tagged w/ U.S. dollar
I have been comparing the U.S. Dollar to monopoly for years now. However, I have been doing Monopoly Money an injustice because it has actually skyrocketed against the U.S. Dollar in the past 75 years!
https://www.youtube.com/watch?v=ofIEGVLBoP0Seriously I have been comparing the U.S. Dollar to monopoly for years now. However,... more
All those who were hoping global stock markets would surge tomorrow based on a ridiculous rumor that China would revalue the CNY by 10% will have to wait. Instead, China has decided to serve the world another surprise. Following last week's announcement by PBoC Governor Zhou (Where's Waldo) Xiaochuan that the country's excessive stockpile of USD reserves has to be urgently diversified, today we get a sense of just how big the upcoming Chinese defection from the "buy US debt" Nash equilibrium will be. Not surprisingly, China appears to be getting ready to cut its USD reserves by roughly the amount of dollars that was recently printed by the Fed, or $2 trilion or so. And to think that this comes just as news that the Japanese pension fund will soon be dumping who knows what. So, once again, how about that "end of QE" again?
China's foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March.
Xia Bin, a member of the monetary policy committee of the central bank, said on Tuesday that 1 trillion U.S. dollars would be sufficient. He added that China should invest its foreign exchange reserves more strategically, using them to acquire resources and technology needed for the real economy.
And as if the public sector making it all too clear what is about to happen was not enough, here is the private one as well:
China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday.
The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high.
Tang's remarks echoed the stance of Zhou Xiaochuan, governor of China's central bank, who said on Monday that China's foreign exchange reserves "exceed our reasonable requirement" and that the government should upgrade and diversify its foreign exchange management using the excessive reserves.
Tang also said that China should further diversify its foreign exchange holdings. He suggested five channels for using the reserves, including replenishing state-owned capital in key sectors and enterprises, purchasing strategic resources, expanding overseas investment, issuing foreign bonds and improving national welfare in areas like education and health.
However, these strategies can only treat the symptoms but not the root cause, he said, noting that the key is to reform the mechanism of how the reserves are generated and managed.
The last sentence says it all. While China is certainly tired of recycling US Dollars, it still has no viable alternative, especially as long as its own currency is relegated to the C-grade of not even SDR-backing currencies. But that will all change very soon. Once the push for broad Chinese currency acceptance is in play, the CNY and the USD will be unpegged, promptly followed by China dumping the bulk of its USD exposure, and also sending the world a message that US debt is no longer a viable investment opportunity.
http://www.zerohedge.com/article/china-proposes-cut-two-thirds-its-3-trillion-usd-holdingsAll those who were hoping global stock markets would surge tomorrow based on a... more
Analysts predict gas will go higher then $5 per gallon by summer.
China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.
Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.
"About trade settlement, we have decided to use our own currencies," Putin said at a joint news conference with Wen in St. Petersburg.
The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.
The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said.
"That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries," he said.
Putin made his remarks after a meeting with Wen. They also officiated at a signing ceremony for 12 documents, including energy cooperation.
The documents covered cooperation on aviation, railroad construction, customs, protecting intellectual property, culture and a joint communiqu. Details of the documents have yet to be released.
Putin said one of the pacts between the two countries is about the purchase of two nuclear reactors from Russia by China's Tianwan nuclear power plant, the most advanced nuclear power complex in China.
Putin has called for boosting sales of natural resources - Russia's main export - to China, but price has proven to be a sticking point.
Russian Deputy Prime Minister Igor Sechin, who holds sway over Russia's energy sector, said following a meeting with Chinese representatives that Moscow and Beijing are unlikely to agree on the price of Russian gas supplies to China before the middle of next year.
http://www.chinadaily.com.cn/china/2010-11/24/content_11599087.htmChina and Russia have decided to renounce the US dollar and resort to using their own... more
BEIJING—Chinese President Hu Jintao emphasized the need for cooperation with the U.S. in areas from new energy to space ahead of his visit to Washington this week, but he called the present U.S. dollar-dominated currency system a "product of the past" and highlighted moves to turn the yuan into a global currency.
Continued at: http://online.wsj.com/article/SB10001424052748703551604576085803801776090.html?mod=WSJ_hp_LEADNewsCollectionBEIJING—Chinese President Hu Jintao emphasized the need for cooperation with the... more
Did you know that the U.S. Dollar has lost 97% of it's purchasing power (value) since 1913, the same year Congress passed the notorious Federal Reserve Act? Few Americans know the truth about the Federal Reserve. The reality: the Federal Reserve is no more a part of the federal government than is Federal Express. The Federal Reserve is a private corporation run by private bankers.
Why should we care?
Read More: http://globalpoliticalawakening.blogspot.com/2010/12/worst-year-ever.htmlDid you know that the U.S. Dollar has lost 97% of it's purchasing power (value)... more
The majority of Americans believe that recent government intervention into financial markets, the economy and corporate insolvency has reversed the economic downturn which was described by former Treasury Secretary Hank Paulsonas being “on the brink” in 2008. The stimulus, bailouts and unrelenting quantitative easing by the Federal Reserve have thus far been perceived as having averted the further erosion of the U.S. real estate and equities markets. And though the Federal Reserve and economic analysts have recently readjusted their economic growth forecasts downward for the next six months, Americans no longer have to worry about, as Rep. Brad Sherman (D-CA) said on the house floor in October of 2008, the sky falling, multi-thousand point drops in stock markets and martial law in America.
The recovery – if our government, the Federal Reserve and mainstream media are to be believed – is on the road to recovery – albeit slowly and with some more pain ahead.
If we’ve “prevented economic collapse” and “avoided the depression many feared,”according to President Obama, inquiring minds are asking why the Pentagon and US Military are actively and aggressively engaged in planning responsive action to large scale economic breakdown and civil unrest scenarios:
Ever since the crash of 2008 the defense intelligence establishment has really been paying a lot of attention to global markets and how they can serve as a threat to U.S. national security interests. At one upcoming seminar next month they’re taking a look at a lot of the issues.
According to the report, the Army has spent time on financial market trading floors with JP Morgan and others, in the hopes that they can learn more about how a financial and economic attack may occur, and what the ramifications of such attacks on US stocks and bonds may be.
The Army, in a year-long war games series called Unified Quest 2011, is looking at a variety of possibilities and how to deal with them, including:
the implications of “large scale economic breakdown” inside of the United States
how to maintain “domestic order amid civil unrest”
and ways to deal with fragmented global power and drastically lower budgets
Clearly, the U.S. government is making contingency plans to deal with a worst-case, all-out-collapse scenario of not only the economy, but our social and political systems.
The war gaming, according to reports, began in 2008 at the onset of the economic crisis, but planners from not just the United States, but around the globe, may have been aware of the dire possibility of economic collapse even earlier. It’s well known that the U.S. government as well as foreign counterparts have been preparing bunkers and continuity of government for decades, but recent preparedness activities suggest that the planning in some aspects has been expedited. Anecdotal evidence indicates that the US government has been the leading buyer of freeze died foods for the last couple of years, and private emergency shelter contractors have reported a shortage in equipment and supplies for building personal-sized bunkers.
In a previous report titled Homeland Security To “Regionalize” Emergency Supplies Over Next 90 Days, we pointed out that FEMA, headed by Department of Homeland Security, is decentralizing emergency supplies from one main distribution facility in Washington D.C. to fifteen regional facilities around the country. Even the Russians and the EU are in high gear. Russia has reportedly begun planning and development of5,000 new underground bunkers for the city of Moscow scheduled for completion no later than 2012. The EU, in 2006, commissioned the building of a “Doomsday Seed Vault” in a mountainside several hundred feet above sea level. The facility was built and fully stocked with millions of seeds from around the world within 18 months.
Though the activities of global governments in recent years could potentially be chalked up to standard national security preparedness and contingency planning, the most alarming indicator that the U.S. government is not just looking at one-in-a-million possibilities in terms of economic collapse is the training of several thousand U.S. Army soldiers to respond to domestic policing and enforcement issues that may include evacuation, detainment and riot response. The real possibility of the need to deploy U.S. military under martial law exists, and the U.S. government is spending millions of dollars training and equipping soldiers to do so if necessary.
For those who may have their doubts about some of the scenarios these soldiers are training for, we point out the sign being held by one of the riot role players below.
It is hard to imagine an America under an economic attack so serious that the U.S. economy could suffer a collapse that would essentially put an end to the world as we have come to know it. But for those who think rationally, especially given the current malaise in financial markets and the U.S. dollar, the possibility cannot be ruled out.
As such, any government acting in the interests of national security would take steps to deal with and respond to such an event(s).
For the average populace prole, however, there may not be any real assistance should something like this occur. First and foremost, any government response to an attack on our financial and economic systems will have the primary goal of maintaining order and the rule of law, as well as continuity of government. This is a given.
This means that if, for whatever reason, be it a collapse of the US dollar that leads to disruptions in the flow of U.S. food supplies or an economic war that goes “hot” leading to worst-case scenarios like cyber attacks on U.S. infrastructure elements like electric and water utility plants or an EMP attack, the government’s mandate will not be to provide food and security for your family, but rather, for those who are deemed essential to accomplishing the primary goals.
This means that when and/or if it hits the fan, you’re going to be on your own.
If you haven’t yet, we recommend taking the advice of FEMA (pdf), who suggest that every family have emergency preparedness supplies on hand, including food and water, for at least a couple of weeks.
For the hard core “preppers” amongst us, you may have already considered this possibility and the chance that the fallout from an economic collapse may lead to an inability to perform daily transactions with the U.S. dollar, food supply disruptions, violence and looting, and even a completely ‘down-grid’ where utilities are completely out of service. If you haven’t, what would you do if you awoke to news of a total meltdown in the US dollar – one that led to rejection of the US dollar as a currency for international settlement?
Will you be the one facing off against highly trained U.S. military personnel holding a “Food Now” sign at an inner city riot?
The U.S. government and many of their counterparts around the world are getting ready – just in case – maybe you should be too.The majority of Americans believe that recent government intervention into financial... more
Earlier this year, Lindsey Williams told Alex Jones the globalists would devalue the dollar and jack up the price of oil.
Both are now happening.
Read More: http://globalpoliticalawakening.blogspot.com/2010/11/dollar-begins-crash-in-response-to-qe2.htmlEarlier this year, Lindsey Williams told Alex Jones the globalists would devalue the... more
Some speculate error was secret signal to indicate where precious metal is really heading
investors were briefly panicked yesterday when the Yahoo Finance website indicated that gold had soared to over $3400 dollars an ounce, an instant jump of 175 per cent. Possible reasons for the shocking spike ranged from a simple mistake to a secret signal being communicated to insiders as to where the commodity was really heading.
Just after 11am eastern time, the Yahoo Finance website gold graph indicated that the precious metal had jumped from $1235.60 an ounce to a whopping $3401.50 an ounce in the space of minutes. The commodity then quickly returned to its previous level almost immediately.
The only event that could precede such a massive and instantaneous jump in gold would have to be something on the scale of a nuclear war or a sudden and total collapse of the U.S. dollar.
Since the apparent glitch was only registered on the Yahoo website, many have attributed it to an in-house error. But that didn’t stop financial forums raging with speculation as to whether the snafu wasn’t some kind of hidden message being put out to insiders as to when gold will really hit such a level.
“This is one of those secret messages to traders in the know that tell the brokers when gold will be at a certain level,” claimed a Kitco forum member.
Indeed, numerous investment analysts speculated last year that gold was heading towards the $3500 range as a result of a deflationary collapse of the U.S. economy.
“Did it really do that, and I wonder if someone knew and cashed in bigtime only to re-invest it after it dropped back down. If they did, they made some major moola!,” commented a poster at DailyPaul.com.
Was this a ‘tell’ to let insiders know that gold is about to soar? Or was it nothing more meaningful than a technical glitch?Some speculate error was secret signal to indicate where precious metal is really... more
HARARE, Zimbabwe — The washing machine cycle takes about 45 minutes — and George Washington comes out much cleaner in the Zimbabwe-style laundering of dirty money.
Low-denomination U.S bank notes change hands until they fall apart here in Africa, and the bills are routinely carried in underwear and shoes through crime-ridden slums.
Some have become almost too smelly to handle, so Zimbabweans have taken to putting their $1 bills through the spin cycle and hanging them up to dry with clothes pins alongside sheets and items of clothing.
It's the best solution — apart from rubber gloves or disinfectant wipes — in a continent where the U.S. dollar has long been the currency of choice and where the lifespan of a dollar far exceeds what the U.S. Federal Reserve intends.
Zimbabwe's coalition government officially declared the U.S. dollar legal tender last year to eradicate world record inflation of billions of percent in the local Zimbabwe dollar as the economy collapsed.
The U.S. Federal Reserve destroys about 7,000 tons of worn-out money every year. It says the average $1 bill circulates in the United States for about 20 months — nowhere near its African life span of many years.
Larger denominations coming in through banks and formal import and export trade are less soiled.
But among Africa's poor, the $1, $2, $5 and $10 bills are the most sought after. Dirty $1 bills can remain in circulation at rural markets, bus parks and beer halls almost indefinitely, or at least until they finally disintegrate.
Still, banks and most businesses in Zimbabwe do not accept torn, Scotch-taped, scorched, defaced, exceptionally dirty or otherwise damaged U.S. notes.
Zimbabweans say the U.S. notes do best with gentle hand-washing in warm water. But at a laundry and dry cleaner in eastern Harare, a machine cycle does little harm either to the cotton-weave type of paper. Locals say chemical "dry cleaning" is not recommended — it fades the color of the famed greenback.
Laundry worker Alex Mupondi said customers asked him to try machine-washing a selection of bills and the result impressed him.
But storekeeper Jackie Dube hasn't yet taken up advice of friends to cleanse the often damp and stinking U.S. dollars she receives for the garments and cheap Chinese consumer goods she sells in Harare. It's time-consuming, she says, adding that stinky, unhygienic bills are a problem.
"I get rid of the worst of the notes as soon as I can in change," she said.HARARE, Zimbabwe — The washing machine cycle takes about 45 minutes — and... more