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Dollar Being Abandon

Detective Krum

Detective Krum

Is there a global trend to abandon the dollar?  Why does America fuel the global abandonment of the dollar? World financial watchers are very concerned with a falling dollar and the G-7 has now abandoned the dollar as reported here.

In part, the article says, ‘The problem with intervention is that it would only be partially effective, especially if the U.S. isn’t on board. The Treasury Department would never admit this, but for the time being it’s in the country’s interest to keep its currency low because it stimulates exports for the economy’s manufacturing base and lowers the value of the debt that the Treasury is piling up.’

Something is going amiss because in a report regarding TARP funds and bank bailouts, Special Inspector General for the Troubled Asset Relief Program (TARP) Neil Barofsky, the Treasury Department “lost credibility” after it said last year that banks were healthy.

Barofsky specifically pointed to a statement from then-Treasury Secretary Henry Paulson on October 14, 2008, when he said that the big banks were “healthy” and only accepted the bailout money “for the good of the U.S. economy. When lending at those institutions did not in fact increase and when subsequent events – the further assistance needed by Citigroup and Bank of America being the most significant examples – demonstrated that at least some of those institutions were not in fact healthy. See here.

Now Citi appears to be in trouble and SunTrust and Citi had been negotiating in the recent past. See SunTrust Bank’s accounting issues here. See how SunTrust Bank teamed up with Florida Trend Magazine appearing to show a false sense of financial strength during bank failures here.

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October 7, 2009 - Posted by | 1 | , , , , ,

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