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.
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.
“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.
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 email@example.com; Ye Xie in New York at firstname.lastname@example.org
Last Updated: June 27, 2009 08:00 EDT