011 - 15:37 | 1521706 Cognitive Dissonance
Cognitive Dissonance's picture

Of course. That's how you steer and eventually win an argument.

Just ask Ron Paul, who is always shut out of the meaningful debates later in the game. Lie, then refer to your lie as the truth. Then have other people print the lie as the truth. Bingo, instant "truth' quicker than powdered Kool-Aid mixed with water.

Wed, 08/03/2011 - 17:01 | 1521995 macholatte
macholatte's picture

A lie told often enough becomes the truth.
Vladimir Lenin

If you tell a big enough lie and tell it frequently enough, it will be believed.
Adolf Hitler

A lie gets halfway around the world before the truth has a chance to get its pants on.
Winston Churchill

There's only two people in your life you should lie to... the police and your girlfriend.
Jack Nicholson

 

Wed, 08/03/2011 - 15:43 | 1521730 SheepDog-One
SheepDog-One's picture

1 world currency is their 'viable solution'.

Wed, 08/03/2011 - 15:24 | 1521670 SheepDog-One
SheepDog-One's picture

Imprison the worlds Maniacal Monetizers! Problem SOLVED!

Wed, 08/03/2011 - 14:58 | 1521575 LawsofPhysics
LawsofPhysics's picture

More financial terrorism from the financial sector and the proprietary trading desks of the primary dealers.  These assholes are chomping at the bit to buy real assets for pennies on the dollar.  Fuck them.  A strong dollar is fine with me (at least until it is all converted into physical PMs or real assets for my business).

Wed, 08/03/2011 - 14:58 | 1521576 baby_BLYTHE
baby_BLYTHE's picture

I thought he said the US was pursuing strong dollar policies?

Wed, 08/03/2011 - 15:06 | 1521605 Whalley World
Whalley World's picture

Yes B.B. as in strong like Stinky Cheese!

Wed, 08/03/2011 - 15:42 | 1521721 Cheesy Bastard
Cheesy Bastard's picture

I agree with your sentiment even if I am not completely comfortable with your metaphor. :)

Wed, 08/03/2011 - 14:58 | 1521578 glokk26L
glokk26L's picture

Trading dollars for toilet paper..... winning!

Wed, 08/03/2011 - 17:24 | 1522066 Troublehoff
Troublehoff's picture

Toilet Paper has been rising steadily against the USD.

We need a USD/TLP pair

Wed, 08/03/2011 - 14:58 | 1521579 hognutz
hognutz's picture

Hell, the price of gasoline/oil has been warning for awhile.....

Wed, 08/03/2011 - 15:02 | 1521580 TruthInSunshine
TruthInSunshine's picture

 

 

This Administration wants a strong dollar, and this is a very important principal in crafting policy.

--President Barack Obama

I am seeking to ensure that the U.S. dollar remains strong.

--Timothy F. Geithner

I understand that prices on food, oil, and well, just about everything are soaring. It's Geithner's f*cking fault that the Federal Reserve Noteski is turning into confetti.

-- Ben S. Bernanke. Press conference.

Do NOT follow this link or you will be banned from the site!