The Destruction of the US Dollar
POSTED BY: JaynezTown
UPDATED: Thursday, October 16, 2008 00:43
VIEWED: 21107
PAGE 3 of 17
The real killer is going to be gold. If the oil producing nations switch to the Euro as the currency oil is bought and sold in, the dollar is going to crash horrifically.
I almost don't want Obama to be elected because he's going to be blamed for the inevitable disaster that is coming which is entirely due to the last eight years of Republican rule.
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Gold has no intrinsic value. It has some industrial uses, but the value of gold, gemstones, and some of the other hedges are based on sheer speculation. Value can fall just as quickly as it rose if speculators perceive a "better" investment elsewhere.
The oil-producing countries already are shifting to the Euro.
Iran turns from dollar to euro in oil salesQuote:
Iran is selling more of its oil for payment in euros than dollars as it seeks to shift its foreign currency reserves away from the depreciating currency of its political enemy, the United States. The world’s fourth-biggest oil exporter has inserted a clause in its oil contracts allowing it to request payment in alternative currencies.
http://business.timesonline.co.uk/tol/business/economics/article126395
4.ece
Some say that the Euro question was the real reason for invading Iraq: Iraq had already switched to the Euro on 2000 and was about to sign oil contracts with France and the USSR, the payment was also to be in Euros. Similarly, some say that the Euro option is the real reason for wanting to invade Iran.
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Let's party like it's 1929.
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We need a shock to wake us up, there were warning signs about the Great Economic Depression but we did nothing until it was too late, warning signs about Japan and Germany before 1941 but we only acted when our Habor was destroyed. Most people refer to the Stock Market crash of 1929 as the beginning of the Great Depression, but it actually started before the Stock Market Crash for most Americans. Oil has been America's Achilles heel for sometime and everytime we fuel up billions of dollars go overseas to Arab nations who are starting to really dislike us. Each American citizen's share of the national debt works out, according to the National Debt clock works to $29,150.10. This recent debasement of the dollar should have sounded a national alarm bell to the ears of traditional America but again we sit in a slumber, stuck on a diet of pop-tv and junk food and media sound bytes. Presidents should have been leading responsible pay-as-you-go financing. Another sudden dollar decline would at least threaten to produce a wage-price spiral - and the mere threat would mean that the Fed reserve would likely be forced to raise rates. Many news websites reported last month that the Chinese, Japanese etc are considering abandoning the U.S. dollar as their national reserve currency but CNN, Fox etc refused to pick up this story. I think we will have realised we are in meltdown point when the finance people take some additional action to stop the dollar drop, but it won't be enough, and the currency markets won't do what the ministers want.
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What is happening to Americans is a microcosm of world finances.
Production, investments, and services are created by demand. For decades, the USA was the "world consumer", creating the German, Japanese, Korean, Taiwanese, Saudi, UAE, and Chinese economies. Without us, they wouldn't have had anyone to sell to. Since we were the also world's leading industrial economy, our currency meant something: it was bakced by the full faith and credit of our economy and our technological prowess.
That ended a few decades ago and we've been coasting on credit ever since.
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Let's party like it's 1929.
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Quote:Weird, just the other day I said pretty much the same thing to a friend of mine. Glad I'm not the only one who's had this thought.
Originally posted by SimonWho:
I almost don't want Obama to be elected because he's going to be blamed for the inevitable disaster that is coming which is entirely due to the last eight years of Republican rule.
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This isn't my signature. I have to type this every time I make a post.
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Quote:
Originally posted by Khyron:Quote:Weird, just the other day I said pretty much exactly the same thing to a friend of mine. Glad I'm not the only one who's had this thought.
Originally posted by SimonWho:
I almost don't want Obama to be elected because he's going to be blamed for the inevitable disaster that is coming which is entirely due to the last eight years of Republican rule.
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This isn't my signature. I have to type this every time I make a post.
It ain't just y'all. I been thinkin' it for quite some time now. No matter who gets elected, they're going to inherit about 37 kinds of shit, and they're going to get all the blame for it.
Mike
"I supported Bush in 2000 and 2004 and intellegence[sic] had very little to do with that decision." - Hero, Real World Event Discussions
I can't help the sinking feeling that my country is now being run by people who read "1984" not as a cautionary tale, but rather as an instruction manual. - Michael Mock
The Myrmidons were an ancient nation of very brave and skilled warriors as described in Homer's Iliad, and were commanded by Achilles. - Wikipedia
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Quote:So you ADMIT that the last eight years were Clinton's fault!!!!!!
Originally posted by Kwicko:
No matter who gets elected, they're going to inherit about 37 kinds of shit, and they're going to get all the blame for it.
just thought I'd say it before AU did...
Chrisisall
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This is BEARnanke territory
The Bank of England listening to people like Greenspan, is keeping its rates at 5 percent and might increase it. While our new guy Bernanke is slashing like crazy and running the dollar printing press as fast as he can.
In Japan, the Nikkei had its worst losing steak in 45 years
Quote:
(AP) — Leaders from the Group of Eight industrialized powers expressed "strong concern" about rising oil and food prices but said they remain "positive" about the outlook for the global economy in a communique released Tuesday.
Saying that surging oil prices pose a risk to the world economy, the G-8 leaders urged that production and refining capacities be increased in the short term and that investment be boosted over the medium-term.
The G-8 — which groups the US, Britain, Japan, France, Germany, Canada, Russia and Italy — also called for diversifying sources of energy and further efforts to improve energy efficiency.
To enhance energy security, the leaders proposed an energy forum focused on energy efficiency and new technology to help dialogue between producers and consumers. No further details were available.
"We remain positive about the long-term resilience of our economies and future global growth," the leaders said in the statement released on the second day of the G-8’s three-day summit in northern Japan, noting that growth in emerging economies remained strong.
"However, the world economy is now facing uncertainty and downside risks persist," the statement said.
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Gas prices stay in record territory remaining at $4.10 a gallon
The Dollar dropped again
Oil is up with tension rising in Turkey and Iran
Gold may hit $1000/ounce
Commodity like Gold have become more popular as an investment to stop your savings from dropping in value
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meh....
It's funny. I was the number one guy telling people the sky was falling and now that the shit is coming down, I'm the least worried about it.
We'll make it through, no matter what happens. This isn't the first time.
I really don't like the FED controlling this all though. Those guys aren't stupid. We're where we are at because that's where they wanted us to be today. Greenspan knew exactly what he was doing when he all but ruined the American dollar. Bernake isn't doing much to win my approval either. I made 20 bucks interest last month on a 15,000 investment. It's sick that they lowered the rates so much again.
"A government is a body of people, usually notably ungoverned." http://www.myspace.com/6ixstringjack
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