tectonic shifts in currency

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    A harbinger of things to come perhaps as central banks move out of the declining $US and hasten its decline in a positive feedback cycle.

    This from today's Wall Street Journal, page C16 under "Currency Trading."

    "News that Russia plans to move more of its reserves into the euro at the expense of the dollar fueled declines in the dollar against the European currencies.

    "Russia's candid admission yesterday that it will cut the dollar portion of its foreign-exchange reserves to 50% from 70% and raise the euro slice to 30% from 25%, is feeding a growing sense in currency markets that such diversification by central banks is only set to gather steam.

    "While not hugely significant in and of itself -- Russia's roughly $47.8 billion in foreign currency holdings are just one-tenth the size of Japan's -- the unusually frank statement of intent from the Russian authorities has fueled questions in the currency markets as to whether other banks might follow suit."

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