tagged w/ Dollar Crisis
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The Richter Report writes:
On June 3, 2008, The Gulf Times, a newspaper in Qatar, published an editorial which should send chills down the spine of any American who cares about the status of the dollar as the world's reserve currency. The title of the opinion piece said it all: "Paulson dollar hype is not worth a dime."
The article was published so as to coincide with Treasury Secretary Paulson's visit to Saudi Arabia, Qatar, and the United Arab Emirates. In that part of the world, if something gets published, it is a good bet that the government approves of it. Secretary Paulson has recently been quoted in the press as having claimed that the U.S. has the world's most liquid and open markets. He has also uttered the usual garbage about the "fact" that the U.S. supports a strong dollar policy. This, at a time when our total money supply (M3) is expanding at an annualized rate of between 16-17%! The truth of the matter is that our leaders support a WEAK DOLLAR policy. Do not listen to what these people say. Pay attention to what they do!
The reckless expansion of our money supply is THE REASON why the dollar buys less and less with each passing day. Inflation is always a monetary phenomenon. Higher prices are merely a symptom of excessive money/debt creation by central banks, governments, and by fractional reserve banking institutions.
Many nations have "pegged" their currencies to the dollar and are suffering severe problems with inflation as a result. If the U.S. actually had a "strong dollar" policy, the prices of oil, gasoline, diesel, natural gas, coal, uranium, corn, wheat, rice, soybeans, coffee, sugar, pork bellies, beef, chicken, orange juice, lead, zinc, nickel, copper, potash, steel, cement, molybdenum, rhodium, silver, platinum, palladium, and gold would be lower...
(Full story at link)
The Richter Report writes:
On June 3, 2008, The Gulf Times, a newspaper in Qatar,... more
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By James Turk
(Excerpt from main article)
Crude oil is $132. Corn is $6.The cost of everything is rising. Inflation is worsening, and it’s not hard to understand why. M3, the total quantity of dollars, is now growing by 17% per annum. Weimar inflation has arrived in America.
The Federal Reserve is following the footsteps of the central bank in Weimar Germany. It is the same path taken by many central banks that have issued countless fiat currencies based on nothing but government promises. It is the path to the fiat currency graveyard, and the once almighty US dollar – which long ago used to be “as good as gold”, just like the Reichsmark once held that same exalted title – is knocking at the graveyard’s gate.
Full article at link.
http://www.kitco.com/ind/Turk/turk_may262008.html
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James Turk is the Founder & Chairman of GoldMoney.com http://goldmoney.com/ . He is the co-author of The Coming Collapse of the Dollar, which has been updated for a newly released paperback version, now entitled The Collapse of the Dollar http://www.dollarcollapse.com .
Photo from Bernd Widdig's book “Culture and Inflation in Weimar Germany.”
Reprinted at www.kitco.comBy James Turk
(Excerpt from main article)
Crude oil is $132. Corn is $6.The cost... more
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By Peter Schiff
President & Chief Global Strategist of Euro Pacific Capital
Author of "Crashproof: How to Profit from the Coming Economic Collapse"
"It is unfortunate that the Supreme Court, in its ruling this week that U.S. currency is unfair to the blind, did not make the next logical step and declare it unfair to everyone who buys gasoline.
In their search for explanations as to why oil has surged past $130 per barrel, Washington, Wall Street, and the financial media are as clueless as cavemen after a freak summer snow storm. Despite the head scratching, the blame game is nevertheless in full force. Speculators and big oil companies are being trotted out as scapegoats, and increased margin requirements and taxes on windfall profits and futures trading have been mentioned as appropriate sanctions. It should be clear that this is pure farce, and that no one understands what is actually happening.
The reality is that after years of reckless consumption and dollar debasement, Americans are now being priced out of markets over which they formerly held unchallenged title. As more affluent foreigners consume more of the resources and products they previously supplied to us, Americans are being forced to cut back. The rising dollar-based price of gasoline is simply an illustration of this global trend.
Poorly concealed behind contrived government statistics, the signs of America’s falling standard of living are everywhere; all one has to do is look. We are unloading SUVs for less desirable compacts, and are paying more to fly on crowded planes (where we pay to check luggage and dine only on what we bring onboard). We drink our lattes at McDonalds or not at all, and we increasingly forego dining out, trips to the mall, and vacations, just so we can scrape together enough to fill our gas tanks and kitchen pantries, pay taxes and insurance, or make credit card, mortgage or car payments.
The collective belt tightening is simply the down payment on the Government’s massive bailout of Wall Street investment banks and mortgage lenders. As the Fed creates money to buy bad mortgages and other shaky securities held by banks and brokerage firms, the value of the savings and wages of everyone on Main Street will continue to fall. As a result, the costs of products previously taken for granted have begun to bite.
The various housing bills and stimulus packages now passing through Congress will add significantly to the staggering final price tag. In the end, the “free lunch” currently being dished out by Washington will be the most expensive meal ever served. The cost will be borne by ordinary Americans citizens every time they open their wallets. Four dollar gasoline is just the beginning.
For all the talk of increased global demand, few seem to understand from where it actually comes. The surge in global demand is both a function of the increased purchasing power of foreign currencies and the fact that foreigners are choosing to spend more of their incomes themselves. In other words Greenspan’s famous “global savings glut” is turning into a global consumption binge, with Americans unable to crash the party. This trend will only get worse as the dollar-denominated price of just about everything that is either imported, or capable of being exported, goes through the roof.
We can look for scapegoats all we want but the simply fact is Americans are going to have to get used to a much lower standard of living. Those who have been putting all the food on our tables are finally pulling up chairs themselves.
For a more in depth analysis of our financial problems and the inherent dangers they pose for the U.S. economy and U.S. dollar denominated investments, read my new book “Crash Proof: How to Profit from the Coming Economic Collapse".”
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Photo by Sheri Manson By Peter Schiff
President & Chief Global Strategist of Euro Pacific Capital... more
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Weary Zimbabweans are facing a new wave of price increases that will put many basic goods even further out of their reach: a loaf of bread now costs what 12 new cars did a decade ago.
22 May 2008- ANGUS SHAW (Associated Press)
(AP Photo/Tsvangirayi Mukwazhi)
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Full story at link.Weary Zimbabweans are facing a new wave of price increases that will put many basic... more
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A short video by YouTube.com user GHoeberX covering America's unsustainable pattern of economic growth and the consequences of the path that we're on.
"We must borrow $3 billion from foreigners every business day to maintain our extravagent spending. Our national debt now is increasing $600 billion per year, and guess what, we print over $600 billion per year to keep the charade going. But there is a limit and I fear we are fast approaching it." ~ Congressman Ron Paul, M.D.
"Foreign interests have more control over the US economy than Americans, leaving the country in a state that is financially imprudent. More and more of our debt is held by foreign countries – some of which are our allies and some are not. The huge holdings of American government debt by countries such as China and Saudi Arabia could leave a powerful financial weapon in the hands of countries that may be hostile to US corporate and diplomatic interests.” ~ David Walker, US Comptroller General
"There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved." ~Ludwig von Mises
Recommended reading;
The Dollar Crisis, Richard Duncan
Crashproof: How to Profit from the Coming Economic Collapse, Peter Schiff
The Collapse of the Dollar and How to Profit From It, James Turk & John Rubino
A Bull In China, Jim Rogers
The Revolution: A Manifesto, Ron Paul
A short video by YouTube.com user GHoeberX covering America's unsustainable... more
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This video produced by YouTube.com's aravoth delivers the economic diagnosis of the United States. Supporting arguments and commentaries are made by Peter Schiff (President of Europacific Capital), David Tice (Prudent Bear Fund Manager), Don Luskin (Trend Macro CIO), Steve Forbes (Forbes President & CEO) and Ron Paul (U.S. Congressman and 2008 Presidential Candidate).
"Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy." ~Congressman Ron Paul, M.D.
"For those who thought a Democratic congress would end the war in Iraq, think again: their new budget proposes supplemental funds totaling about $150 billion in 2008 and $50 billion in 2009 for Iraq. This is in addition to the ordinary Department of Defense budget of more than $500 billion, which the Democrats propose increasing each year just like the Republicans." ~Congressman Ron Paul, M.D.
This video produced by YouTube.com's aravoth delivers the economic diagnosis of... more
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"America has become more a debt 'junkie' - - than ever before
with total debt of $53 Trillion - - and the highest debt ratio in history.
That's $175,154 per man, woman and child - - or $700,616 per family of 4,
$33,781 more debt per family than last year.
Last year total debt increased $4.3 Trillion, 5.5 times more than GDP.
External debt owed foreign interests increased $2.2 Trillion;
Household, business and financial sector debt soared 7-11%.
80% ($42 trillion) of total debt was created since 1990,
a period primarily driven by debt instead of by productive activity.
And, the above does not include un-funded pensions and medical promises.
2 great questions:
Can the production of debt forever replace the production of goods and savings?
Can Americans forever borrow their way to prosperity?
Easy Answer > NO WAY !!"
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From "The Grandfather Economic Report"
by Michael Hodges
"America has become more a debt 'junkie' - - than ever before
with... more
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Ha! Asking someone to change their ways of getting hard, blooded and cold cash it is never been easy. The fact is that this is sooo late. These guys should have been acting on this issue back in 1980's and they should have something better to offer by now to the American People. What I mean, they are sucking from the economy for so long and seating in their comfortable chairs for so long and have not come up with an alternative to their blooded worldwide mess. You got to read the whole article and see how these big fat cats gets away with murder.Ha! Asking someone to change their ways of getting hard, blooded and cold cash it is... more
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Sinister outcasts from Princeton's economist Krugman - He expects the US housing market to drop 25% overall.
"I'm not one of those people who thinks the Great Depression is coming back, but there's lots of echoes. [...] I think we know more than we did then, and just the fact that we have a big federal government is a stabilizing factor. But the current problem is still pretty awesome."
At the same time, he admits that "what we're having looks like a minor-key version of the bank failures in the early 1930s. Now it's mostly not banks, it's markets that were serving the function of banks and institutions that were doing banklike stuff, and it's not as bad - at least so far. But it's a question. If we were actually having a string of bank failures, then we would know what to do. The government would essentially seize the banks and guarantee the deposits. But what do you do when you have a wave of failures of things like the auction-rate securities market, which was effectively a funny way of doing banking? If you look historically at other financial crises, they typically end up with big government bailouts. But how's that going to work in this case? We don't even know who to bail out. And part of the problem is we don't even know who owes what to whom."
I am wondering if today they really know more about troubles in the financial markets than in the 30's. The situation seems to be very different today - notwithstanding the perplexity about the economy's inner workings, which then as now seems do dominate. Not comforting, I would say...
What do you think?Sinister outcasts from Princeton's economist Krugman - He expects the US housing... more
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Xizor
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added this
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4 years ago
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"Reality has finally caught up to the stock market. The American consumer is underwater, the banks are buried in dept, and the housing market is in terminal distress. The Dow is now below its 200-Day Moving Average -- the first big "sell" signal. Anything below 12,500 could trigger program-trading and crash the market. The increased volatility suggests that we are watching a "real time" meltdown."
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The warning signs began quite long ago, subtly, slowly, but most people chose the illusory comfort of denial. Basically, what is happening is what Karl Marx, a remarkable economist among other talents, long ago was the first to predict. He said that capitalism contains within it the seeds of its own demise. He was absolutely right."Reality has finally caught up to the stock market. The American consumer is... more
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Now we can add India's most famous tourist attraction to the growing list of dollar rejectors. What once was the currency of choice around the world, the dollar is taking a major beating by businesses around the world. Now we can add India's most famous tourist attraction to the growing list of... more
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That's according to Iranian President Mahmoud Ahmadinejad. Looks like he is taking a cue from Jay-Z and Giselle. He suggested that OPEC stop trading oil in US dollars as its steady decline over the last year has affected revenues of OPEC members as they sell their oil exports. That's according to Iranian President Mahmoud Ahmadinejad. Looks like he is... more
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"The Bush administration frequently repeats the Clinton-Rubin policy position that "a strong dollar is in our national interest." By any measure, though, the dollar has weakened steadily under this administration's policies. The impression is that the "strong dollar" phrase is a throw-away, or worse, cover for a weak-dollar policy."
What's next?
"The Bush administration frequently repeats the Clinton-Rubin policy position... more
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Federal Reserve chief Ben Bernanke has warned that the US economy will slow noticeably before the end of the year.
He blamed the slowdown on the credit crisis, which has made it harder for banks and individuals to borrow money. He said that there was likely to be more "financial restraint on economic growth as credit becomes more expensive and difficult to obtain". Federal Reserve chief Ben Bernanke has warned that the US economy will slow noticeably... more
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The pound is riding high - you get more US dollars now than at any time since 1981. If you're dealing in millions you get nearly $2.11 for £1 - even ordinary mortals can get $2.02 at Travelex, making the dollar worth 49p.
Currency experts blame a collapse in confidence in the US economy, caused by its addiction to Chinese imports paid for with sub-prime loans that borrowers can't or won't repay. The situation is now so bad that Brazilian supermodel Gisele Bundchen reportedly insists on being paid in euros, not dollars.
The pound is riding high - you get more US dollars now than at any time since 1981. If... more
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