The Vulnerability of The US Currency/ relations with China and Iraq

[jimbo]

I’ve dug up some info and thought I would share with it with you all to put somethings in perspective about China, Iraq etc. And our currency the U.S. Dollar.
To understand the significance of this event, you need to know that the United States for all its perceived wealth and affluence is in fact the most indebted nation in the world and by a long way. If the American credit card is taken away, it will be unable to service its current debt levels and the United States will quickly slip into a major depression.

If you think that the market has seriously considered this impending issue of debt, think again. The United States continues to amass debt, especially from the rest of the world at record breaking speeds. All this happens while the Federal Reserve makes token remarks about the ‘growing' US economy.

Recently the US dollar dropped significantly against all the major currencies of the world. But to get a true reflection of the value of the dollar and the true value of the US economy you of course need to look at the USDX. In July 2006 the USDX stood at 87 points, after the drop in the US dollar, the USDX now stands precariously close to the 80 point mark, coming in at 80.5 points.

Dick Cheney is justified in having serious concerns for the US economy. Dick Cheney knows that at the same time that USDX drops below eighty points the US will not be able to simply supervise the world's oil fields, it will need to OWN a significant part of the world's oil fields. This is where Iran comes into the equation.
Why do we have a new General in their? Its just a matter of time. We are proving to the world that the Iranians are behind every move that Maliki makes. He is the puppet for Iran and must eliminate his status as Prime Minister
While the world watches Iraq, while the United States government continues to threaten to pull out the troops, the real war that goes unwatched is the war between the United States Executive and the Iraqi government. One of the less touted failures of the Iraqi government is their failure to divide up its oil to include America and its corporations.

The Iraqi government to this date has refused to do this, because one, it will require a change to their constitution and second, the Iraqi government knows that if they agree, it will open the flood gates up to American corporations and they will never be truly independent again. You can measure the resolve of the Iraqi people by looking at the Iraqi's Prime Minister's recent comments suggesting that the US is now free to leave. Didn't Maliki say that they wanted us to leave. I believe this was the US calling a bluff to see Maliki reaction to prove the point he was involved with the Iranians.

[jimbo]

Have more coming

[jimbo]

Have more coming
The less touted reason for invading Iraq was in fact at the behest of the Saudi Arabian government, due to their long held fear of an impending attack from Iraq on themselves. Whatever the real cause of the attack, the spoils of this war were obvious. One, there is a significant United States presence still remaining in the Middle East to this day and two, that the Saudis would always sell its oil through the American owned and operated oil exchanges, the IPE and the NYMEX. This effectively ensures that Middle East oil is traded in the universal commodity currency, the United States dollar.
The American Dollar proudly took its role as the underlying currency of the world; the US used its currency to trade in and secure significant portions of the world’s commodities, including oil. In 1971, with a fear of mounting US dollars in their reserves, a great number of countries came to America’s doorstep to exchange their US dollars for gold. In response the US government through President Nixon, finally closed the gold window. So gold was firstly decoupled for American individuals and now it was removed for the purposes of foreign countries.

Some would say that the private bankers of the world had finally created a piece of paper, that needed to be used for the trade in anything worth buying, commodities, that was backed by nothing but a promise that the piece of paper would be accepted. One must remember that this piece of paper has its foundations in usury and fractional lending. You must admit that this fact is starting to sound a little bit apocalyptic.

America continued to trade in its spineless fiat, and it also continued to increase its debt with the privately owned Federal Reserve. Today, the US currently owes the rest of the world $14.5 trillion. It has liabilities with The Federal Reserve of around $70 trillion.
If the world decided to stop trading in US dollars, the world’s economy would crash, it’s as simple as that. The US with no manufacturing, a decreasing agriculture and a suffocating amount of debt would be bankrupt. The US population would experience an unprecedented depression while the small percentage of American and European bankers would either, shut their doors or flood the economy with more dollars.

In 2006 The Federal Reserve stopped producing the M-3 report, this report determines how much US dollars have been created and distributed throughout the world. Without the M-3, the world’s economy has no measuring stick for inflation or real commodity values. The decision to stop reporting on the M-3 is one of the most astonishing decisions in American economic history, and of course it comes with no explanation.

[jimbo]

Why doesn't the world simply drop the US dollar and end US supremacy and destructive foreign policy? The world is full of US dollars; economies around the world are impregnated with reserves full of US dollars. Collectively, China and Japan, hold $4.5 Trillion worth of US foreign reserves. If they stopped trading in US dollars both their economies would collapse. In total, the rest of the world holds around $14.5 Trillion in US foreign reserves.

The US dollar is traded and effectively measured by the US index. It is well known throughout the world that if the US dollar index goes below 80 points, then the world will go into a major depression and the US will lose control of world trade, including oil. From 2003 onwards, the US index has fallen below 100 points, in 2007 it rests between 80 and 85 points. Any move below 80 points will no doubt lead first to a US and then a worldwide economic catastrophe.

Has anybody refused to trade in US dollars in the past? In 2000, there was one country that stopped trading in US dollars. That country was Iraq; Saddam Hussein started demanding Euros for Iraqi oil, and many were prepared to pay Euros. Just one year after this event, the US people suffered 9/11; the event which allowed George Bush to strike Iraq in 2003.


If you allow yourself to consider or believe the above proposition and allow yourself to consider for a minute that the US did in fact invade Iraq to protect the US dollar. Then you can for a minute start to understand how people with the money think. The people in power sent a message to the rest of the world, when they executed Saddam Hussein and happily watched Iraq slide towards civil war;

More to come:

[jimbo]

Just recently another country with oil is again defiantly trading in Euros. The Iranian government has openly entered into contracts with Russia and China for its oil in Euros. The impact is bigger than the threat of an invasion of Iran. The bigger picture is a conflict between Russia, China and the US.


China is the fastest growing economy in the history of the world. Their power to influence geo-political issues is at the forefront of every political or economic analyst's mind. AmeAre sneeze in the Chinese market has direct and palpable repercussions for the world's markets. Russia holds nearly half of the world's nuclear weapons, need we say anymore
However, the US government has no money and their credit card as demonstrated by the falling US index is in fact about to run out. The US is the most indebted country in the world; its current credit liability is over $71 trillion. Last year the US lost $1.3 trillion. US growth has in fact nearly stopped; coming in at a meager .6%.

[Morethanready]

I am very wary of Red China, most because of its military buildup, but let’s have a little perspective on its economy.

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $43,500.

https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

China’s per capita GDP is still measured in the hundreds. The growth in the U.S. GDP last year exceeded China’s entire GDP of 2.5 trillion.

By all means, keep an eye on Red China - and pass up their shoddy goods while you are at it - but don’t get weak in the knees yet. Only time will tell how things will play out.

[Geoff]

"The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. Both are the refuge of political and economic opportunists." - Ernest Hemingway - 1899-1961 - Nobel laureate Literature 1954

[Geoff]

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $43,500.

https://www.cia.gov/library/publications/the-world-factbook/geos/us.html


You're only seeing part of the picture, (with the assistance of statistical manipulation by the U.S. government). When you figure in the crushing public and private debt with GDP, it's a very different picture. Ominous, really. America cannot sustain itself under the pressure of it's mounting debt. http://mwhodges.home.att.net/#economy

China isn't without it's problems, let's be clear on that. The Chinese economy is overheating, and has largely failed to respond to regulatory efforts aimed at slowing growth. They are looking at a big real estate bubble and spiraling inflation, among other things. I believe the government will clamp down and get things under control.

As for the U.S., it's business as usual with government. Partisan bickering, passage of more legislation that gives them more control over the people. They are a clueless bunch of spineless cowards on both sides of the aisle. They sold us out a long, long time ago. But the time is drawing near when both clueless politicians and a largely clueless citizenry will have to deal with some harsh realities. Buckle up.

[Raintrain34]

Nice post(s) Jimbo...I think I had only come across 80% of what you mentioned, and I've been trying to take in as much as I can in the last month and a half.

[cowpoke]

In all reality, this is really nothing, and probably a good thing for us.
We simply file bankruptcy default on the debt, screw the rest of the world out of what is owed them and move on to isolationism after the worldwide depression follows.

We will print a new currency and asses it a new value,ect..

Remember folks we don't need the rest of the world. We have natural resources, we pump almost as much oil as Saudi Arabia, we have the worlds largest coal reserves. Timber, Fresh Water, Agriculture, (remember, the US was the bread basket to the world), Services, Technology, ect........

And on top of that our Sunni (Hatfields) and McCoy (Shia's) settled their differences years ago.:happy26:

[everwiser]

In all reality, this is really nothing, and probably a good thing for us.
We simply file bankruptcy default on the debt, screw the rest of the world out of what is owed them and move on to isolationism after the worldwide depression follows.

We will print a new currency and asses it a new value,ect..

Remember folks we don't need the rest of the world. We have natural resources, we pump almost as much oil as Saudi Arabia, we have the worlds largest coal reserves. Timber, Fresh Water, Agriculture, (remember, the US was the bread basket to the world), Services, Technology, ect........

And on top of that our Sunni (Hatfields) and McCoy (Shia's) settled their differences years ago.:happy26:

You miss the point...

A crash and subsequent run on the U.S. dollar would cripple this country and every Americans current "way of life". Because of the government having sold out to the Federal Reserve, absolutely everyone carrying any debt will be bankrupted. The banks will be bankrupted because they are lending, at minimum, 1000% more than they hold in reserve and those reserves are what will become worthless. Every person holding funds in any bank will lose what they think they have overnight. Your IRA's, 401K's, bonds, CD's, etc, will all go up in smoke.

The U.S.'s gold has been squandered and there's not even a millionth of what would be needed to support any "new" currency. You can't just throw away one fiat currency and then create another and expect the world to accept it. The short term affect is no less than an complete and utter breakdown of society. Things were bad enough in the 1930's but people were still mostly self-sufficient. Today however we've got generations of people who do not know how to do squat for themselves. They don't grow food, they don't make their own clothes, they have no skills. They've simply relied on inner city government handouts. There will be literally a complete breakdown of order...

[cowpoke]

You miss the point...

A crash and subsequent run on the U.S. dollar would cripple this country and every Americans current "way of life". Because of the government having sold out to the Federal Reserve, absolutely everyone carrying any debt will be bankrupted. The banks will be bankrupted because they are lending, at minimum, 1000% more than they hold in reserve and those reserves are what will become worthless. Every person holding funds in any bank will lose what they think they have overnight. Your IRA's, 401K's, bonds, CD's, etc, will all go up in smoke.

The U.S.'s gold has been squandered and there's not even a millionth of what would be needed to support any "new" currency. You can't just throw away one fiat currency and then create another and expect the world to accept it. The short term affect is no less than an complete and utter breakdown of society. Things were bad enough in the 1930's but people were still mostly self-sufficient. Today however we've got generations of people who do not know how to do squat for themselves. They don't grow food, they don't make their own clothes, they have no skills. They've simply relied on inner city government handouts. There will be literally a complete breakdown of order...

I doubt it. People are willing to do what needs to be done to keep a somewhat semblance of a productive society.
Our system is so efficient now that there would only be a small blip on the screen with regards to economic chaos.
1 Family farm feed about 25 Families years ago, now, one feeds about 500+

We have natural resources and that is the foundation of any economy not the worthless scrip it prints.

[williambedloe]

There is one lesson in all of this - hoard gold...

[everwiser]

I doubt it. People are willing to do what needs to be done to keep a somewhat semblance of a productive society.
Our system is so efficient now that there would only be a small blip on the screen with regards to economic chaos.
1 Family farm feed about 25 Families years ago, now, one feeds about 500+

We have natural resources and that is the foundation of any economy not the worthless scrip it prints.

You'll notice I said "short term".

One hurricane turned New Orleans into a riotous war zone. Let all the services in our biggest cities run out of everything because the prices skyrocket due to the money people are holding being worthless and see how long is takes for similar things to happen...

Long term recovery would get the U.S. back to fiscal responsibility and create a business environment whereby manufacturing and agriculture would ramp back up for domestic production of goods but we're talking 10 to 20 years. All those manufacturing facilities won't just magically start creating "something out of nothing" overnight because most of them have been shut down and dismantled because it was cheaper to do it overseas than do it here. On top of that, most agriculture in this country is geared towards a very small number of crops that target export sales. It takes time and money to convert the fields back to being able to grow basic foodstuffs, most of which we now buy from Mexico & South America. What is currently grown here is only enough to feed the areas immediately surrounding where it is grown...

I wouldn't be so flippant about the possibilities. If the dollar crashes really hard, it will make the Great Depression look small and short-lived by comparison...

[cowpoke]

You'll notice I said "short term".

One hurricane turned New Orleans into a riotous war zone. Let all the services in our biggest cities run out of everything because the prices skyrocket due to the money people are holding being worthless and see how long is takes for similar things to happen...

Long term recovery would get the U.S. back to fiscal responsibility and create a business environment whereby manufacturing and agriculture would ramp back up for domestic production of goods but we're talking 10 to 20 years. All those manufacturing facilities won't just magically start creating "something out of nothing" overnight because most of them have been shut down and dismantled because it was cheaper to do it overseas than do it here. On top of that, most agriculture in this country is geared towards a very small number of crops that target export sales. It takes time and money to convert the fields back to being able to grow basic foodstuffs, most of which we now buy from Mexico & South America. What is currently grown here is only enough to feed the areas immediately surrounding where it is grown...

I wouldn't be so flippant about the possibilities. If the dollar crashes really hard, it will make the Great Depression look small and short-lived by comparison...

Never under estimate the people of America. Our lifestyles could be cut in half and would still be far better than the majority of the world.
And that may not be such a bad thing anyways.
Remember how we ramped up for WW2?
Now move ahead 50 Years. I think things would not be as bad as folks think.
There are already bad places here in America already Just as in Iraq.
It's all relative, life goes on.

[everwiser]

Never under estimate the people of America. Our lifestyles could be cut in half and would still be far better than the majority of the world.
And that may not be such a bad thing anyways.
Remember how we ramped up for WW2?
Now move ahead 50 Years. I think things would not be as bad as folks think.
There are already bad places here in America already Just as in Iraq.
It's all relative, life goes on.

"Persons are smart. People are stupid and panicky creatures." You underestimate the dependency culture that has been created and cultivated since WW2...

[rainsofterror]

Wow. So many economic experts and not one of you points out the real problem. Anyone wonder how we got into all this debt? Could this be the problem?

http://www.ecclesia.org/truth/reserve.html

[Gluphus]

I agree, its the fault of foggy bottom for bad policy and THEY should pay for this. If that "payment" means they, due to lack of leadership, lose their powerbase, so be it, thats free markets in action.

Overall, I see the creeping federalism that is the US Govt as a bad thing. The character and individualism of the American man has changed over the last 2 decades from what has defined us as a great nation.

If/when we learn from this, perhaps we can work together (Americans are great innovators in time of crisis) to develop real alternate energy sources (we still need petrol for most of our products, BUT, if we can alt fuel our cars...that makes us almost independent) things will be better. Also, when this debt comes down on the people that caused it, it will free the true innovators that allowed America to be great in the first place.

There is a great book that describes what we are going thru as a cycle, in essence, we are changing from a financier dominated world back to an innovator/creator world. I for one, welcome such change.

[OILMAN]

i guess all i want to point out is since 9-11
all the state web sites have updated
emergency procedures for times including
nuclear war...how bout that? and tight
enconomic times planning..........
cable channels are filled with movies of
shows of such material like jerico........
whats up with all this?????????????
amero currency may be planned for in the
immediate future as needed...............
international trans highway going thru to combine
mex. US and canada............
all i can say is ummmm interesting future coming up...............:rolleye03

[jimbo]

I put it to the world; bigger is no longer better, that financial achievement is not something that should measure our personal success. The world must move towards sustainability and improvement of world wide living standards. The banks have had their chance and they have failed to improve the overall standard of living throughout the world. They have effectively only improved the living standards of the industrialized nations through the further enslavement of debt.

There is only one way to fix this problem and it means starting again. The transition will be destructive, astonishing, crushing but liberating. We can not continue with this line of thinking any longer. In order for the current system to continue to work, they will need to start another world war, leading to the development of another worldwide currency but this time it will not just be the American people paying the interest to the private bankers, the banks this time will require the last remaining bankable asset as collateral; the earth itself.

For many reasons the world as we know it, could end very shortly. The world’s population needs to get on the front foot and take the world back for the people, before it’s given back to them in a bloody and lifeless mess. The one way to fix the world’s problem is to encourage the Third World to default on its loans to the industrialized nations. This decision will cause a cataclysmic response. The world will be given back to its inhabitants in the next few years instead of being destroyed by future wars and perhaps even a nuclear war. The succession of mankind is at hand, the failure to act now will lead to the further reduction of our necessary resources for survival.

Encourage a Third World default now!

[jimbo]

This has been a very interesting Blog I stumble on as I was surfing the net the other night. I'm glad I was able to post this on the forum. It bears alot information and it created a great conversation piece. Even though we all have a difference in opinion. As Humans of the earth our source of survival in this world has become more dependent on our own goverments to make descision for the constituent they represent. Sometimes as I read through all of this I get the feeling that their is a Govermental of bodies that has more power than our own goverment. I also believe the people of this earth can change the direction we are heading. But isn't true the Money is the ruler of all EVIL. JMO jimbo

[everwiser]

This has been a very interesting Blog I stumble on as I was surfing the net the other night. I'm glad I was able to post this on the forum. It bears alot information and it created a great conversation piece. Even though we all have a difference in opinion. As Humans of the earth our source of survival in this world has become more dependent on our own goverments to make descision for the constituent they represent. Sometimes as I read through all of this I get the feeling that their is a Govermental of bodies that has more power than our own goverment. I also believe the people of this earth can change the direction we are heading. But isn't true the Money is the ruler of all EVIL. JMO jimbo

It is interesting, no doubt. However, I think you give "government" (any government) too much credit, pardon the pun. The governments of the "free" world sold out to the bankers (Central Banks, Federal Reserves, etc.) decades ago. There are a few hundred persons in this world that hold all the wealth and all the IOU's and they've been siphoning it off from all of us for decades. I see chaos coming and I don't see a "unification" of the world in the works...

[zimbu]

In the new lands of America three brothers now shall come to power
Two alone are born to rule but all must die before their hour
Two great men yet brothers not make the north united stand
Its power be seen to grow, and fear possess the eastern lands

Three leagues from the gates of Rome a Pope named Pol is doomed to die
A great wall that divides a city at this time is cast aside
These are the signs I bring to you
to show you when the time is nigh

Man, man, your time is sand, your ways are leaves upon the sea
I am the eyes of Nostradamus, all your ways are known to me


ARGHHHHhhhhhhhh !!! :eek:

The end is near !!! :shhh:



Zimmer <----- Running around waving arms uncontrollably


http://www.geocities.com/sunsetstrip/Palladium/2214/fmonk_as.jpg

[Geoff]

Never under estimate the people of America.

It is the "people of America" who are ultimately responsible for where we are right now. Most folks have no clue of what this means. Today's culture equates liberty with the ability to spend money and we blame others for our problems. We can blame whoever for where America is headed, but at the end of the day, the responsibilty lies squarely on the weak shoulders of the American people.

[OILMAN]

I'm in>>>>>>>>>>>>:happy64:

[lance]

In the new lands of America three brothers now shall come to power
Two alone are born to rule but all must die before their hour
Two great men yet brothers not make the north united stand
Its power be seen to grow, and fear possess the eastern lands

Three leagues from the gates of Rome a Pope named Pol is doomed to die
A great wall that divides a city at this time is cast aside
These are the signs I bring to you
to show you when the time is nigh

Man, man, your time is sand, your ways are leaves upon the sea
I am the eyes of Nostradamus, all your ways are known to me


ARGHHHHhhhhhhhh !!! :eek:

The end is near !!! :shhh:



Zimmer <----- Running around waving arms uncontrollably


http://www.geocities.com/sunsetstrip/Palladium/2214/fmonk_as.jpg

OH! THE DRAMA! No man will know the time. No sign will be given them except the sign in Job.

[zimbu]

OH! THE DRAMA! No man will know the time. No sign will be given them except the sign in Job.

My post does have a point.
I wanted to elicit a certain response, however that's wasn't it. ;)

Zimmer.