Wednesday, October 28, 2009

Another Country Abandons The Dollar

Sourced from tonight's Midas report at

Turkey to use national currencies in trade with Iran, China

.ANKARA, October 28 (RIA Novosti) - Turkey is switching to national currencies in trade with Iran and China, ending dependence on the U.S. dollar and the euro for about 20% of its commodity turnover, local media reported on Wednesday.

Turkey has already switched to settlements in national currencies with Russia amid weakening confidence in the greenback as the world's major reserve currency. The move was initiated by Turkish President Abdullah Gul during his visit to Moscow in February…Here's the news link: News Link

Regardless how much denial is issued by the various parties - and the typical "pooh-pooh" or cover-up in the U.S. media - the fact remains that the world is withdrawing its use of the U.S. dollar as a "reserve" trading currency.  By the time most people in the U.S. understand this, many of them will not be able to afford more than ounce or two of gold because the price in U.S. dollars will be much higher than it is now.


  1. Hey Dave, check this out yet?
    My comment as "juliawong" at the bottom regarding how the likes of TBTFs are channeling money to GS/JPM via the help of Fed/FDIC.

    At this rate, the WHOLE freakin world is going to abandon the Dollar as a medium of exchange.

  2. JW, that's a great observation. GS/JPM are indeed using the US taxpayer as an ATM via the socialization of their counterparty losses.

    It extends well beyond interest rate swaps. I was just discussing with Jesse of Jesse's Cafe Americain earlier today that it will be interesting to see how these interest rate swaps put on over the past few years, especially by JPM, hold up under an eventual sharp move up in rates at the long end of the curve.

    I actually get Reggie Middleton's daily free email report. It's worth signing up for if you haven't do so already.