Nov 132013
 
If the us dollar is on the road to collapse, then here is an alert for all of you   Russian lawmaker seeks to ban US dollar, predicts 2017 collapse To protect Russians against the “collapsing US debt pyramid”, a Russian legislator has filed a draft bill to ban circulation of the currency in Russia. Once a Moscow mayoral hopeful, Mikhail Degtyarev, 32, likens the US dollar to a worldwide ponzi scheme which he says is scheduled to end in 2017. “If US national debt continues to grow at its current rate, the dollar system will collapse in 2017,” the submitted draft legislation says.  “In light of this, the fact that confidence in the US dollar is growing among Russian citizens is extremely dangerous,”  Degtyarev wrote in his explanatory note attached to the bill.   The bill would impose a ban on dollars within a year of its passage, and any private citizen holding accounts in dollars would either need to spend the money or convert it to another currency. There is no proposed ban on the euro, British pound, yen, or yuan. If one doesn’t exchange or transfer dollars within a year, the dollars will be seized by officials, and reimbursed in rubles within 30 calendar days.  Under the proposed legislation, Russians would still be able to use dollars abroad and have foreign bank accounts, as well as buy goods on the Internet in dollars.  The Russian government, Central Bank, Foreign Ministry, Federal Treasury, Federal Security Service, and other state branches would be exempt from the law.  To protect Russian nationals, Degtyarev proposes to end dollar transactions and deposits at Russian banks, which would give rise to the ruble, and end dependence on the world’s dominant currency.  Part of the bill aims to restore the prestige of the ruble, which has weakened as the Russian economy battles inflation and slow growth.  Raising the prestige of the ruble by nixing foreign currency isn’t a novel idea- it was practiced during the Soviet Union when holding foreign currencies was illegal. A similar ‘anti-dollar’ proposal was filed by Duma deputies in 2003, but completely flopped.  Moscow, a developing financial center is home to several international corporations, and many companies pay their employees in dollars, or ruble salaries pegged to the dollar.  If the bill garners enough support, it will continue onto as many as three preliminary hearings before being passed into law.  Degtyarev has made a name (more…)
Oct 232013
 
Published: Tuesday, 22 Oct 2013 | 11:23 AM ET By: Michael Pento | President of Pento Portfolio Strategies De-crowning the dollar, and the ‘collapse’ ahead CRISIS, PRIVATE DEBT, RISING, CORPORATE LOANS, CONSUMER CREDIT, FEDERAL RESERVE, PETER SCHIFF, INFLATION, QE, TEA PARTY, KARL DENNINGER, NETNET, US: NEWS, BUSINESS NEWS CNBC.com | Tuesday, 22 Oct 2013 | 11:23 AM ET The gradual erosion of the U.S. dollar’s status as the world’s reserve currency has been greatly hastened of late. This is due not only to the perpetual gridlock in D.C., but also our government’s inability to articulate a strategy to deal with the $126 trillion of unfunded liabilities. Our addictions to debt and cheap money have finally caused our major international creditors to call for an end to dollar hegemony and to push for a “de-Americanized” world. China, the largest U.S. creditor with $1.28 trillion in Treasury bonds, recently put out a commentary through the state-run Xinhua news agency stating that, “Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated.” In addition, Japan (our second largest creditor holding $1.14 trillion of U.S. debt) put out a statement through its Finance Minister last week saying, “The U.S. must avoid a situation where it cannot pay, and its triple-A ranking plunges all of a sudden.” (Read more: Fed in ‘monetary roach motel,’ won’t taper: Schiff) It is both embarrassing and hypocritical to be lectured by Japan about an intractable debt situation. However, the sad truth is we have become completely reliant on these two nations for the stability of our bond market and currency. We arrived at this condition because our central bank has compelled the nation to rely on asset bubbles for growth and prevented the deleveraging of the economy by forcing down interest rates far below a market-based level. For example, instead of allowing debt levels to shrink, the Fed’s virtually free money has now caused consumer credit to surge past the $3 trillion mark by the second quarter 2013; that is up 22 percent in the past three years. And of course, the Federal government massively stepped up its borrowing beginning in 2008, piling on over $6.8 trillion in additional publicly traded debt since the start of the Great Recession. (Read more: It’s back with a vengeance: Private debt)   Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Dec 172011
 
Award-winning featured documentary narrated by Malcolm McDowell. Global Warming is an issue of ‘how’ we live, the water crisis is an issue of ‘if’ we live. DVD at http://www.bluegold-worldwaterwars.com   httpv://www.youtube.com/watch?v=Ikb4WG8UJRw Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)