Double speak to complex for the dumb down infotainment consumers?
Innuendo two levels above the american youth’s Xbox intellectual capacity?
Call a spade a spade seems to be the strategy for the navy’s new slogan. The US Navy A Global Force for Good. Protecting the US is of course boorish and so 19th century. I give them points for being candid. Hopefully this will make it easier for us to agree on two points:
1. We are the world’s police and your children are expected to be the blood that projects special interest policy on the rest of the world.
2. We are now the nation of perpetual war. There will be never ending objectives for a global force of good.
Of course to be able to afford this we will have to continue to lower the standard of living for US citizens. This represents the best that non partisan politics has to offer.
If you care, mark as a signpost on the road to ruin for the republic.
PS – You can watch the video HERE I could not bear to embed it in my blog.
Sunday, October 25, 2009
Saturday, October 24, 2009
Abortion Kills More Black Americans Than the Seven Leading Causes of Death Combined, says CDC
Source: Karen Schuberg, CNS News
"Abortion kills more black Americans than the seven leading causes of death combined, according to data collected by the Centers for Disease Control and Prevention for 2005, the latest year for which the abortion numbers are available."
"Abortion killed at least 203,991 blacks in the 36 states and two cities (New York City and the District of Columbia) that reported abortions by race in 2005, according to the CDC." (Full article at source link above)
How can anyone doubt that euthanasia is not on our horizon as part of government health care. We use government money to murder babies and the American Holocaust now claims over 40 million victims.
If God spares the USSA, he will have to apologize to Sodom and Gomorrah.
"Abortion kills more black Americans than the seven leading causes of death combined, according to data collected by the Centers for Disease Control and Prevention for 2005, the latest year for which the abortion numbers are available."
"Abortion killed at least 203,991 blacks in the 36 states and two cities (New York City and the District of Columbia) that reported abortions by race in 2005, according to the CDC." (Full article at source link above)
How can anyone doubt that euthanasia is not on our horizon as part of government health care. We use government money to murder babies and the American Holocaust now claims over 40 million victims.
If God spares the USSA, he will have to apologize to Sodom and Gomorrah.
Tuesday, October 20, 2009
Perspective: Day Light Savings
Writes Arthur Oczko: “When ‘daylight savings time’ was explained to an old Indian, he said: ‘Only the government would claim to cut a foot off the top of a blanket, sew it to the bottom, and end up with a longer blanket.’”
Thanks to LRC.COM for this bit of wisdom.
Thanks to LRC.COM for this bit of wisdom.
How The Federal Reserve Bailed Out The World
Zero Hedge is one the best financial blogs I have come across. Below is excerpt from the story that was the title of this post:
How The Federal Reserve Bailed Out The World
When the financial system almost imploded in the fall of 2008, one of the primary responses by the Federal Reserve was the issuance of an unprecedented amount of FX liquidity lines in the form of swaps to foreign Central Banks.
READ THE COMPLETE ARTICLE HERE!!!
How The Federal Reserve Bailed Out The World
When the financial system almost imploded in the fall of 2008, one of the primary responses by the Federal Reserve was the issuance of an unprecedented amount of FX liquidity lines in the form of swaps to foreign Central Banks.
READ THE COMPLETE ARTICLE HERE!!!
Monday, October 19, 2009
US Sovereignty is the Prize
See my post here for the facts regarding the global warming hoax, you will find a link to The Skeptic's Handbook. The debate is anything but settled. So if there is no global warming, excuse me, climate change emergency then what is the all the fuss about?
Removing what is left of US sovereignty through international controls. The Copenhagen agreements that will be in play this coming December will accomplish just that in spades.
Below is the very end of Lord Christopher Monckton’s presentation from October 14th in Minnesota.
If this 4 minute video concerns you than it is imperative you carve out 90 minutes and watch the entire presentation here , and follow with the power point presentation from this link .
Removing what is left of US sovereignty through international controls. The Copenhagen agreements that will be in play this coming December will accomplish just that in spades.
Below is the very end of Lord Christopher Monckton’s presentation from October 14th in Minnesota.
If this 4 minute video concerns you than it is imperative you carve out 90 minutes and watch the entire presentation here , and follow with the power point presentation from this link .
The History of The Future: Trends 2012
The 2nd American Revolution
Vol. XVII, No. 4 Autumn Issue • 2009
Episode V
Autumn 2012, the “Greatest Depression” has spread worldwide. Billions are unemployed, homeless and desperate. Countries bankrupt, trade pacts broken, tariffs rise, borders close.
Protectionist, nationalist and anti-globalization movements have moved out of the margins and into the mainstream. Immigrants brought in during boom times — blamed for bringing down wages, stealing jobs and rising crime — are being rounded up and deported.
Despite differences between the 1930’s Great Depression and today’s “Greatest Depression,” unsettling similarities conjure up memories of pre-World War II. From the United Kingdom to Russia, war drums eerily beat.
China, Vietnam, Indonesia, Singapore — all countries that ramped up production to meet insatiable business and consumer demands of the prior decade — fight for survival.
Japan, Taiwan and South Korea, long industrialized and export driven, blame China for their mounting trade imbalances, internal strife and Southeast Asian instability.
Mexico, once the US resort/retirement retreat, is as dangerous as the Congo, and its government — what’s left of it — is equally ruthless.
Across much of South America, depression, coups and wars prevail; few nations have been spared.
In Afghanistan, Iraq and Pakistan it’s the same news, different year, different body count: “Five US troops killed in Afghanistan.” “US drone attack kills 60 civilians in Pakistan.” “Car bomb blast kills 47 in Iraq.”
In the eleven years since President George W. Bush promised to bring Osama bin Laden back “dead or alive,” there have been more Elvis sightings than traces of bin Laden.
The US military asks for more troops, more money and more time. The President and Congress plunder the treasury and sacrifice more lives all under the pretext of keeping America Al Qaeda-free.
The Israeli-Palestinian peace process remains permanently and violently stalemated.
Iran, having forged a business/military alliance with China and Russia, is now a Nuclear Club member, and the world is forced to deal with it.
Oil-rich nations, having sunk trillions and lost trillions in high stakes investments, are trying to cope with internal rebellion and decreased demand for their only cash crop.
India’s miracle economy has run out of miracle, pushing it back into Third World conditions. Incessant flare-ups with Pakistan carry nuclear implications.
Canada, Australia and New Zealand are not in great shape, but compared to most other nations, they seem like paradise.
Africa is Africa. Not much has changed. Corruption, poverty and conflict prevail. Despots and dictators vie for control. Newly emerging colonial powers outmaneuver old colonial powers to commandeer rich lodes of natural resources.
A few countries flourish, some even in the middle of regional hotspots. Smart citizenry, good leadership, a little luck, energy and resource self-sufficient — they saw the trends coming and made proactive decisions.
Trendpost: Although SHCs (Safe Haven Countries) was not part of the lexicon in 2009, the concept was on the minds of the very rich and the very tuned-in.
Aware of the mounting fury of the millions who had lost jobs, homes and futures, and the many other millions who blamed their government for taking their taxes to cover the trillions in financial sector losses, the smart money had already moved to safety or had escape plans in place. If it meant leaving mansions and businesses behind, that was a small price to pay for saving their necks. The on-trend, even with limited resources, had plans in place to escape before things turned ugly and it was too late to leave.
Businesses specializing in safe haven relocation services — opening foreign accounts, arranging for dual citizenship and/or multi-nation passports — will be in high demand.
It was a worldwide trend. From Israel to Argentina, Russia to the USA, nations big and small, each with their own problems, were unraveling. By 2012, with borders tightly sealed and money flows restricted, choice havens were no longer admitting foreigners, but there would still be other options for the determined.
Trendpost: “Survivalism,” a trend building in 2009, will be bigger business in 2012. There would be escape routes, safe harbors and satisfying futures for those with the nerve and wit to take their lives into their own hands.
Survival was more than guns and freeze-dried food. It also meant getting prepared emotionally, spiritually and physically … “Holistic Survival” was a profession waiting for professionals to prac-tice and teach. The Trends Journal • Autumn 2009
THANX TO LRC.COM and G. Celente
Vol. XVII, No. 4 Autumn Issue • 2009
Episode V
Autumn 2012, the “Greatest Depression” has spread worldwide. Billions are unemployed, homeless and desperate. Countries bankrupt, trade pacts broken, tariffs rise, borders close.
Protectionist, nationalist and anti-globalization movements have moved out of the margins and into the mainstream. Immigrants brought in during boom times — blamed for bringing down wages, stealing jobs and rising crime — are being rounded up and deported.
Despite differences between the 1930’s Great Depression and today’s “Greatest Depression,” unsettling similarities conjure up memories of pre-World War II. From the United Kingdom to Russia, war drums eerily beat.
China, Vietnam, Indonesia, Singapore — all countries that ramped up production to meet insatiable business and consumer demands of the prior decade — fight for survival.
Japan, Taiwan and South Korea, long industrialized and export driven, blame China for their mounting trade imbalances, internal strife and Southeast Asian instability.
Mexico, once the US resort/retirement retreat, is as dangerous as the Congo, and its government — what’s left of it — is equally ruthless.
Across much of South America, depression, coups and wars prevail; few nations have been spared.
In Afghanistan, Iraq and Pakistan it’s the same news, different year, different body count: “Five US troops killed in Afghanistan.” “US drone attack kills 60 civilians in Pakistan.” “Car bomb blast kills 47 in Iraq.”
In the eleven years since President George W. Bush promised to bring Osama bin Laden back “dead or alive,” there have been more Elvis sightings than traces of bin Laden.
The US military asks for more troops, more money and more time. The President and Congress plunder the treasury and sacrifice more lives all under the pretext of keeping America Al Qaeda-free.
The Israeli-Palestinian peace process remains permanently and violently stalemated.
Iran, having forged a business/military alliance with China and Russia, is now a Nuclear Club member, and the world is forced to deal with it.
Oil-rich nations, having sunk trillions and lost trillions in high stakes investments, are trying to cope with internal rebellion and decreased demand for their only cash crop.
India’s miracle economy has run out of miracle, pushing it back into Third World conditions. Incessant flare-ups with Pakistan carry nuclear implications.
Canada, Australia and New Zealand are not in great shape, but compared to most other nations, they seem like paradise.
Africa is Africa. Not much has changed. Corruption, poverty and conflict prevail. Despots and dictators vie for control. Newly emerging colonial powers outmaneuver old colonial powers to commandeer rich lodes of natural resources.
A few countries flourish, some even in the middle of regional hotspots. Smart citizenry, good leadership, a little luck, energy and resource self-sufficient — they saw the trends coming and made proactive decisions.
Trendpost: Although SHCs (Safe Haven Countries) was not part of the lexicon in 2009, the concept was on the minds of the very rich and the very tuned-in.
Aware of the mounting fury of the millions who had lost jobs, homes and futures, and the many other millions who blamed their government for taking their taxes to cover the trillions in financial sector losses, the smart money had already moved to safety or had escape plans in place. If it meant leaving mansions and businesses behind, that was a small price to pay for saving their necks. The on-trend, even with limited resources, had plans in place to escape before things turned ugly and it was too late to leave.
Businesses specializing in safe haven relocation services — opening foreign accounts, arranging for dual citizenship and/or multi-nation passports — will be in high demand.
It was a worldwide trend. From Israel to Argentina, Russia to the USA, nations big and small, each with their own problems, were unraveling. By 2012, with borders tightly sealed and money flows restricted, choice havens were no longer admitting foreigners, but there would still be other options for the determined.
Trendpost: “Survivalism,” a trend building in 2009, will be bigger business in 2012. There would be escape routes, safe harbors and satisfying futures for those with the nerve and wit to take their lives into their own hands.
Survival was more than guns and freeze-dried food. It also meant getting prepared emotionally, spiritually and physically … “Holistic Survival” was a profession waiting for professionals to prac-tice and teach. The Trends Journal • Autumn 2009
THANX TO LRC.COM and G. Celente
Friday, October 16, 2009
"The Battle Hymn of the Republic"
"The Battle Hymn of the Republic" updated by Mark Twain 1901
Mine eyes have seen the orgy of the launching of the Sword;
He is searching out the hoardings where the stranger's wealth is stored;
He hath loosed his fateful lightnings, and with woe and death has scored;
His lust is marching on.
I have seen him in the watch-fires of a hundred circling camps;
They have builded him an altar in the Eastern dews and damps;
I have read his doomful mission by the dim and flaring lamps—
His night is marching on.
I have read his bandit gospel writ in burnished rows of steel:
"As ye deal with my pretensions, so with you my wrath shall deal;
Let the faithless son of Freedom crush the patriot with his heel;
Lo, Greed is marching on!"
In a sordid slime harmonious Greed was born in yonder ditch,
With a longing in his bosom—and for others' goods an itch.
As Christ died to make men holy, let men die to make us rich—
Our god is marching on.
Mine eyes have seen the orgy of the launching of the Sword;
He is searching out the hoardings where the stranger's wealth is stored;
He hath loosed his fateful lightnings, and with woe and death has scored;
His lust is marching on.
I have seen him in the watch-fires of a hundred circling camps;
They have builded him an altar in the Eastern dews and damps;
I have read his doomful mission by the dim and flaring lamps—
His night is marching on.
I have read his bandit gospel writ in burnished rows of steel:
"As ye deal with my pretensions, so with you my wrath shall deal;
Let the faithless son of Freedom crush the patriot with his heel;
Lo, Greed is marching on!"
In a sordid slime harmonious Greed was born in yonder ditch,
With a longing in his bosom—and for others' goods an itch.
As Christ died to make men holy, let men die to make us rich—
Our god is marching on.
Thursday, October 15, 2009
Only the Blind Can Miss the Writing on the Wall
Putin is negotiating an energy deal with China that would involve their two currencies as the medium of exchange.
The article on RIANOVOSTI is an update from the Shanghai Cooperation Org. (SCO) meetings in Beijing.
Putin said "Yesterday, energy companies, in particular Gazprom, raised the question of using the national currency. We are ready to examine the possibility of selling energy resources for rubles, but our Chinese partners need rubles for that. We are also ready to sell for yuans."
Each of these chinks in the foundation of the dollar should be headline news in the US, of course they are not. The decline of the dollar will take the standard of living for 95% of Americans. So, whether or not Rush Limbaugh owns a football team is understandably more important.
Stupid Americans. It will be so funny when they are unemployed and hungry and start asking what happened two years from today. Unfortunately, I am an American who will be along for the ride.
The article on RIANOVOSTI is an update from the Shanghai Cooperation Org. (SCO) meetings in Beijing.
Putin said "Yesterday, energy companies, in particular Gazprom, raised the question of using the national currency. We are ready to examine the possibility of selling energy resources for rubles, but our Chinese partners need rubles for that. We are also ready to sell for yuans."
Each of these chinks in the foundation of the dollar should be headline news in the US, of course they are not. The decline of the dollar will take the standard of living for 95% of Americans. So, whether or not Rush Limbaugh owns a football team is understandably more important.
Stupid Americans. It will be so funny when they are unemployed and hungry and start asking what happened two years from today. Unfortunately, I am an American who will be along for the ride.
Wednesday, October 14, 2009
A Military Hero Speaks Out
“To those who have called me a coward I say that they are wrong, and that without knowing it, they are also right. They are wrong when they think that I left the war for fear of being killed. I admit that fear was there, but there was also the fear of killing innocent people, the fear of putting myself in a position where to survive means to kill, there was the fear of losing my soul in the process of saving my body, the fear of losing myself to my daughter, to the people who love me, to the man I used to be, the man I wanted to be. I was afraid of waking up one morning to realize my humanity had abandoned me.”
— Sgt. Camilo Mejia, who served one year in prison for refusing to return to fight in Iraq. (Thanks to Butler Shaffer)
Thanks to Lew Rockwell dot com aka LRC.
— Sgt. Camilo Mejia, who served one year in prison for refusing to return to fight in Iraq. (Thanks to Butler Shaffer)
Thanks to Lew Rockwell dot com aka LRC.
Thursday, October 8, 2009
Asia Central Banks Attempt to Protect Dollar
This article in the Wall Street Journal online should be considered a milestone preceding a currency crisis.
In the next 30 days we will get a good look at what the death curve will look like of the U$D.
Will the dollar continue on a gradual and managed landing as the The Fed plans; or will the markets overpower government intervention with an inertia that cannot be controlled?
The Bank of Thailand confirmed it intervened; saying the baht's strength since early this month isn't justified by fundamentals.
"The baht has appreciated a little too rapidly compared with our fundamentals. ... The central bank has tried to take care of the baht so that it doesn't get too strong," Assistant Governor Suchada Kirakul told reporters.
In the other countries, the central banks didn't make public statements.
Traders in Seoul said they suspected the Bank of Korea, which has intervened heavily in recent weeks to curb won strength, bought up to US$1 billion at around 1,167 won.
Bank Indonesia was suspected of buying up to $350 million around 9,370-9,380 rupiah via state banks to slow the rupiah's rise, according to traders in Jakarta.
In Manila, the Philippines' central bank bought around $100 million at 46.46 pesos to 46.50 pesos, according to traders. The dollar was last at 46.40 pesos.
Taiwan's central bank was spotted buying U.S. dollars early in the session after the local currency settled at its highest level against the U.S. unit in more than a year, traders said. The U.S. dollar was recently trading at 32.133 New Taiwan dollars, lower than Wednesday's close of NT$32.180, but off its opening low of NT$32.098. Traders said if the U.S. dollar drops below NT$32.100 during the session, NT$32.000 remains a pretty strong support level in the near term.
The Hong Kong Monetary Authority said it sold 3.88 billion Hong Kong dollars in the foreign-exchange market to defend the Hong Kong dollar's peg to the U.S. dollar. Thursday's intervention, the second this week, was triggered by the U.S. currency hitting HK$7.7500, the strong side of the Hong Kong dollar's trading band. The U.S. dollar was trading at HK$7.7501. Under Hong Kong's currency board system, the Hong Kong dollar is pegged at 7.80 to the U.S. dollar, but is allowed to trade between HK$7.75 and HK$7.85.
This is all bad news for Americans and our standard of living. The only thing that Americans can really do is prepare for the inevitable. The US government will not return to sanity in time to prevent the demise of our currency. I would expect the criminals in DC to do just the opposite and add fuel to the fire.
All they know is spend, tax, print!!!
Prepare and prey.
In the next 30 days we will get a good look at what the death curve will look like of the U$D.
Will the dollar continue on a gradual and managed landing as the The Fed plans; or will the markets overpower government intervention with an inertia that cannot be controlled?
The Bank of Thailand confirmed it intervened; saying the baht's strength since early this month isn't justified by fundamentals.
"The baht has appreciated a little too rapidly compared with our fundamentals. ... The central bank has tried to take care of the baht so that it doesn't get too strong," Assistant Governor Suchada Kirakul told reporters.
In the other countries, the central banks didn't make public statements.
Traders in Seoul said they suspected the Bank of Korea, which has intervened heavily in recent weeks to curb won strength, bought up to US$1 billion at around 1,167 won.
Bank Indonesia was suspected of buying up to $350 million around 9,370-9,380 rupiah via state banks to slow the rupiah's rise, according to traders in Jakarta.
In Manila, the Philippines' central bank bought around $100 million at 46.46 pesos to 46.50 pesos, according to traders. The dollar was last at 46.40 pesos.
Taiwan's central bank was spotted buying U.S. dollars early in the session after the local currency settled at its highest level against the U.S. unit in more than a year, traders said. The U.S. dollar was recently trading at 32.133 New Taiwan dollars, lower than Wednesday's close of NT$32.180, but off its opening low of NT$32.098. Traders said if the U.S. dollar drops below NT$32.100 during the session, NT$32.000 remains a pretty strong support level in the near term.
The Hong Kong Monetary Authority said it sold 3.88 billion Hong Kong dollars in the foreign-exchange market to defend the Hong Kong dollar's peg to the U.S. dollar. Thursday's intervention, the second this week, was triggered by the U.S. currency hitting HK$7.7500, the strong side of the Hong Kong dollar's trading band. The U.S. dollar was trading at HK$7.7501. Under Hong Kong's currency board system, the Hong Kong dollar is pegged at 7.80 to the U.S. dollar, but is allowed to trade between HK$7.75 and HK$7.85.
This is all bad news for Americans and our standard of living. The only thing that Americans can really do is prepare for the inevitable. The US government will not return to sanity in time to prevent the demise of our currency. I would expect the criminals in DC to do just the opposite and add fuel to the fire.
All they know is spend, tax, print!!!
Prepare and prey.
Veterans Committed to the Republic
Fantastic Video in response to our criminal government’s attempts to label returning veterans as a domestic terrorist threat.
It isn't just veterans or course, anyone that supported a third party candidate, is pro life, people against illegal immigration, or that support the 2nd amendment are all considered domestic terrorist threats according to the recent MIAC report .
It is encouraging to see our citizens finally realizing that homeland security is not about Al Qaeda or any other international terrorist group. It is set up for the American people. We are the enemy. Anyone that believes in a free society must be marginalized, co opted or removed.
Read the two reports linked above, and see if you have a different conclusion.
God bless the veterans in this video.
Lets all prey that we get our troops home soon.
It isn't just veterans or course, anyone that supported a third party candidate, is pro life, people against illegal immigration, or that support the 2nd amendment are all considered domestic terrorist threats according to the recent MIAC report .
It is encouraging to see our citizens finally realizing that homeland security is not about Al Qaeda or any other international terrorist group. It is set up for the American people. We are the enemy. Anyone that believes in a free society must be marginalized, co opted or removed.
Read the two reports linked above, and see if you have a different conclusion.
God bless the veterans in this video.
Lets all prey that we get our troops home soon.
Wednesday, October 7, 2009
Strengthening Yuan, Not Oil Trading, Will Dethrone Dollar
By Ambrose Evans-Pritchard
The Telegraph, London
Tuesday, October 6, 2009
You can date the end of dollar hegemony from China's decision last month to sell its first batch of sovereign bonds in Chinese yuan to foreigners.
Beijing does not need to raise money abroad, since it has $2 trillion in reserves. The sole purpose is to prepare the way for the emergence of the yuan as a full-fledged global currency.
"It's the tolling of the bell," said Michael Power from Investec Asset Management. "We are only beginning to grasp the enormity and historical significance of what has happened."
It is this shift in China and other parts of rising Asia and Latin America that threatens dollar domination, not the pricing of oil contracts. The markets were rattled yesterday by reports -- since denied -- that China, France, Japan, Russia, and Gulf states were plotting to replace the greenback as the currency for commodity sales, but it makes little difference whether crude is sold in dollars, euros, or Venetian Ducats.
What matters is where OPEC oil producers and rising export powers choose to invest their surpluses. If they cease to rotate this wealth into US Treasuries, mortgage bonds, and other US assets, the dollar must weaken over time.
"Everybody in the world is massively overweight the US dollar," said David Bloom, currency chief at HSBC. "As they invest a little here and little there in other currencies, or gold, it slowly erodes the dollar. It is like sterling after World War I. Everybody can see it's happening."
"In the US they have near zero rates, external deficits, and public debt skyrocketing to 100 percent of GDP, and on top of that they are printing money. It is the perfect storm for the dollar," he said.
"The dollar rallied last year because we had a global liquidity crisis, but we think the rules have changed and that it will be very different this time" if there is another market selloff, he said.
The self-correcting mechanism in the global currency system has been jammed until now because China and other Asian powers have been holding down their currencies to promote exports. The Gulf oil states are mostly pegged to the dollar, for different reasons.
This strategy has become untenable. It is causing them to import a US monetary policy that is too loose for their economies and likely to fuel unstable bubbles as the global economy recovers.
Lorenzo Bini Smaghi, a board member of the European Central Bank, said China for one needs to bite bullet. "I think the best way is that China starts adopting its own monetary policy and detaches itself from the Fed's policy."
Beijing has been schizophrenic, grumbling about the eroding value of its estimated $1.6 trillion of reserves held in dollar assets while perpetuating the structure that causes them to accumulate US assets in the first place -- that is to say, by refusing to let the yuan rise at any more than a glacial pace.
For all its talk, China bought a further $25 billion of US Treasuries in June and $25 billion in July. The weak yuan has helped to keep China's factories open -- and to preserve social order -- during the economic crisis, though exports were still down 23 percent in August. But this policy is on borrowed time. Reformers in Beijing are already orchestrating a profound shift in China's economy from export reliance (38 percent of GDP) to domestic demand, and they know that keeping the dollar peg too long will ultimately cause them to lose export edge anyway -- via the more damaging route of inflation.
For the time being, Europe is bearing the full brunt of Asia's currency policy. The dollar peg has caused the yuan to slide against the euro, even as China's trade surplus with the EU grows. It reached E169 billion (L156 billion) last year. This is starting to provoke protectionist rumblings in Europe, where unemployment is nearing double digits.
ECB governor Guy Quaden said patience is running thin. "The problem is not the exchange rate of the dollar against the euro but rather the relationship between the dollar and certain Asian currencies -- to mention one, the Chinese yuan. I say no more."
France's finance minister, Christine Lagarde, said at the G7 meeting that the euro had been pushed too high. "We need a rebalancing so that one currency doesn't take the flak for the others."
Clearly this is more than a dollar problem. It is a mismatch between the old guard --US, Europe, Japan -- and the new powers that require stronger currencies to reflect their dynamism and growing wealth. The longer this goes on, the more havoc it will cause to the global economy.
The new order may look like the 1920s, with four or five global currencies as regional anchors -- the yuan, rupee, euro, real -- and the dollar first among equals but not hegemon. The US will be better for it.
The Telegraph, London
Tuesday, October 6, 2009
You can date the end of dollar hegemony from China's decision last month to sell its first batch of sovereign bonds in Chinese yuan to foreigners.
Beijing does not need to raise money abroad, since it has $2 trillion in reserves. The sole purpose is to prepare the way for the emergence of the yuan as a full-fledged global currency.
"It's the tolling of the bell," said Michael Power from Investec Asset Management. "We are only beginning to grasp the enormity and historical significance of what has happened."
It is this shift in China and other parts of rising Asia and Latin America that threatens dollar domination, not the pricing of oil contracts. The markets were rattled yesterday by reports -- since denied -- that China, France, Japan, Russia, and Gulf states were plotting to replace the greenback as the currency for commodity sales, but it makes little difference whether crude is sold in dollars, euros, or Venetian Ducats.
What matters is where OPEC oil producers and rising export powers choose to invest their surpluses. If they cease to rotate this wealth into US Treasuries, mortgage bonds, and other US assets, the dollar must weaken over time.
"Everybody in the world is massively overweight the US dollar," said David Bloom, currency chief at HSBC. "As they invest a little here and little there in other currencies, or gold, it slowly erodes the dollar. It is like sterling after World War I. Everybody can see it's happening."
"In the US they have near zero rates, external deficits, and public debt skyrocketing to 100 percent of GDP, and on top of that they are printing money. It is the perfect storm for the dollar," he said.
"The dollar rallied last year because we had a global liquidity crisis, but we think the rules have changed and that it will be very different this time" if there is another market selloff, he said.
The self-correcting mechanism in the global currency system has been jammed until now because China and other Asian powers have been holding down their currencies to promote exports. The Gulf oil states are mostly pegged to the dollar, for different reasons.
This strategy has become untenable. It is causing them to import a US monetary policy that is too loose for their economies and likely to fuel unstable bubbles as the global economy recovers.
Lorenzo Bini Smaghi, a board member of the European Central Bank, said China for one needs to bite bullet. "I think the best way is that China starts adopting its own monetary policy and detaches itself from the Fed's policy."
Beijing has been schizophrenic, grumbling about the eroding value of its estimated $1.6 trillion of reserves held in dollar assets while perpetuating the structure that causes them to accumulate US assets in the first place -- that is to say, by refusing to let the yuan rise at any more than a glacial pace.
For all its talk, China bought a further $25 billion of US Treasuries in June and $25 billion in July. The weak yuan has helped to keep China's factories open -- and to preserve social order -- during the economic crisis, though exports were still down 23 percent in August. But this policy is on borrowed time. Reformers in Beijing are already orchestrating a profound shift in China's economy from export reliance (38 percent of GDP) to domestic demand, and they know that keeping the dollar peg too long will ultimately cause them to lose export edge anyway -- via the more damaging route of inflation.
For the time being, Europe is bearing the full brunt of Asia's currency policy. The dollar peg has caused the yuan to slide against the euro, even as China's trade surplus with the EU grows. It reached E169 billion (L156 billion) last year. This is starting to provoke protectionist rumblings in Europe, where unemployment is nearing double digits.
ECB governor Guy Quaden said patience is running thin. "The problem is not the exchange rate of the dollar against the euro but rather the relationship between the dollar and certain Asian currencies -- to mention one, the Chinese yuan. I say no more."
France's finance minister, Christine Lagarde, said at the G7 meeting that the euro had been pushed too high. "We need a rebalancing so that one currency doesn't take the flak for the others."
Clearly this is more than a dollar problem. It is a mismatch between the old guard --US, Europe, Japan -- and the new powers that require stronger currencies to reflect their dynamism and growing wealth. The longer this goes on, the more havoc it will cause to the global economy.
The new order may look like the 1920s, with four or five global currencies as regional anchors -- the yuan, rupee, euro, real -- and the dollar first among equals but not hegemon. The US will be better for it.
Pathetic Propaganda Stars John Elway
Fear, fear and more fear!! Only the GUNverment can save us. All they ask for us to give away what is left of our freedoms. That seems fair doesn’t it?
NO NO NO and FREAKIN NO!
Citizen’s turning in each other was a great asset to the East German stazi. This does not represent the culture of a free society. We MUST RESIST the national security state that has been built supposedly to attack al Qaeda but is now being turned inward on the American people.
We are becoming the enemy.
NO NO NO and FREAKIN NO!
Citizen’s turning in each other was a great asset to the East German stazi. This does not represent the culture of a free society. We MUST RESIST the national security state that has been built supposedly to attack al Qaeda but is now being turned inward on the American people.
We are becoming the enemy.
Tuesday, October 6, 2009
It sucks to be right sometimes...
In my prognostication post at the end of August, #4 item was the return of the draft. If the war party gets its way and we even agree to try and pour 500k troop into the AF-PAK front- we will need a draft.
Andrea Mitchell stated on the Morning Joe that this is the figure embedded in Gen Mc Chrystal’s classified assessment.
I hope this madness is stopped in its tracks.
Andrea Mitchell stated on the Morning Joe that this is the figure embedded in Gen Mc Chrystal’s classified assessment.
I hope this madness is stopped in its tracks.
Gold Closes at Record
Gold closed at 1039 after the dollar takes a beating. What I find shocking is this comes only a week after the IMF released 403 metric
tons of gold for sale. That did put some pressure on price, very little, for about 72hours.
Then less than two weeks later we see a move like this?
Today the US Mint announces it is canceling the sales of coins. Is this a coincidence?
Are the central banks running out of gold to continue with the manipulation?
I think we know how this story ends.
tons of gold for sale. That did put some pressure on price, very little, for about 72hours.
Then less than two weeks later we see a move like this?
Today the US Mint announces it is canceling the sales of coins. Is this a coincidence?
Are the central banks running out of gold to continue with the manipulation?
I think we know how this story ends.
USD = Dead Man Walking
A report in the independent yesterday claim that the oil producing gulf states, Japan, china, Russia discuss nixing dollar. Instead they are discussing a basket of currencies and gold to conduct international trade.
As soon as the story broke denials from the Saudis and Chinese followed . Of course they did. The denial is the confirmation from my perspective.
These countries have discussed this for decades. The last year has changed a lot in the world and the world is tiring of paying our way in the world.
The Saudis run opec, and they are a strong us ally. It is marriage of convenience, we prop up their brutal regime with military assistance and they provide us with oil. They Saudis don’t like us, and if they could ditch us they would.
Thanx to our Afghanistan myopia they see something they could not have imagined a decade ago – the fall of American empire in the sands of central Asia, buried next to the soldiers of Alexander the Great, the Turks, Mongols, British and Soviets.
Of course countries want to ditch the dollar – the signs are all around and pointing to any one story and it validity is ridicules. The US federal government through the fed reserve is robbing the people of the world through inflation. Our standard of living rests squarely on the fact that we can print dollars to support a trade deficient. That disappears and all of sudden Mexican citizens have no reason for traveling north.
As soon as the story broke denials from the Saudis and Chinese followed . Of course they did. The denial is the confirmation from my perspective.
These countries have discussed this for decades. The last year has changed a lot in the world and the world is tiring of paying our way in the world.
The Saudis run opec, and they are a strong us ally. It is marriage of convenience, we prop up their brutal regime with military assistance and they provide us with oil. They Saudis don’t like us, and if they could ditch us they would.
Thanx to our Afghanistan myopia they see something they could not have imagined a decade ago – the fall of American empire in the sands of central Asia, buried next to the soldiers of Alexander the Great, the Turks, Mongols, British and Soviets.
Of course countries want to ditch the dollar – the signs are all around and pointing to any one story and it validity is ridicules. The US federal government through the fed reserve is robbing the people of the world through inflation. Our standard of living rests squarely on the fact that we can print dollars to support a trade deficient. That disappears and all of sudden Mexican citizens have no reason for traveling north.
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