It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.
The upcoming bourse will introduce petrodollar versus petroeuro currency hedging, and fundamentally new dynamics to the biggest market in the world - global oil and gas trades. In essence, the U.S. will no longer be able to effortlessly expand its debt-financing via issuance of U.S. Treasury bills, and the dollar’s international demand/liquidity value will fall.
The most recent news reports indicate the oil bourse will start trading on March 20, 2006, coinciding with the Iranian New Year. The implementation of the proposed Iranian oil Bourse – if successful in utilizing the euro as its oil transaction currency standard – essentially negates the previous two criteria as described by Mr. Yarjani regarding the solidification of a petroeuro system for international oil trades. It should also be noted that throughout 2003-2004 both Russia and China significantly increased their central bank holdings of the euro, which appears to be a coordinated move to facilitate the anticipated ascendance of the euro as a second World Reserve Currency.
"Just as the U.S. role as world superpower won't last forever, neither will the dollar's role as the world reserve currency," said John Nugee, director of the official institutions group at State Street Global Advisors. SSgA, an arm of State Street Corp. (STT), is the world's largest institutional money manager with US$1.4 trillion in assets under management.
"A lot of this region is sleepwalking a bit about the long-term future of the dollar," Nugee said. "I hope that the dollar doesn't become an asset that people have too much of and nobody really wants," he said.
The fact is that for a while it was only the dollar that was losing value. However, as other central banks inflated to mitigate the dollar’s decline, the world’s savers began to take notice, and reacted by fleeing all fiat currencies in favor of gold. The old saying that “paper currencies do not float, but merely sink at different rates” is becoming increasingly evident with each up-tick in the price of gold.
The reality though is that it is not gold which is gaining value, but currencies that are losing it. This loss of purchasing power is increasingly evidenced by rising nominal prices of both assets and real goods. Do not be fooled by the pretense of higher nominal asset prices that merely reflect depreciating paper currencies. Even though stock prices may appear to be rising, they continue losing value relative to gold.
However, until we hear from official Iranian sources that the trading will be in euros, it is probably unwise to draw too many firm conclusions.
Originally posted by grimreaper797[/I] Research shows our dollar is facing tough times. We have a mix of factors that will discourage and likely push foreign countries away from the dollar. The week of March 20-26, 2006 will be of great importance. First, we shall start with the fact the M3 report will be discontinued March 23, 2006. The M3 report is a good way to determine the amount of dollars in circulation. The difference between M1 & M2 is the M3 contains Eurodollar deposits. It also just happens that Monday March 20, 2006, Iran will be opening its own oil Bourse. Iran plans to trade their oil in Petro-Euros. This means the Petro-euro and the Petro-dollar will be in competition for control of the oil trade monopoly the US has enjoyed for many years.
Many countries use our money because oil is traded in US dollars. Should our monopoly fall because of trade in euros, the value of the dollar will also fall because the demand for dollars will diminish. Such a situation wouldn't normally be a panic situation. The reason for panic in the White House is the amount of national debt we have created in the past 5 years. Had we been in surplus our system would not be at the same risk. If the dollar takes a sudden downturn from the Iran situation, many other economies will also suffer. This is why many countries do not oppose US actions against Iran. They will be equally effected adversely by Iran’s attempt to harm the US economy. Your money is about to lose value. Things you buy will become more expensive.
In conclusion we need to ask relatively simple questions. Are we already too late? Did we put the pieces of the puzzle together too late to halt the dollars impending downfall? Will we see the kind of economic depression we could only dream of? Another question to ask would be, "Am I prepared for this?" Grim Reaper [Edited by Don W]
, I think the effects of the dollars decline will be covered up as long as possible. The reason being that it gives those in the know, and with more to lose, a greater chance to convert their stocks to gold before the rest of the populace cottons on to the impending distaster.
Originally posted by subz[/I] Can I ask, what is the point of trading oil in a foreign currency if you were the Iranian government? Why don’t the Iranians require their produce to be purchased with their own currency?
The oil supply wont last forever and they really should be looking into diversifying their economy. With an increased demand for their own currency their economy would reflect the importance of what it is they offer the World's consumers - the most important natural resource available.
The markets are rising and the big wigs are quietly selling their stock just as the Morgans, Rothschild and Rockefeller did before the depression. We are in our own Roaring Twenties and most people are too distracted to notice.[Edited by Don W]
Originally posted by grimreaper797[/I] when you post your comments don I will edit this post but to answer your title of "can you handle 6 dollars for gas?" I don’t think that will be an issue, I would say when things really go into full swing it will be these two question rather then that one, 1) "can you get your hands on gas?" 2) "think you can ride a bike for miles on end?" [Edited by Don W]
Many countries use our money because oil is traded in US dollars. The reason for panic in the White House is the amount of national debt we have created in the past 5 years. Had we been in surplus our system would not be at the same level of risk. This is why many countries do not oppose US actions against Iran. Your money is about to lose value. Things you buy will become more expensive.[Edited by Don W]