Could King Dollar Be Toppled?

On the one hand …
EU Pushes for Overhaul of Postwar Financial System

EU leaders called for a global summit as soon as next month to rewrite the 1944 Bretton Woods accord that paved the way for Europe’s post-World War II reconstruction and set up the institutions that oversee the world economy today.

XX Sean’s note — that sounds like the EU is gearing up for an attack on the US Dollar’s status as world reserve currency, doesn’t it? And yet, at the same time …

Trichet Urges Return to `Discipline’ of Bretton Woods

European Central Bank President Jean-Claude Trichet said officials reshaping the world’s financial system should try to return to the “discipline” that governed markets in the decades after World War II.

XX This leaves me totally confused about what the Europeans want to accomplish … and I suspect they are confoozled, too.

In other news …

US ECONOMY

Consumer Prices in U.S. Are Unexpectedly Unchanged as Fuel Costs Decline The cost of living in the U.S. was unchanged in September, restrained by plunging fuel costs and decreases in automobile prices and airline fares that signal the slowing economy is starting to cool inflation.

PRECIOUS METALS

Gold Declines in London Trading as Investors Seek Cash Amid Bank Turmoil Gold declined in London for the first time in three days as investors sold the metal and other assets to raise cash. Platinum fell to the lowest since September 2005.

Why Gold Is Dropping When It Shouldn’t
Fund managers’ other bets are losing money fast, now, so they need to raise cash to keep up the overall value of their respective funds, so they can earn their management bonuses and avoid getting booted for lack of relative performance. Guess what they cash in on? The very same Comex paper-gold they mistakenly bought as a ‘hedge’, of course.
Meanwhile, real investors in real gold are enjoying their shopping spree – except that the spree turned into a treasure hunt as the shelves and display cases of gold dealers look more and more like the supermarket shelves in the old Soviet Union – bare.

ENERGY

OPEC President Khelil Says Crude Oil’s `Ideal’ Price Is $70-$90 a Barrel The “ideal” price for crude oil is between $70 and $90 a barrel, OPEC President Chakib Khelil said today.

Atomic Reactors May Supply a Fifth of the World’s Power by 2050, OECD Says Nuclear reactors may produce more than a fifth of global electricity by 2050 as demand for power rises in countries such as China and India, according to a report by the Organization for Economic Cooperation and Development.

And here’s a note for Christmas …

Flat-panel TV prices set to dive, analysts say
A combination of weak consumer spending and a peak in manufacturing capacity will push prices for flat-panel TVs down to unprecedented lows this holiday season, according to analysts.

XX Sean’s note — naturally, I bought my flat panel TV last month. Argh!

1. News and Gold Chart, TGIF Edition If you bought my new gold report, this chart will interest you. It’s weekly chart of the GDX …...
2. Wednesday News Roundup I’m Dreaming of a Blue Christmas … Source: Calculatedrisk.blogspot.com From the LA Times… Retailers cutting back on holiday hiring...
3. Better Than a Hot Death Sandwich After I recommended a bearish position in RCE on Friday, the markets surged like a rhino on cocaine. Typical! Still,...