The demise of the US dollar.
Posted 08 February 2003 - 05:21 PM
Posted 08 February 2003 - 08:15 PM
The main difference between dollars and euro is that the majority of the world's reserve is held by fiat dollars and really does not cost the US anything to print and gives them trillions in the bank to play with. China has 300 billion, India 75 billion and these are the poorest countries of the world just kept holding all this cash rather than having it invested in their own countries.
Actually most of the debt are not held by americans unless you consider the UK and EU american as well. 3 trillion or so is held by the japanese another trillion by the arabs but majority are held by jews.
Dont fuk with the jews or they will make you eat it. Thats why I dont think the US will ever default and get away with it. Jews hold most of the debt.
Posted 08 February 2003 - 10:08 PM
Trade: Malaysia goes for gold By Chee Yoke Heong
KUALA LUMPUR - Come mid-year, Malaysia is to put into place what is perhaps the first of its kind in the world, the dinar-gold proposal for bilateral and multilateral trade among Islamic countries. The plan, which was announced last March by Prime Minister Mahathir Mohamad, aims to prevent another currency crisis of the scale seen in Asia in 1997-98.
In modern times, a gold-backed system was adopted internationally until the Bretton Woods system collapsed in the 1970s. The dinar is already being used as a currency by the Islamic Development Bank but it is indirectly pegged to the US dollar, with one dinar equivalent to one special drawing right (SDR) of the International Monetary Fund. (The SDR, the "currency" established by the IMF, is set to a basket of five major currencies, ie, the US dollar, British pound, Japanese yen, French franc and German Deutschmark - the last two in their euro equivalents.)
In this structure, exchange-rate risks, a phenomenon of the current floating exchange-rate regime and the source of much chagrin, would be eliminated, as there would be no need for forward, futures or options on currencies.
For example, if at the end of a three-month cycle, the total exports from Malaysia to Saudi Arabia is 2 million gold dinar and the total exports of Saudi Arabia to Malaysia is 1.8 million gold dinar, only a relatively small amount - 200,000 gold dinar - supporting a total trade value of 3.8 million changed hands.
Posted 12 February 2003 - 08:11 PM
Altogether, the U.S. has borrowed nearly $40 trillion, and needs $2 billion a day in debt finance to support its huge trade deficit.
Yet in the meantime, oil prices are high, slowing the world economy, and oil prices could skyrocket in an actual war, pushing the world economy into recession, or worse.
Thus, the U.S. wants war with Iraq as a way out of its economic and financial mess. The world shouldn't let the U.S. get away with it this time.
David McArthur is a Freelance Business Journalist Specialising in electricity, energy and environmental news reporting and analysis.
Posted 12 February 2003 - 09:10 PM
NEW YORK (CNN/Money) - Alan Greenspan stepped up his warnings about budget deficits Wednesday, forcing the White House to admit the Federal Reserve chief was at odds with President Bush's push for quick moves to stimulate the economy.
In his second day on Capitol Hill, Greenspan told the House Financial Services Committee it was crucial that policy-makers ensure that "growing budget deficits [do not] again become entrenched.''
Posted 12 February 2003 - 11:39 PM
Simply put, the dollar has for several decades been positioned as the only way for an industrialized country to pay OPEC for oil. No matter who you were, you had to buy American dollars and then send those dollars to OPEC, who would then use the money to buy American debt, or American weapons.
It was the perfect set-up. Greenspan printed worthless dollars, and gave them to people who gave us free gasoline, and free TV sets, and free wicker furniture. The game changed, however, when the Euro was introduced. Now, many oil-producing nations are accepting the Euro instead of the dollar. Saddam loves the Euro.
This new competition from the Euro makes Uncle Sam very angry. So Uncle Sam came up with a plan; he sent a secret message to all the Arabs:
You will only accept American Dollars, or we will kill you.
This, to a large extent, explains the secrecy surrounding the activities of the American government. It would be difficult for President Bush to go on TV and explain the benefits of his Dollars or Death foreign policy. Many left-wing pacifists would say that we shouldn't kill people who accept the Euro. (Unless they are French.)
No more Petro-Dollar reserve currency; no more free stuff for Americans.
Posted 13 February 2003 - 10:32 PM
Posted 13 February 2003 - 10:43 PM
Posted 13 February 2003 - 10:58 PM
Maybe I'll sell the stocks and buy gold instead. But I keep hoping bush aint crazy enough to start a war.
Its the optimist in me. I cant belive there are so many stupid people.
Posted 13 February 2003 - 11:04 PM
Posted 13 February 2003 - 11:06 PM
Originally posted by Lumberjack
War is inevitable at this point, Gold may take a hit after the war ends,stocks may rally as well,both will be shortlived. I really do prefer silver,less risky since nobody has a big pile of it they can sell to drop the price except Buffett,and he won't sell under $10 unless I'm very much mistaken.
I think we missed out totally on Platinum's bull run over the last year too...
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