The demise of the dollar

Originally posted by johnny2127
This is the first salvo in a much larger economic war that will eventually be fought. Hopefully it doesn't result in military war, although if historical precedent is any indication, that will not be the case.

No, the First Salvo hit the US in September 2008.

That was the Pearl Harbor that the US economy is still struggling to recover from.

But you are correct in that we are engaged in an Economic World War, and if it looks like we are about to lose, a real "shooting war" is, historically, the result.


And things ain't looking too good for the "Home Team" right now.

Things will definitely get nasty pretty fast. It's not like we couldn't see this coming though. We basically had the world loan us much of their wealth to finance our "living beyond our means" lifestyles.

How long did everyone one think we could consume imports with overseas borrowed money and spend more than we earned.

The end result will be the breakup of free trade and the global economy. I would foresee the U.S. getting very protectionist and imports getting slapped with tariffs. The end result will be more domestic production, which won't really be a bad thing.

The funny thing is while the U.S. may be addicted to credit, the rest of the world is just as addicted to providing us with the credit and imports. It's a symbiotic relationship, the U.S. can beat it's addiction, I don't see the rest of the world replacing the exports of goods and money that go to the U.S. without major changes to their economies as well.

Of course the easiest solution to this sort of problem is a Major armed conflict, that tends to shake things up.

It will be an interesting next decade or so. I wouldn't sell gold right now.

What choice do the other nations have? How can they stand idly by and keep buying our t-bills when they see our eventual implosion.

No investor in his right mind would keep buying notes that eventually will be worth pennies on the dollar.

reply to post by pavil

It will be an interesting next decade or so. I wouldn't sell gold right now.

Funny you should mention that just now...

Spot Gold $ 1019.90...been fairly high all day, but, has been rising for a couple of hours now...

Edit: All time high was $1033.?? in 03/08...

[edit on 10/5/2009 by Hx3_1963]

The topic of this thread is the US dollar.

Not some prediction from another thread and not some bible end of times nonsense.



For those who have been paying attention to anything relating to the petrodollar in the last few years, this is no surprise and only a baby step in a process that has been ongoing for some time.
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reply to post by Gools

The topic of this thread is the US dollar.

And speaking of that...

USD 76.46

YEN 88.981

EUR 146.941

USD lower...YEN higher...EUR higher=not looking so good at the moment ???

WTI Crude Oil 70.38

[edit on 10/5/2009 by Hx3_1963]

reply to post by Gools


Someone had already tied the fate of the dollar to military aggression. I was merely expounding on that angle, ie an attack on Iran. As pointed out, the last paragraph of the source article clearly implies that Iran may suffer the same fate as Iraq do to its dropping the dollar.

So if saying the same thing as the source article is off topic then... As far as nonsense goes, would it have been acceptable if I said an ancient alien hieroglyph said it? Funny how some things are tolerable and others aren't.

This will be interesting. It will actually make it cheaper to produce in this Country again. Business and manufacturing coming back to America would be a good thing. Its time to bring it all home. The factories in China, India and Mexico....just to name a few countries......all need to be made back here in the good old US of A. Quality should go up.

Some of you on here said protesting the G20 was a bad thing...

you know, some of us knew this was going to happen... its still possible it will happen...

makes you think, when will the Americans wake up, and take notice of Ron Paul's dire warnings...

this will be a sad time for the American people.

goodbye dollar!!!

BUY GOLD WHEN YOU STILL CAN!

this just in:

...just off track here for a moment....

PLEASE, EVERYONE, STOP SAYING: "and so it begins".

i beg of you. it doesnt make you sound smart or ominous....just silly.

OK enough is enough we need to get some smart people into Washington!

But before that happens our elected officials will probably sell our entire country for gold then move to the moon.

This is WHY a global communtiy is not a good thing at all. we gotta take care of ourselves, not another country with tis own financial problems, everyting was fine and hunky doory till the governemnt and business pushed everyting into a global community* bring us together, balh blah ect...more like step right up, take our american jobs, adn if you wait long enough,.,.you can have their businesses and houses too...

I think this might be it guys and gals, the final slide into tyranny. Once the dollar is dead we're gonna soon see the long talked about "conspiracy theories" come into fruition. Economic collapse and the beginning of Civil War II.

Thing is though, this is gonna be much uglier than the first. If we see another false flag attack in America and I fear it will be soon if these events unravel, we are in for a world of hurt because we are so divided in this country and we are bound to not only fight the jackbooted thugs but each other as well.

Black vs. White and both vs. Brown..and everyone vs. the brainwashed Stormtroopers...a recipe for pure pandemonium and the Endgame.

Originally posted by chi_z
this just in:

Now come on...

Are you photoshopping us or is this real???

Show me the linkey!!!

It is not all bad. Think about it

1) It would not longer be cheaper to have our goods made in China. The industrial engine of America is started again?
2) No need to outsource jobs, why would they want to work for dollars?
3) We would be forced to retool our defunct manufacturing sector and produce alternative fuel cars, since we can no longer afford oil.
4) Wow, looks like that would be a big boom for the farming industry since our food is soooo cheap, being a spoiled dollar.
5) Now all those Chinese can finally afford to legitimately purchase our software and video games.
6) All those people south of the border no longer have a need to come here and look for work, we only pay in dollars.
7) Our financial system finally collapses and is exposed for the facade that it is. After all it is based on the people. Maybe people will start seeing they are worth something and decide to work to build a better future.
8) This could actually cause people to save and spend, finally ending the clutch hold of all those slimy banks and credit card unions.
9) Any one that has a fixed mortgage has it made. Now that they will be making $5,000 a day, that $2,000 monthly payment is really nothing.
10) Some day when going to the movies cost $100 a ticket you can tell your kid, I remember when I could get a ticket and popcorn for $25!

So I am half kidding and half serious. We have everything we need right here. Maybe we can finally realize that. I can saw we certainly will not be taking over. Not with all the people that have Guns. So guess what, we start becoming a smarting country because our training wheels will fall off. Sure we will fall and get scraped up. But you are going to give up just because they yen is worth more than the dollar? It did not stop the Chinese did it.

I mean is it any real surprise that they are planning this? Art of War? The pen is mightier than the sword, the chinese and the other nations involved didn't have to drop one bomb to destroy the US.

A spider injects it's prey with a digestive enzyme and then sits back and waits for it to work. Now think of China's willingness to keep buying treasuries and pumping the US economy full of their cheap goods ushered in by the likes of Wal-Mart and injecting the US economy with those goods that domestic producers and retailers couldn't keep up and eventually all took this approach. This was the digestive enzyme that destroyed the US. A sound economy is based on a good manufacturing base not rellying on foreign credit and imports. The move to push everything offshore was the first step to destroying America and her might. China encouraged your reckless spending and are now waiting to devour the prey.

You have to admire their mastery of chess. A chess master is always a few moves ahead of their opponent. A chess master wants their opponent to think that they are taking your pieces when in fact you're giving those pieces to them to set them up.

I fear a US collapse is going to be hard on us up here to the North. The US will drag Canada down with them unless we can get some politicians with the balls to shore up our system to insulate us somewhat.

Here's another bloggers take on this news...

Jesse's Café Américain

China May Lead Coalition of Nations to Topple the US Petrodollar
jessescrossroadscafe.blogspot.com...

The power in the US is in the people. The dollar is representative of the power of the US. Our weapons are made here. Financial collapse would just re-institute a gold standard. The US still is the strongest military power. Even when the USSR collapsed Russia did not go away did it? Last time I check there stayed a member of the security council. Why is that? It is not because of the Ruple it is because of the B-O-M-B. Why would any one think it is different for us?