tagged w/ dollar collapse
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Are we on the verge of a dollar collapse? Don't believe the skeptics. The truth is that there is no currency in the world that is stronger than the old greenback. The U.S. dollar is the reserve currency of the world. Virtually all of the nations on the face of the earth use it for trading and they always will. Why? Because the U.S. dollar is awesome. No currency on earth can compete with our awesomeness. So what that the dollar hit a new all-time record low against the Swiss franc today? Do you really want to move over with the Swissies and eat chocolate and make watches? No, you want to live in the land of American Idol, the NFL and apple pie - the good old USA. Who cares if it takes about a dollar and a half to buy a single euro now? Do you really want to go live with the Frenchies and eat a bunch of French bread while you wear a beret every day? Of course not. There isn't going to be a dollar collapse. As long as the USA is still number one the rest of the world is still going to need U.S. dollars. So quit your worrying.Are we on the verge of a dollar collapse? Don't believe the skeptics. The truth... more
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A week after the Reserve Bank barred dollar and euro trade transaction with Iran, the central banks of the two countries on Friday discussed a new mechanism for the two-way trade but the talks remained inconclusive.
“Officials of the RBI and the Central Bank of Iran met at the technical level to discuss various modalities for facilitating future trade transactions with Iran, including oil,” the RBI said in a statement.
Sources said the two sides are exploring a new mechanism to circumvent the ACU (Asian Currency Union) framework so that the bilateral trade could continue. They added that Letter of Credit (LCs) for trade till last two days have been cleared by the RBI.
The RBI last week asked importers of goods from Iran to settle their payments outside the ACU framework, subsequent to which payments cannot be made in dollar or euro.
Dismissing reports that it was acting under pressure, India termed as “technical”the problem in settling the current account transactions with Iran.
“This is a technical issue and the Reserve Bank of India is seized of the matter. Efforts are being made to resolve the issue as soon as possible. There is no question of India acting under pressure of any country,” the external affairs ministry said.
Iran’s deputy oil minister Ahmad Khaledi was quoted as saying by Iran’s semi-official Fars news agency: “By changing the currency for oil transaction between Iran and India the problem was solved.”
“In order to not allow Americans and Europeans to create any problem, we said let’s do our business in other currencies like (Emirate) dirham or yen,” Iran’s Khaledi was quoted as saying.
The White House, which wants governments to stop dealing with Iran because of its nuclear programme, has praised the Indian move, which came less than two months after President Barack Obama’s trip to India on which he pledged to help boost New Delhi’s global role.
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http://www.deccanherald.com/content/125341/india-iran-working-mechanism-continue.htmlA week after the Reserve Bank barred dollar and euro trade transaction with Iran, the... more
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It's probably the oldest question in capitalism.
Make no mistake, there are a myriad of reasons why the rich get richer and the poor get poorer, and only a few apply to any one instance. That doesn't prevent generalization from being made. The defenders of the status quo explain it as thus:
The rich get richer and the poor get poorer because the rich learn to become stewards of the talents given to them. The poor have squandered their talents and are not given more.
Clean and simple. The poor are poor because they've brought it upon themselves. The rich are just better than you. Case closed. It's a very convenient philosophy if you're rich.
In reality there is only one reason for the growing wealth disparity that applies to practically every instance, and it isn't because one group is better, or smarter, or more amoral than another group.
It's not a hidden secret. Everyone is aware of it, but few understand it as well as they think they do.
This long and information-packed movie goes into more detail.
Go to the full article:
http://www.dailykos.com/story/2011/1/3/933143/-Why-the-rich-get-richer-and-poor-get-poorerIt's probably the oldest question in capitalism.
Make no mistake, there are a... more
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Activist Post reviews National Bestseller, How to Survive the End of the World as We Know It, by author James Wesley, Rawles (makes an important Christmas gift)
Activist Post
It's a sure sign of the times that a book titled, How to Survive the End of the World as We Know It: Tactics, Techniques and Technologies for Uncertain Times becomes a National Bestseller. First printed a year after the October financial crash of 2008 when the world awoke to the fragility of the "system," author James Wesley, Rawles offers a pragmatic and thorough guide to survive other potentially more severe future crashes.
The book does not go into extended detail about what may trigger the breakdown of civilization, but uses its precious 316 pages to inform readers of how to prepare for nearly any disaster. Many survival books are great references to have in your library should a disaster take place, but this book is essential to read and implement well before disaster occurs.
Author, Jim Rawles, a former U.S. Army Intelligence Officer and founder of the very popular website SurvivalBlog.com, not only talks the talk, but also walks the walk. He lives on a fully self-sufficient and well-stocked retreat "somewhere west of the Rockies." Upon reading the book, one thing is apparent: Rawles has written this book not as a "what if" guide, but rather a "when it happens" guide. The tone of urgent pragmatism enhances the assumption that disaster is not only inevitable, but perhaps imminent.
Rawles suggests that the collapse of America will likely be triggered by economic circumstances, notably the death of the dollar, which will then cause a domino effect where civilization as we know it will breakdown into chaos. The book describes the collapse of American society in brief detail, explaining that supply lines for food and fuel will likely grind to a halt, forcing a mass exodus of people out of cities into the suburbs and countryside. He also outlines how the government will be completely crippled by this ensuing anarchy due to the rapid increase in desperation and decrease in essential services. Despite this "most likely" scenario, Rawles also prepares readers to survive events like nuclear attacks on American soil.
Read More: http://globalpoliticalawakening.blogspot.com/2010/12/how-to-survive-collapse-of-america.html
http://www.amazon.com/dp/0452295831?tag=gpa0d-20&camp=213761&creative=393545&linkCode=bpl&creativeASIN=0452295831&adid=05NQV8GEXQ21EDF2B7EJ&Activist Post reviews National Bestseller, How to Survive the End of the World as We... more
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The Day The Dollar Died (VIDEO)
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Editor's Note: The most significant part of this article is the fact that the SCO, I believe, is quickly establishing it's role as the leading global economic power; dumping dollars for gold, commodities, and natural resources; in other words, investing heavily in real value. Good Bye America!
Something is going on that your government does not want you to know about. Very few journalists have written about it and little or nothing has appeared in the mainstream media. The story could be one of major stories of our time.
Western powers have tried to destroy gold as a backing for currencies for many years. Presently the major media won’t touch the story and that is understandable.
Something we have been writing about for years is the Shanghai Cooperation Organization known as SCO. Few have been listening and few have been interested in what their mission is and what they have been up to.
Some of the members are large oil producers and some, like China, are large oil users. Some have very large US dollar surpluses. As well, some are large commodity and gold and silver buyers. In fact, members are in a great part responsible for driving these prices higher. It is debatable, but we believe there is a conscious effort to accumulate gold and silver, dump dollars and to back their currencies with gold.
China and Russia are both large gold producers and for a number of years have been buying up domestic gold and silver production, so that it never reaches the market and does not affect prices. If anything the absence of sales tends to push the markets higher. As a matter of fact Russia and India are visible buyers. Even Iran with its oil surplus recently announced that they had purchased 340 tons of gold. Their recent gold purchases are very significant as affiliate members, which have access to the present and ultimate direction of the group. You might say buying gold has been a protective effort to shield members and close observers from the problems generated by dollar policies. They are accumulating gold, as many have been worldwide, for the past ten years, but particularly over the past few years.
This buying, for protection, has served to thwart the efforts of US policymakers, the Treasury, other central banks in Europe and the Fed, from being able to continue the blatant suppression of both gold and silver prices. The malefactors, except for forays into derivatives and futures, which are transitory, have lost control and suppression of gold and silver prices, and it is only a matter of time before all visages of any control will be visible. Since 1988, in August when Present Reagan signed the Executive Order creating, “the President’s Group on Financial Markets” and the subsidiaries that have grown out of that policy, that the Treasury won many if not most of the battles. The SCO in part changed that and now they and the public are winning the war for a fair and free gold and silver market. The current class action lawsuits, including RICO, are a testament to the market manipulation in silver, which is finally coming to an end. HSBC and JPMorgan Chase, the latter that is the major owner of the Fed, are going to be finally prohibited from rigging these markets. Their officers all belong in jail, but elitists never go to jail; they pay fines, and keep right on robbing the public.
Other SCO members and observers are accumulating gold as well, be it in smaller amounts. We might add that other nations observing Russia and China and their gold purchases are buying as well. These participants must believe that there could be a return to sound money; otherwise they wouldn’t be gold buyers. Buying gold is certainly preferable to holding US dollars, which have consistently fallen in value versus other currencies over the past ten years. Then again all currencies have fallen versus gold over that period, some 19.6% annually. It is nice to see nations are finally waking up to the reality that fiat currencies will all over time deteriorate versus gold. The temptation is enormous to deficit spend.
Read More: http://globalpoliticalawakening.blogspot.com/2010/11/crisis-of-fiat-currencies-us-dollar.htmlEditor's Note: The most significant part of this article is the fact that the... more
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The grand symphony of currency manipulation seems more finely orchestrated than ever before. However, it's not necessarily the fundamentals that are moving currencies so much as global perception. In the battle between the Fed's quantitative weakening of the dollar versus the eurozone debt crisis, the dollar is winning this round of who sucks less.
On October 1st, I posed the question, will the dollar rebound before being dissolved into a global currency? At that time, no one was predicting the dollar to gain strength with the Federal Reserve planning more quantitative easing. The windbag media promoted QE2 as a stock market stabilizer and a boost to U.S. exports, yet most experts openly called it a backdoor bailout, or monetizing debt, or plain old money printing. Nearly everyone agreed it would ultimately erode the value of the dollar even further and cause measurable inflation.
Indeed, it was a well-justified gloom-and-doom 6 months for the dollar by Fed critics. After all the media build-up, the Fed's announcement of the $600B easing plancame strategically on the day after mid-term elections, when most of the media was focused on feeding the false left-right frenzy by digesting the election results. In other words, QE2 got some mention, but the timing was clearly a tactic to keep a lid on the talking-head backlash. Then, Obama rushed out of the country for the G20 economic summit taking the remaining media distraction with him. Between stories of Michelle's shopping trips, it was revealed that China and other foreign economic players were not very happy about the Fed's move. Yet, the dollar started to rally.
Recent commentary by Chuck Butler in the Daily Reckoning questions the commodity sell-off and dollar rally:
But does it all make sense, given what I mentioned above that the FOMC is looking for inflation to inject into our economy? No… But since when, going back to the financial meltdown, does anything the markets do make sense?
Nothing makes sense if we still believe fundamentals actually matter. Sure the dollar is nearly dead, fundamentally, but it seems that perception now trumps concrete analysis. As I reported in October:
The fundamentals suggest that it (the dollar) should be finished, but just as the world is about to declare it dead, miraculously a global storyline seems to emerge just when needed and foreign investors rush back in for "safety." A clear example was the steady drumbeat of a sovereign-foreign-debt war that resulted in reports of whether the Euro would even survive, while the dollar enjoyed a triumphant ride up victory mountain.
Now, here we go again. As soon as the Fed announcement was made, the media shifted its focus once again to the eurozone debt "crisis." Story after story, day after day, about the developing crisis in Ireland -- and now Portugal. News agencies often salivate to repost these headlines, because crisis sells. And it sells because doom and gloomers, otherwise known as fundamental analysts, are waiting for reality to catch up to the numbers -- not just in the eurozone, but globally. The debt-infected PIIGS is a legitimate story, but it is clearly being heavily pushed to make the dollar look less pitiful.
READ MORE: http://globalpoliticalawakening.blogspot.com/2010/11/eurozone-debt-crisis-20-dollar-sucks.htmlThe grand symphony of currency manipulation seems more finely orchestrated than ever... more
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World oil prices hit fresh six-month peaks on Thursday as the dollar slumped on the back of the US Federal Reserve's new huge stimulus package aimed at boosting the American economy.
Brent North Sea crude for delivery in December delivery rallied as high as 87.59 dollars, reaching a level last seen on May 4. It later stood at 87.46, up 1.08 dollars from Wednesday's close.
Read More: http://globalpoliticalawakening.blogspot.com/2010/11/oil-hits-six-month-peaks-on-falling.htmlWorld oil prices hit fresh six-month peaks on Thursday as the dollar slumped on the... more
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The entire world is preparing to bury the dollar in advance of tomorrow's QE2 currency suicide by the chairman. Exhibit A: the OZ dollar which is now trading north of parity for the first time in 28 years, as Australia decidedly puts its in chips in China's basket, believing that no matter how high the OZ, China will have no problem with importing its exports. A quick look at the FX heatmaps shows that while the dollar is getting shorted across the board and the EUR is surging, and making Merkel livid once again, the Yen, at least so far, is benefiting as it has again become the short currency of choice against the AUD, in the one pair that correlation traders use to determine broad market risk more than anything. Yet with a near record number of dollar shorts in existence, will the be the proverbial cover on the news day? Or, if Bill Gross is right, are we going to see a 20% plunge in the dollar beginning tomorrow? Of course, if Gross is right, he would be buying stocks on margin, not MBS. So take notice.
Read More: http://globalpoliticalawakening.blogspot.com/2010/11/dollar-death-bed-aussie-beyond-parity.htmlThe entire world is preparing to bury the dollar in advance of tomorrow's QE2... more
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The dollar is in danger of losing 20 percent of its value over the next few years if the Federal Reserve continues unconventional monetary easing, Bill Gross, the manager of the world's largest mutual fund, said on Monday.
"I think a 20 percent decline in the dollar is possible," Gross said, adding the pace of the currency's decline was also an important consideration for investors.
Read More: http://globalpoliticalawakening.blogspot.com/2010/11/fed-easing-may-mean-20-dollar-drop-bill.htmlThe dollar is in danger of losing 20 percent of its value over the next few years if... more
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Monday, February 22, 2010
A new advisory being sent by America’s third largest bank to its account holders has stoked fears that major financial institutions could be preparing for old fashioned bank runs if the economy takes a turn for the worse.
Originally reported by John Carney over at the Business Insider website, Citigroup is sending the following information to customers along with their bank statements.
See The Full Story.. 7 Days to Get YOUR Money!!!..http://ctpatriot1970.wordpress.com/2010/02/22/update-citigroup-says-feds-ordered-7-day-restriction-on-bank-withdrawals/
“Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change.”Monday, February 22, 2010
A new advisory being sent by America’s third... more
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