Pro-US financial terrorists and media propaganda expedited Euro debt crisis because of Iran

Pro-US financial terrorists and media propaganda expedited Euro debt crisis because of Iran

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It's all about Petrodollar. United States invaded Iraq after Saddam Hussein traded its crude oil in Euro. Iraq is now a wasteland of chemical, nuclear and blood perpetrated by US and allies soldiers (murderers).

On December 2007, Iran traded 90% of its crude oil in Euro and Yen. By April 2008, official news confirmed that Iran had ditched the US dollar for its oil trading. www.reuters.com...
Since then, pro-US financial terrorists, bankers and media propaganda doing everything to devalue Euro and incite fear among investors doing business in Europe.
Recently, Wikileaks exposed info about world leaders/ministers urging or implying USA to attack Iran. Though no surprise, this demonstrated the "slave mentality" of US allies and the blind support of US currency garbage.

Ladies and gentlemen (especially my European friends)..
USA should have collapsed first due to its trillions debt, NOT Euro.
European nations should follow the same steps as USA miracle stimulus - print more money, manipulate policies and sweep all scandals and corruptions under the carpet. Of course, I'm sounding sarcastic about this.
Swiss Franc seems a better bet than garbage US dollar.

2010 final tally of US total debt $13,879,785,000,000.

- $1.568 trillion increase in total US debt held by the public for 2010
- $4.388 trillion since the collapse of Lehman

God bless us all.

The First Stage of Inflation Has Already Hit, Next Up Is the Currency Collapse

www.zerohedge.com...

One of the biggest misconceptions about inflation is that the US Dollar needs to collapse in order for inflation to occur. While a currency collapse often accompanies periods of heightened inflation, this is not necessarily true. Case in point, the US Dollar actually rallied this year despite commodity prices exploding higher

As you can see, we’ve had an inflationary spike in commodity prices in 2010 despite the US Dollar rallying 2% during that time. Indeed, the inflation the US is experiencing today is rather unusual as it has been accompanied by deflation at the same time. As I write this, the US is experiencing deflation in housing prices and incomes combined with inflation in the cost of living (energy, food, commodity prices).

Thus, we see deflation and inflation occurring simultaneously. It’s not surprising as the Fed’s primary moves since the Financial Crisis hit are:
1) Buying debt
2) Pumping money into the banks

The first move was designed to attempt to stop debt deflation. As I’ve noted in other articles, the Fed is failing miserably at this (bonds are tanking).

The purpose of the Fed’s secondary move was to shore up the banks’ balance sheets (with hundreds of trillions in derivative exposure and off-balance sheet toxic debt, most US banks are insolvent). Indeed, the monetary base has more the doubled since the Financial Crisis began.

What you’re looking at is the Fed producing $1.2 trillion of money out of thin air. The reason we haven’t yet seen inflation in the form of a US Dollar collapse is because:

1) Europe is imploding pushing the US Dollar up
2) Banks are sitting on this money (not lending) so it’s not getting into the economy

Regarding #2, the below chart explains everything:

The above chart depicts the amount of money US banks are sitting on in excess of what the Fed requires them to hold (all banks must hold a certain amount of cash in reserves).

As you can see, up until early 2010, US commercial banks were sitting on nearly $1.2 trillion in excess reserves. So in plain terms, the Fed’s money pumping (at least the money we know of) has simply been sitting on banks’ balance sheets. In other words, banks aren’t lending it out, so it’s not getting into the economy (yet).

This is why the US Dollar has yet to truly collapse: the Fed’s money pumps have yet to get into the economy. Instead, the banks are just sitting on them. However, this doesn’t account for the Fed money pumps that are non-public.

It’s no secret that the Fed has been pumping hundreds of billions of Dollars to financial firms without the public’s consent. According to the Neil Barofsky, Special Inspector General of the TARP program, the Wall Street bailout could end up costing the US up to $23 trillion before it’s over.

Obviously a heck of a lot of money has been flowing into Wall Street that we don’t know about. And Wall Street has done what it does best, pour this money into the financial markets… which has driven stocks, commodities, and risk assets in general THROUGH the roof. This is also why stocks and commodities have displayed such an unusually high correlation since the Fed started its QE 1 program in March 2009: it’s all about Wall Street putting some of the Fed’s money pumps into the markets.

Thus today in the US we have debt and housing deflation… combined with cost of living and asset price inflation.

However, I want to stress that the inflation we are seeing today is just a taste of what’s to come in the next year. Indeed, our current inflation is all about loose money flowing into commodities, pushing up the cost of living. This is the financial speculation form of inflation and is just a precursor to the next, FAR MORE serious stage of inflation: the currency collapse.

Yes, deflationary forces remain a risk in the near-term given the systemic risk in place today (we never cleaned up the 2008 mess properly). But ultimately inflation is the end game. And when it hits in the form of currency collapse it will be fast AND violent.

Great post.

I feel greed is to blame; humanity itself has shifted it's mentality into a purely "got mine" & "want yours" mode (1st & 2nd world nations). As I read here and in other places there’s a lot of talks about international banking cabals etc. The thing is in all honesty, the more I look at it, we are all to blame and likely not one of us is without "sin" in the making of this crisis the entire world now faces. -We bought in to the idea and so we lend it our power.

Admittedly we have been helped along with mass media and their advertising campaigns. These perversions are systemic in nature and will not stop until the majority is left powerless (money-less) as it seems to me that when the masses have abundance we become perverse, morally and ideologically (the vast majority).

One could argue that by collapsing the system and taking the purchasing power of the masses away only does the world itself a great service. The resources here on earth are not as infinite as the greedy eyes of man and the new kid on the block is eyeballing your fortune right now; they are devising a way to take it (I am talking about China, Brazil, India and anyone else who likes pie). They want what you want and will destroy their lands and poison and kill their people to do it.

Under this system in which we currently live, there can be only a few major players or else order would be lost. If said powers happens to be say the USA or a few families and the Vatican, so be it. If said powers want to create a world currency, so be it. If said powers want to relinquish control and free us, get your arms at ready because the new lions will emerge and we will fight amongst each-other for another thousand years. (See: China, The three kingdoms period)

***I do not make mention of the possibility of a world free of greed and sense of ownershi or a world without money because the people are not ready for this. I'd bet my last cent it will be in the future, just not yours and mine as the old powers will not have it.

Praise God and pass the ammunition. Globalization is a fantastic and amazing concept and will one day work to propel mankind forth into the cosmos...sadly we are not mature enough to handle that world...but then again, perhaps if it's implemented and a large crippling catastrophic war were fought, one the likes of man has not seen before, then the people afterwords would unite and make the new system work having lost all lust for blood and religious divides.


-Regards

PS. We are going down the right path the wrong way if you know what I mean.

More Pro-US propaganda

Euro-Zone Issues, Improvement In U.S. Economy May Boost Dollar Vs. Euro, Yen In 2011

www.kitco.com...

(Kitco News) - After a generally weak 2010, the U.S. dollar may gain some ground against the euro and the Japanese yen as European debt problems and an expected uptick in U.S. Treasury yields aid the greenback.

The U.S. economy is expected to grow next year, which could also give the dollar support. Although currency strategists are positive on the buck, it doesn’t mean that 2011 will be smooth sailing. Volatility could be “incredibly high,” said Brian Kim, strategist with UBS, who expects a “modest” rise in the dollar.

The dollar fell out of favor for much of 2010 as the Federal Reserve pursued quantitative easing twice this year. Quantitative easing, referred to as “QE,” occurs when the Fed buys Treasury securities in order to push down long-term interest rates and is sometimes called “printing money.”

Toward the end of 2010, the debt loads of peripheral European nations returned to the forefront, allowing the dollar to make headway against the euro. Worry that these debts will consume Europe is a big part of the reason analysts are supportive to the dollar.

“Right now, the fear of contagion and potential for debt restructure and defaults among the (euro-zone) member nations is a pretty big risk,” Kim said. Furthermore, even if euro-zone nations were to resolve the issues, this would mean austerity measures that would curtail economic growth and give the dollar an advantage, he said.

Greece and Ireland have accepted bailouts, and there are worries about other nations such as Italy, Portugal, Spain and Belgium. “I would expect at some point, markets will force Portugal into some kind of bailout and maybe Spain. That can’t be good for the euro,” said David Gilmore, partner with Foreign Exchange Analytics.

The European debt issues mean worries about the banking system, which holds more than half of all of the sovereign debt, said Brian Dolan, chief currency strategist with FOREX.com.

Ian Stannard, senior currency strategist with BNP Paribas, said the European Central Bank may have to maintain “very loose” monetary policy since this will have to be aimed at the weaker links in the euro zone, rather than Germany. “So the overall picture is very much for a weak euro.”

Monetary policy is also expected to remain easy in the U.S. for an extended time, BNP Paribas said in its annual forex outlook. Still, others said that if the economy picks up as expected, this may phase out ideas that still more loosening measures, such as another round of QE, may occur.

“As the economy continues to improve, that should encourage people to be a little more constructive and ratchet down fears of further easing,” UBS’ Kim said. “That is going to be one of the factors that give a little more support to the dollar.”

U.S. Treasury yields may start to rise, helping the greenback, BNP’s Stannard and FOREX.com’s Dolan said. Still, Dolan doesn’t look for the 10-year Treasury yield to be sustained above 3.5% since the Fed is committed holding down rates.

Gilmore, of Foreign Exchange Analytics, said the U.S. economic outlook is “mildly dollar supportive,” but cautioned that there is also much uncertainty.

“It’s still very unclear whether the private sector is going to step up and fill the hole that was created back in 2008 and 2009,” he said, citing ongoing problems such as heavily indebted households, impaired bank balance sheets, high unemployment and a weak housing sector. “There’s significant sets of headwinds ahead, which suggests to me that any forecasts of 3% to 4% growth in 2011 need to be toned down to an extent.”

In many ways, governments are “undertaking a big experiment” in which the U.S. continues to pursue economic growth with its fiscal and monetary policies, while European governments are trying to become more austere, said Marc Chandler, global head of currency strategy at Brown Brothers Harriman. “I do think the pro-growth strategy is going to win out, and that’s going to help underpin the dollar,” he added.

BBH”s Chandler and BNP’s Stannard said the euro could fall back to roughly the $1.20 area, while FOREX.com’s Dolan listed $1.15 to $1.10 as an eventual possibility should the European debt issues persist long enough. UBS’ Kim looks for a decline to $1.25 in the first quarter, but with the single European currency likely to be around $1.30 at year-end, not far from current levels. Foreign Exchange Analytics’ Gilmore looks for a 2011 trading range of $1.20 to $1.40.

Most also look for at least some dollar gains against the yen. The driving influence could be higher U.S. Treasury yields, said Dolan, but adding that he looks for the dollar to hold in a relatively narrow range of 80 to 86 yen.

Kim said Japanese authorities can be expected to try to stem further yen strength, thus he sees dollar/yen moving toward 85. A strong yen can hurt Japan’s export-oriented economy.

Chandler and Stannard look for dollar/yen to top 90 yen before the end of 2011. This currency cross could rise as traders start unwinding current positions, Stannard added. “Remember, some of the biggest positions in the market are in dollar/yen,” he said.

Commodities Traders Tend To Keep Tabs On Dollar

Commodity traders tend to watch the dollar closely, since a stronger greenback makes raw materials more expensive in other currencies and can hurt demand, and vice-versa. In the case of gold, investors often buy the metal as a hedge against dollar weakness, and vice-versa.

These are not absolute rules since each commodity’s supply/demand picture can trump impacts from the currency market. For instance, whereas much of gold’s rally during the last decade occurred during a dollar slide, recently, gold and the greenback have often risen together, particularly in times of safe-haven demand due to the European debt concerns. Also, some investors have lost faith in all currencies.

Dolan looks for gold to rise in the first quarter, even though he also envisions dollar gains versus the euro. He suggested that the major currencies, including the dollar, may weaken versus emerging-market currencies, resulting in demand for metals as an alternative.

This is the main reason why China and other countries must ditch the corrupted US dollar.

US financial system is no longer clean and transparent.

With China set to invest in Spain, this may be the best thing to happen to the Euro in years.