Russia Sanctions Accelerate Risk to Dollar Dominance

While no one’s suggesting the dollar will lose its status as the main currency of business any time soon, its dominance is ebbing. The greenback’s share of global reserves has already shrunk to under 61 percent from more than 72 percent in 2001. The drumbeat has only gotten louder since the financial crisis in 2008, an event that began in the U.S. when subprime-mortgage loans soured, and the largest emerging-market nations including Russia have vowed to conduct more business in their currencies.“The crisis created a rethink of the dollar-denominated world that we live in,” said Joseph Quinlan, chief market strategist at Bank of America Corp.’s U.S. Trust, which oversees about $380 billion. “This nasty turn between Russia and the West related to sanctions, that can be an accelerator toward a more multicurrency world.”

Such a transformation may take as long as 25 years, with the dollar remaining “top of the heap” even as other currencies play a greater role, Quinlan said, speaking by phone on Aug. 4 from New York. Continue reading

Short US Government Bonds ‘Right Now’: Jim Rogers

Being that the USD is being printed up without end, it’s soon to be worthless as well as everything paper that is valued in Dollars. Bonds fall into this category.

With the Federal Reserve and now Bank of Japan printing massive amounts of money, billionaire investor Jim Rogers told CNBC’s “Closing Bell,” he is shorting U.S. government debt.

“It’s all artificial what’s going on right now,” Rogers said. “The Federal Reserve is printing money as fast as they can. The Bank of Japan said ‘we’re going to print unlimited money.'” Continue reading