I have read several articles this past few days pointing out how the major Eastern banks are either dumping the dollar for the eruo or thinking about it. Our #1 and #2 foreign exchange countries, Japan and China, are looking at this option.

Just another reason to loooooooove BushCo.




http://atimes01.atimes.com/atimes/Asian_Ec...y/GC11Dk01.html


Mar 11, 2005
Dollar catching Asian flu
By Alan Boyd

SYDNEY - They may be telling a different story to money markets, but Asian central banks have been quietly switching their dollar holdings to regional currencies for at least three years, confirm global banking data. In a further, and so far the biggest, setback for the greenback's status as the undisputed reserve currency, Japan on Thursday said it might diversify its holdings, though monetary chiefs later sought to play down the prospect. South Korea rattled currency traders with a similar announcement late last month, followed by a similar backtrack.

China, India, Thailand, Indonesia, Taiwan, the Philippines and Hong Kong have already started a sell-off, despite a diplomatic show of solidarity for the greenback that is prudently designed to prevent a crisis of confidence in exchange systems. The likelihood is that much of this outflow will never return to US dollars as economic interdependence within East Asia and the widening shadow cast by China's trading conglomerates are slowly transforming the traditional market structure.

Oh, @%#* !!!!!!!! Has it begun already ?

Any verification anywhere else ?

Yes, here are a couple more articles.

Now, these are suggesting that Japan and China are now both looking at this option about changing over to the Euro... not done yet... but sure have indications of heading in that direction.

http://www.forbes.com/home/feeds/ap/2005/0.../ap1878397.html

http://business.timesonline.co.uk/article/...1520484,00.html

I know Cuba is not Asia, but being that Cuba is dirt poor, even they are beating up the dollar.

http://portal.telegraph.co.uk/money/main.j.../19/ixcity.html

Castro gets one up on old nemesis
Saturday 19 March 2005

Fidel Castro, Cuba's "Maximum Leader", has scored a propaganda triumph against his American nemesis, ordering a 7pc re-evaluation of the peso against the dollar to reflect the superior performance of the communist model. China is thought unlikely to follow suit.

The Cuban central bank said the peso was in rude health owing to Chinese investments in the nickel industry, closer ties with Venezuela and the discovery of fresh oil reserves.

he (Castro) announced a return to the tried and tested formula of central planning after a brief flirtation with market forces. He said the dollar exchange rate would be cut from 27 to 25 pesos.

Asian banks offload their greenbacks

By Josh Gordon, Economics correspondent (Canberra)
The Age (Melbourne, Australia)
http://www.theage.com.au/
March 12, 2005
http://www.theage.com.au/news/Business/Asi...s-offload-their
-greenbacks/2005/03/11/1110417685655.html?oneclick=true#

In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.

The US dollar's status as the world's main reserve currency is under threat as Asian banks back away from the superpower's ballooning twin deficits.

Over the past three years, central banks in the region have been scaling back their holdings of US dollars amid jitters about the United States' ever-expanding current account and budget deficits, which collectively soaked up at least $US1000 billion ($A1265 billion) of foreign currency last year.

A report by the Bank for International Settlements has estimated that the share of deposits held in US currency by Asian banks dropped to 67 per cent in the September quarter of 2004, from about 81 per cent of total deposits three years earlier.

The figures suggest that a dramatic but not widely publicised regional shift away from the US dollar is under way.

They follow a warning from Japanese Prime Minister Junichiro Koizumi that the Japanese central bank should consider diversifying out of US dollars. Korea expressed similar sentiments last month.

The report said the shift had been most pronounced in India, where the ratio of reported US-dollar holdings has plummeted from around 68 per cent to 43 per cent over the three years to September 2004. China has also been scaling back its holdings, taking its share from 83 per cent to 68 per cent.

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This is where trade tariffs are a necessary evil and help offset our weakening currency. But John Snow(job) probably won't consider it, actually enforcing our trade agreements.

Bushco killing America from within!!