OT: "Dollar About to take a Direct Hit"

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Submitted by partypup on October 5, 2009 - 6:22pm

This is probably one of the most momentous events to occur in the dollar's history.

IMO, this will put us on the fast-track to a rapid and sudden loss of reserve currency status, followed by a severe devaluation. The dollar is being circled and stalked now like a wounded animal by a predator at night. And we in this country simply have no f*****g clue what is about to happen.

Not surprisingly, this article did not appear in a U.S. newspaper.

SPECIAL NOTE TO SCAREDY: You will be very, very happy that you held onto your gold.

THE DEMISE OF THE DOLLAR

"In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

By Robert Fisk

Tuesday, 6 October 2009

In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.

The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.

The Americans, who are aware the meetings have taken place – although they have not discovered the details – are sure to fight this international cabal which will include hitherto loyal allies Japan and the Gulf Arabs. Against the background to these currency meetings, Sun Bigan, China's former special envoy to the Middle East, has warned there is a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security."

This sounds like a dangerous prediction of a future economic war between the US and China over Middle East oil – yet again turning the region's conflicts into a battle for great power supremacy. China uses more oil incrementally than the US because its growth is less energy efficient. The transitional currency in the move away from dollars, according to Chinese banking sources, may well be gold. An indication of the huge amounts involved can be gained from the wealth of Abu Dhabi, Saudi Arabia, Kuwait and Qatar who together hold an estimated $2.1 trillion in dollar reserves.

The decline of American economic power linked to the current global recession was implicitly acknowledged by the World Bank president Robert Zoellick. "One of the legacies of this crisis may be a recognition of changed economic power relations," he said in Istanbul ahead of meetings this week of the IMF and World Bank. But it is China's extraordinary new financial power – along with past anger among oil-producing and oil-consuming nations at America's power to interfere in the international financial system – which has prompted the latest discussions involving the Gulf states.

Brazil has shown interest in collaborating in non-dollar oil payments, along with India. Indeed, China appears to be the most enthusiastic of all the financial powers involved, not least because of its enormous trade with the Middle East.

China imports 60 per cent of its oil, much of it from the Middle East and Russia. The Chinese have oil production concessions in Iraq – blocked by the US until this year – and since 2008 have held an $8bn agreement with Iran to develop refining capacity and gas resources. China has oil deals in Sudan (where it has substituted for US interests) and has been negotiating for oil concessions with Libya, where all such contracts are joint ventures.

Furthermore, Chinese exports to the region now account for no fewer than 10 per cent of the imports of every country in the Middle East, including a huge range of products from cars to weapon systems, food, clothes, even dolls. In a clear sign of China's growing financial muscle, the president of the European Central Bank, Jean-Claude Trichet, yesterday pleaded with Beijing to let the yuan appreciate against a sliding dollar and, by extension, loosen China's reliance on US monetary policy, to help rebalance the world economy and ease upward pressure on the euro.

Ever since the Bretton Woods agreements – the accords after the Second World War which bequeathed the architecture for the modern international financial system – America's trading partners have been left to cope with the impact of Washington's control and, in more recent years, the hegemony of the dollar as the dominant global reserve currency.

The Chinese believe, for example, that the Americans persuaded Britain to stay out of the euro in order to prevent an earlier move away from the dollar. But Chinese banking sources say their discussions have gone too far to be blocked now. "The Russians will eventually bring in the rouble to the basket of currencies," a prominent Hong Kong broker told The Independent. "The Brits are stuck in the middle and will come into the euro. They have no choice because they won't be able to use the US dollar."

Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the transition from the dollar in nine years' time. The current deadline for the currency transition is 2018.

The US discussed the trend briefly at the G20 summit in Pittsburgh; the Chinese Central Bank governor and other officials have been worrying aloud about the dollar for years. Their problem is that much of their national wealth is tied up in dollar assets.

"These plans will change the face of international financial transactions," one Chinese banker said. "America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate."

Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars. Bankers remember, of course, what happened to the last Middle East oil producer to sell its oil in euros rather than dollars. A few months after Saddam Hussein trumpeted his decision, the Americans and British invaded Iraq."

http://www.independent.co.uk/news/busine...

Submitted by 5yearwaiter on October 5, 2009 - 6:49pm.

partypup wrote:
This is probably one of the most momentous events to occur in the dollar's history.

And we in this country simply have no f*****g clue what is about to happen.

http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html

Let's start think and generate some possible f*****g clues what is going to happen to all of us and how the life would be if this occurs.

Submitted by Zeitgeist on October 5, 2009 - 8:07pm.

Drill, drill, drill. The problem is our perceived weakness by the cabal. The environmentalists have severely damaged our ability to survive because we are dependent on Mid East oil. Time to use our own oil and cut the price of world oil. There are not enough windmills and solar panels (made in China) to make this happen. We need to take care of our own country and build it back again.

Submitted by Allan from Fallbrook on October 5, 2009 - 8:50pm.

Partypup: Well, not to sound like a complete saber rattling nationalist, but if this scenario looks likely to come to fruition, I say we fall back on the one area of uncontested American supremacy: Our military.

How, exactly, is China planning on getting their 60% of imported oil back home from the Mideast? They have no "blue water" navy to speak of and I can just imagine how thrilled US Navy sub commanders would be lighting up China's merchant fleet.

Don't think it will come to that? I think the TPTB have already game planned this scenario out and wouldn't hesitate for a second. You push the US far enough, we'll do anything. Think Hiroshima and Nagasaki.

We could literally choke the world in terms of closing off all avenues of transport, whether sea lanes, air corridors, or roads.

Submitted by scaredyclassic on October 5, 2009 - 9:16pm.

with what justification?

wouldnt we be just a bunch of thugs or pirates?

whatever happened to the bullshit this country was founded on and whichw e continue to rely on today?

land of the free, beacon of something or other etc etc.

can we just kick ass for cash and look at ourselves int he mirror? what story do we tell ourselves? how does the narrative work?

Submitted by Allan from Fallbrook on October 5, 2009 - 9:34pm.

scaredycat wrote:
with what justification?

wouldnt we be just a bunch of thugs or pirates?

whatever happened to the bullshit this country was founded on and whichw e continue to rely on today?

land of the free, beacon of something or other etc etc.

can we just kick ass for cash and look at ourselves int he mirror? what story do we tell ourselves? how does the narrative work?

Scaredy: Where, oh where, to begin. Okay, let's start with this: Original draft of Constitution contained the phrase, "Life, Liberty and the Pursuit of Property" (subsequently changed to "Happiness"). The US has been a going concern from the jump, going back to the Louisiana Purchase and the Lewis & Clark Expedition (searching for new river ways, and sources of wealth).

Manifest Destiny ("From sea to shining sea", with a little mass murder along the way)

Gunboat Diplomacy (The Caribbean as an American lake)

Mexican-American War (Because the Mexicans would never have put California, Texas and Arizona to good use)

Spanish-American War (Randolph Hearst: "You give me the pictures, I'll give you a war")

"Balance of Power" policy

And on and on.

Submitted by scaredyclassic on October 5, 2009 - 9:39pm.

i guess. but we still need a story, don't we? maybe it doesn't ahve to be a very good story, or even a coherent story. man it's depressing. seems weird to fight the world to make them use our money. i mean, teh iraq war was pretty flimsy, but didn't american's kinda get bummed out when the purposelessnes sof it all was exposed. are we really up for another crazy military action? it just makes me feel a little bit ill...

Submitted by ralphfurley on October 5, 2009 - 10:21pm.

partypup wrote:
This is probably one of the most momentous events to occur in the dollar's history.

IMO, this will put us on the fast-track to a rapid and sudden loss of reserve currency status, followed by a severe devaluation. The dollar is being circled and stalked now like a wounded animal by a predator at night. And we in this country simply have no f*****g clue what is about to happen.


Where the hell is Kris Kristofferson when you need him?

http://www.youtube.com/watch?v=ju1qdHhdQ...

Submitted by partypup on October 5, 2009 - 10:47pm.

Allan from Fallbrook wrote:
Partypup: Well, not to sound like a complete saber rattling nationalist, but if this scenario looks likely to come to fruition, I say we fall back on the one area of uncontested American supremacy: Our military.

How, exactly, is China planning on getting their 60% of imported oil back home from the Mideast? They have no "blue water" navy to speak of and I can just imagine how thrilled US Navy sub commanders would be lighting up China's merchant fleet.

Don't think it will come to that? I think the TPTB have already game planned this scenario out and wouldn't hesitate for a second. You push the US far enough, we'll do anything. Think Hiroshima and Nagasaki.

We could literally choke the world in terms of closing off all avenues of transport, whether sea lanes, air corridors, or roads.

Allan, I don't doubt that military invention will be used as a distraction. After all, our elected leaders won't let this house collapse until they have identified and set up a scapegoat, and that goat is most likely Iran.

Will Americans but the story one last time? I kind of doubt it. Trust and confidence in government has never been lower.

But here is the one flaw I that I see with your scenario: there are simply too many enemies to battle now. Iran is one thing, but China, Russia, Japan and Brazil - if these countries are all determined to dump the dollar, then we are monumentally screwed. We can't invade them -- 1/2 of the coalition are our biggest creditors. How would we realistically hold the world's largest and most powerful countries hostage by choking off lanes of oil traffic? Don't forget that a functioning military requires the one thing we have now run out of: money. We could, as Scaredy says, make one last play to make the rest of the world use our money, but at what cost? We would quickly become pariahs, as the rest of the world would be repulsed by our violent desperation.

And while China doesn't have much of a navy, don't forget that Russia most certainly does. Really, we are outnumbered now. The skinny kids on the block have waited many years for their opportunity, and it has finally arrived.

Submitted by equalizer on October 5, 2009 - 10:52pm.

ralphfurley wrote:
partypup wrote:
This is probably one of the most momentous events to occur in the dollar's history.

IMO, this will put us on the fast-track to a rapid and sudden loss of reserve currency status, followed by a severe devaluation. The dollar is being circled and stalked now like a wounded animal by a predator at night. And we in this country simply have no f*****g clue what is about to happen.


Where the hell is Kris Kristofferson when you need him?

I think I saw picture of him entering bunker at the Federal Reserve.

Submitted by CA renter on October 5, 2009 - 11:10pm.

ralphfurley wrote:
partypup wrote:
This is probably one of the most momentous events to occur in the dollar's history.

IMO, this will put us on the fast-track to a rapid and sudden loss of reserve currency status, followed by a severe devaluation. The dollar is being circled and stalked now like a wounded animal by a predator at night. And we in this country simply have no f*****g clue what is about to happen.


Where the hell is Kris Kristofferson when you need him?

http://www.youtube.com/watch?v=ju1qdHhdQQk&feature=related

That was pretty powerful, wasn't it?

----------------------

Partypup,

I always enjoy your buoyant optimism. Unfortunately, I usually tend to agree with you. ;)

Submitted by paramount on October 5, 2009 - 11:25pm.

The New York Federal Reserve will fail by 2012.

Submitted by Eugene on October 6, 2009 - 12:21am.
Submitted by Eugene on October 6, 2009 - 12:33am.

partypup wrote:
THE DEMISE OF THE DOLLAR

"In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

A question.

If we switch from imperial to metric system, does that change values of the foot and the pound with respect to the meter and the kilogram? Does that immediately result in a "direct hit" that leads to a severe devaluation of the foot?

What makes the dollar different?

Submitted by scaredyclassic on October 6, 2009 - 6:27am.

holy jeepers. big vertical jump for gold and silver mining stocks today, front page news on marketwatch on dollar demise. but most telling, my trading account is largely positive. if these are not MASSIVE SELL indicators, i don't know what is. the dollar is either coming back in a huge way or i am going to have to adjust to being correct once in a long while. i cannot accept the latter so it must be the former.

Submitted by scaredyclassic on October 6, 2009 - 7:21am.

duplicate

Submitted by Arraya on October 6, 2009 - 7:02am.

paramount wrote:
The New York Federal Reserve will fail by 2012.

I think before that.

Submitted by scaredyclassic on October 6, 2009 - 7:26am.

"buy the rumor sell thenews".

does that appply in paradigm shifts?

i am unable to trade. I just wait and act lumberingly.

Submitted by Arraya on October 6, 2009 - 8:24am.

http://www.chrismartenson.com/blog/its-t...
Link: It's Time To Prepare

As my long-time readers know, I consider my main occupations to be information scout, dot-connector, and analyst. But as a side job, I also provide a decisive alternative to the mainstream economic propaganda machine, which is thoroughly dedicated to maintaining the status quo, regardless of cost.

Everyone needs to prepare themselves for another round of economic instability, as the nation and world comes to grip with the fact that we are not going to enjoy a V-bottom recovery and that we are not going back to "normal" -whatever that might be - any time soon.

We are about to enter another leg of the downturn, and this one will be even bumpier and more uncertain than the last.

It's time to prepare.

Submitted by partypup on October 6, 2009 - 8:44am.

scaredycat wrote:
holy jeepers. big vertical jump for gold and silver mining stocks today, front page news on marketwatch on dollar demise. but most telling, my trading account is largely positive. if these are not MASSIVE SELL indicators, i don't know what is. the dollar is either coming back in a huge way or i am going to have to adjust to being correct once in a long while. i cannot accept the latter so it must be the former.

Scaredy, you have just broken your losing streak. You ARE right this time. Hold onto your metals and watch what unfolds.

Submitted by partypup on October 6, 2009 - 8:52am.

Arraya wrote:
paramount wrote:
The New York Federal Reserve will fail by 2012.

I think before that.

Agree. I am hearing that by Fall 2010 the entire Fed will become irrelevant. They may still be around, but no one will be paying attention.

I find this newest development fascinating because the predictive linguistics at halfpasthuman.com (don't know if anyone here subscribes to them) had been anticipating the death of the dollar to begin in earnest around the end of October/first week of November. They had been forecasting this for the last 18 months. They just couldn't be sure what the trigger would be. They also claim that turning point will be reached on or about October 25 and that events will progress so quickly that most - especially talking heads on TV - will not know what to make of them or how to spin them. Jim Sinclair has given the same countdown/time frame on his website. As has Jim Willie. So I would say that a variety of indicators suggest that life is about to get extremely hairy in the next 3 weeks. If you haven't bought gold or silver, I would so so now before they go parabolic when the dollar's woes become front page news.

On a side note, I am being forced to close an account at a foreign bank because the U.S. has been leaning on them. I spoke with my banker today about recent events, and I said, "Well, it doesn't look good for the dollar. I think it will die very soon." And the banker, who is generally stoic and had always insisted that the buck had a long (if dreary) future, replied, "Yes, it certainly looks that way now."

Submitted by harvey on October 6, 2009 - 9:43am.

Zeitgeist wrote:
Drill, drill, drill. [...] We need to take care of our own country and build it back again.

Sorry, but drilling won't help:

http://www3.signonsandiego.com/photos/20...

Fact is, the bad guys have *way* more than we will ever have.

If we want it, the plan has gotta be "invade, invade, invade"

Submitted by jficquette on October 6, 2009 - 9:50am.

Allan from Fallbrook wrote:
Partypup: Well, not to sound like a complete saber rattling nationalist, but if this scenario looks likely to come to fruition, I say we fall back on the one area of uncontested American supremacy: Our military.

How, exactly, is China planning on getting their 60% of imported oil back home from the Mideast? They have no "blue water" navy to speak of and I can just imagine how thrilled US Navy sub commanders would be lighting up China's merchant fleet.

Don't think it will come to that? I think the TPTB have already game planned this scenario out and wouldn't hesitate for a second. You push the US far enough, we'll do anything. Think Hiroshima and Nagasaki.

We could literally choke the world in terms of closing off all avenues of transport, whether sea lanes, air corridors, or roads.

As long as we have people like Obama in the White House then China will take what they want.

John

Submitted by dbapig on October 6, 2009 - 10:10am.

jficquette wrote:

As long as we have people like Obama in the White House then China will take what they want.

John

What short term memory!!! As long as we had a president like Bush Jr, ANY nation will take what they want. The financial meltdown could've been stopped/controlled during the 8 years of Bush but he had no clue.

Thanks to Bush, we are now going to pay the price.

Submitted by dbapig on October 6, 2009 - 10:12am.

pri_dk wrote:
Zeitgeist wrote:
Drill, drill, drill. [...] We need to take care of our own country and build it back again.

Sorry, but drilling won't help:

http://www3.signonsandiego.com/photos/20...

Fact is, the bad guys have *way* more than we will ever have.

If we want it, the plan has gotta be "invade, invade, invade"

But that will balloon our deficit, forcing Fed to print more $$$, and making $$$ even MORE irrelevant.

The plan should be get off of oil but that will never happen...

Submitted by Arraya on October 6, 2009 - 10:56am.

The US either has to start WWIII or declare BK there is no in between. The Federal Reserve and it's central banking syndicate has pissed off the world. We are about to experience financial "blow back".

The Right is positioned to start a civil war and protect the criminal banking entity. The anti-socialist soldiers will protect the banking industry at all costs from being nationalized. While it bankrupts the whole country and collects all it's assets.

Obama is a double agent. He sliipped into the presidency playing the bankers and now is in the position to either turn on them or go their route and start dropping bombs to keep the dollar as reserve currency.

Zbigniew Brzezinski, who enthusiastically campaigned for U.S. President Barack Obama, has called on the president to shoot down Israeli planes if they attack Iran. “They have to fly over our airspace in Iraq. Are we just going to sit there and watch?” said the former national security advisor to former U.S. President Jimmy Carter in an interview with the Daily Beast. Brzezinski, who served in the Carter administration from 1977 to 1981, is currently a professor of American foreign policy at Johns Hopkins University's School of Advanced International Studies in Maryland.

“We have to be serious about denying them that right,” he said. “If they fly over, you go up and confront them. They have the choice of turning back or not. No one wishes for this but it could be a 'Liberty' in reverse.’

Now the battle for America is about to start. Either the Fed keeps control or Obama and the people behind him reshape the country.

It's either the NWO or the FWO(Fed world order). Pick a side or get out of the way!

With the NWO, troops are coming home and we have to, gasp, share oil with the rest of the world. With the FWO mass violence has to take place.

Submitted by Arraya on October 6, 2009 - 11:32am.
Submitted by Arraya on October 6, 2009 - 12:37pm.

http://www.breitbart.com/article.php?id=...
The United Nations called on Tuesday for a new global reserve currency to end dollar supremacy which has allowed the United States the "privilege" of building a huge trade deficit.

Submitted by partypup on October 6, 2009 - 1:43pm.

Arraya wrote:
http://www.youtube.com/watch?v=4tty9-owMWo&feature=player_embedded

Great video, A.

I hear the fat lady tuning up in the next room. I think this is going to happen MUCH faster than most in this country expect.

I suspect that by Fall 2010 the dollar will be a mere shadow of its former self and rejected in most foreign trade. I expect oil to start climbing rapidly this Fall, and not due to speculation, as was the case last summer. I expect all oil-based products and transportation needed to get those products to market to start rising a steady clip next year.

A devaluation or bankruptcy is most certainly coming. I posted a thread last year about the looming U.S. bankruptcy, and many rejected the possibility out of hand. Granted, the U.S. will likely choose to avoid that stigma and instead opt for severe devaluation. The effect is the same: we're screwed. Anyone care to wager what the devaluation will be? I am guessing 50-75%.

Woe to those on fixed incomes...

Submitted by dbapig on October 6, 2009 - 4:20pm.

partypup wrote:

Woe to those on fixed incomes...

If USA has anything like a revolution it will be from those on fixed income, aka retirees. They will feel the effect directly and they have the TIME to go out to the streets, like at the recent march on DC.

Submitted by scaredyclassic on October 6, 2009 - 4:55pm.

haven't the elderly been living a litlle high on the hog

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