The Slow Death Of The Dollar
by Dave Kranzler, Investment Research Dynamics “How did you go bankrupt? “Two ways: Slowly then suddenly.” (Hemingway, “The Sun Also Rises”) Great read by the way…It’s no secret that Russia is openly working to rid itself of using the dollar in its trade activities and that China is methodically eliminating the dollar. Well, this just hit the newswires today: Central Bank of Iran: Iran stops using dollar in international settlements – “In foreign trade we from now on shall be using other currencies, including yan, euro, Turkish lira, Russian rouble and South Korean won,” the Central Bank’s deputy head Gholam Ali Kamyab told the Tasnim News Agency. Here’s the news link: (Tass Russian News Agency, Tasnim News Agency) Kind of amazing to think the dollar is being discarded around the world considering the recent “strength” of the dollar index. But don’t forget that the commonly referenced measurement of the dollar is the U.S. dollar index, which measured against the euro, yen, pound, canadian dollar, Swiss franc and krona. Get it? Who cares if the dollar is strong vs. other dying fiat currencies. The dollar was only up a little over 1% vs. gold in 2014 and that was due to the inexorable manipulation. The dollar was DOWN vs. the yuan. So how strong, really, is the dollar? To use another Hemingway reference – America: Don’t not ask for whom the bells tolls…it tolls for thee.