Writes John Leo Keenan: “The dollar fell two points against the boliviano (Bolivian currency) yesterday, Friday, after falling already two points on July 21. I know it has been falling for the past several months in Bolivia and I gather it has been falling in several South American countries. The president of the Bolivian Central Bank says they are following a world trend. One must take into account that Bolivia’s economy is a mess; it is also undergoing a strong price inflation. But even in poor Bolivia the dollar is going under now; unprecedented, by the way, this didn’t happen in Bolivia before. If now third world currencies can compete with the dollar, I have my doubts that it can be restored to its position of privilege.

“Making the dollar – and the Federal Reserve Board – look worse, the story informs that ‘during recent periods the Bolivian Central Bank has not sold a single dollar into the system; on the contrary, it has registered a growth in the purchase of dollars.’”