Gold Is Money & All Fiat Currencies Are In Severe Trouble: Countries Are Trying To Diversify Away From US Dollar, Central Banks Are Matching Each Other Virtually Ease For Ease, & Last Year They Bought Most Gold Since 64!! Jim Rogers: We Should All Be Terrified

InvestmentWatch

 Is the Dollar Dying? Why US Currency Is in Danger

The U.S dollar is shrinking as a percentage of the world’s currency supply, raising concerns that the greenback is about to see its long run as the world’s premier denomination come to an end.

When compared to its peers, the dollar has drifted to a 15-year low, according to the International Monetary Fund, indicating that more countries are willing to use other currencies to do business.

While the American currency still reigns supreme — it constitutes $3.72 trillion, or 62 percent, of the $6 trillion in allocated foreign exchange holdings by the world’s central banks — the Japanese yen, Swiss franc and what the IMF classifies as “other currencies” such as the Chinese yuan are gaining.

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“Longer term, of course, countries are going to diversify away from the dollar if they can. There are more favorable investment opportunities out there if you can catch yield,” said Christopher Vecchio, currency analyst at DailyFX, a trading firm. “Despite the increase in risk to the U.S. dollar and Treasury, investors still feel safest at home.”

But the Federal Reserve’s successive quantitative easing programs, which have created $3 trillion in new greenbacks, continue to spur worry over the dollar’s status.

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Jim Rogers: ‘We Should Be Terrified’ Because Fed Tactics Will ‘End Badly’

The Federal Reserve’s massive easing campaign will produce a crisis for the economy, says famed investor Jim Rogers.

“The central bank has been printing staggering amounts of money, and the government has been spending a lot of money because they wanted Mr. Obama to get re-elected,” he tells Newsmax TV in an exclusive interview. “That’s still spilling over into the economy.”

Central banks across the world are matching each other virtually ease for ease, notes Rogers.

“We should all be terrified of what has happened, because governments around the world are printing huge amounts of money and spending huge amounts of money,” he says. “The debts are going up like a rocket. This is going to end very badly,” notes Rogers, author of the new book “Street Smarts: Adventures on the Road and in the Markets.”

Central banks last year bought most gold since ’64

FRANKFURT (MarketWatch) — The world’s central banks last year bought 534.6 tons of gold in 2012, the most since 1964, as global gold demand hit a record value level, the World Gold Council said Thursday in a quarterly report. Purchases by central banks for the full year rose 17% compared with 2011, while fourth-quarter purchases of 145 tons marked a 29% rise from the same period a year earlier. “Central banks’ move from net sellers of gold to net buyers that we have seen in recent years has continued apace,” with official sector purchases across the world now at their highest level for almost half a century, said Marcus Grubb, managing director for investment at the World Gold Council. In value terms, total gold demand in 2012 was $236.4 billion, an all-time high, the council said.