Archive for the ‘Dollar’ Category
Washington Signals Deep Concerns Over Dollar
A perfect storm has been prepared for America. Real interest rates are negative, but debt and money are being created hand over foot. The dollar’s demise awaits the world’s decision how to get out of it. The Federal Reserve can print dollars with which to keep the bond and stock markets high, but the Federal Reserve cannot print foreign currencies with which to keep the dollar afloat. When the dollar goes, Washington’s power goes, which is why the bullion market is rigged. Protect the power. That is the agenda. Is it another Washington over-reach? http://www.paulcraigroberts.org/2013/05/18/washington-signals-dollar-deep-concerns-paul-craig-roberts/
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The ZIRP Death Knell
The official 0% rate signals a death knell to the national financial foundation and economic vibrancy, the climax event slow in its pathogenesis following the departure from the Gold Standard in 1971. The official 0% FedFunds rate (call it 25 basis points, no matter) is a direct signal of terminal illness for the entire capitalist structures within both the United States and its Western partners who stupidly or helplessly follow its lead. http://silverdoctors.com/jim-willie-zirp-the-death-knell/
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U.S. Dollar — Surrounded and Check-Mated
An unstoppable sequence of events has been put into motion finally. The pressure has been building for months. Some themes are plainly evident, except to those who wear rose colored glasses in the U.S. Dome of Perception. http://silverdoctors.com/jim-willies-most-important-article-ever-usdollar-ring-fenced-checkmate/
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Gold and the Dollar
I’ve written about this before, but I want to emphasize this again. I’ve been asked to name one future situation that I’m most certain of. My answer is this – I believe the surest situation (change) in America’s future is a decline, even a drastic decline, in our standard of living. We’ve spent it, we’ve spent what we didn’t have. And somewhere ahead, probably much sooner than we think, will come pay-back time. And it won’t be pretty. Why do I warn about payback time? My answer is that there is no free lunch or free dinner. Really? But Americans have been stuffing themselves with free lunches and free dinners ever since World War II. How could they do that? Here in the U.S. we have been able to keep our standard of living high because of one reason. The fact is that we have been spending more than we have taken in ever since 1946. And in doing so, we have built up huge deficits and debts. How was it possible to do this? It’s been possible because we possess one “magical” advantage. The U.S. possesses the world’s reserve currency. For years the U.S. dollar was considered “as good as gold.” Consequently, the world accepted our dollars by the multi-billions. Happily the U.S. dollar has been the world’s reserve currency for decades. The reason our standard of living has been as high as it has – is that we have been able to buy any amount of food and merchandise with our dollars. The secret of our exalted standard of living is that our creditors have been accepting our dollars all along – until now. The reason I have predicted that our standard of living is headed for a great fall is because the world is starting to back away from the U.S. dollar. The dollar has not been holding its purchasing power, and the world knows it. The central banks of the world and many nations including China (our biggest creditor) are now in the process of cutting down on their dollar exposure. http://lewrockwell.com/orig12/russell-r33.1.html
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Fair Money
Don’t let anyone fool you. Our money today is backed. It is backed by collateral security and that collateral multiplies with deposits under the present debt-money and fractional-reserve system as money is multiplied with the money multiplier. The more we borrow the more we stand to loose when deflation forces default. The more the banking system multipliers loaned money with the reserves created by new money put in a bank — the more banks gain leans on our assets, securities, equity or whatever else in addition to our own personal surety the lender will accept. New money put in a bank — instead of transfer of deposits from one checking account to another. The loan is the bargain with the devil. https://therebel.org/eastman/593514-fair-money
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Survivor of Mexican Peso Devaluation: Read the Writing on the Wall, Extricate Yourselves From Your U.S. Dollar Positions
In light of the recent events in Cyprus, where the banks will reportedly remain closed at least through March 26th and the likelihood that Cyprus will exit the Eurozone, re-institute the Cypriot pound and devalue the currency is growing by the minute, we thought it apropos to republish LRS’ first hand account and experiences recognizing, surviving, and even profiting from the devaluation of the Mexican Peso in the late 1970′s. For those unfamiliar with the account of the 1976 Mexican Peso devaluation (and anyone who has not experienced a currency devaluation first-hand), this is an absolute must read as while the Cypriots may be the first, they will undoubtedly not be the last to devalue their currency before the global financial debt crisis is over. http://www.silverdoctors.com/survivor-of-mexican-peso-devaluation-read-the-writing-on-the-wall-extricate-yourselves-from-your-us-dollar-positions/
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The Savings Class is Being Wiped Out Globally
For the first time in recorded history, we have nearly every central bank printing money and trying to debase their currency. This has never happened before. How it’s going to work out, I don’t know. It just depends on which one goes down the most and first, and they take turns. When one says a currency is going down, the question is against what? because they are all trying to debase themselves. It’s a peculiar time in world history. I own the dollar, not because I have any confidence in the dollar and not because it’s sound – it’s a terribly flawed currency – but I expect more currency turmoil, more financial turmoil. During periods like that, people, for whatever reason, flee to the U.S. dollar as a safe haven. It is not a safe haven, but it is perceived that way by some people. http://lewrockwell.com/rogers-j/rogers-j181.html
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Historic Financial Collapse Coming
More than a crisis, it is more accurately described as a collapse of a corrupt inequitable monetary system, and a desperate defense by the major Western bankers to preserve their power over nations and their governments, alongside a vile vicious violent attempt by the United States to maintain its privilege as owner of the vast U.S. dollar counterfeit machinery, as controller of vast banking pillars of paper columns, and as commander of a vast military. The U.S. is about to fall into the Third World. http://www.silverdoctors.com/jim-willie-gritty-questions-on-the-historic-collapse/
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Currency Wars — Race to the Bottom
The lack of stability in fiscal confidence certainly abounds, but the schemes to paper over the mountain of liability obligations, develop at even a more rapid pace. The implied result of a real currency war is that nations are acting or defending their own national interests. The truth is that fiat currencies, designed to depreciate, benefits the moneychangers as the loss of purchasing power penalizes taxpayers and consumers. http://www.batr.org/negotium/022013.html
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Fever Pitched Currency War and U.S. Dollar Rejection in 2013
The opponents to financial hegemony have spent the last four years in planning a new order that can viably sustain the global trade system without a U.S. dollar at its central role. On one side, foreign nations must avoid the toxic effect of the asset bubble U.S. Treasury Bond as the core to their banking systems. On the other side, foreign nations must react to the accelerating threat to their national economies from both a uniform cost inflation effect and a rising currency effect that punishes strength, success, and prudence. The Competing Currency War has reached a new elevated fever pitch, with the major central banks delivering powerful damage to each other while defending themselves. http://www.silverdoctors.com/jim-willie-fever-pitched-currency-war-usdollar-rejection-in-2013/
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Massive Squeeze Coming As WGC Confirms Gold-Backed Yuan
The second thing I want to make KWN readers aware of is the report which was commissioned by the World Gold Council. This is an incredible document, especially coming from the World Gold Council because it’s basically saying that the Chinese are going to back their currency with gold. This would, in turn, displace the US dollar and make the Chinese yuan the world’s reserve currency. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/23_Massive_Squeeze_Coming_As_WGC_Confirms_Gold-Backed_Yuan.html
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The Coming Debt Limit Drama: Government Wins, We Lose
by Ron Paul. Last week President Obama bluntly warned Congress that he will not negotiate when it comes to raising the statutory debt limit. If Republicans attempt to use a debt ceiling vote to win concessions on spending from the White House, Mr. Obama threatens simply to raise the limit by executive order or other unilateral action. This is business as usual in Washington. Democrats literally do not believe we have a deficit and debt problem, and reliably propose greater borrowing and spending. Republicans talk a good game when it comes to government debt, but have no credibility to argue against deficits or abuses of executive power. Brinksmanship ensues, and ugly compromises are reached at the 11th hour. We all lose as the endless borrowing and money printing further erode our dollar and our economy. http://the-free-foundation.org/tst1-21-2013.html
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The Petro-Dollar Sunset
A Paradigm Shift is taking place, and the ASEAN-China summit gave proof positive in a seminal event of the vast changes in progress. The United States just suffered its worst humiliation ever as a nation on the Eastern global stage. It was exceeded only by the humiliation for a U.S. president personally. The story went uncovered by the lapdog inept U.S. press. The late November Asian summit meeting held in Phnom Penh included 15 Asian nations, which represent half the world’s population. They decided to form a Regional Comprehensive Economic Partnership that excludes the United States. The Asians are pushing to isolate the United States. Regard it as punishment for hegemony, or a reaction to prevent further capital drainage, or to protect from central bank abuse, or to wall off continued bond fraud export, or to defend against military aggression. Regard it as confirmation that China is the regional leader in Asia, even for military security. Regard it as a response to banker criminality, or simply for being totally full to the brim of American corruption and arrogance and abuse of position, led by creation of the U.S. dollar as an elaborate weapon and credit card whose balance is never to be repaid. Abuse of power and sponsored financial corruption will have extreme consequences in the reshaping of global commerce and banking. The U.S. will be isolated, so as to protect the rest of the world from its fascist exhibitions and deep manifestations. http://www.silverdoctors.com/jim-willie-the-coming-isolation-of-usdollar/
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German Gold Repatriation is the Most Significant Gold Event in 50 Years, Beginning of the End of the U.S. Dollar As Reserve Currency
Charles De Gaulle was the first person in modern history to call the hand of the USA on its then obligation to convert French held dollar reserves into gold. I was a senior trader at the time. History will look back on this salvo fired across U.S. war financing as being the beginning of the end of the U.S. dollar as the reserve currency of choice. The reaction on the part of the U.S. was to cut the tie between the dollar and convertibility. This again raises the question of does the USA have fungible gold to the degree that is claimed without 3rd party audits or any viewing publicly whatsoever. http://www.silverdoctors.com/jim-sinclair-german-gold-repatriation-is-the-most-significant-gold-event-in-50-years-beginning-of-the-end-of-the-us-dollar-as-reserve-currency/
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$100 Bill Becomes the New $1 Bill
The amount of $100 bills being printed is to set to spike 100%. In the fiscal year ending in October 2012, the US Bureau of Engraving and Printing printed up 3 billion $100 notes, a record amount of production. A bit of the demand comes from sources like drug dealers, arm smugglers, tax cheaters and bribes. Still other demand is due to the fact that increasing amounts of US citizens are losing faith in government and/or the economy and are shunning traditional investment strategies. The lack of trust has resulted in a spike in gold bullion and precious demand, but, also, for $100 bills. http://silvervigilante.com/100-bill-becomes-the-new-1-bill/
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China and Russia are Acquiring Gold, Dumping U.S. Dollars
There is evidence that central banks in several regions of the World are building up their gold reserves. What is published are the official purchases. A large part of these Central Bank purchases of gold bullion are not disclosed. They are undertaken through third party contracting companies, with utmost discretion. U.S. dollar holdings and U.S. dollar denominated debt instruments are in effect being traded in for gold, which in turn puts pressure on the U.S. dollar. http://www.globalresearch.ca/central-banks-are-acquiring-gold-dumping-us-dollars/22672
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Central Banks Game Plan: One World Currency
Only those in total denial would claim that the world economies could grow their way out of the debt bubble. Mathematically, the rules of compound interest always destroy the purchasing value of fiat currencies. The era of zero interest rates will end. When the cost to finance debts reverts to normal levels, the bleeding will become a gusher. The world reserve currency status of Federal Reserve Notes will come under enormous pressure. As the central banks consolidate their control over international commerce and the economies of individual countries, the coin of the new realm will shift to a replacement for the U.S. Dollar. http://www.batr.org/negotium/102412.html
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Derivative Meltdown and Dollar Collapse
Nation states held hostage to financial manipulation are slaves to the central banks. With the demise of the Dollar, the fake debt obligations of the United States must be repudiated. Foreign states are prepared to sever their links to the Dollar reserve currency, by trading directly in the domestic currencies of other countries. Interacting commerce in Dollars with American companies will continue, but the yoke of Federal Reserve Notes legal tender will be rejected when the derivative meltdown explodes. http://www.batr.org/negotium/101712.html
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What Will Benefit From Global Recession? The U.S. Dollar
Many times what “should” happen does not happen. For example, global stock markets “should” decline as the global economy free-falls into recession, as global recession is not exactly an ideal scenario for rising corporate sales and profits or demand for commodities. Yet global markets are by and large rising significantly. Sometimes what “should” happen is simply being delayed. In other cases, some other dynamic is at work. Stock market bulls, for example, say the “other dynamic” is global money-printing by central banks, and this “easing” will power stocks higher even as sales and profits sag. Analysts who believe fundamentals eventually over-ride monetary manipulation believe the stock market decline has only been delayed, not banished. A similar tug-of-war is playing out between those who feel the U.S. dollar “should” decline in the years ahead and those who see the dollar strengthening significantly. http://www.zerohedge.com/news/2012-10-09/guest-post-what-will-benefit-global-recession-us-dollar
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China to Challenge U.S. Dollar Reserve Currency Status
China is actively taking steps to phase out the US dollar which will decrease volatility in oil and commodity prices and deride the ‘exorbitant privilege’ the USA commands as the issuer of the reserve currency at the centre of a post-war international financial architecture which is now failing. In 1971, U.S. Treasury Secretary John Connally said, “It’s our currency and your problem”. China is frustrated with what it sees as the US government’s mismanagement of the dollar, and is now actively promoting the cross-border use of its own currency, the yuan, or also called the renminbi, in trade and investment. http://maxkeiser.com/2012/10/04/china-to-challenge-us-dollar-reserve-currency-status/#more-54724
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Dollar Hegemony in the Empire of the Damned
The U.S. economy appears to be in terminal decline. The only way to prop it up is by lop-sided trade agreements or by waging war to secure additional markets and resources and to ensure the dollar remains the world reserve currency. Humankind is currently facing a number of serious problems. But, arguably, an empire in decline armed to the teeth with both conventional and nuclear weapons and trapped in a cycle of endless war in what must surely be a futile attempt to stave off ruin is the most serious issue of all. http://www.globalresearch.ca/dollar-hegemony-in-the-empire-of-the-damned/
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Death Knells for the U.S. Dollar
The bankers are determined to ruin the entire system in order to retain power, all while dispensing increasingly nonsensical dogma like from heretical high priests about the effectiveness of their solutions. Theirs is heresy built upon alchemy laced with arrogance, with no precedent of success in past history. http://www.silverdoctors.com/jim-willie-death-knells-for-the-usdollar/
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Petro Dollar Going the Way of the Dodo Bird as China Begins Selling Oil Using Yuan
The dollar’s death by a thousand cuts just sustained a few hundred proverbial slashes as China officially announced Thursday that the international banking and payment transfer system is ready for any nation in the world to begin accepting the Chinese Yuan as payment for oil. Combine the Chinese announcement with Thursday’s open-ended and unlimited quantitative easing announcement by the Fed and the dollar is dead. http://www.silverdoctors.com/petro-dollar-going-the-way-of-the-dodo-bird-as-china-begins-selling-oil-using-yuan/
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Fed Hints at Third Round of Quantitative Easing
During his Jackson Hole speech on Thursday, Fed boss Ben Bernanke said the privately owned bankster cartel “will provide additional policy accommodation as needed” and may engage in more so-called quantitative easing. The Fed has thus far squandered more than $2 trillion in quantitative easing and despite this the economy has slipped further into depression. http://www.infowars.com/fed-hints-at-third-round-of-quantitative-easing/
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CNBC: Are Fiat Currencies Headed For a Collapse?
The irony. Apparently CNBC’s ratings have fallen so far off the cliff (due to alternative financial blogs such as Zerohedge and SD) that they have been forced to resort to truthful financial reporting. The Central Banker/ sell-side propaganda arm known as CNBC has released an article warning investors that fiat currencies are headed for a collapse due to continued and escalating devaluation. Shockingly, CNBC even points out in the article that “Every single fiat currency in history has collapsed, this time will be no different.” With the typically MOPE-filled CNBC releasing articles discussing the inevitability of the collapse of global fiat currencies and a re-linking to gold, can the final devaluation of the dollar and its fiat cousins be far off? http://www.silverdoctors.com/cnbc-are-fiat-currencies-headed-for-a-collapse/
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Banker Brushfires Risk Jumps
Another jump in the banker brush fire might be the revelation that the big US banks are preparing for a Paradigm Shift. The Eastern nations are well along a path to settle trade outside the USDollar. The Chinese have arranged for bilateral currency swap agreements with a gaggle of nations, mostly from the East, but also Brazil in the West. Consider such agreements to be the foundation for barter systems coming into vogue. The key is their non-US$ nature. The entire loss of global trade settlement done in the US$ terms is being elevated in importance. Some day soon, it might become the majority of trade. The tipping point could come when over 50% in trade excluding crude oil is managed outside the US$ settlement. Later, like in a year or so, maybe a bigger tipping point could come with over 50% of all trade including crude oil being managed ouside the US$ sphere. The big banks must see the trend, unless they wear blinders, unless their arrogance is so thick, or unless they are so pre-occupied with other brush fires that they leave themselves vulnerable and unprepared. http://www.silverdoctors.com/jim-willie-banker-brushfires-risk-jumps/
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Why We Can All Kiss This Financial System Goodbye
The bottom line is we have a world which has been dominated by fiat currencies, and we are now experiencing the end, the final throes of that failed global experiment in a purely fiat money based system. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/7/22_Why_We_Can_All_Kiss_This_Financial_System_Goodbye.html
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Fiat Money Kills Productivity
Only a wilful and ideological Keynesian could ignore the salient detail: as soon as the USA left the gold exchange standard, total factor productivity began to dramatically stagnate. Coincidence? I don’t think so — a fundamental change in the nature of the money supply coincided almost exactly with a fundamental change to the shape of the nation’s economy. Is the simultaneous outgrowth in income inequality a coincidence too? http://www.zerohedge.com/news/guest-post-fiat-money-kills-productivity
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The Experiment Has Failed. Are You Ready?
It wasn’t all that long ago that money was actually made of something scarce– a real asset that couldn’t be conjured at will by an appointed bureaucrat. In time, money supplies grew to be controlled by governments and banking cartels in the form of worthless pieces of paper. Since then, it’s devolved further to strings of bits in a giant database; our money supply is nearly all digital. As my friend Tim Price characterizes it, what passes as ‘money’ today is merely an abstraction of an abstraction of the real thing. http://www.zerohedge.com/news/guest-post-experiment-has-failed-are-you-ready
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How the U.S. Dollar Will Be Replaced
Americans in particular are prone to reactionary dismissal when exposed to facts that disrupt their misconceptions. Our culture has experienced a particularly prosperous age, not necessarily free from all trouble, but generally spared from widespread mass tragedy for a generous length of time. This tends to breed within societies an overt and unreasonable expectation of ease. It generates apathy, and laziness. A crushing blubberous slothful cynicism subservient to the establishment and the status quo. Even the most striking of truths struggle to penetrate this smoky forcefield of duplicitous funk. http://www.zerohedge.com/news/guest-post-how-us-dollar-will-be-replaced
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So Long, U.S. Dollar
There’s a major shift under way, one the U.S. mainstream media has left largely untouched even though it will send the United States into an economic maelstrom and dramatically reduce the country’s importance in the world: the demise of the U.S. dollar as the world’s reserve currency. For decades the U.S. dollar has been absolutely dominant in international trade, especially in the oil markets. This role has created immense demand for U.S. dollars, and that international demand constitutes a huge part of the dollar’s valuation. Not only did the global-currency role add massive value to the dollar, it also created an almost endless pool of demand for U.S. Treasuries as countries around the world sought to maintain stores of petrodollars. The availability of all this credit, denominated in a dollar supported by nothing less than the entirety of global trade, enabled the American federal government to borrow without limit and spend with abandon. The dominance of the dollar gave the United States incredible power and influence around the world… but the times they are a-changing. As the world’s emerging economies gain ever more prominence, the U.S. is losing hold of its position as the world’s superpower. Many on the long list of nations that dislike America are pondering ways to reduce American influence in their affairs. Ditching the dollar is a very good start. http://www.caseyresearch.com/articles/so-long-us-dollar
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Preparing for a Lengthy and Unpredictable U.S. Dollar Crisis
A currency crisis that triggers an economic crisis — or vice versa — just feels like a bunch of wacky doom-and-gloom stuff. And it may well be. In the context of America’s legendary resilience and economic might, a catastrophic currency crisis seems almost unimaginable… But the time has arrived to begin imagining it…not because it is certain, but because it has become less unimaginable. The best way to defend against a currency crisis is as obvious as it is emotionally difficult: Don’t hold the currency that is hurtling toward a crisis. http://dailyreckoning.com/preparing-for-a-lengthy-and-unpredictable-us-dollar-crisis/
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What is the Consequence of Printing Money That Nobody Wants?
Stagflation– the utterly painful combination of stagnating growth and steep inflation that marked the 1970s– and will be the natural side effect of extended central bank quantitative easing during a period of widespread deleveraging. In other words, stagflation is the consequence of printing money that nobody wants. Moreover, an outbreak of serious stagflation will decimate conventionally managed debt and equity portfolios. And given that most people invest with the crowd, with conventional investments or conventionally managed portfolios, stagflation will wipe the savings and livelihoods from untold masses. http://www.zerohedge.com/news/guest-post-what-consequence-printing-money-nobody-wants
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GOP Lawmaker Unveils New Effort to Rein in Fed
Congressman Kevin Brady
As scrutiny of the Federal Reserve System and public outrage over its actions continue to build, lawmakers on both sides of the aisle are working on proposals that would supposedly rein in the Fed or at least change the way it operates. And a new measure aims to tackle some of the issues head on. Joint Economic Committee Vice Chairman Rep. Kevin Brady (R-Texas, left) is preparing to introduce the latest effort to alter the nation’s monetary system in Congress later this week. Known as the “Sound Dollar Act,” the legislation would impose some major reforms on the way America’s powerful central bank does business. http://thenewamerican.com/economy/economics-mainmenu-44/11101-gop-lawmaker-unveils-new-effort-to-rein-in-fed
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Bills Proposed in More Than a Dozen States to Make Gold and Silver Legal Currency
U.S. politicians are rapidly losing faith in the dollar, with more than a dozen states proposing legislation to legalise gold and silver as a currency. Politicians in Colorado concerned about the nation’s financial stability are the latest to push a bill to legalise gold and silver coins as usable currency. http://www.dailymail.co.uk/news/article-2103977/Politicians-losing-faith-strength-dollar-propose-make-gold-silver-legal-currency.html
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Why the Dollar Will Fail
The State of the Union speech and GOP response neither accurately portray the true fiscal condition of the U.S., nor present a compelling narrative that speaks either to the realities of today or a future we might like to head towards. The U.S. is simply on a fiscally ruinous path, and neither party seems up to the task of laying out the story in a way that is mature, clear, and direct. No recovery has ever been possible from oil prices this high, nor with debt levels this extreme, and it is quite improbable to think that both conditions could be overcome with anything less than a completely clear-eyed view of the true nature of the predicament faced. http://www.zerohedge.com/news/guest-post-why-our-currency-will-fail
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A New Reserve Currency to Challenge the Dollar — What’s Really Going On in The Straits of Hormuz
I think the stand-off with Iran in the Straits of Hormuz over sanctions is as much to do with the moves to replace the dollar as anything else. The stand off is as much with China and its allies as it is specifically with Iran. The US is testing China’s nerve and the solidity of its network of bilateral currency settlement agreements. We are seeing military power deployed to counter economic power. I think the US will lose. Depending on the nature of its loss we could see a precipitate decline in the standing of the dollar as global reserve currency. 2012 could see the beginning of large scale defections from the dollar settlement currency. Which would in turn have massive, perhaps even catastrophic consequences for how the world perceives what is an acceptable level of debt for the US. What is acceptable when you have the global reserve currency is quite different from what is acceptable when you don’t. And the reverse is also true. If China can transform the netwrok of bilateral agreements which centre upon China and the Yuan, in to becoming accepted as a de facto reserve currency, then for those, like me, who wonder how China can possibly avoid a hard landing as its bad bank and property bubble deflates faster and faster, look no further. http://www.informationclearinghouse.info/article30190.htm
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Tehran, Moscow Seek to Trade in National Currencies
Iranian President Mahmoud Ahmadinejad and his Russian counterpart Dmitry Medvedev in a phone conversation on Thursday emphasized on using national currencies in bilateral trade in a bid to give a boost to their economic ties. They also stressed on removing dollar from the two-way transactions, the Mehr news agency reported. http://www.tehrantimes.com/economy-and-business/94266-tehran-moscow-seek-to-trade-in-national-currencies
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What Have the Central Banks of the World Done Now?
Okay – so the Federal Reserve is loaning giant piles of cheap money to the European Central Bank. So where in the world does all of that money come from? As a CNBC article recently explained, all of this money is created right out of thin air by the Federal Reserve. Neither the dollars nor the Euros come from anywhere. They aren’t moved or debited from anywhere. They are invented right on the spot with a few taps on the key pad. And that’s all. There’s no printing press fired up to make new dollars or euros. This is sometimes called “fiat money.” But that makes it sound as if some command from a sovereign created the money. It’s really closer to “keyboard money,” since it is created by data entry in a computer. http://theeconomiccollapseblog.com/archives/what-have-the-central-banks-of-the-world-done-now
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European Debt Crisis Threatens the Dollar
by Ron Paul. The global economic situation is becoming more dire every day. Approximately half of all U.S. banks have significant exposure to the debt crisis in Europe. Much more dangerous for the U.S. taxpayer is the dollar’s status as reserve currency for the world, and the U.S. Federal Reserve’s status as the lender of last resort. http://poorrichards-blog.blogspot.com/2011/11/european-debt-crisis-threatens-dollar.html
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Dollar to Be ‘Discarded’ by World: China Rating Agency
The man who leads one of China’s top rating agencies says the greenback’s status as the world’s reserve currency is set to wane as the world’s most powerful policy makers convene to examine the implication of S&P’s decision to strip the United States of its triple “A” rating. The United States “should get a clear understanding that the continuous decline of the debt service capability will inevitably result in the outbreak of a sovereign debt crisis.” http://www.cnbc.com/id/44050325
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The Least Valuable Currencies in History
In spite of constant headlines about debts and deficits, most Americans don’t really believe the U.S. dollar will collapse. From knowledgeable investors who study the markets to those seemingly too busy to worry about such things, most dismiss the idea of the dollar actually going to zero. History has a message for us: No fiat currency has lasted forever. Eventually, they all fail. http://www.businessinsider.com/a-thousand-pictures-is-worth-one-word-2011-8
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An Economy Destroyed Thanks to Washington
The U.S. economy is in a deepening recession from which recovery is not possible, because American middle class jobs in manufacturing and professional services have been offshored and given to foreigners. U.S. GDP, consumer purchasing power, and tax base have been handed over to China, India, and Indonesia in order that Wall Street, shareholders, and corporate CEOs can earn more. When the goods and services produced offshore come back into America, they arrive as imports. The trade balance worsens, the U.S. dollar declines further in exchange value, and prices rise for Americans, whose incomes are stagnant or falling.This is economic destruction. It always occurs when an oligarchy seizes control of a government. The short-run profits of the powerful are maximized at the expense of the viability of the economy. http://www.informationclearinghouse.info/article28654.htm
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A Run on the U.S. Government
The U.S. government has no credibility in terms of restoring America. The government is living off its past reputation, like a once great entertainer grown tired and going through the motions. Under these conditions, trust in the dollar and all the other fiat currencies that are linked to the dollar will continue downwards. Unless there is a change in these conditions, someday there will be a run on the United States government. I see nothing that suggests a change in these conditions. http://lewrockwell.com/rozeff/rozeff359.html
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Mexican Government Successfully Sheds the U.S. Dollar from Its Economy
Mexico has always considered the U.S. dollar almost a secondary currency to their Peso as the fact that billions of U.S. dollars spent their way through the Mexican economy in 2009 and 2010 which speaks for itself, but sometimes even the best of friendships come to an end. The Mexican government in September 2010 enacted a new law which basically restricts the use of U.S. Dollars for almost all purchases inside of Mexico. http://www.thepeoplesvoice.org/TPV3/Voices.php/2011/02/03/mexican-government-successfully-sheds-th
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The Glorious Imperial Multicultural Empire’s Financial Position is Hopeless
A default or devaluation of the dollars is coming. http://www.321gold.com/editorials/russell/russell020211.html
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The U.S. and China Going In Opposite Directions
Whether it is the Obama Administration or any other we expect the change in attitude towards China by the U.S. as being one where both seek mutually beneficial policies. Despite the change in the fortunes of the two nations, there will be a desire to quietly adjust to the situation by both sides. And these adjustments will be huge. Just as Britain in the last century started as the number one world power and had to slip well down the ranks, so the U.S. will see the beginning of a similar process in the next couple of years. The greatest change in that process will be the shrinkage of the use of the U.S. dollar as the use of the yuan grows rapidly. http://www.gold-eagle.com/editorials_08/phillips011911.html
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Post Mortem for the World’s Reserve Currency
Maintaining [the dollar's] reserve status is the great imperative, because reserve status is the cornerstone upon which the empire rests. Lose that, and the whole superpower phenom begins to teeter. http://www.counterpunch.org/whitney12142010.html
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The Stench of U.S. Economic Decay: Russia and China Dump the Dollar
On Thanksgiving eve the English language China Daily and People’s Daily Online reported that Russia and China have concluded an agreement to abandon the use of the US dollar in their bilateral trade and to use their own currencies in its place. The Russians and Chinese said that they had taken this step in order to insulate their economies from the risks that have undermined their confidence in the US dollar as a world reserve currency. As China has a large and growing supply of dollars from trade surpluses with which to conduct trade, China is signaling that she prefers Russian rubles and Brazilian reals to more US dollars. This is big news, especially for the news dead Thanksgiving holiday period, but I did not see it reported on Bloomberg, CNN, New York Times or anywhere in the US print or TV media. The ostrich’s head remains in the sand. http://www.infowars.com/the-stench-of-us-economic-decay-russia-and-china-dump-the-us-dollar/
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China and Russia Quit the Dollar
Premier Wen Jiabao shakes hands with his Russian counterpart Vladimir Putin on a visit to St. Petersburg on Tuesday.
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. http://www.chinadaily.com.cn/china/2010-11/24/content_11599087.htm
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China Scorns U.S. Funny-Money
Today, the name for debauching a nation’s currency is called “quantitative easing (QE),” but it’s still the same old fraud committed by financial flim-flam men. Washington is flooding financial markets with $600 billion of worthless dollars, hoping a rising tide of Monopoly money will somehow lift America out of recession. The Fed’s first QE effort was a fizzle. Welcome to QE2. In high finance, hope springs eternal. The U.S. government is stoking worldwide inflation in order to lower its outstanding debt by repaying creditors with depreciated dollars. The rest of the world is boiling angry at Washington. http://www.lewrockwell.com/margolis/margolis214.html
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Creation of Debt as the Basis For Growth
Since 1913 the basis for growth in America has been creation of debt out of thin air, a product of the privately owned Federal Reserve and a fractional banking system. It is considered prudent under such a system to lend nine times your underlying assets. Several years ago the figure was 70 and today it is still 40 times. Government and citizens purchase economic goods on credit. Government issues bonds and individuals borrow money. Today money is only a method of exchange; it is not longer a store of value, especially in an environment of zero interest rates. http://www.theinternationalforecaster.com/International_Forecaster_Weekly/Creation_of_Debt_As_The_Basis_For_Growth
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A perfect storm has been prepared for America. Real interest rates are negative, but debt and money are being created hand over foot. The dollar’s demise awaits the world’s decision how to get out of it. The Federal Reserve can print dollars with which to keep the bond and stock markets high, but the Federal Reserve cannot print foreign currencies with which to keep the dollar afloat. When the dollar goes, Washington’s power goes, which is why the bullion market is rigged. Protect the power. That is the agenda. Is it another Washington over-reach? http://www.paulcraigroberts.org/2013/05/18/washington-signals-dollar-deep-concerns-paul-craig-roberts/
