New York Judge Could Weaken The U.S.

by JASmius

Gee, there's a unique headline.  But the details make up for its genericity:

Global investors think of the U.S. dollar as a safe haven. It has historically been a reliable store of value that is free from threats of government confiscation through devaluation.

Of course the Federal Reserve has been weakening that argument for the past few years through various easing programs.

Heh.  Another way to put it is, "The monetary wing of the Obama Doctrine".

Now, a judge in New York has decided to weaken the dollar's role as a global safe haven.

Newsflash?  Hardly.

Argentina was forced to default on billions of dollars in bonds because Judge Thomas Griesa sided with a hedge fund against the government of Argentina....

And because....[BLEEP] you, Argentina!  Nobody's crying for you!

To comply with the judge's ruling, Argentina would have to violate Argentinean law.

And because....[BLEEP] Argentinean law!  Not that I'm all that familiar with it, but then neither in all likelihood is Judge Griesa.

One judge, in one courtroom, has created an impossible situation for the parties involved in a dispute. While this might seem normal to U.S. residents who see judges make extraordinary rulings on a regular basis, it might strike the leaders of foreign countries as an outrageous challenge to their authority.

Countries issue bonds through New York-based banks for convenience. Argentina could easily select banks in London, Moscow or Peking in the future. In time, the U.S. dollar could lose its status as a reserve currency if significant financial activity moves outside the country.

Exit questions: Is Judge Griesa on Barack Obama's payroll or Janet Yellen's?  And who says Obamunists hate Wall Street?