China to 'liquidate' US Treasuries, not dollars

Ambrose in the FT

pullout:

The Chinese are clearly vexed with Washington, viewing the Fed's QE as a stealth default on US debt. Mr Li came close to calling America a basket case, saying the picture is far worse than when Ronald Reagan and Margaret Thatcher took over in the early 1980s.

Mr Li, one of three outside academics on China's MPC, described the debt deals on Capitol Hill as "just trying to by time", saying it will not be enough to stop America's "debt dynamic" turning dangerous.

Long Term Dollar Chart

from Jesse's Cafe

Ron Paul on CNBC last week

Gold & Dollar

Long Term trend in Gold from Trader Dan from '09 to '11 along with the performance of the dollar the last 8 months.  Jesse's Cafe is still my go-to place for gold, silver, and dollar charts.

UBS Central Banker Survey re. $ as default reserve currency

The U.S. dollar is poised to lose its status as the global reserve currency during the next 25 years, according to a UBS survey of central bank reserve managers.

“Right now there is great concern out there around the financial trajectory that the US is on,” said Larry Hatheway, chief economist at UBS, told the Financial Times, because the dollar has dropped 5 percent so far this year, and is trading close to its lowest ever level against a basket of the world’s major currencies.

From this place, but it's all over the place