November 18, 2007 (LPAC)--The ongoing breakdown of the global dollar-denominated financial system was covered, belatedly, and incompletely, by the mainstream press. "For the first time, the dollar's monopoly as the world's dominant reserve currency is under threat," read a Bloomberg News wire in the Washington Post.

The article cited the falling share of dollar holdings in central banks' currency portfolios, to 64.8% in the second quarter of this year, down from 71% in 1999. Recent examples that the "flight from the dollar is feeding on itself," include Iraq and South Korea. Merrill Lynch had a particularly dissociated "take" on the problem, estimating that an additional $1.2 trillion in dollar holdings will shift to other currencies in the next five years. "That's utter nonsense," Lyndon LaRouche commented. "These guys talk about five years; they have no idea of what's going on."

The Bloomberg wire went on to report that China had "triggered a recent stampede out of the dollar." Yet it failed to mention the U.S. Senate's culpability for the crisis by its China-bashing, as Lyndon LaRouche has emphasized.

Separately, six Gulf Arab states, most of whose currencies are pegged to the dollar, will jointly discuss a proposal to revalue their currencies in December, Bloomberg reported. Venezuela backed an Iranian proposal to add the group's concern over the falling dollar to a summit declaration, but the Saudi Arabian Foreign Minister rejected it, on the grounds that the mere mention of the problem could trigger a stampede out of the dollar--which is probably true.