World Prepares to Dump the Dollar

China, India can help, not save world economy

"Our message to the Chinese is going to be -- If you want to achieve your growth objectives, you're going to have to find a different way of doing it than through export-led growth," he said. The bottom line is that "the global recovery will only come from a pick up in (consumer) demand in North America and Europe," said Chaney.


The BRIC four -- Brazil, Russia, India and China -- may protest all they want against the dominance of the dollar-led world trading system but they have no way of opting out of it given their relatively modest economic strength, said Jean-Paul Betbeze, economist at French bank Credit Agricole. Longer-term, their influence will grow but for now they have much more work to do to meet coming challenges, especially likely changes to their favoured export-led model of economic development, analysts said. "The Chinese have no other alternative but to boost their domestic market," said Prasad of Cornell University.

reply to post by OBE1


That is the problem with China, they have been "eying" and buying "natural resources" from all over the world, but no much attention has been given to this fact.

The numbers of acquisitions are not known so only speculations is what we get.

They could be double or triple of what the numbers are showing because
China tends to be secretive on what they do.

reply to post by SLAYER69


Remember that when it comes to China things tend to be unpredictable, many people 4 years ago still believe China was in the middle ages.

What a surprise China has prove to be.

So like I always said, analyst can say anything they want but history prove that things are no always what it seems.

China is moving very fast.

And as for the dollar supremacy countries will leave it the way it is, but the dependency will be less.

Another currency beside the Euro to compete with the dollar will open the door to more possibilities when it comes to other nations choices.

Right now Iran doesn't do any business with the dollar, they have been successfully able to do that even with all the pressure that US has been putting on them.

[edit on 27-7-2009 by marg6043]

Originally posted by stander
reply to post by GreenBicMan

 

Speaking of oil . . . That's where the bummer ahead could be:
finance.yahoo.com...

Oil rose to top $68 a barrel on Friday on optimism a turnaround in the global economy would lift battered fuel demand.

So if something like an optimistic outlook manages to push the price close to $70, what will happen after the US economy leaves the shop and makes it back on the freeway?

If you print trillions of dollars like Zimbabwe you are going to get
inflation and maybe hyperinflation like Zimbabwe.

That will make oil cost more, and the value of the dollar will at
some point start to drop.

When it happens it will likely coincide with the 100's of banks that
are set to fail in the next few weeks to months per Shiela Bair
at the FDIC, bankimplode.com has a good unofficial list.

moneynews.newsmax.com...

Canada and a few other countries have started dumping our T-bills.

online.wsj.com...

I know some ppl will say the article is wrong and everything is
peachy, and I am taking it out of context and to bow before
the almighty paulson and bernanke, but I think I will chart
a ron paul kinda course.

Once we get another oil spike you will see it affect everything again...

The spike in oil may be due to a drop in the value of the dollar
as well, but it may be a ways off.

The world shifting away from dollars will start to have an effect as well.

If most of the middle east went to a currency other than dollars for oil,
it would have a big effect.

If it was oil for gold it would be a serious problem for the US.



[edit on 27-7-2009 by Ex_MislTech]

[edit on 27-7-2009 by Ex_MislTech]

reply to post by marg6043



U.S. Assures ‘Concerned’ China It Will Shrink Record Deficit

“The Chinese are trapped with supporting the value of the dollar,” McKinnon said in a telephone interview from Stanford, California. “If they withdrew from the market, there’s a big appreciation” of the yuan as a result that would send China’s exports down, he said.

Geithner, in his opening remarks, reiterated the U.S. call for China to shift toward relying on domestic demand for growth rather than exports.

“They have to build more of a domestic spending society,” U.S. Trade Representative Ron Kirk said in an interview with Bloomberg Television. If they do, “software, movies and the creative arts will be a great market for the United States.”

[edit on 27-7-2009 by SLAYER69]

reply to post by SLAYER69


Wounder why US is kissing up to China and why now US is giving China credit and calling for China to have a more active role?

Perhaps because the US debt is going for the auction block this fall as it does every year?

Somebody has to buy our debt. Right?

Give China any support they need as long as they are present at the auction block.

I do not understand what the point is in buying a country's debt. What is that all about?

reply to post by Jessicamsa


ownership?

reply to post by Jessicamsa


Its not really about that

Its about putting xxxxxxxxxxxxxx amount of dollars into something that holds its value

The point is, where else are you going to invest your money

Investors and institutions and countries find a safehaven in the US DOLLAR

There really is no debating that fact

reply to post by GreenBicMan


Exactly
The US has been selling T-Bills for decades and will continue to do so. They take about 30 years to mature so in the meantime we rebuild our assets and make new business deals and ties.

Russia Loses India as Second Largest Defense Customer

From now on India will be buying American weapons. The USA and India came to such an agreement during Hillary Clinton’s visit to Delhi on July 20. India has been using Russian and Soviet weapons for 50 years.


BREAKING NEWS
Russian arms become less competitive


The relations between Russia and India, including those in the field of military and technical cooperation, have been worsening recently. India turned its attention to other partners and entered into transactions with Israel, France and other manufacturers of military hardware.

Now the USA, Russia’s major competitor in this sphere, completed this list.

The world is indeed preparing to dump the dollar. Do you Know if it will affect you? Well I know people are going to think I am a nutjob, but the other day while I was shopping a lady paid with her bank card for her items, I suddenly had a psychic flash about someone else paying in line in front of me with their bank card and the casheir telling them that their card would not work and that no cards; credit or bank cards at this time will because the system was shut down by the banks. ( the lady in front of me used hers no problem during my flash). I Know no date for when this is supposed to happen, as it was not given to me. But, I implore all of you that you should withdraw your money out of the banks right now at least enough to live on, even greendot prepaids, even the H&R blocks prepaid cards. They will not work either. And I have a very bad feeling that even the access cards will not be able to be used so if you get food stamps, or cahs, or both, I think you should take all the cash out of your access, hide it away, and stock up on food staples that will last through it, I am not sure how long this will last for, but the best thing to do is to be prepared. Also I don't really understand why I was given this information. Only cash will work for you when the banks decide to close down like they did in 1929. I really don't want to frighten people, but I beleive this is vey real ANd that's why I am telling you all to take the money out, put it in a safe. If it doesn't happen, who really cares, better safe than sorry, right? It couldn't hurt you!

reply to post by ldyserenity


I don't think you are a nutjob. I appreciate that you are concerned enough to let others know what you "saw". It shows compassion and genuine love for others. I don't think your vision is very far off. But I'm always preparing for the worst while hoping for the best. Just me. ♥

reply to post by Hazelnut


Thank you, Hazelnut, I appreciate that. I hope that it's really wrong, but we'll see. I know I am not putting anymore cash into my H&R block prepaid card, I'll just put it up in a safe place in the house instead. IMO I think as I always do, that if the right choices are made that it can be avoided, I don't beleive that the future is set in stone.

reply to post by ldyserenity


If you are a nut job, then I am too....this is too important not to warn people about. In the last week where I live we have had two power cuts, water supplies disrupted, and I found myself in the nearest small town a week ago looking at empty shelves in the store when their delivery didn't come in, two out of three cash machines didn't work, no fuel in my car, 10 miles from home, and I had this massive feeling that it was indeed a warning....this is what we will be facing in a few weeks or months as winter hits us.

I too take all my cash out of the bank now and only add it when I need to to pay bills. I simply don't trust them. People REALLY need to face up to what they would do if they have no food, no fuel, no power, no transport, and no cash. It could well happen overnight, and we won't be ready for it.

reply to post by caitlinfae


Wow I am in awe, I had no idea anybody anywhere had these things happen to them lately. Scary. I would definately say it is a sign o' the times. I haven't seen any of this as of yet in Florida, so I couldn't have known anybody anywhere actually had those things happen(I never watch the news) Most of the time the news depresses me, and I just don't need to watch it, all that's important and will affect me comes to me anyway, via other means. Like this flash I had.

Originally posted by GreenBicMan
reply to post by Jessicamsa

 

Its not really about that

Its about putting xxxxxxxxxxxxxx amount of dollars into something that holds its value

The point is, where else are you going to invest your money

Investors and institutions and countries find a safehaven in the US DOLLAR

There really is no debating that fact

Something that holds its value? the dollar you mean? how does the 2 trillion dollars recently printed factor into this, does this not "dilute" the value of the dollar? is this not one of the reasons why the DOW is rising?

if the dollar is worth less because there are more of them in circulation (inflation has yet to correct it) then US companies appear to be worth more hence one reason for the markets rise. I agree that historically, the dollar has been a safe haven, but I think the sun has already set on those halcyon days, it is now twilight and darkness is looming fast.

For the sake of millions of Americans who have been shafted by successive Governments and the money machines, I hope I am wrong.

PEACE,
RK

reply to post by Jessicamsa


In the state of our nations economy and with the runaway spending in Washington, selling US bonds to nations that long time ago used to be considered our enemies is the only way that our nation can keep business as usual and keep increasing the unsustainable deficit we have right now.

Still Because this sell out, China now has become very vocal about how they do business and they are the number one Country that wants to get rid of the dollar, even when they hold very vast amounts of US dollars.

Right now even China is reducing the amount of debt it buys from the US.

But rest assure that US is targeting now the Middle east countries specially the rich oil nations looking for more markets to sell its debt.

In other words we as a nation are becoming nothing more but indebted to the world.

Now that the insatiable consumerism of American citizens is declining China is starting to see the dollar as a problem.

As America keeps declining economically with higher unemployment so emerging industrialized countries like China are suffering.

So they want alternatives.

reply to post by ldyserenity and caitlinfae



Well if that's truly the case then your dollars will be worthless.There will be no need to horde them.

Buy gold

reply to post by SLAYER69


Well, no as far as I know, the cash will be able to be used, the cash that's out there already in circulation. You just won't be able to access it through the banks after a certain time, they'll do this to keep the money they have already in their banks for themselves, it's a preemptive strike, I think. I am not sure I don't know exactly how that works, except banks grinding to a stop may hinder trade inside the US for a short time. But, I do know that at least for a short while the stores themselves will take cash, probably until they have no more stock, however long that might be. I think the banks want to scare the government into a real solution, showing that the country will not survive without the banks? That's all I can think of it as.

Originally posted by SLAYER69
reply to post by GreenBicMan

 

Exactly
The US has been selling T-Bills for decades and will continue to do so. They take about 30 years to mature so in the meantime we rebuild our assets and make new business deals and ties.

Russia Loses India as Second Largest Defense Customer

From now on India will be buying American weapons. The USA and India came to such an agreement during Hillary Clinton’s visit to Delhi on July 20. India has been using Russian and Soviet weapons for 50 years.


BREAKING NEWS
Russian arms become less competitive


The relations between Russia and India, including those in the field of military and technical cooperation, have been worsening recently. India turned its attention to other partners and entered into transactions with Israel, France and other manufacturers of military hardware.

Now the USA, Russia’s major competitor in this sphere, completed this list.

What about the countries that bought the T bills decades ago when the US was in better financial shape? Did that prove to be a good idea when they consider the current state? Suppose they will have to wait decades more for a remote chance of seeing any return. With obama now trying to sell more debt to China on the pretext of saving its manufacturing base. I don't think the American people can afford to buy any more of those nickle and dime trinkets which made China so wealthy. I honestly think that China knows this too.
For all of my lifetime it seems as though America has honestly believed that every other country in the world wants to be like them. They have had patriotism rammed down their throats so much by their Governments that they have taken their eyes off the ball, it is late into injury time and the game is all but lost. Yes, the Government has done a good job with patriotism after all, it does exactly what it says on the tin...
it clouds clear judgment.

PEACE,
RK