Nov 21, 2007

Many countries are already moving to reduce their dollar holdings, causing the recent plunge in the value of the dollar. Last September, when the euro bought $1.38 US, it was predicted that the value of the dollar would plunge to $1.40 by year's end.

Well, here we are in November, and the dollar has already plunged to $1.48, which is a 10-cent drop in just two months. Because we are talking about trillions of dollars, the losses really pile up for anyone holding dollars. You may only have a few thousand of them yourself, so your losses are minimal. But China holds a trillion of them, and the Middle East holds even more. A 10% drop in the value of the dollar really adds up.

Here's an analysis of 7 countries that are considering more drastic action. If any one of them take a significant step in this direction, the others will probably run for the door as well, causing a stampede.

http://www.informationclearinghouse.info/article18680.htm