The death of the dollar?

The death of the dollar?

news.bbc.co.uk

We are living in economic chaos. Banks, homes, jobs, and
businesses are at risk.

Yet curiously, the one thing that seems stable is the dollar.

It is a symbol - and a lever - of American power and leadership, itis the standard unit of account for much of the world's economic activity. And in times of crisis, it has often seemed a safe haven.

But in the longer term, some experts believe this crisis could mark a turning point in the dollar's fortunes, hastening a fall from power which has seen its value decline over several years before its recent rally.

"I think today's financial crisis is going to hasten the end of the dollar as the world's reserve currency", says Avinash Persaud, chairman of Intelligence Capital Limited.

"For the first time ever we're now seeing that in the financial markets it costs money to guarantee you against a US government default."

(visit the link for the full news article)

Alot of interesting points were brought up in this article. I have seen a trend lately, in many cases detailing how foreign powers appear to be buying gold, silver, and other precious metals in large enough quantity that I wonder if there isn't a scheme here to destabilize the dollar enough that countries would depeg from the dollar and send it in a free fall. If this happens you can bet the chinese will want to save as much of their investment in our debt as possible...But they won't take greenback to cover it. This is the sorta thing that leads to war.

The process of buying huge quantities of precious metals through several trading sources and front organizations would allow a buyer to essentialy out perform the US dollar substantially by backing up a powers' potential currency with gold and petitioning...Oh, say, OPEC to depeg from the dollar and use a more stable gold backed currency...If they get their way, this could feasibly happen. Iran, Venezuala, China, and Russia are all buying gold like there is no tomorrow.

news.bbc.co.uk
(visit the link for the full news article)

[edit on 21-11-2008 by projectvxn]

[edit on 21-11-2008 by projectvxn]

reply to post by projectvxn


The dollar is falling and at an alarm rate. We have a fiat currency which is backed by nothing. We survive by inflating by inflating the dollar. Now we can see the trend of countries and even OPEC themselves to trade in Euro's. This will only drive the dollar down more.

The dollar IS doomed. Think about what's going on.

Trillions of dollars flying out the country for cheap imports. Dollars piling up in China and OPEC nations. Huge piles of it. And, what good is it to them?

Where can they spend them earned dollars? Buy American made? HA, yeah right. Not even we can afford to buy American made here in America ourselves. There are still a few things they can buy with them moldy funny dollars though.

These foreign nations we buy from aren't filled with chumps. They know the con game we're playing with our funny money. We trick them into parting with their cheap labor and national resources for piles of our green funny paper. They aren't stupid anymore, they know what's going down.

The only thing US dollars are good for now is BUYING AMERICA, the nation and her land and her slaves! It's already happening. Bye bye America!

We're doomed! And for good cause too. The con game is drawing to a close.

[edit on 21-11-2008 by Divinorumus]

Perhaps it's a ploy so all we can use American dollars for are American goods,think about it,at the rate things are going the government will have a financial stake in pretty much all major industry,maybe they are planning on a default,just my thought no basis to back it up but certainly seems to be headed in that direction

The thread below is interesting because it is confirming for me what I thought was going on. Only I didn't know the Fed had been selling gold in huge quantities right out of our reserves. So the destabilization game is being played on both ends I see. Oil is going to come to a cross roads in the very near future. Some people like the price of oil goin below 50 a barrel but I'm not liking it. Not in the environment we're in now. That's more incentive to depeg from USD to gold backed currency. It's not that we're talking about Gold backing the dollar, or creating a new currency, at least not yet, but we're gearing up for war. 610 billion for military spending was quietly passed while we waited out the bailout passage. Now that it is here and half spent, the Obama admin will use the rest of the bailout money to finance the the continued corrosion of the American economy until we are either invaded, or we go postal and start WW3 ourselves.

Great Depressions tend to be greatly depressing.

We're aiding the destruction of the Dollar, and with it any notion of a new American century. Not for dominance, not for prosperity, but for greed.

www.abovetopsecret.com...

Its strange while the oil prices are dropping[only for a short period] the dollar is getting slightly stronger.. I think China is getting rid of their dollar reserves buying influence in Africa..one day the Chinese and other Dollar holders can nuke the dollar and get rid of their bonds..
Another thing is, recessions/depressions are marked by the end of old teqnology and energies and birth of new ones.. I think we should embrace and era of solar technology, bio-and nano technology and the end of oil..with that[if hasnt already] the Dollar will also vanish..
Before that Oil could be paid in Euro's or even Renminbi







[edit on 21-11-2008 by Foppezao]

Interesting articles:

U.S. economic and political clout will decline over the next two decades and the world will be more dangerous, with food and water scarce and advanced weapons plentiful, U.S. spy agencies projected on Thursday.

US clout down, risks up by 2025 -intel outlook


Obama Transition Said to Consider a ‘Prepack’ Auto Bankruptcy

China challenges with cyberwarfare

Here's another thread by a poster in General Conspiracy.

www.abovetopsecret.com...

Apparently the 3rd largest distributor of gold has run out or at least dangerously low on Gold reserves. That doesn't happen without reason...Something is up. Gold prices are going to shoot up, expect news from OPEC and Saudi Arabia soon. Russia will probably lead the charge as they have been talking with the Chinese about dumping the dollar...If more reserves go empty, be sure it is being moved to the East away from American influence.

That intelligence report about American power shrinking heavily by 2025 is a warning. The loss of American dominance is just but a few months away now.

www.abovetopsecret.com...

Expect runaway inflation when OPEC dumps the dollar.

[edit on 21-11-2008 by projectvxn]

[edit on 21-11-2008 by projectvxn]

www.abovetopsecret.com...

This one is old, but relevant. It was among the first Mints to stop shipments on gold...I'm sure they're waiting to satisfy their bigger customers...After all they are trying to create a hard asset backed currency to destroy America without ever firing a shot.

An interesting development to watch will be the coming establishment (next month) of the Dubai Silver ETF (created by the Dubai Multi-Commodities Center). This is potentially enormous news for reasons that are a bit complex to go into.

Cliff notes:
-the OPEC nations, and possibly also Russia, are setting up a counterbalance against the recent fall of oil prices. (oil has gone from $147 to now around $55 a barrel, which has a huge impact on Russia and oil exporting nations).

-Sovereign wealth funds in oil-rich nations have been tweaking gold and silver upward every time oil was smashed by Wall Street/Anglo-American investment community (I'll call this "The Westem Establishment" for convenience hereinafter).

-Precious metal suppression, especially of gold, is enormously important for the Fed and among the Western Establishment because they want their created-from-thin-air dollars/euros/yen to maintain some semblence of value despite the frantic rate of creation underway.

-The Western Establishment has made two major mistakes, to which the Dubai ETF may be the OPEC solution:
A) Allowing OPEC/Russia etc. a taste of extremely high oil/commodity prices, and then allowing those prices to fall rapidly. Among OPEC etc this will not be tolerated, especially after these nations got a chance to experience the huge profits generated by such lofty oil prices.

B) The second mistake is the trashing of silver prices in the face of growing shortages at a time when the above-ground silver stocks are at an all-time low and headed even lower. The shortages are being caused by manipulated silver prices that are below the cost of production, thus causing a collapse in production. Result = huge price imbalance, growing shortage and all-time low levels of above-ground stocks,

-The competitors/creditors now have one of the greatest opportunities to corner a commodity market in the history of the world.

Note that this isn't being reported much in the mainstream press (although it is sending panic down the corridors of power). The ETF could turn out to be a major leg kicked out from under the wobbly dollar card-table.

Keep your eyes on this in the days ahead. It could turn out that this isn't the dealer raking in the chips after the end of another round: it could be the whole poker table being overturned.

____