World Prepares to Dump the Dollar

Dear Forum members, I apologize for possible poor English, since its not my native. I have found your forum looking in the "english areas" of the Internet regarding question of "local currency purchases by US Embassies worldwide".

I was really positively surprised that people here can do such good analysis, and see whats really going on in US.

Here is some kind of my short summary from a guy overseas living in one of former Ussr republics.

1. Fed has printed so much green paper that there is nothing in a kind
of goods and services in the world to back this ammount up (besides market baloons).

2. Every second dollar that You guys spend from your budget is "borrowed". Through the US "AAA" rated, sorry again PAPER.

3. THe Guys has been buying AAA US Paper, decided thats enough:
China is buying real commodities, companies, WHATEVER to dump its USD(the only problem is that they have too much of this PAPER, Russia starts to sell its gas and oil for rubles instead us dollars, its central bank decreaes percantage of USD in National reserves, etc, etc...

4. US officials are running around the world trying to convince that financial and budget situation is under control, and even studets in China are laughing.

5. If there is no one to lend the money to US, and FED is buying its own AAA Papers back - how long do You think it can last?

.....

Its really said, US is a great country, Ive been living there for a year, hardworking people, but YOu went into slavery in 1913, and a group of banksters are taking You down.

I leave in a country where outcomes of this financial crisis will be much more tough, if not tragic.

I wish You all to overcome next 6 to 12 month with honour and patience.

reply to post by Amagnon



I still see the simple fact that someone is still getting the Dollar. Even if China is spending to acquire commodities, real estate, African resources, etc... , they are still using dollars to get them meaning someone is still accepting the Dollar. The money is still circulating.

Even so, the US has had a half century head start in acquiring real assets around the world and building a huge military. It's a game the US has won already, some have accepted it, others now are trying to counter it, but in the end, I believe the US(Bankers) planned this out a long time ago. I travel around the world a lot, the dollar might have a weak image now, but the general population still trust it despite what their governments try to do or say about it.

reply to post by marg6043


Remember that years back I was saying that mainly Russia, and China wanted to do this to the U.S.? Many members back then 2004-2006 thought they would never do this. People would claim that since the U.S. is the main client of China, they would not try to mess with our economy, and that Russia would never go along with China either, but now we see other countries also backing the calls by China, and Russia for a New World Economy.

They are not going to stop with the economy. They know the U.S. still has a very powerful military, and they could not allow for the U.S. to rebound and challenge them. That is unless the Obama administration get what they want, transforming the U.S. completely into another Socialist dictatorship and unite with China, and Russia.

[edit on 26-7-2009 by ElectricUniverse]

Originally posted by gelly
reply to post by Amagnon

 

Even so, the US has had a half century head start in acquiring real assets around the world and building a huge military. It's a game the US has won already, some have accepted it, others now are trying to counter it, but in the end,

Actually US foreign policy is geared around the acquisition of resources and commercial territory on behalf of corporations. This worked for a time because the other option was communism.

Eventually communism died yet American interests abroad was not changed by the inhabitants. This was largely because everyone got a cut even though the US got the lion's share.

In the early nineties, a paradigm shift occurred in US financial policies when Globalism and monetarist policies were applied. Foreign policy was manifested in a new financial gun boat policy that threatened resource rich countries around the forced with devaluation of their currency, IMF manipulation of their economies and trade restrictions if they did not comply with the interest of US corporations.

These corporation also evolved and were hungry for super profits. This largely entailed the corporations using any means at their disposal to access monopolies for the extraction of natural resources from a country, making their elite very rich and paying less than 1% of profits to the government.

Case in point is Chad; this country has immense oil and gas resources. Giant US petrochemicals corps secured a monopoly there and paid the Chad government less than 2% in profit and licenses until they were kicked out by a new government. Today Chad's economy is in ruins and the nation is facing the prospect of War with Sudan although no one is quite sure why and who is killing the people of either side of the border.

Here is an excellent digest of US activities in this region;

www.globalresearch.ca...

The fact is that countries like China, a major US creditor, see US foreign policy in play and will tolerate it for a time in order to get their money back but there will be a point when they will judge that it does not serve their interests, call in the debt and dump the dollar.

Of course in a situation like this, the US will try to crash the world economy in a kind of financial MAD policy. This may not work because policies for destabilising economies have been applied to countries like Cuba, Iran and Venezuela with serious damage occurring but also resulting in new economic solutions by these isolated countries. These lessons have not been overlooked around the world. It will only be a matter of simplifying people's lives and sharing national resources in an equitable manner to survive the American storm.

reply to post by ElectricUniverse


I remember, one country without allies can not undo the US but when you have nations getting together and doing the challenging other nations in between will start taking sides, US is not longer the number one pusher when the G meetings takes place, now other countries are becoming more vocal.

That was very obvious during this years meetings.

Very soon US will not even be invited,

Originally posted by marg6043

Very soon US will not even be invited,

United States dressed up in hoochy mama clothing, chonga earings and make-up from the dollar store on Maury: "I don't care, I do what I want!"-Cartman

While I am no fan of U.S. IC's, the blame for the problems of the world is hardly entirely theirs.

ngm.nationalgeographic.com...

Even before the money started flowing in, Chad ranked 142 in Transparency International's Corruption Perceptions Index for 2004. Nigeria occupied 144th position. Only two countries, Bangladesh and Haiti, fared worse.

But when asked to assess the collège's efficacy in 2004, the first year oil revenue hit the treasury coffers, Assingar has a sheet of paper showing that a respectable 76 percent of the funds under its control had been allocated to approved projects. He would see how things pan out in 2005 before deciding whether to remain a member.

"But for sure, as soon as any abuses become flagrant, I shall resign."

Unconvincing explanations came out of the government early this year when Chad's teachers threatened to strike, citing three months' salary arrears, a far longer default than they had suffered in the years before oil.

"Strangely enough it is when the government's pockets are filling up with oil money that it is unable to pay teachers' salaries," said Ange-Gabriel Soulassengar, then a lay worker with the Roman Catholic Church, the institution that has emerged as the oil project's sternest critic in Chad.

Let's look a little closer at what has happened in the Sudan.

news.bbc.co.uk...

Up to 50,000 people in Darfur may have died and a million have been made homeless during the conflict.

Mr Powell blamed the government of Sudan and pro-government Arab Janjaweed militias for the killings.

"We concluded that genocide has been committed in Darfur and that the government of Sudan and the Janjaweed bear responsibility and genocide may still be occurring," Mr Powell said.

Mr Powell's conclusion is based on evidence collected by state department investigators, who interviewed more than 1,800 refugees.

This is putting it mildly, kill, rape, and pillage seems to be the techniques of the Arab invaders, but the people who hate everything western never recognize what their own people do.

Of course they never bother to recognize the huge amounts of charity that are contributed to these regions.

Meanwhile, aid agencies including Oxfam, Care International and Save the Children have accused three nations of failing to give enough aid to Darfur.

The agencies criticised Japan, France and Italy for giving only $6m, $9.6m and $10.8m respectively.

"These are some of the richest countries in the world and they have been some of the poorest donors," an Oxfam spokeswoman said.

The US contributed $206m in 2004-5, and the UK gave $94m.

People aren't that unhappy wit the dollar that they certainly don't mind taking them.

reply to post by RetinoidReceptor


You know what this year G meetings where so degrading to the US that I wonder if US will even bother to attend any of them in the future.

I mean, what do you expect when we have the Secretary of treasury and state begging developing countries to take our debt.

While I joke about this, it does hurts my pride as an American.

Do to the US insatiable need for foreign help our leaders just goes to this meetings and keep their mouth shut and let the other countries get away with anything.

Originally posted by marg6043

I guess at least the numbers in this one can not be deny.

America is not longer all American anymore.

The 2002 numbers can not hide the facts.

www.economyincrisis.org...

Is this prove enough for you

You cant be serious right?

The US has always had massive foreign investment. That's how International Companies make their profits. Let me ask you this.

If the US is in such poor shape then why the stampede to buy US companies?


I mean are all these companies ran by idiots?

OR

Do they know a good deal when they see it?

reply to post by SLAYER69


The reason is in front of you eyes my friend, as the dollars keep going down the hill what else can this nations do but to increase their hold in US properties to ensure that they will have a piece of the America to bargain with when everything goes down the craper.

Remember what the banks does when you don't pay your morgage, they foreclosure on your property.

What do you think this nations will do with all the US holdings they will come knowking the doors and take America apart one piece at a time.

With the blessing of the WTO.

China has vast amounts of US holdings they are using the money to buy resources all over the world, while reducing the amount of US debt they buy.

Already the Fed had to buy into US debt because of that and again in the fall when the US debt goes to the auction block again as it does every fall and our debt buyers fall short guess who is going to buy again into US debt, the fed.

That is why is predictions of another downfall in the markets by the fall.

This how vulnerable our nation has become in the hands of foreign nations.

reply to post by marg6043


The Largest Foreign Investments In The U.S.

foreign investment creates jobs--often good jobs--in the U.S.

Millions of jobs have moved offshore in the last decade, but millions more have been created or saved by foreign companies investing in the U.S. More than 5 million people--4% of the American private sector-workforce--are employed by companies headquartered overseas, primarily in Europe or Asia, according to data from the Department of Commerce. The Organization for International Investment calculates that roughly one-third of those jobs are in manufacturing, an area where the U.S. has supposedly lost its edge.

Another surprise: Foreign-owned factories based in the U.S. do more than cater to the huge American market; these businesses also export nearly $170 billion worth of goods made in this country. That's nearly a fifth of all U.S. exports.

The Organization for International Investment put together a list of the largest foreign companies operating in the U.S., prepared by accounting and consulting firm RSM McGladrey. The list is based on annual reports, SEC filings and other company-provided data for 2006, the latest available when RSM McGladrey and OFII began compiling the list.

Foreign direct investment in the U.S. leapt 88% between 2005 and 2007 to $204 billion. The numbers could be even higher in 2008. Of course, Airbus is just one company that could be investing big in the U.S. So will German automaker BMW, with a $750 million expansion of its plant in South Carolina, and Cemex (nyse: CX - news - people ), the Mexican cement company planning a $400 million facility in Arizona. And with the U.S. dollar so weak, others may be tempted to follow.

How much butt kissing Geihner is doing to our Chinesse friends in orther to secure that China keeps buying into Americas debt.

US calls for China to have greater say in world economic affairs
China must be given a seat at the top-table of world economic affairs, the US treasury secretary, Timothy Geithner, said yesterday as he moved to reassure China that its investments in the US dollar were safe.

www.telegraph.co.uk...

When Geihner told to a group of students in China that the dollar was safe the students laughted at Geihner

In his first official visit to China since becoming Treasury Secretary, Mr Geithner told politicians and academics in Beijing that he still supports a strong US dollar, and insisted that the trillions of dollars of Chinese investments would not be unduly damaged by the economic crisis. Speaking at Peking University, Mr Geithner said: "Chinese assets are very safe."

The comment provoked loud laughter from the audience of students. There are growing fears over the size and sustainability of the US budget deficit, which is set to rise to almost 13pc of GDP this year as the world's biggest economy fights off recession. The US is reliant on China to buy many of the government bonds it is planning to issue but Beijing's policymakers have expressed concern about the strength of the dollar and the value of their investments.

www.telegraph.co.uk...

Unfortunetely we Americans are still proud and can not believe how bad our nations has fallen.



[edit on 26-7-2009 by marg6043]

reply to post by SLAYER69


Yes we have so many job creations that our unemployment rates are the highest in decade and getting worst.

SLAYER69 have you been watching the news lately? you know like in the last year and since Obama took office?.

Foreign-Owned Assets in U.S. Top $20 Trillion (2007 figures)

[atsimg]http://files.abovetopsecret.com/images/member/807d984ecf01.jpg[/atsimg]

mjperry.blogspot.com...

And here are figures for 2008
www.bea.gov...





[edit on 26-7-2009 by warrenb]

Originally posted by marg6043

Unfortunetely we Americans are still proud and can not believe how bad our nations has fallen.

See that's your problem...

I see the new possibilities and the dynamics in business and commerce of the new world. Many FEAR it. Like as if when the US is not completely number 1 then it's all over for the US. BS...

The US in about 10 or 15 years may not be #1. This however doesn't mean the "Mighty" Have fallen. It just means we will have new players on the world stage. This for some of us who have been around a while have seen this before during the cold war with a multi-polar world. This is a new concept to many younger people.

Originally posted by SLAYER69
The US in about 10 or 15 years may not be #1. This however doesn't mean the "Mighty" Have fallen. It just means we will have new players on the world stage. This for some of us who have been around a while have seen this before during the cold war with a multi-polar world. This is a new concept to many younger people.

How are you ranking it as #1?

the US is not #1 in any favorable category, it is only #1 in debt and consumption

www.photius.com...

reply to post by SLAYER69


I see, I was getting confuse with your response, you are a NWO believer, and a globalist supporter, right?

So you also believe that US should lose the dollar for one world currency and soverigenity in favor of bending to the powers of the world for the greater good.

Originally posted by Amagnon


The market is like a car that is being driven by someone else - and you are trying to use statistics to determine if they are going to turn left or right.

It doesn't matter that the car is driven by someone else if the new driver abides the traffic rules. You missed the condition IF that I capitalized when referring to the long-term projection.

You failed to grasp that the simple logarithmic function predicted correctly where Dow would be in the beginning of August. I wouldn't lean against something that didn't work in the past. And that's the cardinal difference between my projection and yours, which is solely based on your personal hunches; it's not supported by anything tangible, coz it cannot be quantized and that's why you couldn't test your approach and show that it worked in the past. Speaking of the past . . . The Bible wielding doomsayers of the yesteryear had at least something in their hands to support their claim.

reply to post by marg6043

What do you think this nations will do with all the US holdings they will come knowking the doors and take America apart one piece at a time.

Yeah, and with what army? or Navy?

Only in your fantasy world will these nations come knocking. Their economies are wrecked worse than the U.S.. Meanwhile, they have no military to back up such talk.

reply to post by warrenb


That's exactly right #1 in consumption.

Our problem is not under production it's over consumption. The vast majority of what we produce here in the states is consumed at home. What little else is shipped over seas. We've seen this before in the 70s and 80s with Japan. At one point they were buying up land and business like they were going out of style. It's wasn't until the Japanese started being consumers that the trade balance got better.

The Chinese population are mostly employed as producers. They dont have a large consumer market YET. But it's growing fast. When the pendulum swings to where they start to buy their own products and they open their internal markets to larger internationals we will see lots of exchange the problem right now is that they are maintaining a closed or limited market for foreign products.

This will increase as they gain wealth so will inflation in their home markets. The large internationals will start looking for another Cheap labor force. At that point the Chinese economy will have to stand on it's own. Not very good when you consider they have very little oil and are desperate for it. Other wise their Massive growth grinds to a halt.







[edit on 26-7-2009 by SLAYER69]