Comments on: Two Reasons Why Central Bankers Had No Choice but to Reduce Interest Rates http://www.dailyreckoning.com.au/two-reasons-why/2008/02/29/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 10:39:45 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Major Tom http://www.dailyreckoning.com.au/two-reasons-why/2008/02/29/comment-page-1/#comment-10509 Major Tom Sat, 01 Mar 2008 02:55:13 +0000 http://www.dailyreckoning.com.au/two-reasons-why/2008/02/29/#comment-10509 "And since 1971, the hegemonic money has been on its own... unsupported by anything harder than cellulose." That statement is wrong. Since Nixon closed the Gold Window in 1971, the dollar has since been backed by oil, although it's not something the US government chooses to emphasize. And that means that even if the dollar falls, it won't fall to zero. But Bonner is right, the dollar is on the way down. "And since 1971, the hegemonic money has been on its own... unsupported by anything harder than cellulose."

That statement is wrong. Since Nixon closed the Gold Window in 1971, the dollar has since been backed by oil, although it's not something the US government chooses to emphasize. And that means that even if the dollar falls, it won't fall to zero.

But Bonner is right, the dollar is on the way down.

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