Is the Dollar Dying a Slow Death?

Referring to an article on Channelnewsasia, I have a few differing views from the 2 writers. First they mentioned about "investors around the world decided the good old greenback was a safe haven in a time of great uncertainty. The dollar was resurrected, reversing years of slow decline". It was a false impression that was created by decoupling from the dollar. The main reason why the dollar had a strong rally then was due to most financial instruments/transactions were being done in USD. During the period of 2008, many investors/hedge funds/mutual funds/investment banks all mainly had their losses in US. In order to cover their losses, they had to purchase the greenback even when it was rising. The appreciation also caused many fx traders to lose their positions and covered. It was more of decoupling, a phenomenon that is most likely being seen because of the way the financial markets worked and not because dollar is a safe haven. People ended up believing that there is a correlation between the stock markets and the dollar which is a very dangerous assumption just based on one occurence which they have witnessed last year.

Now as funds moved towards the BRIC nations and Arabic countries talking about moving away from the dollar for oil transactions, the dollar begun its demise just as predicted. And given the monetary policies pursued by Bernanke and fiscal policies by Obama, it is sad to say not even Peter Schiff could do anything even if he gets into the Senate. I am absolutely positive that the current high prices for gold is fundamentals and not driven by speculation as shown by India's and China's interest in storing gold in their central banks, a move away from the dollar. It is inevitable that the reserve currency status will be eventually taken away. I do hope we would eventually move back to a sound monetary system, as legal counterfeiting doesn't do anyone good besides the government and their friends.

For more Austrian Economics on sound money, refer to ludwig von mises for his literature and also videos on Peter Schiff on europac.net