Prophecy in today's headlines

1,000 Banks to Fail In Next Two Years

The US banking system will lose some 1,000 institutions over the next two years, said John Kanas, whose private equity firm bought BankUnited of Florida in May. “We’ve already lost 81 this year,” Kanas told CNBC. “The numbers are climbing every day. Many of these institutions nobody’s ever heard of. They’re smaller companies.” (See the […]

Russia, India Question Dollar Reliance Before Summit

Russia and India said the world economy is too reliant on the U.S. dollar and called for changes in how $6.5 trillion in currency reserves are managed, as Group of Eight leaders prepare to meet this week. “The dollar system or the system based on the dollar and euro have shown that they are flawed,” […]

China Calls To Replace Dollar With World Currency

China’s central bank has reiterated its call for a new reserve currency to replace the US dollar. The report from the People’s Bank of China PBOC said a “super-sovereign” currency should take its place. Central bank chief Zhou Xiaochuan has loudly led calls for the dollar to be replaced during the financial crisis. The bank […]

Russia – World Needs New Reserve Currency

Russian President Dmitry Medvedev said Tuesday the world needs new reserve currencies. Medvedev told a regional summit that the creation of new reserve currencies in addition to the dollar is needed to stabilize global finances. Medvedev has made the proposal before. It reflects both the Kremlin’s push for greater international clout and a concern shared […]

U.S. Inflation to Approach Zimbabwe Level

The U.S. economy will enter “hyperinflation” approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said. Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, […]

Brazil and China Eye Plan To Axe The Dollar

Brazil and China will work towards using their own currencies in trade transactions rather than the US dollar, according to Brazil’s central bank and aides to Luiz Inácio Lula da Silva, Brazil’s president. The move follows recent Chinese challenges to the status of the dollar as the world’s leading international currency. Beijing this week, and […]

World Economy In Severe Recession, IMF Says

The International Monetary Fund on Wednesday slashed growth forecasts for every major country and urged governments to take forceful action to ensure the world economy’s recovery from a severe recession. In its latest World Economic Outlook, the IMF said the global economy would likely contract 1.3 percent this year in the deepest post-World War Two […]

Russia To Call For New World Currency At G20 Talks

Russia yesterday published its list of demands for upcoming discussions at the next G20 talks, and top of the list was a new “superreserve currency”. Angered by the dominance of the US dollar as the global reserve currency, the Kremlin said in a statement issued on its website that the IMF should look into the […]