30 May 2012

John Butler on the Dollar Liability and Gold's role as Insurance

China and Japan are scheduled to start trading in their own currencies Friday. The Japanese Finance Minister came out with this news. This allows traders to trade in Yuan and Yen without first converting them into Dollars. So, we'll talk about what this means for the us dollar: the global reserve currency. Are we headed towars a world where no single currency reigns supreme -- an end to what French President Charles De Gualle famously recognised as America's "exorbitant privilege?"
 

And more trouble in Europe as Spain's borrowing costs over Germany's rise to the highest level since the start of the Euro according to the Financial Times. The rescue of Bankia is reportedly what has investors wary, with concern about the terms of the 19 billion Euro bailout. This is jus one in a string of events we've seen over the last several months that you might think would have investors running to safe havens like gold. So why has gold been on a downward trajectory since last August then -- almost one year? Is it not a safe haven after all? John Butler, author and veteran of global finance, is here to tell us why that's not the case.

And is the US government with its debt addiction, debt ceiling debate and fiscal cliff threats setting a bad example that others are following? Well, the National Football League is reportedly raising the debt ceiling for each of its teams. We'll tell you what we think in today's episode of Loose Change with Demetri, Lauren and Shannon.

No comments:

Post a Comment