HSBC bids farewell to dollar supremacy

That is the headline of an article in the Telegraph .

What will it take for Americans to see the writing on the wall? The painful truth is two fold; a) the dollar is being destroyed through policy, it’s not some unavoidable fate. b) this will take the standard of living to second world status.
In this space I posted the Left- Right Combo recently. This is not the knock punch just a mainstream validation of what is to come.

The G20 summit around the corner will also see pressure put on the US to devalue the dollar .
A quote from the story: “There’s talk that world leaders may seek to address the U.S. imbalances,” said Masashi Kurabe, head of currency sales and trading in Hong Kong at Bank of Tokyo-Mitsubishi UFJ Ltd., a unit of Japan’s biggest publicly traded bank. “This may lead to weakness in the dollar.”

The truth is foreign capital has funded our debt. Lets see how foreign capital flows are looking right now in the US markets. The following statements are from the International Forecaster B. Chapman.

"Capital from foreign sources was $612 billion in 2007 and $675 billion in 2008. This year in May it was -$54.6 billion; -$57 billion in June, -$56.8 in July and -$97.5 billion in August."

"Capital is leaving at an accelerating rate. This means interest rates should be raised. The Fed is monetizing and in all likelihood that will increase and that will lead to a currency crisis. The Fed has said it will ease quantitative easing, but if it does the stock and bond market will fall. If they increase there will be a currency crisis. There is now no question the dollar is being sacrificed. The idea is to allow it to fall incrementally and as slowly as possible."

In 5 years what will we say about our actions today?