Sep 162015
 
2015-09-10 06:32 PM  Author Evander Smart Read the complete article At Contelegraph.com Westerners are funny people. Westerners have never experienced currency devaluation, EVER! “The Almighty Dollar” has ruled the world their entire lives. Telling a Westerner there might be a problem with the U.S. Dollar is like saying the sun might not show up tomorrow morning. It has never happened; could never happen! Well, it turns out the U.S. Dollar isn’t as “almighty” as it used to be, and some new global currency might be ready to shock the world, literally. Welcome to how the rest of the world sees the United States. In effect, America is seen as an international thug, a global bully with nuclear warheads, and an unlimited credit card to make as many as they want and put them wherever they want. Nothing lasts forever Times have changed, and the shoe is on the other foot. America — land of perpetual warfare — is swimming in US$18 trillion in national debt. The U.S. owes almost US$3 trillion to just Japan and China alone as it prints about US$696 million per day. According to the International Monetary Fund (IMF) or the world’s loan shark, China has even passed the U.S. as the world’s largest economy. A large part of having a global reserve currency is your currency becomes global in demand. It is the international baseline currency for all trade. Countries are agreeing, in principle, to trade with your currency being the means to an end. Over the last several years, many countries, especially in East Asia, have stopped using the U.S. Dollar for trading purposes. These are called “bilateral trade agreements,” and they’re becoming as popular as cat videos on YouTube. So what are other countries starting to use instead? The Chinese Yuan, also known as the Renminbi. Countries are trading so much Yuan that it has become thesecond most used currency in the world, passing the Euro in 2013 whereas ten years ago, it wasn’t even considered tradable. That’s how powerful China has become as a global trade partner within the last decade. And the IMF along with the World Bank have taken note and are rumored to be ready to do something about it. Read the complete article HERE Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Sep 092015
 
US dollar dominance finances Washington’s reckless spending, global militarism, its empire of bases, endless wars, corporate takeovers, as well as speculative excess creating bubbles and economic crises – at the expense of democratic freedoms and beneficial social change. China, Russia and other nations increasingly trading in their own currencies pose a significant threat to dollar dominance. Mahdi Darius Nazemroaya explained Washington’s currency war on China, saying: The Chinese are in the process of displacing the monopoly of the US dollar. They are dropping their US Treasury bonds, stockpiling gold reserves, and opening regional distribution banks for their own national currency. This will give them easier access to capital markets and insulate them from financial manipulation by Washington and Wall Street. China bashing by public and private US officials is part of a campaign to denigrate its government – making inflammatory accusations without proof about hacking, defying its legitimate right to do what it wishes in its own waters, and threatening sanctions – legal only by Security Council members, never by individual countries against others, Washington’s longstanding weapon against independent governments. “As the financial architecture of the world is being altered by China and Russia, the US dollar is gradually being neutralized as one of Washington’s weapon of choice,” Nazemroaya explained. The post-WW II US-dominated international monetary system is threatened with unraveling. Washington is fighting back with propaganda, energy, financial, economic and currency wars against China and Russia, said Nazemroaya. Russia sold a fifth of its $125 billion in US Treasuries holdings last March. China’s US Treasuries holdings exceed $1 trillion dollars. It’s been aggressively dumping them. It’s gone from the world’s largest buyer to its biggest seller. Will other countries follow suit? Nations are increasingly trading in their own currencies. Weakening America’s financial strength is the best way curb its imperial ambitions. Russia drafted legislation aimed at eliminating dollars and euros in trade between Commonwealth of Independent States (CIS) countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Russia, and other former Soviet republics. A Kremlin statement said “(t)his would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets.” It would facilitate regional trade and help achieve economic stability. It would reduce dependency on the world’s two dominant currencies. China’s central bank launched a Heilongjiang Province yuan/ruble program – Russia’s currency replacing the dollar. Both countries are increasingly trading (more…)
Jan 092015
 
My point about gold and silver is that throughout the history of mankind’s commercial interaction, they have been money. Every attempt to do away with them as money has failed as indeed the current attempt will. In 1971 the dollar was worth one thirty-fifth of an ounce of gold now it’s worth about one 1800th of a dollar. The dollar has lost a lot of value and so there is a lot of risk attached to the dollar. I’d rather own gold than own a paper currency because at least I know that the supply of gold continuously grows by no more than one or two percent a year. Where as the supply of a paper currency can grow infinitely if the government wants it to. There’s no limit on how many zeros the government puts on the bill it’s creating. Gold is holding its value. Today gold can buy the same goods and services that it did 10 years ago. If you had ten thousand dollars in the year two thousand, could you take that same ten thousand dollars today, even after a recession, and buy the same goods and services, you can’t. A dollar today is a dollar tomorrow the dollar value is not going to change but what changes is the buying power, what can you buy with it. I think over time if you compare the purchasing power of the dollar or any other fiat alternative for that matter to gold, gold wins. Gold is a better store value and it protects your purchasing power better than fiat currencies Gold and silver may not be official currencies, but they are still the only real and honest form of money. Protect yourself and your financial security. Buy gold and silver now, there is nothing like having these metals in-hand. Buy Gold & Silver Online & Get Free Shipping At CBMint.com! Safe, Secure Transactions! Click Here! Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
May 252011
 
The Dollar Bubble starring Peter Schiff, Ron Paul, Marc Faber, Gerald Celente, Jim Rogers, and others. Prepare now for the U.S. dollar collapse. Become a member of the National Inflation Association for free at http://inflation.us Video time: 30:26 httpv://www.youtube.com/watch?v=eZA0qNsf4m0 Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
May 112011
 
Published on Tue, May 10, 2011 CNBC Is US dollar’s recovery tied to death of bin Laden?Concern about mounting budget deficits on the state and federal level, along with the Federal Reserve’s easy money policies, sent the US dollar reeling earlier this year to near a post-gold reserve low. Then on May 2, a Navy Seal team killed Osama Bin Laden, the world’s most wanted man, responsible for the 9/11 tragedy on American soil. That day, the dollar index, which measures the currency versus a basket of six others, would bottom and is now nearly 3 percent higher. Coincidence? Many traders say, “I think not.” “The fact that we killed this guy and did it so efficiently was a wake up call to people who had forgotten that this is the dominant military in the world,” said Steve Cortes, founder of Veracruz research and a ‘Fast Money’ trader. There were many reasons throughout history that a currency has become the reserve money of the world, but the most common has been the country’s military might, specifically that of its navy. If a country controls the seas, then it controls trade and therefore can sustain its spot as the largest economy in the world. Recently, this reason seems to be lost on many predicting the end of the dollar as the world’s reserve currency. Even besides this rather barbaric notion, there are many more reasons why the dollar will retain its reserve status for a very, very long time, notwithstanding many ups and downs, wrote John Shin, Bank of America Merrill Lynch FX Strategist, in a note. Most notably, he cited the size of our economy and the depth of our financial markets. “The US is still the largest economy compared to the Eurozone, and at the moment China’s economy is roughly a third the size of the US economy,” said Shin. “The lion’s share of currency trade still involves the US dollar and the sheer liquidity of the U.S. Treasury market is unrivaled by any other financial market for FX reserve managers.” The dollar’s run since last week has been aided by a flare up in the Greece situation in Europe. The country is on track to miss its fiscal targets and rumors of a bond haircut or a complete fissure from the European Union are hitting the Euro. Meanwhile, global investors are seeking the safety of the 10-year US (more…)
May 012011
 
Default Is Absolutely Impossible While The Dollar Is The Global Currency STRATFOR | Apr. 28, 2011, 11:39 AM Read more: http://www.stratfor.com/node/192872/analysis/20110427-portfolio-risk-us-debt-default#ixzz1L7Gk78aX [Editor’s Note: The original article is formated with the video at the end.] The truth about the Chinese Yuan! This video is unlisted. Only those with the link can see it. http://www.youtube.com/watch?feature=player_embedded&v=LQSaXwdma3M Vice President of Analysis Peter Zeihan explains how the U.S. dollar’s position as the global reserve currency makes default impossible and why the euro and yuan cannot currently assume the role.   Ultimately a credit ratings agency’s assessments of a country are based in how sustainable the country’s budgeting processes are. Now the United States — it’s not that great; between the Bush administration and the current Obama administration, American finances are certainly on an unsustainable course. Tax revenues are relatively high right now, but with the baby boomers about to retire, they’ll be taking their tax income with them. Spending is high and is showing few signs of being brought under control either by this administration or by Congress. There aren’t a lot of options for rationalizing the budget: You could drastically increase the retirement age; you could do away with some sort of social benefits, such as social security; you could sharply raise taxes. All of these are political non-starters; they’re all political suicide. So by the books, yes, the United States deserves a downgrade — maybe more than one. But ultimately that’s irrelevant. In the case of United States, default is absolutely impossible. All U.S. government debt is denominated in U.S. dollar assets. The U.S. dollar is the global currency. The U.S. Federal Reserve controls U.S. dollar policy. So long as this is the case, it’s absolutely impossible to default on the debt. Luckily for the Americans, there is absolutely no currency out there that is within a generation of replacing the United States dollar as the global currency. Let’s examine why that is the case. First, let’s look at the euro. The euro is certainly the currency that is the closest to displacing the U.S. dollar as the global currency. But if you look at the events of the last couple of years, you’ll notice that the Europeans have been in a nonstop financial crisis, honestly, since before the global recession even began back in mid-2008. Nearly all of the Continent’s banks are not only unstable but they’ve now become interlinked to the currency and (more…)
Apr 252011
 
From BBC News Business 25 April 2011 Last updated at 08:32 ET The prices of gold and silver have hit new record highs, driven by a weaker US dollar and continuing tensions in the Middle East and North Africa. Gold rose as high as $1,518.30 (£918.70) an ounce during morning trading in Europe, before falling back. Silver briefly reached an all time high of $49.79 an ounce before retreating to $49, still the highest since 1980. Investors have been buying precious metals as a haven against inflation and recent geopolitical turmoil. Analysts say gold could even trade even higher. “We as a company believe that we may see $1,600 an ounce by the end of the year,” said Angelos Damaskos, a fund manager at Sector Investments, which specialises in gold and oil investments. “But gold could easily surprise everybody and go to significantly higher levels because of the relatively small supply of the metal.” Monday was the seventh consecutive trading session that saw the price of gold rise. The price of gold has risen sixfold in the last 10 years, and has more than doubled since the global financial crisis of 2008. However, the price of silver has been even more volatile, having quintupled since 2008, and up 12-fold in the last decade. By mid-morning in London on Monday, silver was trading just below the high of $49.45 that it reached in 1980 following the Iranian revolution and related oil price spike. ‘Dollar play’ Much of the rise in both metals is seen as the flipside of a decline in the US dollar. “It’s the dollar play,” said a Singapore-based dealer, referring to the gold rally. “There is more room for prices to go even higher.” LAST UPDATED AT 21 APR 2011, 11:20 ET  price change % 46.26 0.00 0.00 The greenback has been steadily declining against most other currencies since the end of the financial crisis. With the US central bank, the Federal Reserve, pumping unprecedented amounts into the financial markets, there are fears the dollar may lose its status as the favourite reserve currency of the world’s central banks, with precious metals being an obvious alternative. On Wednesday, the Fed chairman, Ben Bernanke, is expected to affirm its commitment to quantitative easing, a programme to flood money markets with liquidity. The policy tends to drive down the value of the US currency, and has been openly criticised by China and (more…)
Jan 142011
 
US dollar ‘unstable’ reserve currency Posted By kurtnimmoadmin On January 11, 2011 @ 8:32 am In Economic Crisis Press TV January 11, 2011 French President Nicolas Sarkozy has visited his US counterpart Barack Obama, discussing several issues including the reduction of the influence of the US dollar. As France is hosting G8 and the G20 this year, the Monday meeting was focused on reforming the world economy and preventing another global recession, particularly on the US dollar. Sarkozy considered the current model which uses the US dollar as the primary reserve currency as “unstable” and stressed that it “makes part of the world dependent on American monetary policy. However, Sarkozy assured Obama that France still considers the dollar as the number one global currency reserve. Obama echoed Sarkozy’s concern for serious monetary reforms, saying that he and his French counterpart are negotiating the exact reforms needed to be put before the world’s industrialized and emerging nations at the upcoming G8 and G20 meetings. Both leaders pledged to cooperate and coordinate what they called new ideas about reorganizing the world economy. After meeting in private for two hours, the two leaders invited the press into the Oval Office for comments. Obama said he and Sarkozy — the most pro-American French President in years — were slated to hold talks on Afghanistan, Iran, Ivory Coast, Sudan, the Middle East and Lebanon. Article printed from Infowars: http://www.infowars.com URL to article: http://www.infowars.com/us-dollar-unstable-reserve-currency/ Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)