Tag Archives: global currency

The Bullet that Kills the United States: More and More Nations are shooting at the Dollar and as the Dollar Goes—- So goes the Country



The big economic crisis to look for is the worldwide dumping of the United States Dollar.  Technically, (and soon to be formerly) the US Dollar was the world’s reserve currency but ever since the Nefarious Federal Reserve began to print them irresponsibly and to keep interest rates unnaturally low many nations have seen the US dollar as a poor investment. The spending spree of the socialist democrats of the Obama Administration has made the crisis exponentially worse.  The dollar continues to weaken and monetary policy seems to be steering us toward a hyperinflation event not unlike what Argentina experienced.  The Weimar Republic of pre World War II Germany acted just like we are now: and the result was a destroyed economy featuring a German Mark that was so valueless that you needed wheelbarrow full of them to buy a loaf of bread.  Am I saying that we could be coming to the end of the dollar?  Am I saying that we’re coming up on an economic event that will make the Great Depression of the 1930’s look like a folk dance?  Am I saying that our economic dominance of the world is at an end? 

Yes.  I am.

Every sane nation in the world is looking toward what will replace the US Dollar and how to convert their ever more valueless dollars into the new world currency.  Meetings are being held, and continue to be held, in Europe for a new world order financial system: and in this quest they are supported by the Russians and the Communist Chinese.  The Chinese have a huge holding of US Dollars and now they laugh openly at our Treasury Secretary when he lectures at a Beijing University; and they comment weakly on the mismanagement and moral depravity of the Dollar and the US Government.  The Communist Chinese are lecturing us on government spending, monetary policy, trade policy, energy policy and its abundantly clear to the world that the Chinese will be our successor as the dominant nation on earth. Leadership of the western world will return to Europe as I think the Euro will emerge victorious when the dollar dies. The Bible says that in the last days the world will be led by Europe and I suspect that when the dust settles the new global conventions of currency and trade will be drafted largely by and for Europe. The world is looking toward the day when the United State dominance of the global financial system will be over.

 It’s taking place right now in Washington as the disastrous Cap and Trade Bill passes in the House of Representatives and if passed by the Senate will, all by itself, destroy the American Economy.  This is not to mention the insane Socialized Medicine Bill that the White House is ramming through congress, or the talk of more “stimulus” for the economy, or the bankruptcy of our state and local governments.  The Chinese look at this and clearly are amazed at the rate at which we’re committing suicide as a nation, and as a culture. They need a way to get rid of their dollars while extracting as much value as they can, to convert into a new world order currency.  Every nation knows that if they start selling too many dollars too quickly they can spook the market and it would be like a run at the bank.  Every nation would be selling dollars, driving down the value of the dollar and the costs of commodities sky high, while no one would be buying dollars, nor financing our debt, and the USA would be in economic and political anarchy.

When the Weimar Republic went through this they became, to say the least, politically unstable and finally stabilized under a system of corporatism that the world came to know as Fascism and Nazism under a little guy with a funny mustache named Adolf Hitler.  When there’s no jobs, no food at the store, no meaningful money, bread lines and no hope it’s amazing the kinds of people citizens will listen to if they promise them food and jobs in exchange for an all powerful corporate government. People get so grateful to eat and work that they hardly notice the loss of their liberty, unless of course you happen to be in the group that the government has decided to make “the enemy.”  The world has always said that it couldn’t happen in America but don’t be fooled.  It can happen here: Indeed it is happening here, right now, as the government simply takes over everything without opposition.  The key to opening the door to Neo-fascism and economic hell is the destruction of the US Dollar: and the momentum to dump the dollar continues to gain strength daily in Europe, Russia and China.  At any moment, one or more of these nations could set off a selling spree of the dollar that would destroy it as a currency forever.  Our way of life, and capitalism, and our children’s future, hang in the balance while our politicians spend us into receivership, the Fed prints worthless dollars, and the person are parelized with uncertainty as Obama smiles and promises the moon while stealing all our money, in addition to the money of unborn generations.

Who is going to say no to the first Black President as he changes us from capitalism to socialism, or perhaps fascism, while the people face daily social and governmental changes of such staggering magnitude that most people simply can’t comprehend what’s going on. We, the formerly free people of the United States, may not be cognizant of the changes he’s making but that’s not the case with the rest of the world: and certainly not the case with the Chinese.

Keep watch for the fall of the US Dollar——- That’s when the post American world will begin in earnest.  We aren’t going to like living in it.

Consider this article from Bloomberg.com on the Chinese:

Dollar Falls Most in Month as China Urges New Reserve Currency

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By Oliver Biggadike and Ye Xie

June 27 (Bloomberg) — The dollar declined the most against the euro in a month and dropped versus the yen after China repeated its call for a new global currency.

The Swiss franc declined against the euro and dollar this week as foreign-exchange analysts said the central bank sold its currency three times to support the economy. The greenback fell against most of its major counterparts after the People’s Bank of China said yesterday the International Monetary Fund should manage more of members’ foreign-exchange reserves.

“The dollar’s status as a reserve currency is being questioned,” said Benedikt Germanier, a foreign-exchange strategist in Stamford, Connecticut at UBS AG, the second- largest currency trader. “There are reasons to sell the dollar.”

The U.S. currency fell 0.9 percent to $1.4056 per euro this week from $1.3937 on June 19, the swiftest depreciation since the five days ended May 29. The dollar fell 1.1 percent to 95.18 yen from 96.27, its third consecutive weekly drop. The euro decreased 0.3 percent to 133.85 yen from 134.18.

Federal Reserve policy makers said on June 24 inflation “will remain subdued for some time” and that the economy warrants an “extended period” of low rates.

The 10-year Treasury yield fell the most since March as investors bet the Fed will keep interest rates close to zero for the rest of the year. The difference in yield, or spread, between 2- and 10-year yields decreased this week to 2.43 percentage points, near the narrowest level since May 20.

Stronger Real

Brazil’s real gained 2 percent to 1.9363 versus the greenback, its biggest weekly increase in June, as the sale of shares in Visa Inc.’s local credit-card processing affiliate attracted foreign investors to the world’s biggest initial public offering in more than a year.

The dollar depreciated 2.6 percent to 7.8926 South African rand and 1.4 percent to 7.8002 Swedish krona as the People’s Bank of China said in its 2008 review there’s a need for a global reserve currency “delinked from sovereign nations.”

The Swiss franc declined against the euro and dollar as strategists said the Swiss National Bank sold its currency twice on June 24 and once more a day later to support the economy. Nicolas Haymoz, an SNB spokesman, declined to comment on June 25 on whether the bank acted in foreign-exchange markets.

‘Unwelcome’ Strength

“The SNB has to convince markets that it considers a strong franc as unwelcome,” Unicredit SpA analysts Armin Mekelburg in Munich and Roberto Mialich in Milan wrote in a report yesterday. “We fear that franc bulls will start further attempts to wipe out the line in the sand of 1.50.”

The franc fell 1 percent to 1.5230 against the euro and 0.2 percent to 1.0834 compared with the dollar this week. The Swiss currency declined on June 24 to 1.5380 versus the euro, the weakest level since the mid-March period when the SNB said it intervened to weaken the franc.

The ICE’s Dollar Index fell below 80 on the call from China for an alternative to the dollar as the world’s main reserve currency. The gauge tracking the greenback versus the currencies of six leading trading partners decreased 0.5 percent to 79.90.

“To prevent the deficiencies in the main reserve currency, there’s a need to create a new currency that’s delinked from the economies of the issuers,” the People’s Bank of China, or PBOC, said. China is the biggest foreign holder of U.S. Treasuries, with $763.5 billion in April.

Russia’s Stance

Russian Finance Minister Alexei Kudrin said on June 13 after the Group of Eight meeting in Italy that his country had full confidence in the dollar and that it’s “too early” to speak of alternative reserve currencies. Japan has “unshakable” trust in the strong-dollar policy of the U.S., Finance Minister Kaoru Yosano said in Tokyo yesterday.

China called on the U.S. to guarantee the safety of its assets in March, when Premier Wen Jiabao said the nation was “worried” about its holdings of Treasuries.

People’s Bank Governor Zhou Xiaochuan urged the IMF that month to expand the functions of its unit of account and move toward a “super-sovereign reserve currency.” Russian President Dmitry Medvedev proposed on June 5 that nations use a mix of regional reserve currencies to reduce reliance on the dollar.

“There may be signs here of tensions mounting between the PBOC’s economic concerns over China’s holdings of dollars and the Chinese government’s diplomatic reasons for doing so,” Stephen Gallo, head of market analysis at Schneider Foreign Exchange in London, wrote in an e-mail.

Venezuela’s bolivar plunged yesterday to a seven-week low in unregulated trading after the government said investors won’t be able to use a new $3 billion corporate bond offering to obtain dollars until 2011.

The bolivar fell 4.1 percent to 6.90 bolivars per dollar in the parallel market, traders said. The currency tumbled 20 percent this year in the unregulated market as the government pared dollar sales at the official exchange rate of 2.15 after oil, which accounts for 93 percent of the country’s exports, plunged from last year’s record high.

To contact the reporters on this story: Oliver Biggadike in New York at obiggadike@bloomberg.net; Ye Xie in New York at yxie6@bloomberg.net

Last Updated: June 27, 2009 08:00 EDT


By Any Means Necessary: Obama’s Need to Remold America



Internationalism, trans-nationalism, is the order of the day at the White House of Barak Husain Obama.  Does Barak the Beneficent get in a snit when he realizes that the people will likely block some of his pet projects key to building the Socialist States of America? No.  Barak Obama knows full well that he can’t get his “cap and trade” tax from congress so he’s likely to sign an international treaty, that the senate will ratify, that will do the same thing.  Nifty, don’t you think?

Obama can’t get guns away from the law abiding citizens because we’re too busy clinging to god, guns and religion?  No problem.  He’ll sign an international agreement, a treaty that will effectively ban citizens from owning guns or make it so onerous and risky to do so that people will give up.  Obama wins again.

Barak wants to make the old white men on Wall Street share with the other children in the world and he knows he can’t come up with excuses to redistribute their wealth fast enough to get the job done, even if he had two term’s so what does he do?  Easy!  He signs an international treaty that no one really pays attention to (You know, like the act creating the Federal Reserve) and overnight the power has shifted from America without anyone really realizing it!  Genius!  This proves Barak is a citizen of the world and a real cool guy!

Obama doesn’t want to dictate terms to the world anymore because that’s not fair nor is it politically correct.  He wants to make sure that America is but one voice in a chorus when it comes to control of the global economy and with the article below one can get a good sense of how he’ll go about doing it. Barak believes that if something is good enough for Mozambique and Mauritania its good enough for the United States of America.

If Obama can’t get something he wants from congress or the courts look for him to turn it into a treaty of some kind so he can get what he wants using  world opinion rather than the ballot box or the constitution.  Look for this sort of thing to be a trend.

A Bigger, Bolder Role Is Imagined For the IMF
Changes Suggest Shift in How Global Economy Is Run

By Anthony Faiola
Washington Post Staff Writer
Monday, April 20, 2009

Inside a cavernous assembly hall in downtown Washington, dignitaries gather twice a year for routine meetings of the International Monetary Fund. Before long, though, the room could take center stage in the IMF’s transformation into a veritable United Nations for the global economy.

Surrounded by blond wood paneling and a digital screen the size of a cinema’s, central bankers and finance ministers would meet to convene a financial security council of sorts. Serving almost as ambassadors to the IMF, they would debate ways to put out the world’s economic fires and stifle reckless policies before they ignite new ones.

Bowing to a new economic world order, the IMF would grant fresh powers to the likes of China, India and Brazil. It would have vastly expanded authority to act as a global banker to governments rich and poor. And with more flexibility to effectively print its own money, it would have the ability to inject liquidity into global markets in a way once limited to major central banks, including the U.S. Federal Reserve.

That image of a radically transformed IMF — whose role in the global economy had turned largely advisory in recent years — is now coming together through internal IMF documents, interviews and think-tank reports. Finance ministers from major nations will begin grappling with the formidable details of the IMF’s makeover this weekend when they converge in Washington for the fund’s biannual assembly.

The changes, broadly outlined by President Obama and other leaders of the Group of 20 nations in London earlier this month, could take months, even years to take shape. But the IMF is all but certain to take a central role in managing the world economy. As a result, Washington is poised to become the power center for global financial policy, much as the United Nations has long made New York the world center for diplomacy.

The IMF’s mission is expanding so broadly that its managing director, Dominique Strauss-Kahn, said in an interview that the organization — which underwent deep cuts last year before the financial crisis swept the globe — may boost staffing in coming months, potentially creating dozens of high-paying jobs in the District.

“The IMF is changing, and with it, there will be a sea change in the way the world economy is run,” said C. Fred Bergsten, director of the Peterson Institute for International Economics. “Their role will dramatically shift. You’re talking about monitoring fiscal stimulus, moving toward tighter regulations for financial institutions. You’re talking about global economic management in a way we have never seen.”

Already, the economic crisis is triggering a profound cultural shift, with the IMF moving away from its long-held mission to spread the gospel of capitalism around the globe.

Founded at the end of World War II to maintain stability in global currency markets, it later became known as the lender of last resort for nations in crisis, particularly as financial fires raced across Asia and Latin America in the 1990s. Its bailouts, however, were the bane of many poor countries; they often came with demands for fiscal austerity and free-market reform as the cures for developing nations — even if that meant nations had to cut back on programs for health care and schools.

The IMF, Strauss-Kahn suggested, will become less ideological. Critics maintain the fund is still attaching too many restrictions to its longer-term bailouts for poor countries. But the IMF has signed off in recent weeks on no-strings-attached credit lines for countries with solid economic track records, offering $47 billion to Mexico and $20.5 billion to Poland.

“If the fund is considering a country and is technically convinced that privatization of any enterprise is needed to fix the country today, let’s privatize. But if it’s a general idea of privatization that has nothing to do with the problem, let’s forget it,” Strauss-Kahn said. “At the same time, if nationalization will help, let’s do it.”

Developing nations — including some that were once down-and-out clients of the fund — are now coming to the IMF’s rescue as part of the pledge made by leaders in London to beef up the organization’s war chest to $1 trillion. In exchange for better representation on the governing board, China, which has fewer voting rights than Belgium, is set to give more than $40 billion. Brazil, which received a massive IMF bailout in the late 1990s, is pledging $4.5 billion.

There is even talk that the next managing director — traditionally a European, while an American ran its sister organization, the World Bank — may come from the developing world. “Why not?” Strauss-Kahn said.

For an organization long demonized by the developing world, such changes were once unthinkable. “I spent 20 years of my life carrying posters that said ‘IMF out,’ ” Brazilian President Luiz Inácio Lula da Silva, a former union leader, said last week in Rio de Janeiro. “Now the minister of finance says we are going to lend money to the IMF.”

The IMF is also moving toward taking the lead role as the global economic watchdog. An intense debate, however, remains over the scope of the edicts it may issue as well as the power it will be granted to enforce them.

Along with the Switzerland-based Financial Stability Board, the IMF is set to develop benchmarks for financial governance, from guidelines on executive pay to methods to prevent the spread of toxic assets through global banks. But no one is talking seriously about allowing the IMF to impose sanctions to force compliance as the United Nations does. There is even a strong reluctance to grant the IMF powers such as those held by the World Trade Organization in Geneva, which issues binding rulings on violations of global trade law.

Instead, the IMF is likely to wield what Strauss-Kahn called “the strength of truth telling.” Put another way, the organization’s public pronouncements would carry the force of the nations seated at its table, including the world’s most powerful industrialized and developing economies.

Some critics, however, say that may not be enough. A case in point: An internal IMF document recently called for Eastern European nations to adopt the euro as their currency to stabilize their economies, even without the approval of euro-zone nations. But stiff opposition from Western Europe has thus far prevented that document from being made public.

Additionally, some smaller European and low-income nations remain skeptical about the creation of a financial security council, arguing they would not be well represented. Even within the IMF, there is a debate over the council’s purview and makeup. Some see the council turning into a venue to hash out major economic disputes, such as U.S. and European charges that China is keeping its currency artificially weak.

Others say it should steer away from country-specific rulings. Another camp argues the fund should not exist at all. Even Strauss-Kahn has sought to dispel the notion of too grand a role for the IMF, saying its primary mission should remain monitoring and surveillance rather than enforcement.

“The fund is supposed to take on a more regulatory role, holding accountable even wealthy countries,” said Moshin Khan, the IMF’s former Middle East and Central Asia director. “But I will have to see that happen to believe it. Whenever I’ve seen them going after the bigger countries, if the countries don’t like what the fund has to say, the fund doesn’t say it.”



The Return of the Gold Standard: Russia will propose this to Discipline the World Financial Systems




Russia and China and others have called for a new currency standard separate and apart from the US Dollar.  The recent economic storms have shown the weakness of our fiat dollar as the Federal Reserve prints money at an alarming rate and our Treasury Department spends it faster than it can be printed!  The people who are stuck holding the bag are the American People who see their savings made valueless by government malfeasance and creeping socialism.  The Chinese, the Arabs, the Russians, the Japanese and every other government on earth who holds much wealth in our ever deprecating dollar are fit to be tied as our policies devalue their wealth.  They were assured that the dollar would remain stable and the government would never take the steps we’ve now taken, and continue to take, to debase the value of our currency.  China has expressed alarm in recent weeks and the United Nations panel has openly called for a new world currency.  Europe has been making plans along similar lines but we continue to pursue a course that can only end badly for our nation and our dollar.

The only sane thing to do is to find an international unit of wealth, like gold, or perhaps some other combination of commodities that will force discipline on a currency and force governments to live within their means. Having the dollar backed by the thin air has given too much power to the Federal Reserve and Congress to follow their own agenda by siphoning off the wealth of the people who believed in the dollar and the integrity of the American System. It may well be the case that investing in the US Government becomes indistinguishable from investing with Bernie Madoff because the result is the same.

There are many problems with trying to go back to a gold standard and Russia is the first major nation to suggest it.  This will be a trend to watch because the world is quite serious about getting off the dollar and as our nation continues to debase our currency the world will change to something else.  Here’s an article from the Telegraph.co.uk and its URL:



Russia backs return to Gold Standard to solve financial crisis

Russia has become the first major country to call for a partial restoration of the Gold Standard to uphold discipline in the world financial system.


By Ambrose Evans-Pritchard
Last Updated: 8:23AM BST 30 Mar 2009


Arkady Dvorkevich, the Kremlin’s chief economic adviser, said Russia would favour the inclusion of gold bullion in the basket-weighting of a new world currency based on Special Drawing Rights issued by the International Monetary Fund.

Chinese and Russian leaders both plan to open debate on an SDR-based reserve currency as an alternative to the US dollar at the G20 summit in London this week, although the world may not yet be ready for such a radical proposal.

Mr Dvorkevich said it was “logical” that the new currency should include the rouble and the yuan, adding that “we could also think about more effective use of gold in this system”.

The Gold Standard was the anchor of world finance in the 19th Century but began breaking down during the First World War as governments engaged in unprecedented spending. It collapsed in the 1930s when the British Empire, the US, and France all abandoned their parities.

It was revived as part of fixed dollar system until US inflation caused by the Vietnam War and “Great Society” social spending forced President Richard Nixon to close the gold window in 1971.

The world’s fiat paper currencies have lacked any external anchor ever since. It is widely argued that the financial excesses and extreme debt leverage of the last quarter century would have been impossible – or less likely – under the discipline of gold.

Russia is a major gold producer with large untapped reserves of ore so it has a clear interest in promoting the idea. The Kremlin has already instructed the central bank of gradually raise the gold share of foreign reserves to 10pc.

China’s government has floated a variant of this idea, suggesting a currency based on 30 commodities along the lines of the “Bancor” proposed by John Maynard Keynes in 1944.

United Nations Panel Calls for a New World Reserve Currency: They Want to Scrap the Dollar


Next week a UN panel will make a recommendation that the world switch to a new reserve currency because the US Dollar may be scaled down in the holdings of the major central banks as concerns about its stability persists.  The United States has pursued one of the greatest spending sprees; perhaps the biggest spending spree in the known history of this planet, and the combination of debt and monetized debt has nations holding the dollar concerned that its value may sharply drop.  It’s a basic law of supply and demand, when the world is flooded with trillions of dollars it’s not very scarce and the demand for it as a currency falls.  The United States continues to borrow and print more money and in recent days it’s become clear that the Chinese hate us for our monetary policy, Russia plans to ask for a new world currency in the upcoming G20 meeting, Europe is looking for a new world currency and now the UN is jumping on the bandwagon.

The once mighty dollar was led to its demise not by Wall Street, but by Washington, as a combination of Congressional Corruption and the machinations of the nefarious Federal Reserve System forced mortgages to be written based on political correctness while the interest rates were maintained too low for too long.  You can’t force banks to make loans based on what Barney Frank and Nancy Pelosi think is fair instead of basing your decisions on the person’s ability to pay back the loan.  You can’t create massive Quasi-Governmental Golems like Fannie Mae and Freddie Mac, who are neither government agencies nor profit making corporations, to fund a bizarre social ideal in which financial sanity is replaced by Democrat Ideology.  It didn’t work: and the result tanked the mortgage industry that then tanked the banks and the credit froze up and now it’s out of control and spreading to every sector of the economy.

While it’s true that our constitution says we were all created equally it has been construed by half the population, thru an insidious campaign of political correctness, to mean that we must have an equality of outcome to be a just society.  It’s a theory that believes the government should redistribute wealth from those who have earned it to those who have not.  It’s what Eugene McCarthy warned us about in the fifty’s, and was subsequently vilified for, and yet his concerns about leftist colonization of key industries like higher education, entertainment, media and journalism seem downright prescient in early 2009. All the attempts to point out over the years the fundamental unsoundness of our mortgage lending was shouted down by cries of racism and angry accusations that one lacked compassion if he would not be browbeaten into supporting mortgages to the poor that they could not possibly repay.

While the Congress of the United States continues its witch hunt inquisition of Wall Street CEO’s, like Mr. Stewart of AIG, it makes clear that Congress couldn’t run a pay toilet.  All the AIG upper management should be out the door as fast as they can: as laws are unconstitutionally crafted by a lynch mob congress to personally attack them for Congresses’ own folly. Now the world wants a new currency and when it happens the United States of America will be finished as a superpower as we go the way of the USSR.  The world doesn’t care about democrats trying to extort mortgages for client groups who can’t afford them: they just want a stable unit of value that can’t be looted by a bunch of American Professional Politicians who screwed up bad and are continuing to make it worse in an effort to cover their tracks.  I can’t say that I blame them.

The word will go forward that Capitalism failed and is an inherently evil and an unfair economic theory. That’s a shame because it wasn’t capitalism that failed: It was the Incumbent System of Congress that failed us.  Professional Politicians with entrenched interests no longer represents liberals and conservatives in the American Electorate they simply represent themselves.  The American People want good and wise laws reflecting the majority; and the Professional Politicians’ want perpetual reelection and power., For all intents and purposes the interests of the people and our own government  are now diametrically opposed.  We need term limits on Congress, and we need them now. This UN panel that wants to drop the dollar is representative of where the world is going, it’s just a matter of time, and it’s going to hurt our kids and grandkids a lot.  Consider this Article from Reuters:


U.N. panel says world should ditch dollar

A shared reserve currency might negate this move, he said, but he believed that China would still like to take on the role.

Persaud has long argued that the dollar would give way to the Chinese yuan as a global reserve currency within decades.

The other reason, he said, was the success of the euro, which incorporated a number of currencies but roughly speaking held on to the stability of the old German deutschemark compared with, say, the Greek drachma.

Wed Mar 18, 2009 11:16am EDT

By Jeremy Gaunt, European Investment Correspondent

LUXEMBOURG (Reuters) – A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.

Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.

Persaud, chairman of consultants Intelligence Capital and a former currency chief at JPMorgan, said the recommendation would be one of a number delivered to the United Nations on March 25 by the U.N. Commission of Experts on International Financial Reform.

“It is a good moment to move to a shared reserve currency,” he said.

Central banks hold their reserves in a variety of currencies and gold, but the dollar has dominated as the most convincing store of value — though its rate has wavered in recent years as the United States ran up huge twin budget and external deficits.

Some analysts said news of the U.N. panel’s recommendation extended dollar losses because it fed into concerns about the future of the greenback as the main global reserve currency, raising the chances of central bank sales of dollar holdings.

“Speculation that major central banks would begin rebalancing their FX reserves has risen since the intensification of the dollar’s slide between 2002 and mid-2008,” CMC Markets said in a note.

Russia is also planning to propose the creation of a new reserve currency, to be issued by international financial institutions, at the April G20 meeting, according to the text of its proposals published on Monday.

It has significantly reduced the dollar’s share in its own reserves in recent years.


Persaud said that the United States was concerned that holding the reserve currency made it impossible to run policy, while the rest of world was also unhappy with the generally declining dollar.

“There is a moment that can be grasped for change,” he said.

“Today the Americans complain that when the world wants to save, it means a deficit. A shared (reserve) would reduce the possibility of global imbalances.”

Persaud said the panel had been looking at using something like an expanded Special Drawing Right, originally created by the International Monetary Fund in 1969 but now used mainly as an accounting unit within similar organizations.

The SDR and the old Ecu are essentially combinations of currencies, weighted to a constituent’s economic clout, which can be valued against other currencies and indeed against those inside the basket.

Persaud said there were two main reasons why policymakers might consider such a move, one being the current desire for a change from the dollar.

New World Order Socialism: The Legacy of George W. Bush



Popular wisdom holds that the Presidency of George W. Bush will be remembered for the destruction of the World Trade Center and the ensuing War on Terror. It’s a lead pipe cinch that Bush will not be remembered for his eloquent oratory or his adherence to conservative principals.  Popular wisdom holds that George W Bush invaded Iraq for his father and was an attempt to set straight the mistake his Daddy made in leaving Saddam Husain in power.  It’s a lead pipe cinch that he didn’t invade Iraq to win the War on Terror or the 3rd ID would have gone on to Tehran and the 4th ID to Damascus.  Popular wisdom holds that George W. Bush governed from the center and perhaps a bit to the right but his ebullient embrace of deficit spending and expansion of entitlement spending has shown him to be a Trojan Horse Liberal. It’s a lead pipe cinch that a real conservative would never have expanded Medicare with prescription drug benefits or nationalized huge sectors of the economy overnight with barely a consult from Congress.  Popular wisdom holds that George Herbert Walker Bush is one of the Chief Architects of the New World Order and that his son was a buffoonish moron instead of the Chief Implementer of the New World Order. It’s a lead pipe cinch that the college professors across this land will claim that Saddam Husain haunted the Presidencies of both Bush’s but its Barak Husain Obama who’s going to be in perfect position to deconstruct the America we knew.

Obama will either get the credit or the blame for the USA that is to come.  He’s being positioned as the next FDR and JFK but, like Mr. Obama’s resume, that’s a hollow argument because the real reason we’re about to become another depressed and sullen European state is because the Bush Family had more of the “vision thing” than anyone ever gave them credit for.  Events have clearly shown that H. W. Bush was far more serious about his vision of the New World Order than he was about his 1992 Presidential Campaign.  Obama would never have been able to take the USA that far to the left had ALL the groundwork not been laid, from the “vision” to the president, by the dynastic Bush Family. George H. W was a master of the international consensus and multilateral action while his son spent us into bankruptcy and laid the groundwork for the de-facto takeover of the free market by the socialist forces Obama will now have 4 years to expand and entrench. I suspect that the next 4 years will be ones of constant crisis and change as the USA abdicates its status as a super power and tries to resuscitate an economy that was never designed to run in a socialist political surround.  The people will either see Obama as a Hero like FDR as he battles economic chaos on our behalf or as Jimmy Carter as economic forces crush his presidency into the dust bin of history.  So if Obama gets the credit for being a new FDR and for giving us a “new new deal” as Senator Kerry has called for then it’s likely that the epoch of Barak will last eight years.  If Obama fails to find the panache, erudition and élan of an FDR, or a Woodrow Wilson, then I’ll make you a bet right now that he’ll be followed in office by former superstar Florida Governor Jeb Bush.  Jeb was a great governor and a likeable guy but why am I not reassured by this prospect?

Perhaps the real face of “elitism” in American Politics isn’t the snarling face of Nancy Pelosi, the lisping rhetoric of Barney Frank, or the Politically Correct Cool of Barak Obama.  Wouldn’t it be a shock if the face of “elitism” and the new, weird, “corporatism” we have now was the fatherly, benign, face of George Herbert Walker Bush? Is it really an accident that his son gave flesh to the “New World Order” that Daddy talked about any more than W’s obsession with Iraq brought closure to his father’s mistake?

If America is to slip away into the soulless morass of socialism should we hold Obama accountable or the people who made it possible for the unlikely, far left, Obama to win?  There are many people who believe that the policies and governance of George H. W. Bush and Bill Clinton differed only in the pregnancy rate among White House Interns. Others have said that the Bush’s and the Clintons have been in the White House for an inordinately long time and the only real difference was that Bush has an “R” after his name on the ballot and Clinton has a “D”.  Lets see now….

2008 Hillary Clinton was supposed to be Democrat Nominee until Barak Obama exploded on the scene. Hillary wasn’t quite believable as the good cop but Obama is quite believable as the good cop. Obama has an impressive Ivy League education and was a Harvard Law Professor.  Hillary attended Wellesley

2008 Obama overwhelmingly favored to win General Election and Presidency defeating McCain.  Likely to nationalize health care, automotive industry, airlines, civilian national police, and security force, likely to make government the employer of last resort, Cap and Trade policy to vastly increase the cost of all energy, likely to pass the Fairness Doctrine and complete liberal monopoly of media by destroying conservative talk radio.

2000-2008 George W. Bush, Ivy League education. record spending, deficits, Iraq war, doubled entitlements, Crash of 08, nationalization of banks & other key corporations, established Department of Homeland Security, huge increase in foreign aid, Invaded Afghanistan, Dithered while Iran developed nuclear weapons. Played the Bad Cop internationally and domestically.CFR member, Scull and Bones,

1992-2000  William Jefferson and Hillary Clinton, dot com bubbles, easy money policy, Ivy League Education & Rhodes Scholar, Co-Presidency, failed attempt at nationalized health care, benign neglect of Islamic terror, friendship with china and most favored nation status while Chinese robbed us blind of key technology, redefining what “sex” and “is” is, Sec Albright Danced with Kim Jung Ill while he developed North Korean Nuclear Bomb, Played the Good Cop (if oversexed cop) domestically and internationally.

1988-1992  George H. W. Bush, son of Senator Prescott Bush Becomes President, Gulf War I, Invasion of Panama, Spearheaded NAFTA (North American Free Trade Agreement), collapse of Soviet Union, Broke No new taxes Pledge, Ivy League Education, CFR member,

1980-1988 George W Bush was Vice President of the United States under Ronald Reagan.  He was acting President when Reagan was shot in his first year and again when Reagan had colon surgery.  Before serving as Vice President He was Ford’s Special Ambassador to China, CIA Director under Nixon, Worked with and has extensive connections to big oil. CFR Member, member Skull and Bones,

So it would seem that a Bush or Clinton has been on the ballot and in power for 28 years: and if Hillary had won the nomination from Obama, it might have gone to 32 or 36 years.  Interesting No?  Perhaps Jeb will run soon and restore the family franchise or maybe Chelsea Clinton (Who accompanied her Mother on the Campaign) or Hillary again, if Obama messes up. 

I’m sure it’s just a big coincidence that Bush and Clintons have held power for 28 years in our free society and it’s not as if NAFA, The Gulf Wars, and the Massive Nationalization of Key Banks and Industries, to say nothing of the massive expansion of entitlements, had dramatically changed our government or anything. It’s interesting that Hillary didn’t get the nomination given that the News Media has been saying she was a lead pipe cinch for years.

But now, today, we have the prospect of Barak Obama being President Elect before the sun comes up again on Wednesday.  I guess that gives the lie to our having been ruled by elitist Repuli/crats all these years.

Be sure and vote everyone!  Even if you have to hold your nose when you do it.

Swindled: The AIG Takeover by Bernanke Disguised as Paulson Disguised as You, disguised as China, Disguised as Economic Slavery, Disguised as Greed.

I found a line in the movie Philadelphia that’s always stayed with me and served me well when the world gets complicated; as it does from time to time.  The line is : “Explain this to me like I’m five years old.”  I’ve used the line on most of my major transaction over the years and it has a wonderful way of getting everyone down to brass tacks.  I decided to apply this line to the AIG takeover and this is what I got:

Did the US government take over AIG? 


Did AIG declare bankruptcy? 


Well, did AIG get bailed out like Bear Sterns?


What did happen to AIG? 

The American Central Bank, The Federal Reserve, stepped in and launched an 85 billion dollar takeover of AIG.  They did it under the “extraordinary” emergency powers granted them by Congress to be the lender of last resort in an emergency.  AIG was so big and so global, transnational, if you will, that its failure would have caused an estimated 185 billion dollars worldwide and threatened the Global Financial System. The Federal Reserve is changing a punitive double digit interest rate for this “takeover” of loan packages that also got the whole AIG management team fired.

Isn’t the Federal Reserve the US Government? 

No.  The Federal Reserve is a Global Money Cartel and is collection of the world’s super rich who own the key banks, who in turn own the member banks of the Federal Reserve.  The names are familiar throughout history:  Rockefellers, Morgan, Rothschild, Warburg and so on. These are the families who own the “central banks” of the west like our central bank, The Federal Reserve.

Well, what does the Fed do for us?

The Global Money Cartel, presently known as the Federal Reserve, regulates our interest rates, controls our money supply and loans us our own currency at interest, of course. It functions as our central bank.

At Mid Morning, as this article was being written, the news came in that the US Treasury was issuing billions of dollars in bonds to assist the Fed to expand their (the Global Money Cartels) balance sheet so they could take over AIG and save the world $185 billion in losses.

What does that mean in plain English please?

It means that the Fed (Global Money Trust) is running out of funds so it got the US Treasury Department to beg China for the money to give to the Fed (Global Money Trust) so that they can takeover AIG, so that the world can be saved a 185 billion dollar loss, so that this world loss would not further depress the US market because AIG is “too big to fail”.

So what does this all mean again?

It means that the Feds (Global Money Cartels) easy money policies of the last many years created insanity in the mortgage loan industry.  The Mortgage lending crisis spread to the Banking and Financial industry as a cancerous loss of confidence.  Now the loss of confidence is spreading to the Federal Reserve who needs its balance sheet expanded in order to takeover AIG.  The US Treasury had to expand the balance sheet of the Fed (Global Banking Cartel) because a loss of confidence there, could spread to a loss of confidence in the US Government in general and the US Dollar in particular.

What happens if this loss of confidence does spread to the USA?

The Second Great Depression. If everyone believes that the USA isn’t good for our debt than the USA can’t raise any more money and it starts to default on its commitments which destroys the dollar and we all start over again with half the world holding our worthless dollars and investments demanding payment. The USA would be officially bankrupt and our leadership of the world would be over.  The world would want our assets as payment for their losses in the dollar.  Nothing would ever be the same again and our time would be over.

What happens to the world in a post American world?

I imagine some form of standard global trading currency, or valuation standards, or perhaps a true world central bank, probably run from Europe.  If the USA implodes from all our debt and stupidity the whole world will be reacting because it’s very much a global economy.  The cry will naturally go up for global solutions lest the dominance of a greedy country like the USA continue to pose a threat to the world’s economy.  They will claim that in our world the nation state is obsolete and a global economy demand global solutions. 

I think this is the mechanism by which American Debt will explode our entire system and from which we will not recover in the foreseeable future.  The big, open secret, is that the USA has been broke for years and when that reality finally sets in with a crisis, something like this one, that will be the end of the American Era and the burden of leadership will transfer to Europe. The rest of our lives is likely to be much tougher than our years to date and it’s likely to have started with the Fed Easy Money Policies that led to the Real Estate mess.

Dose the Fed work for the US?  Or does it work for itself?  Or does it work for the Global Elite?

I have a sickening feeling that we’re getting the answer now and in the days ahead.

How to Save America and Yourself: Get out of Debt, Stay out of Debt


I’ve added a link that tells you what our current national debt totals.  The number is staggering and nearly incomprehensible.  Don’t believe me?   Think about this, when I wrote this article the national debt was the better part of nine and one half trillion dollars.  What does that mean?  9.5 Trillion?  I have no real way to imagine that, do you?  I had to go looking for a way to comprehend a number that big.

 Consider this:  A million seconds ago is about 12 days ago.  A billion seconds ago is about 31 years ago.  A trillion seconds ago is about 31,688 years ago.

Our minds really don’t have a frame of reference for the size of our national debt.  I don’t think the USA is going to be wiped out militarily I think we are going to be wiped out economically.  Our economic implosion will set in motion a move to standardize national currencies into a world currency and global financial structure that will be most unpleasant for the USA. Our national debt is a death warrant that we ourselves have signed and, unless we stop living beyond our means ,we will, in time, be wiped out economically. 

What do we do about all this?  We need a new way of thinking about ourselves and our personal lives as well as our national life.  The solution is very clear.  Don’t spend more then you make.  We’ve heard it all before as Live within Your Means. It’s just as simple, and difficult, as that.  You can’t have everything you want.  You don’t deserve everything you want.  If you had no debt payments would you be hanging on with white knuckles right now as the price of gas threatens your world?  Is a new car, an alimony payment and that one certain house worth the lump in your chest as you consider the cuts you now must make?  What’s wrong?  What happened? 

This is a time to revisit our national priorities, it really is, and it starts in our house with a budget that my wife and I agree on.  The budget is flexible, it’s unbelievably helpful, and it still allows us some goodies but we plan for them.  It allows for some personal spending money out of every paycheck.  It’s adjustable for crazy increases in gas and food and it covers all the bases.  If you need some help with a budget check out the Dave Ramsey Link in this Blog.  We have been working with Dave Ramsey’s Principles for years now and it’s made a huge difference in our life.  A Budget is simply a set of priorities for your spending.  You don’t go hungry; you don’t forgo clothing when you need it.  The budget will take the scales from your eyes and seeing your finances clearly, may be frightening, but it’s the first step in getting out of self imposed slavery to the almighty dollar and a self you can no longer afford.  That’s the state of far too many of us; we are enslaved by the dollar and dealing with how we think our lifestyle should be instead of dealing with how it actually is. 

A good life is one free of fear from all that debt.  A good life is one with good and loving relationships and a life dedicated to telling the truth about what’s really important.  It’s about loving people and God and striving to leave the world a little better then we found it.   Our credit cards and debt controls far too much of our life and it corrupts our instincts and makes us lesser people then we could be.  In the great depression of the 1930,s it was government that jumped in with all kinds of programs to save the day.  The government of today is in debt to the tune of 9.5 trillion bucks, how much help will they be in a financial crash?  Our politicians want to spend a trillion bucks on global warming and god knows how much on universal health care.  Why is it so hard for us as Americans to admit that we can’t afford the government we have today to say nothing of the one to come with universal health care and who knows what additional programs.  We don’t say “I can’t afford that” in our personal life so I guess it’s natural that we can’t say it as a nation either.  Is it pride?  Arrogance?  Stupidity?  What?

Even if you can’t have everything you want you can still have a wonderful life.  I think it was St. Augustine who said that “the consequences of our acts will be what they will be: why would we wish to be deceived?” Living within your means makes you more of a realist and it sharply reduces the stress in your life because the pretending is over.  The gains you begin to make in getting out of the money mess become a very empowering experience. To vanquish debt is worth 10 platinum Master Cards and you even get to sleep at night.  It’s a feeling like no other and it’s the best way to live well.

The price of gas and food are forcing people to wake up from the delusions and denial about how we live our lives today.  What is it going to take for the United States Congress to come to the same conclusion?  What will have to happen?  This is time to tighten our belts and prepare for a rocky road ahead and to” just say no”, to more spending, personal or national, unless we need something and can truly afford it.  It’s time to thank the Chinese for the loans, and pay them back, and to send our personal credit cards back to Visa and Master Card.  

Whatever the future holds for our country and ourselves it’s time to step up to the plate and live responsibly, as sober, clear eyed realists, in admittedly perilous times.  This time of financial trouble can be an opportunity to turn back to God and sound values, to say nothing of family, friends, and our communities.  Let’s try showing up for some of our problems and see if we get a better than if we wave a Discover card at our problems.  Who knows, we might end up much better off if we do.