Jump to content


The Eventual Death of the U.S. Dollar.

U.S. Dollar Death Dollar Collapse IMF BIS Crash Petrodollar Russia China dumping

  • Please log in to reply
584 replies to this topic

#561 befruitful

befruitful

    Member

  • Members
  • 1,121 posts
  • Gender:Male

Posted 13 April 2012 - 11:10 PM

I'm not savvy about $$, & or investments, the mechanics, forex, banksters, fed reserve even less comex etc. Perhaps someone can call BS on silver for instance as a hot riser, precious commodity underpriced historically by ratio & in high demand and manipulated low until "it's time" (to make $$, rise....dip, dive, sky etc. Silver for example just shot up &&& down $1.50 in about a nanosecond.

What's the real deal on the agit-prop ie. (Pan Asia Gold Exchange)June 2012...Hong Kong Mercantile Exchange?

I will post the two articles below separately which lead me to wonder about this situation, fyi.








Sorry. I could not copy the articles as they are copywrited.

What one perceives from the info, which I don't know is reliable is that big US$ like MorganStanley kept silver low to gain on their borrowed shorts...and they'll likely do the reverse pretty soon. Much inference is made of a triad collusion w/ trans asian axis sellout of the USD by bama-geithner & Bben and a "correction" of the supply-demand curve on pms w/ Hong Kong & Pan-asian performing a "shanghai" on the cmex.


http://www.marketoracle.co.uk/Article326....

http://moneymappress.com/video/mmp/mmr/m
....
or video... click off the page & choose remain on page to just read the text.


#562 SJL

SJL

    Member

  • Members
  • 2,363 posts
  • Gender:Male

Posted 15 April 2012 - 01:39 AM

My worst fear is that the Fed Reserve is acting like a big re-insurer of the market now. So, this is like getting life insurance on a child in your house and getting your child killed so you can perceive the money. As a result of profit making on life insurance or, worse, frauding the Feds by killing Americans (the economy and the dollar), and perceiving the money, the enemy has game. I have heard horror stories of this sort perpetrated by the Russian mafya.

Our capitalists are completely stupid.

Of course the banks do not want the silver and the gold to do good as insurance, because they want the insurance fee perception, and because they hate the wisdom and the getting out of the castle of cards which they count on - much like a church which does not like the competition of prophets.

However, this is going to play badly into the conspiracy theory against them that communists hope to grab in order to play sides against each other, in trials and tribulations, while communist inherent backstabbers keep each other busy on us instead of on themselves. Communists hate, and they hate the most because they are against any marriage inside their own circles proper. So they will go after banks, "secret deals", mismanagement etc... before they will fight each other in earnest. I believe there is such agreement to this extent. Of, course, communists will probably putz too on each other and some will beg to keep a burka in exchange for protection.

It's going to be quite an echeloned circus of death in the next few years, imo.

#563 SJL

SJL

    Member

  • Members
  • 2,363 posts
  • Gender:Male

Posted 19 April 2012 - 09:09 AM

THere is a movement against martial law, but this is a strawman's argument against a military moving in to reestablish order and conservative constitutional law. What is not impeded is this "leftist" shariah paramilitary like secret police legal system inserting itself as a savior to our problems.

Lately there have been conspiracy screeds about Obama putting us toward martial law as scandals are breaking left and right. This is the rocket day approach of confusions, foreign invasions etc...

When Secret Service agents are involved in a scandal like this, they will be fired or they will be in for "change" to a new legal system that will keep them in check while they keep doing their jobs. It's a system of exploitation of either you are in on the money, or out, ie. in on the corruption or out.

This is total corruption.

I was also watching the show Sons of Guns, and one of the last episode was about arming a car for a client in Eastern Europe. I am not sure why the gun company acting in the reality show is called Red Jacket with a red star. At first I thought it was because it has memorabilia from the British Red Jacket troops in the store, which is very strange because we fought against them. I did not see much US patriotism in fact, other than bikers and celebrity singers. Ted Nugent was there.

The point is that it seems that US high tech people are being hired to do jobs for contractors who help body guarding some Eastern Europe shady business people. Is America's taxes and Headquartering abroad and what not following a similar pattern of turning this nation and its military in some kind of BAnana Republic for International private forces that are disorganized, so that the enemy can take over and rule gangster like over US companies to do their protection bidding, the way the Germans would do it for Russians.

Their dream is German brains and Russian numbers...

Another thing in mind is the incomprehensible depravity of US politics, unless one understand the switch to a new legal system. The reason is that intelligent gangsters do not hire drug addicts or sexual perverts and stupid demoralized people like this. In fact they kill them, and that is why in prison systems the pedophiles are eliminated as they are no reliable at all. Yet, under liberal America, the gangsterism is pushed that way. This is really worrisome. There also is this "racial instinct" in the air.

I once were told by a Ukrainian living in Israel that the sun and the melanine in those regions are related to sexual addiction and addiction resiliency, ie. the ability to function while burning on such substances. I am not racist, but it does not take a rocket scientist to figure the paranoiac uneasiness with respect to race that the like of Jesse Jackson and Sharpton manifest. In other words, there might be a metabolic issue with black skin, high muscle mass and low fat content which combine to make it a locus of sex, drugs and other adult recreational activities. Multiculturalism then would delve into shaping America more into that kind of activity, via the "black culture/man metaphore" of things. This is not to speak of mental inferiorities, but of a proclivity for the brain under such metabolics to orient itself toward more myopic and thus servile activities in sin.

So, as a result, there is a custodization of these loci which proves useful to shrewd lawyers willing to exploit them under the guise of government control. This leads invariably to Secret Service scandals and shariazation of the situation, because, in Afghanistan, they manage prostitution by legal sharya cop outs calling them "16 minute marriage and divorce contracts".

This is a disaster. Where are the cooler heads? Who benefits from this? Why is there a movement against miltary take over, and a military which would oversea the reestablishment of the US constitution, or, at least, some kind of nation building scenario as seen in Iraq, which worked somewhat, because only an organized miltary can pull this. However, with gay rights inserting in the military, this nation building is now going to reflect rights of the gays. The military does not bothered too much about gay rights within the ranks because it always has combat restrictions, the so called catch22, which tends to monastic life no matter what. What is worrisome is soldier to civilian gay marriage, because the military must pay for spouses, and that creates problems when the military is trying to manage costly relationship which damage soldiers or neutralize them effectively.

The issue of this slide into folly and paranoia in America is something we have to watch it happen as it is motivated by artificial or foreign forces, and this "metabolic emotionalism" is deleterious particularly to America. In or out, the world seems to shaping itself into two classes: the rich thinking gangster lawyers and the drug addicts who are the slaves. However the cares and hopes of the Founding Fathers towards maintaining less cynical avenues and Constitutional law seem to be fading away for now. Irony is that the very state that berates Georges Washington for owning slaves back then, is the very state that he was trying to avoid by making marriage vows legal, and it is the very state we are asking for. The sheeps return to the barn in a chaotic manner without a shepherd, nor a barn left, in complete chaos.

#564 SJL

SJL

    Member

  • Members
  • 2,363 posts
  • Gender:Male

Posted 19 April 2012 - 11:08 AM

Note that, in the end, whether it is war or slavery, force is usually what it takes, and, this is the material factuality. Thus war is always an extention of politics. Now, the communists have this UTOPIA bait, which is about no force, no death, no war, no expense etc... and with nonprofit "non religious" non traditional entities. These are mainly for bait, because, in the end, the force of necessity or what have you is what drive all these "changes", but there is no change. Of course, the political correctness is to get profit without force and look good. That is the bottom line leftist politic of those who would gamble and play the lottery, and, yet, not arm themselves with weapons to keep their wealth.

If one is to work, it might as well be for profit. But there are many out there who work for "non-profit" or "negative profit" because of suicidal guilt feelings, like those people who go to Palestinian camps and blame the rich for getting raped by locals there. The situation sought is very hysterical. This is what the communist wants. A self hate directed against the self, this evil utopia of demoralized state. It is interesting that this freak culture is also metaphored in the UFO culture of free technology obtained through theft or from out there.

Thus truly blessed are those rejected from such world when reaching through observation, meditation and contemplation. We should be aware that every action results in a reaction, however. It really is a play on the dynamics.

#565 SJL

SJL

    Member

  • Members
  • 2,363 posts
  • Gender:Male

Posted 15 May 2012 - 10:10 PM

http://news.investor...ves-.htm?p=full

Oh, look, some oil to loot...

#566 goodcomdeadcom

goodcomdeadcom

    Member

  • Members
  • 336 posts
  • Gender:Male
  • Interests:Greetings, and God bless. I am William, in Idaho Occupation: Welding. Hobbies: Reading, singing in the church choir and three-gun patrol shooting. Bio: Army brat, ex-Navy, former rabid secular humanist, current junior high Sunday school teacher and just glad to be alive and in the service of my Lord and Savior Jesus, the Christ.

Posted 21 May 2012 - 04:29 PM

Greetings, and God bless.

I didn't know if this should go here or in the Chicom war preperations thread. It's a toss-up.

Apparently the Chicoms no longer have to go through designated banks in order to purchase US Treasuries. I find this line from the Reuters story linked below to be particularly disturbing:

"The documents viewed by Reuters show the U.S. Treasury Department has given the People's Bank of China a direct computer linkto its auction system, which the Chinese first used to buy two-year notes in late June 2011."

Bad enough that they're finding their own ways into critical systems without us pulling down barriers for them. There are other troubling items in the story as well.

http://www.reuters.c...E84K11720120521
Soylent Green Is Sheeple!!!

#567 SJL

SJL

    Member

  • Members
  • 2,363 posts
  • Gender:Male

Posted 27 May 2012 - 11:33 AM

As usual, they can play in our liberal capitalist and political system, but we cannot voice anything to their folkes about how to fend for themselves and improve their lot. The communist corruption in China is now going full bore and we are supporting it. Great.

Something very nasty is brewing up. Some have staked all in nuclear weapons, while we are staking in a$$ economy in fundamental cultural heartfelt ways. Whether we are equiped with the equipment or not, we have destaked ourselves from it.

This is not good, and we are asking for the hood thug life of low lives, embracing and loving hell, thinking it is fun and game. The sheltered AMerican society might have made the hood a utopian viable, but the reality is more like Rwanda once these social, police and military safeguards will be going down...

Keep your bearings straight and pray hard, the animals of hell are about to be unleashed and wailing.

In 2009, when Treasury officials found China was using special deals with primary dealers to conceal its U.S. debt purchases, the Treasury changed a rule to outlaw those deals, Reuters reported last June. But at the same time it relaxed a reporting requirement to make the Chinese more comfortable with the amended rule.

OK, so basically we are punishing them but we are not, giving them preferential treatment so long they let the US government know but not us???

This is so anticonstitutional. Now we understand why the anticonstitutional corruption is in gear.

The greedy will sacrifice his whole wealth for penny keeping compulsion and arrogance. Who needs Perestroika deception, so to speak, when we are letting the socialist model of China do insider games with our own socialist internationalized government now, submissive and stupid, giving them the reins of "industrial para-military might" credit?

We might as well call it Memorial day for China and Obama.

#568 NBT Truth

NBT Truth

    Member

  • Members
  • 780 posts

Posted 19 July 2012 - 07:43 AM

These agreements mark the beginning of the end of the dollar's status as the world-wide reserve currency. They also constitute Russian and Chinese financial preps for the day when they 'make their move' against the U.S.

11 International Agreements That Are Nails In The Coffin Of The Petrodollar

http://theeconomicco...the-petrodollar

#569 SJL

SJL

    Member

  • Members
  • 2,363 posts
  • Gender:Male

Posted 24 July 2012 - 12:59 PM

THe manufacturer needs a truster, someone giving him some credits. In exchange for that work or credit, the manufacturer holds a bond promise of a return. So, basically money works out of a certain intelligent trust and deal.

The communist wants to destroy that money intelligence. It's how he advances through government (which has no idea about money), and infiltrates our society (by dumbing it down of business and making it lose its understanding of money), and destroys the family and religious trust.

Europe has lost a lot of that, and it always has been behind in financial markets despite having good mathematicians, simply because a mathematician is a sort of engine which can do the trade computations, but he has no idea of where this all come from: the business man however knows. He is at pain to try to explain this to the rest, but people are paranoiac and want to play instead.

So we really are built upon a system we milk out of without understanding it.

Now, the spread of the risk between nations to avoid the petro-dollar decadence problems is a threat, but what it really is is a representation of further monetary debauchery and demoralization, because the third world has no concept of money whatsoever, except maybe some very small minority in Japan or India, but that would be it, if it were. It's not feasable, however.

So, this is a dangerous trend that looks to me like a 1925 style run on banks and flight of capital. This is communist dominated and a sort of cultural movement of dishonor of agreements. THe world is growing in distrust and war might multiply. The actors are not real, but fantasy driven (Obama's weird policies and preferencial treatment in civil rights issues etc.)

ANd this lends weight to JRN's understanding that Russia and CHina have no understanding of any of this. They go by a war economy and replace that trust with a certain dictatorship. To think we can share is crazy in their minds. Even if our people were good with money, which they are not and are decaying as examplified by the utter failure of our intel services, it still would be crazy to trust them because they have zero confidence in the "Old Deal".

Thus their mind is going to be logically orientated toward the "selfish option, ie. to take care of yourself and screw the rest before they screw me". And we have changed from a COld War mode with them to "we are going to get them screwed" mode. Our utopian fabians do not help in their reckless corruption and manipulation of the legal system.

It really is a big mess we are in.

#570 NBT Truth

NBT Truth

    Member

  • Members
  • 780 posts

Posted 31 July 2012 - 05:48 AM

The European banking system is on the ropes. The dollar collapse is in progress; and apparently, the Germans are "looking east" for solutions...

"...The key to the next chapter is a growing alliance between Russia and Germany. All pipelines coming from Russia end in Germany. The largest roll-on & roll-off rail facility is in the port of Finofort in Germany on the Baltic Sea. The North Stream pipeline is going from Russia, across the bottom of the Baltic Sea, all the way to Germany, where it terminates at Lublin. The rail network from China passes through Russia and on to Germany. An entire network of rail systems is being fixed for heavy duty rail transport. Test runs have been successfully concluded. Chinese and Russian companies have been buying up the majority of former East German airfields, where heavy lift cargo planes come in every day to deliver good to large scale industrial facilities, destined for making finish products and distribution in the EU. An important point is that German obtains from Russia its raw materials including metals and energy. It is not the Middle East, and therefore the strategic thinking is not skewed. The open trade is brisk. The German foreign policy is not written by a small nation on the Southern Mediterranean...."


Rats at IMF and BIS are leaving the ship heading for a CRASH

http://www.goldismon...ing-for-a-CRASH

#571 SJL

SJL

    Member

  • Members
  • 2,363 posts
  • Gender:Male

Posted 14 August 2012 - 11:53 AM

The European banking system is on the ropes. The dollar collapse is in progress; and apparently, the Germans are "looking east" for solutions...

"...The key to the next chapter is a growing alliance between Russia and Germany. All pipelines coming from Russia end in Germany. The largest roll-on & roll-off rail facility is in the port of Finofort in Germany on the Baltic Sea. The North Stream pipeline is going from Russia, across the bottom of the Baltic Sea, all the way to Germany, where it terminates at Lublin. The rail network from China passes through Russia and on to Germany. An entire network of rail systems is being fixed for heavy duty rail transport. Test runs have been successfully concluded. Chinese and Russian companies have been buying up the majority of former East German airfields, where heavy lift cargo planes come in every day to deliver good to large scale industrial facilities, destined for making finish products and distribution in the EU. An important point is that German obtains from Russia its raw materials including metals and energy. It is not the Middle East, and therefore the strategic thinking is not skewed. The open trade is brisk. The German foreign policy is not written by a small nation on the Southern Mediterranean...."


Rats at IMF and BIS are leaving the ship heading for a CRASH

http://www.goldismon...ing-for-a-CRASH



Some news...

http://www.spiegel.d...o-a-849747.html
Investors Prepare for Euro Collapse




Apparently the Chinese do not want US government regulations and scrutiny either, going private...
http://finance.yahoo...-095649722.html
Chinese companies pull out of US stock markets

Chinese firms leave US stock markets amid complaints about price, accounting scrutiny

#572 Guest_That One Guy_*

Guest_That One Guy_*
  • Guests

Posted 14 August 2012 - 12:31 PM



Some news...

http://www.spiegel.d...o-a-849747.html
Investors Prepare for Euro Collapse




Apparently the Chinese do not want US government regulations and scrutiny either, going private...
http://finance.yahoo...-095649722.html
Chinese companies pull out of US stock markets

Chinese firms leave US stock markets amid complaints about price, accounting scrutiny


I look at it this way: The Chinese more or less are engaging in economic warfare this way as well. I'm not sure exactly about how much of a percentage they make up in the overall American economy, but... The more that leave, the less taxes the government gets. They helped cause this economic crisis to push us over the edge. We all know our industries are hollowed out and sent abroad. Once they're gone from here, what do we have left? Invest, then deal a blow by divesting. Adding whatever fuel you can to the fire.

#573 Guest_That One Guy_*

Guest_That One Guy_*
  • Guests

Posted 03 October 2013 - 05:00 AM

I happen to like Freeman's work and his discernment of today's times. Here's a good piece from him. The full article can be found by clicking the link.

 

The fate of the USD is already a given, but when the plug is pulled is the question of the day.

 

Forget the Shutdown, Our Next Problem is the Dollar

 

The chatter against the dollar as global reserve currency has ramped up in recent days. The risks are huge and largely ignored. Even allies are questioning how long the dollar can sustain its status in light of our enormous debt and deficit. Now, with the government shutdown in place and a political battle over the debt ceiling, our enemies are looking at the possibility of an attack on our currency during the confusion.

 

Sadly, too many believe that our dollar will remain permanently strong. Of course, these are in many cases the same people who would argue that deficits don’t matter and that the Treasury could mint $1 trillion platinum coins, essentially making up money out of thin air, and no one would complain. They are living in a fantasy world, emboldened by doctored government statistics that attempt to show there is no inflation in the system.

Will the dollar remain permanently strong no matter how bad our fiscal and monetary policy? Logic, the facts and history say otherwise.

 

Simple economic theory shows that if you produce more supply of something without an increase in corresponding demand, the price of that item will fall. Obviously, we have greatly increased the money supply and the Federal Reserve’s balance sheet in recent years despite anemic economic growth. Thus, the value of the dollar is destined to fall. The only thing keeping it up at all is the fact that foreigners need dollars for international trade, especially oil purchases. If nations truly begin trading in other currencies, demand will actually drop. Combined with increased supply, the price will plummet.

 

The only thing backing the dollar at this point is the “full faith and confidence” of the U.S. government. So what happens in a government shutdown? Or a failure to raise the debt ceiling? Would that be an excuse to begin a run on the dollar without being blamed?

 

The truth is that no “fiat” currency is permanent. A fiat currency is defined by Investopedia as:

 

   

“Currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on faith.”

 

 

 

 

The American dollar is the most widely circulated fiat currency in the history of the world. Unfortunately, fiat currencies are never permanent. Even the venerable Mark Mobius of the Templeton Funds understands that the day will come when fiat currencies are no longer accepted. He was quoted in a CNBC article last year:

 

Mark Mobius, Executive Chairman of Templeton Emerging Markets Group, says investors will soon start to demand fiat currencies be backed by gold or other hard assets.

 

 

 

 

“It’s already happening, you’re beginning to see that trend with central banks stocking up on gold. The estimate is that at least half of the buying is central bank buying. They are looking to the day when they can say okay, our currency is backed by gold and therefore we’re a strong country,” Mobius told CNBC Asia.

 

Mobius has $50 billion under management.

 

To CONTINUE Reading at CNBC . . .

 

 

 

Read that carefully. Mark Mobius is no fear monger. I worked with him at Templeton and respect him a great deal. He travels the world extensively and is successful because he has his pulse on the thinking of people from a wide variety of cultures and backgrounds. He works for one of the largest asset managers on the planet. And, he’s right about this.

 

The average life span of a fiat currency is 27 years. Our dollar has been unbacked by gold since 1971 and is therefore “long in the tooth.” Even if everyone loved our dollar and America, at its current age and health condition, we’d have cause to worry. The problem is, however, that not everyone loves us, as much as we hate to say it.

 



#574 WmWallace

WmWallace

    Administrator

  • Admin
  • 2,977 posts
  • Gender:Male

Posted 03 October 2013 - 08:50 PM

Great piece!

I watched the presentation at the link, too.

This could all come to a head, soon, with the looming debt ceiling deadline of 17 Oct. (I just did a separate thread related to this.)

#575 Guest_That One Guy_*

Guest_That One Guy_*
  • Guests

Posted 07 October 2013 - 08:25 AM

If this goes through, this could be the straw that breaks the US Dollar's back. We have until October 17th. We know that Obama wants to break the Dollar, among many other things.

 

I believe the likelihood of this happening is how much the Republicans can be blamed for, and I think the reds are assessing this now. I think at this point, he can keep the tables flipped and make about 70% of it stick to them. The media will be complicit, as they were instructed, and make sure that last nail is put in the coffin.

 

This will open up the way for a Democrat-Socialist-Communist avalanche and unchecked free-for-all, as the Republicans and conservatives have been portrayed as unforgivable and the now-immoral majority will never forget it. If it goes through, it will resonate in the average American mind as an economic 9/11 and you know who are the terrorists.

 

White House openly threatens US default as debt fight escalates

 

US Treasury Secretary Jacob Lew has issued a categorical warning that the United States will default on its $16.7 trillion debt and throw the world into turmoil unless Congress agrees to raise the legal debt ceiling by October 17.

 

“Congress is playing with fire. If the US government, for the first time in its history, chooses not to pay its bills on time, we will be in default,” said Mr Lew.

 

“Anyone who thinks that the United States government not paying its bills is anything less than default hasn’t thought about it very clearly,” he told NBC’s Meet the Press.

 

Mr Lew said the treasury had already exhausted its normal funds in May and has been “creating room” by resorting to one-off tricks, but these, too, have run dry. The government will have just $30bn by October 17, half what is needed to cover immediate needs over subsequent days.

 

“That is a dangerously low level of cash, and we’re on the verge of going into a place we’ve never been. Even getting close to the line is dangerous,” he said.

 

Mr Lew’s dramatic comments mark a further escalation in the game of chicken on Capitol Hill. They suggest that the White House has for now ruled out a drastic fiscal squeeze to balance the books if there is no deal, and is unwilling to contemplate exotic loopholes – such as a $2 trillion platinum coin – to circumvent the will of Congress.

 

Goldman Sachs said any attempt to balance the budget overnight would require savage cuts, stopping economic recovery in its tracks. This would go far beyond the current government shutdown, which has already led to the 800,000 “non-essential” staff being sent home. “We estimate that the fiscal pull-back would amount to 9pc of GDP. If this were allowed to occur, it could lead to a rapid downturn in economic activity if not reversed quickly,” it said.

 

Expected tax revenues over the month following October 17 will cover just two-thirds of federal spending. The sheer force of the fiscal shock would be ruinous.

 

The US Treasury warned last week that the dispute could lead to a “catastrophic” collapse. “Credit markets could freeze, the value of the dollar could plummet, US interest rates could skyrocket, potentially resulting in a financial crisis and recession that could echo the events of 2008 or worse,” it said.

 

Republicans have accused the Obama administration of whipping up hysteria to browbeat Congress. “It is irresponsible for high-ranking government officials to stoke fear into the marketplace,” said Senator Orrin Hatch.

 

House Republicans have refused to raise the debt limit unless the White House agrees to roll back the Affordable Care Act, dubbed “Obamacare”. Speaker John Boehner said on Sunday that he did not have the votes to raise the debt ceiling unless Mr Obama gives ground, though there were signs that Congress is starting to crack, with moderates floating a compromise based on tax reform.

 

Bank of America said the Republicans’ tough line is a high-risk strategy since Mr Obama believes he is on stronger political ground. “The President is very unlikely to agree to cuts in his proudest legislative achievement. He does not have to run for office again, while they are all up for re-election next fall. Surveys show Americans strongly disapprove of the shutdown and put more blame on Republicans. Ultimately, we expect them to drop the effort to weaken the Affordable Care Act, but this could take a while,” said the bank.

 

The risk for the world is that headstrong Republicans do force the issue. Mr Lew’s warnings suggest the White House may call their bluff, calculating that they will suffer greater opprobrium. Whoever is to blame, it is no way to run a railroad, let alone a superpower.

 

 



#576 Brutus

Brutus

    Member

  • Admin
  • 698 posts
  • Gender:Male
  • Location:Mississippi

Posted 08 October 2013 - 12:35 PM

Not being an economist myself, I wish someone well-versed in the field would explain, step-by-step, just how the end of the dollar as the world's reserve currency will truly affect the VALUE of the dollar and not just the PRICE of the dollar in foreign exchange.

 

To me, if any of the actual value of the dollar is based upon it's price in foreign exchange, that's all hot air and bullsh*t that needs to be eliminated from the equation anyway.

 

My take is that it's the entire productive capacity of the US that determines the value of the dollar, and the supply of dollars should reflect that.  The main problem we have right now is that the money supply is too large, thereby watering down the value of the dollar.

 

:huh:


Yes Virginia, the Russians are STILL the bad guys.

#577 WmWallace

WmWallace

    Administrator

  • Admin
  • 2,977 posts
  • Gender:Male

Posted 08 October 2013 - 03:30 PM

The way I've heard people like Peter Schiff explain it is, that, it IS the entire productive capacity that determines the value of a currency of a nation...EXCEPT ours - currently anyway - because of the fact that the US Dollar is the standard world currency. What props the dollar up is, that, when Chile or other country wants to buy oil, gold, wheat, or whatever from another country, their currency has to first be trading in for dollars because the 1million gal of oil is denominated in US Dollars. Take away the factor of the dollar being the world's currency, then the value of our dollar would indeed be based on our entire productive capacity....which is what, nowadays? We don't produce anything substantial anymore to warrant what the dollar can now buy on the world's stage. Maybe it's real value is 1/10 of what it currently is in relationship to the world's currency.

This is the way I understand the problem, but I'm definitely no expert on the subject.

The arrangements following WWII with the US and the rest of the world have certainly come to a close, but we're still benefiting from that era until now...how much longer will that be so?

#578 Brutus

Brutus

    Member

  • Admin
  • 698 posts
  • Gender:Male
  • Location:Mississippi

Posted 08 October 2013 - 06:22 PM

I have to disagree that we're only 10% as productive as we used to be.

 

We're definitely not the manufacturing powerhouse we once were, but we still produce a butt-ton of stuff in this country.  We're still hugely productive in agriculture, to include forest products (my sector).  With the development of fracking and such we're producing a LOT of oil, especially compared to what we were doing 10-20 years ago.  It has taken higher oil prices to make the shale plays worthwhile.  We also produce a crapload of cars and trucks, big trucks (18 wheelers), heavy equipment, etc.

 

I haven't seen the numbers on it, but I'd hazard a guess that the vast majority of the stuff that we import (primarily from China) is household consumer garbage that we could ultimately do without anyway.

 

And this is hard to value properly, but we also have a huge amount of intellectual property value in this country (if we can keep the sleazy ChiComms from ripping it off and counterfeiting it).  Smart phones and tablets may be made overseas, but the technology, the "brain work" behind it was developed here.

 

No, I don't have a completely rosy outlook regarding our national productivity, but I don't dismiss us as a footnote of history.........yet.

 

:unsure:


Yes Virginia, the Russians are STILL the bad guys.

#579 WmWallace

WmWallace

    Administrator

  • Admin
  • 2,977 posts
  • Gender:Male

Posted 09 October 2013 - 12:27 AM

It's the manufacturing aspects that I think about most when saying that we don't produce as much as we did before. The true test of how much all those other factors add up would be seen rather quickly should the dollar be dethroned as the world's reserve currency.

But, like I said, I'm no expert. One thing for certain, the stock market wouldn't rally on the day the dollar was dethroned.

#580 Brutus

Brutus

    Member

  • Admin
  • 698 posts
  • Gender:Male
  • Location:Mississippi

Posted 09 October 2013 - 08:46 AM

I happen to like Freeman's work and his discernment of today's times. Here's a good piece from him. The full article can be found by clicking the link.

 

The fate of the USD is already a given, but when the plug is pulled is the question of the day.

 

Forget the Shutdown, Our Next Problem is the Dollar

 

 

Freeman does some good work.

 

I don't agree with him on the supposed need to go back on a gold (or silver) standard to "back" our currency, but his work on uncovering instances of economic warfare against the US is very good and has largely been ignored by all the other "experts" out there.

 

:)


Yes Virginia, the Russians are STILL the bad guys.





Also tagged with one or more of these keywords: U.S. Dollar, Death, Dollar Collapse, IMF, BIS, Crash, Petrodollar, Russia, China, dumping