Carl Denninger alerted me to this rumor. Apparently the Harry Schultz Letter reported:

"Some U.S. embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of U.S. cash to purchase currencies from those governments, quietly. But not pound sterling. Inside the State Dept., there is a sense of sadness and foreboding that 'something' is about to happen ... within 180 days, but could be 120-150 days."

I couldn't find the direct source, but this quote is all over the web. I didn't see any discussion here, but didn't look very hard either. If this is true, HERE IT COMES!

Probably one of the most important threads on ATS at the moment!

S+F

I have kept out of the financial discussions as strongly said it was coming for years, and knowing the real crash would be protracted and spurred on by other world events, History if anyone cares to read it shows this time and time again, also knowing a lot about the way of the markets and finances etc I have grown sick of those who live in 24 hour news and think like a film everything happens in 1 hour 20 minutes, the same attitude and lack of understanding has been displayed by many over h5N1 which when i first heard of it thought of Winter...


Financially....it's a waiting game to Stagflation, Hyperinflation or World War....

Indeed maybe the flu is an angel of mercy taking out the young, it may leave the World War option closed of to those who have used it before in similair situations.....

Flag this get it on twitter, let people know that their governments plan 180 days in advance for disaster but keep telling them all is well...

Elf

I thought that this was in response to the possible September Bank Holiday that is being proposed for world-wide participation.
Remember reading about it on cnn money news and Jubak's stock market blogs...earlier in this week.

Hmmm...does appear that there is more to it however.

Peace...

US Embassies often allow people to pay for services in local currencies and dollars. Perhaps, if true, the Embassies are buying local currencies so that they're able to better "make change". You know what I mean?

can it be confirmed

Schultz doesn't give a source as near as I can tell. Its possibly a tip from one of his subscribers. He's really been "dissed" for reporting it.
Most of the web that that's picked it up aren't particularly reliable. You know the type!

While it is normal for embassies to have reserves of local currency, stockpiling it would not be normal. This implies a differential devaluing of the dollar. Don't expect other major currencies to fare much better, though. If the rumors are true, it gives us some idea of the timeline for all this to settle out and an new international currency to take effect.

Still there are some things to consider:

1. US bank capitalization under the stress test was based on economic data that is already overly optimistic.
   
   
2. The Fed is quietly gaming the markets. Foreigners have cut way back on purchase of treasuries, but it appears the Fed is buying them up, keeping interest rates temporarily low. It can't continue long.
   
   
3. The Fed's policies caused the problem(maybe merely delayed the inevitable), timed the October crisis, and will likely precipitate the collapse. If it is impossible to prevent, they will attempt to time it to the elites advantage. Does this include chaos at this time?
   
   
4. Real Estate is far from a bottom. Commercial has just begun to blow.
   
   
5. We are going to see a wave of small business failures.
   
   
6. Credit card defaults parallel unemployment. This will produce a fresh area
   for bank stress.
   
   
7. All in all we are more and more likely to see an overnight collapse of the dollar. So get out of cash.
   

I expect fairly quick International action, possibly IMF International Currency. Sort of preplanned...
Expect draconian security measures and crackdown on dissent. This is likely the result of MSM manipulation. Suddenly they will report on government corruption etc that they have been white washing. A lot of people will suddenly wake up - hungry and pissed!
A lot of government officials will get in trouble, but this will be appeasement. A lot of elite insiders will suddenly find themselves in trouble(like in the French Revolution)
The emphasis will be on economic recovery with every body getting somewhat screwed, but given enough hope to go back to work.

We are likely to see some kind of MSM supported "Spiritual Solution" that will be manipulation and demagoguery.


What to do?

Get out of paper money.
Buy old silver coins.
Buy food, survival stuff. Stock pile tradable items. Extra weapons and ammo will be as much valued as trade items as self defense.
You might want to report your guns stolen. Get your buddy to clean you out...
Study what happened in Argentina if you want to find out what we are really likely to face.

Guys, how long are you going to listen to Denninger's fear mongering lies?

I make it a point to post to each thread on him, because he continues to make bogus, wildly incorrect, yet supposedly "inside information" type statements that NEVER come true.

Seriously, do some searching on the predictions he's made that have been posted here. Every one is sworn on his mother's grave and haven't even remotely come true!

I know its fun to think about, but it's really a waste of time, and just fuel for the guy to continue on with his out of this world warnings.

According to him, WWIII was beginning overnight last fall, along 3-4 world ending, card falling scenarios since. This is just another ploy for attention.

No offense to the OP - I just have to say my piece on this guy. The Chicken Little factor is high here.

I find is sad that people are scare-mongering just for personal benefit (e.g., driving up sales of gold coins).

In the end, people on both sides will have to admit that it is time to take radical measures to clean up the mess we've created. A combination of:

1) Drastically simplifying or scrapping our current income tax system in favor of a better taxation system that encourages personal savings and capital investment in the USA and stop the problem of capital flight.

2) Cleaning up the financial system by reigning in exotic investment instruments (hedge funds, derivatives, credit default swaps) and increasing minimum margin requirements on stock futures and commodities trading, both of which will substantially make it far more difficult for wild price swings on any equities traded.

3) Getting the banks out of the equities business to protect bank assets.

4) Massive reform of how government agencies work to reduce overhead or to "sunset" the agencies as needed.

5) Looking at going back to a precious metals-backed currency based on a combination of gold, silver and platinum.

6) Replace the Federal Reserve with a Third Bank of the United States modelled on the Bank of England.

Implement these six steps and our economy will put itself on a solid foundation for future growth.

[edit on 25-6-2009 by SactoGuy001]

Do not forget about the "Amero."

It has been my opinion that all along that Obama's primary job
was to implement and sell the American people a new form of
currency, the Amero.

It you look a recent fiscal events you will see that the US dollar
is perched atop the largest bubble yet, the commercial real estate
bubble. This coupled with the thousands of failed businesses in
America will soon cause this bubble to implode. Obama will be
our savior with his plan for a new currency (except this new currency
has been planned for many years.

My prediction is for late in Obama's second term. First, we will have
a crisis, and new solutions will be sought. Then the Amero will be
introduced to America. It will be Obama's job to put the spin on it
and sell it to us. I predict that in the end he will have done such a
good job of assuring retirees this will save their investments that
Americans will welcome this with open arms...
and more than likely Obama will be seen in history as a great
American president.

Because the Amero will work for a long time, until, we the sheeple get
nice and fat and fluffy. Then it will be time for the PTB to come and
shear us again.

BAaaaaaa