“Mann International”– International Economics-(Questions On Dollar Resurface)

PRLog (Press Release) – Jul 18, 2009 – “Mann International” the Asian-based investment broker is reported to be bemused by the decision among G8 members to avoid debating the US dollar’s status as the world’s reserve currency.
Unnamed sources at “Mann International”, said that given that nations including China, Russia and Brazil had recently expressed their concern at the instability of the greenback and the unprecedented monetization of America’s debt, it was surprising that the issue wasn’t tabled for discussion in any serious way.
The dollar is currently laboring under the pressures of the most debilitating US recession in 50 years and the huge sums of money required to prop up the banking system and fund the huge stimulus package.
One of the “Mann International” sources suggested that although in public, China and Russia appear to be voicing their support for the dollar in the absence of a viable alternative, in private, both countries appear to be diversifying their foreign currency reserves into other currencies and hard assets like gold and commodities.
China recently revealed that it had increased its gold reserves significantly as did Russia.
The general consensus amongst “Mann International” analysts appears to be that as the recession progresses, a measure of protectionism may surface and devaluation of currencies may be a primary tool in that objective.