Udhay Shankar N wrote: [ on 12:17 PM 11/25/2004 ]
http://www.economist.co.uk/agenda/PrinterFriendly.cfm?Story_ID=3421877
The dollar's demise
Nov 23rd 2004
From The Economist Global Agenda
Is the dollar's role as the world's reserve currency drawing to a close?
Another data point:
http://articles.moneycentral.msn.com/Investing/JubaksJournal/KuwaitKicksSandOnTheDollar.aspx
The U.S. dollar took a big hit last week. From Kuwait. On May 20,
Kuwait stopped pegging its currency, the dinar, to the U.S. dollar.
You know your currency has become a 98-pound weakling when Kuwait can
kick sand on it.
Even worse, Kuwait wasn't acting out of any animus toward the United
States. The tiny kingdom wedged between Iraq and Saudi Arabia remains
a U.S. ally. So the country wasn't trying to make any political
point. It had simply become too expensive for Kuwait to keep the
dinar linked to the dollar. I expect other countries, not tomorrow
but soon, to take the same action. And that will be just one more
milestone in the decline of the dollar.
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((Udhay Shankar N)) ((udhay @ pobox.com)) ((www.digeratus.com))
