US$. Is the Ride About to Begin......Hang On
Submitted by advisor on Tue, 10/06/2009 - 11:39pm.
UK Independent reports that secret meetings were held between Russia, China, France, Japan, and Arab states in order to end the US$ role in the price of oil, and replace it with a basket of currencies which would include the Chinese Yuan, Japanese Yen, and one assumes also the US$.
Gold and oil rose dramatically today based on the story, while the US$ sank to $1.4748/Euro. Folks have come out of the woodwork to deny the report.
See AP Story.
Evidence for:
The best way to pay our nations debts....the only way to pay our nations debts is to devalue the green back. Devaluation is coming. Who wouldn't want to get ahead of the obvious?
Evidence against:
Will the Chinese, Japanese, and Arab states choose to burn 1/2 of the value of their US$ reserves?
Back from the brink or over the edge?
Read this and you decide. www.nypost.com/p/news/business/dollar_loses_reserve_status_to_yen_hFyfwvpBW1YYLykSJwTTEL;jsessionid=65E301CF47ED50D15170F8D6530791C5
I've Said it Before ...
... we have been writing cheques our economy can't cash !!!
If you want to stimulate the economy it's easy ... instead of "Cash for Clunkers" institute an Income Tax Holiday Month ... then:
1. Certify truly American companies ... companies producing here with American employees !!! Halve sales taxes on these products !!!
2. Incentivize investment in American companies with a tax exemption similar to the deduction you get for you kids ... after all, if we don't stimulate American firms, our kids won't have a place to work ...
3. Establish a works program for folks on Welfare ... either you work or get into some type of re-training program - not just going to school, more of a work-study program ...
4. Break-up the likes of Citi, B of A, & AIG ... no one is " ... too big to fail ..."
It's high time we started looking out for #1 lest we become "#2" !!!
Train left the station
This train left the station some time ago. I'm not sure when exactly, sometime in the last administration, but there is no denying that the ride has begun and I fear it will be a long one. The Chinese have been quietly pulling back from the dollar for some time now as they buy up about every asset they can get their hands on. If they pull back from T bills in a big way Japan probably will as well. Then Britain. Then we can all tell our grandchildren and great grandchildren about how much fun hyper inflation is. We continue to be unbelievably irresponsible, printing money, spending money, buying up our own debt. The dollar has fallen 11.5% in just the last 6 months! For 2009 our Federal Deficit hit $1.4 trillion, three times the previous record! which was set all the way back in 2008! Perhaps it is the only way to pay back our debt, with worthless US dollars but what happens to our country in the mean time? Does anybody remember the Soviet Union in the mid 90's? Our path is unsustainable and our leaders are weak and corrupt. The CBO came out with the healthcare estimate today. Only about $900 billion over 10 years. Does anybody believe that? These are the same morons that told us at its inception that in 1990 Medicare would only cost us $12 billion. They missed that one by a mere $95 billion dollars, as it was $107 billion in 1990. Today it is over $420 billion. It is time to fumigate. Clean House. Reset. Keep Ron Paul though. He seems to know what he is talking about and has been sounding the alarm for some time.
Devaluation
Devaluation of the dollar has been a foreseeable consequence of our fiscal policy for some time. With the dollar devaluating oil producers must either raise prices to offset lower a $ value or tie oil to another currency (or basket of currencies). The devalued dollar will also spook foreign investors from purchasing T-Bills, which is currently financing our debt. The Reserve Bank of Australia has just become the first "big" economy to raise interest rates, and others will have to follow suit to attract investment dollars. Ben Bernanke refuses to get ahead of this curve and raise interest rates, for fear that it will slow down or even reverse the recovery. But, we'll have to raise interest eventually to compete for foreign investment and the longer we wait the steeper the climb.
That's why ...
... you have today's conundrum of a weak dollar, raising gold prices, and flat oil ... enter Putin and the Russian oligarchs closing in on surpassing the output of the middle east !!!
Raising interest rates is not necessarily the first course of action ... first course should be to weed out the charlatans holding the purse strings and took TARP money ... blowing in the ear of the government and telling them it was windy !!!
To stimulate the economy, government must stimulate the proletariat by reducing taxation in favour of allowing the wage-earners to decide how to spend their hard-earned paychecks !!! Think of how many more would have been affirmatively affected by a income tax holiday ... instead of "Cash for Clunkers" ???
Surprise,Surprise,Surprise
Well , uncontrolled spending will come home to roost one day soon.Seems like the terrorists are winning the war.Inflation....Can the new generation of money makers solve the problem ? Only by printing more money with less value. Hang on to your hats.