The dollar nevertheless remains the world’s leading reserve currency, with the euro in second place. Investors are naturally anxious to protect themselves against markets, including currency markets, which have shown such a high degree of volatility.

The Chinese, who have the greatest number of dollars in their currency reserves, have already suffered substantial losses.

In what amounts to a crisis of the dollar, the euro is in second place as a reserve currency, but there are potential threats to the future of the euro, due to the weak productivity of the Mediterranean economies.

More bad news for the US economy: sales of existing US homes fell 2% in March.

The recently released data from the National Association of Realtors are more evidence of the continuing slump the US property market.

The euro hit new highs today on the news, surging to $1.60.

“In the United States and in the United Kingdom, it is clear that the housing boom has been a bubble,” says Lord William Rees-Mogg in Whiskey and Gunpowder.

Worldwide real estate markets are beginning to experience symtoms of the bust which has helped crippled the US economy. “The housing news is ugly not just in the U.S., but in other countries like Britain, Ireland and Spain. (Recent Economist headline: “Britain’s property boom turns to bust: prepare for a hard landing.”) This means the flood of printing press stimulus will also grow more global, as we saw with the Bank of England slashing rates this week. Bad news for paper currencies; good news for gold.” says Justice Litle.