(By
Sid Riggs)In four short months, the dollar's value has sunk 11.2% on the New
York Exchange. In fact, it just recently hit its lowest level of 2009
against six major currencies, including the Euro, the British pound and
the Canadian dollar.
And it wasn't an accident.
Not only has the U.S. Federal Reserve tied an anchor to the dollar's
legs, China has beefed up its own efforts to supplant the dollar as the
global currency reserve.
This report pulls the curtain on China's plan to demolish the dollar
for good. It also shows you how to protect your savings – and increase
your portfolio - as the dollar struggles on every front.
The Global Currency Game
The United States isn't the only country with a falling currency.
Same is true for India, Brazil, South Africa, Mexico, Singapore,
Switzerland and a host of Eastern European countries.
A bloc of Russian banks recommended that its government should devalue the ruble by as much as 30%.
But what's most amazing about this is that most of these countries are intentionally devaluing their currencies. For the U.S., a lower dollar value means it's cheaper to pay back U.S. debt.
For the rest of the countries, a devalued currency makes their goods
cheaper overseas. Having cheaper goods means stronger exports. Stronger
exports mean manufacturing and more jobs. You get the idea.
It's a selfish game, and it basically amounts to making an economy seem healthier than it actually is.
Governments across the globe are in a "race to the bottom." Yet to
make matters worse, the U.S. Treasury is creating some deceptions
about the buyers of U.S. debt and sidestepping the issue of
devaluation, money supply, and inflation.
Which Message from the Treasury Do You Buy?
The U.S. Government wants the public to believe that China, Japan
and Europe are still happily buying U.S. debt to fund the American
economic turnaround. The only problem is – they're not.
Treasury numbers out just last month indicated that China and Japan
are reducing their exposure to U.S. debt. China, for example, the
largest foreign holder of U.S. debt, reduced its investments by $4.4
billion to $763.5 billion in April – its first monthly reduction since
February 2008.
That begs the question – which one is it? Is China buying or selling?
The reality is that the Treasury dept changed the way U.S. debt is
accounted for when purchased on the open market. U.S.
