Dollar Slide Poses a Currency Conundrum

The Central Bank has a money problem most people would die for: too many dollars.

"It's sort of caught between a rock and a hard place," said Peter Westin, chief economist at MDM Bank, referring to the delicate balance Russia faces in investing what this last week became the world's fourth-largest foreign currency reserves.

Finance Minister Alexei Kudrin said Wednesday that he expected large trading partners such as China and India to include rubles in their own foreign currency reserves, but the more pressing problem for the Finance Ministry is what to do with its own $226 billion in international reserves, most of which is in dollars and euros.

In the last month, the dollar has dropped 2.5 percent against the ruble, and since December the greenback has slid almost 7 percent, representing a drop of several billion dollars in the value of the Russian foreign currency reserves, in ruble terms.

http://www.themoscowtimes.com/stories/2006/05/11/004.html

...and do it now while they are still worth more than toilet paper.

that greenbacks are a poor investment on account of BushCo's National Debt (the annual deficit is just a distraction)

how many trillions do we have in our National Debt?

http://www.publicdebt.treas.gov/opd/opdpenny.htm
$8,360,179,820,754.65

The ceiling has just been raised again so that more debt can accumulate. The possibility of defaulting on Treasury bonds was raised.

Thanks

Worthy of further publication

That's 27 billion with a B and Bush with a B

I assume Russia and the rest will start a run on the bank pretty soon too.

We'll be sneaking into Mexico to pick fruit for pesos.

And the rest of the world will be cheering.

slip into a recession. It would cut China's growth to zero, cause the European economies to stagnate and then cause a drop in oil prices.

Absolutely not sure.

Absolutely not sure.

which is priced in $.

I also wonder whether I should have spent more time awake in the Economics classes I took a few years ago.

:dunce:

It seems likely. As the dollar loses ground, it costs more to buy everything.

I'm meek so please may I have a large interest free loan 'till I die. :)

and pay it back in inflated dollars...ie less valulable dollars.

It's how Hitler got rich.

Inflation favours net borrowers.