Dollar Decline or Dollar Collapse?
(Continued from Page 1)Why the Dollar Could CollapseThe euro could replace the dollar as an international currency. Between Q1 2008 and Q2 2009 (most recent report), the value of euros held in foreign government reserves increased from $393 billion to $1.17 trillion. During this same time period, dollar holdings decreased from $2.77 to $2.68 trillion in reserves. (Source: IMF, COFER Table) China is the largest investor in dollars. As of September 2009, it held nearly $800 billion in U.S. Treasury Securities. It has hinted it will reduce its holdings if the U.S. continues to spend on the stimulus package, and increase its debt.(See
