While the title of this article from the NY Post might be overstating the case a bit, I did find it to be a simple and straightforward article explaining the fundamental reason for the decline in the dollar and also the dangerous line the Fed is walking.
Over the last three months, banks put 63 percent of their new cash into euros and yen — not the greenbacks — a nearly complete reversal of the dollar’s onetime dominance for reserves, according to Barclays Capital. The dollar’s share of new cash in the central banks was down to 37 percent — compared with two-thirds a decade ago.
“He’s in a crisis worse than the meltdown ever was,” said Peter Schiff, president of Euro Pacific Capital. “I fear that he could be the Fed chairman who brought down the whole thing.”
“The stimulus is what’s toxic — we’re poisoning ourselves and the global economy with it.”
