Demise of the Dollar.

[Calabrio]

Exclusive report by Robert Fiskhttp://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html
The demise of the dollar

In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading
Tuesday, 6 October 2009


In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.

The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.

The Americans, who are aware the meetings have taken place – although they have not discovered the details – are sure to fight this international cabal which will include hitherto loyal allies Japan and the Gulf Arabs. Against the background to these currency meetings, Sun Bigan, China's former special envoy to the Middle East, has warned there is a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security."

This sounds like a dangerous prediction of a future economic war between the US and China over Middle East oil – yet again turning the region's conflicts into a battle for great power supremacy. China uses more oil incrementally than the US because its growth is less energy efficient. The transitional currency in the move away from dollars, according to Chinese banking sources, may well be gold. An indication of the huge amounts involved can be gained from the wealth of Abu Dhabi, Saudi Arabia, Kuwait and Qatar who together hold an estimated $2.1 trillion in dollar reserves.

The decline of American economic power linked to the current global recession was implicitly acknowledged by the World Bank president Robert Zoellick. "One of the legacies of this crisis may be a recognition of changed economic power relations," he said in Istanbul ahead of meetings this week of the IMF and World Bank. But it is China's extraordinary new financial power – along with past anger among oil-producing and oil-consuming nations at America's power to interfere in the international financial system – which has prompted the latest discussions involving the Gulf states.

Brazil has shown interest in collaborating in non-dollar oil payments, along with India. Indeed, China appears to be the most enthusiastic of all the financial powers involved, not least because of its enormous trade with the Middle East.

China imports 60 per cent of its oil, much of it from the Middle East and Russia. The Chinese have oil production concessions in Iraq – blocked by the US until this year – and since 2008 have held an $8bn agreement with Iran to develop refining capacity and gas resources. China has oil deals in Sudan (where it has substituted for US interests) and has been negotiating for oil concessions with Libya, where all such contracts are joint ventures.

Furthermore, Chinese exports to the region now account for no fewer than 10 per cent of the imports of every country in the Middle East, including a huge range of products from cars to weapon systems, food, clothes, even dolls. In a clear sign of China's growing financial muscle, the president of the European Central Bank, Jean-Claude Trichet, yesterday pleaded with Beijing to let the yuan appreciate against a sliding dollar and, by extension, loosen China's reliance on US monetary policy, to help rebalance the world economy and ease upward pressure on the euro.

Ever since the Bretton Woods agreements – the accords after the Second World War which bequeathed the architecture for the modern international financial system – America's trading partners have been left to cope with the impact of Washington's control and, in more recent years, the hegemony of the dollar as the dominant global reserve currency.

The Chinese believe, for example, that the Americans persuaded Britain to stay out of the euro in order to prevent an earlier move away from the dollar. But Chinese banking sources say their discussions have gone too far to be blocked now. "The Russians will eventually bring in the rouble to the basket of currencies," a prominent Hong Kong broker told The Independent. "The Brits are stuck in the middle and will come into the euro. They have no choice because they won't be able to use the US dollar."

Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the transition from the dollar in nine years' time. The current deadline for the currency transition is 2018.

The US discussed the trend briefly at the G20 summit in Pittsburgh; the Chinese Central Bank governor and other officials have been worrying aloud about the dollar for years. Their problem is that much of their national wealth is tied up in dollar assets.

"These plans will change the face of international financial transactions," one Chinese banker said. "America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate."

Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars. Bankers remember, of course, what happened to the last Middle East oil producer to sell its oil in euros rather than dollars. A few months after Saddam Hussein trumpeted his decision, the Americans and British invaded Iraq.

 

[04SCTLS]

Nowhere is it written that the American Empire goes on forever.
We have only ourselves to blame for being eventually outmanouvered by leaner more disciplined nations who are only looking out for their own best interests.
Uncle Sam is an "old man" the rest of the world doesn't want to support him any more.

 

[shagdrum]

Nowhere is it written that the American Empire goes on forever.
We have only ourselves to blame for being eventually outmanouvered by leaner more disciplined nations who are only looking out for their own best interests.
Uncle Sam is an "old man" the rest of the world doesn't want to support him any more.

That is exceedingly callous and suggests a naivete about what this would do and how it came about...

 

[04SCTLS]

That is exceedingly callous and suggests a naivete about what this would do and how it came about...

It's realistic.
Do you think the rest of the world really wants to help us carry the 500,000.00 per household debt (mostly for Medicare and Social Security hense the "old man" tag) that is the American nation?

This is how it came about.

We're only barely 5% of the world's population and no longer 50% of the world economy.
There are limits to American exceptionalism and we are quickly running up against them.

 

[Calabrio]

There are limits to American exceptionalism and we are quickly running up against them.

I agree. The policies of the past century, currently being intensified right now. are not sustainable and will destroy this country.

The "socialism" that some here like to extol is not sustainable. We had the luxury of emerging from WW2 as the only dominant economic power in the world. It was a unique economic situation that provided us the ability to indulge all of the harmful leftist programs.

Detroit was doing fine with the UAW- UNTIL viable competition emerged from Europe and Japan.

If we don't take pause right now and examine what our government is doing, we will destroy the engine of our economy and there won't be any easy fix for it.

I still don't think it's too late, but it's getting desperately close.

 

[taylor414ce2003]

I agree. The policies of the past century, currently being intensified right now. are not sustainable and will destroy this country.

The "socialism" that some here like to extol is not sustainable. We had the luxury of emerging from WW2 as the only dominant economic power in the world. It was a unique economic situation that provided us the ability to indulge all of the harmful leftist programs.

Detroit was doing fine with the UAW- UNTIL viable competition emerged from Europe and Japan.

If we don't take pause right now and examine what our government is doing, we will destroy the engine of our economy and there won't be any easy fix for it.

I still don't think it's too late, but it's getting desperately close.

In your opinion what does our gov need to do? I know its a complex problem and their is no single answer.For starters maybe a higher tax on imported products will leval the playing field so American based companies can compete better?

 

[hrmwrm]

hmm, sounds familiar.
http://www.lincolnvscadillac.com/showthread.php?t=55208

De-Dollarization: Dismantling

America’s Financial-Military Empire
The Yekaterinburg
Turning Point
By Prof. Michael Hudson

The city of Yakaterinburg, Russia’slargest east of the Urals, may become known not only as the death place of the tsars but of American hegemony too – and not only where US U-2 pilot Gary Powers was shot down in 1960, but where the US-centered international fi nancial order was brought to ground.

Challenging America was the prime focus of extended meetings in Yekaterinburg, Russia (formerly Sverdlovsk) June 15-16 for Chinese President Hu Jintao, Russian President Dmitry Medvedev and other top officials of the sixnation Shanghai Cooperation Organization (SCO). The alliance is comprised of Russia, China, Kazakhstan, Tajikistan, Kyrghyzstan and Uzbekistan, with observer status for Iran, India, Pakista and Mongolia. It will be joined on Tuesday by Brazil for trade discussions among the BRIC nations (Brazil, Russia, India and China).

The attendees have assured American diplomats that dismantling the US fi nancial and military empire is not their aim. They simply want to discuss mutual aid – but in a way that has no role for the United States, NATO or the US dollar as a vehicle for trade. US diplomats may well ask what this really means, if not a move to make US hegemony obsolete. That is what a multipolar world means, after all. For starters, in 2005 the SCO asked Washington to set a timeline to withdraw from its military bases in Central Asia. Two years later the SCO countries formally aligned themselves with the former CIS republics belonging to the Collective Security Treaty Organization (CSTO), established in 2002 as a counterweight to NATO. Yet the meeting has elicited only a collective yawn from the US and even European press despite its agenda is to replace the global dollar standard with a new financial and military defense system. A Council on Foreign Relations spokesman has said he hardly can imagine that Russia and China can overcome their geopolitical rivalry, suggesting that America can use the divide-and-conquer that Britain used so deftly for many centuries in fragmenting foreign opposition to its own empire. But George W. Bush (“I’m a uniter, not a divider”) built on the Clinton administration’s legacy in driving Russia, China and their neighbors to find a common ground when it comes to finding an alternative to the dollar and hence to the US ability to run balance-of-payments deficits ad infinitum. What may prove to be the last rites of American hegemony began already in April at the G-20 conference, nd became even more explicit at the St. Petersburg International Economic Forum on June 5, when Mr. Medvedev called for China, Russia and India to “build an increasingly multipolar world order.”

What this means in plain English is: We have reached our limit in subsidizing the United States’ military encirclement of Eurasia while also allowing the US to appropriate our exports, companies, stocks and real estate in exchange for paper money of questionable worth. “The artificially maintained unipolar system,” Mr. Medvedev spelled out, is based on “one big centre of consumption, financed by a growing deficit and thus growing debts, one formerly strong reserve currency, and one dominant system of assessing assets and risks.” At the root of the global financial crisis, he concluded, is that the United States makes too little and spends too much.

Especially upsetting is its military spending, such as the stepped-up US military aid to Georgia announced just last week, the NATO missile shield in Eastern Europe and the US buildup in the oil-rich Middle East and Central Asia.

The sticking point with all these countries is the US ability to print unlimited amounts of dollars. Overspending by US consumers on imports in excess of exports, US buy-outs of foreign companies and real estate, and the dollars that the Pentagon spends abroad all end up in foreign central banks. These agencies then face a hard choice: either to recycle these dollars back to the United States by purchasing US Treasury bills, or to let the “free market” force up their currency relative to the dollar – thereby pricing their exports out of world markets and hence creating domestic unemployment and business insolvency.

When China and other countries recycle their dollar inflows by buying US Treasury bills to “invest” in the United States, this buildup is not really voluntary. It does not reflect faith in the U.S. economy enriching foreign central banks for their savings, or any calculated investment preference, but simply a lack of alternatives. “Free markets” US-style hook countries into a system that forces them to accept dollars without limit. Now they want out.

This means creating a new alternative. Rather than making merely “cosmetic changes as some countries and perhaps the international financial organisations themselves might want,” Mr. Medvedev ended his St. Petersburg speech, “what we need are financial institutions of a completely new type, where particular political issues and motives, and particular countries will not dominate.” When foreign military spending forced the US balance of payments into deficit and drove the United States off gold in 1971, central banks were left without the traditional asset used to settle payments imbalances. The alternative by default was to invest their subsequent payments inflows in US Treasury bonds, as if these still were “as good as gold.” Central banks now hold $4 trillion of these bonds in their international reserves – and these loans have financed most of the US Government’s domestic budget deficits for over three decades now! Given the fact that about half of US Government discretionary spending is for military operations – including more than 750 foreign military bases and increasingly expensive operations in the oil-producing and transporting countries – the international financial system is organized in a way that finances the Pentagon, along with US buyouts of foreign assets expected to yield much more than the Treasury bonds that foreign central banks hold. The main political issue confronting the world’s central banks is therefore how to avoid adding yet more dollars to their reserves and thereby financing yet further US deficit spending including military spending on their borders.

For starters, the six SCO countries and BRIC countries intend to trade in their own currencies so as to get the benefit of mutual credit that the United States until now has monopolized for itself. Toward this end, China has struck bilateral deals with Argentina and Brazil to denominate their trade in renminbi rather than the dollar, sterling or euros, and four weeks ago China reached an agreement with Malaysia to denominate trade between the two countries in renminbi. Former Prime Minister Dr. Mahathir Mohamad explained to me in January that as a Muslim country, Malaysia wants to avoid doing anything that would facilitate US military action against Islamic countries, including Palestine. The nation has too many dollar assets as it is, his colleagues explained. Central bank governor Zhou Xiaochuan of the People’s Bank of China wrote an official statement on its website that the goal is now to create a reserve currency “that is disconnected from individual nations.” This is the aim of the discussions in Yekaterinburg.
In addition to avoiding financing the US buyout of their own industry and the US military encirclement of the globe, China, Russia and other countries no doubt would like to get the same kind of free ride that America has been getting. As matters stand, they see the United States as a lawless nation, financially as well as militarily. How else to characterize a nation that holds out a set of laws for others – on war, debt repayment and treatment of prisoners – but ignores them itself? The United States is now the world’s largest debtor yet has avoided the pain of “structural adjustments” imposed on other debtor economies. US interest-rate and tax reductions in the face of exploding trade and budget deficits are seen as the height of hypocrisy in view of the austerity programs that Washington forces on other countries via the IMF and other Washington vehicles.

The United States tells debtor economies to sell off their public utilities and natural resources, raise their interest rates and increase taxes while gutting their social safety nets to squeeze out money to pay creditors. And at home, Congress blocked China’s CNOOK from buying Unocal on grounds of national security, much as it blocked Dubai from buying US ports and other sovereign wealth funds from buying into key infrastructure. Foreigners are invited to emulate the Japanese purchase of white elephant trophies such as Rockefeller Center, on which investors quickly lost a billion dollars and ended up walking away. In this respect the US has not really given China and other payments-surplus nations much alternative but to find a way to avoid further dollar buildups. To date, China’s attempts to diversify its dollar holdings beyond Treasury bonds have not proved very successful.

For starters, Hank Paulson of Goldman Sachs steered its central bank into higher-yielding Fannie Mae and Freddie Mac securities, explaining that these were de facto public obligations. They collapsed in 2008, but at least the US Government took these two mortgagelending agencies over, formally adding their $5.2 trillion in obligations onto the national debt. In fact, it was largely foreign official investment that prompted the bailout. Imposing a loss for foreign official agencies would have broken the Treasury-bill standard then and there, not only by utterly destroying US credibility but because there simply are too few Government
bonds to absorb the dollars being flooded into the world economy by the soaring US balance-of-payments deficits. Seeking more of an equity position to protect the value of their dollar holdings as the Federal Rserve’s credit bubble drove interest rates down, China’s sovereign wealth funds sought to diversify in late 2007. China bought stakes in the well-connected Blackstone equity fund and Morgan Stanley on Wall Street, Barclays in Britain South Africa’s Standard Bank (once affi liated with Chase Manhattan back in the apartheid 1960s) and in the soon-to-collapse Belgian financial conglomerate Fortis.

But the US financial sector was collapsing under the weight of its debt pyramiding, and prices for shares plunged for banks and investment firms across the globe. Foreigners see the IMF, World Bank and World Trade Organization as Washington surrogates in a financial system backed by American military bases and aircraft carriers encircling the globe. But this military domination is a vestige of an American empire no longer able to rule by economic strength. US military power is muscle bound, based more on atomic weaponry and longdistance air strikes than on ground operations, which have become too politically unpopular to mount on any large scale.

On the economic front there is no foreseeable way in which the United States can work off the $4 trillion it owes foreign governments, their central banks and the sovereign wealth funds set up to dispose of the global dollar glut. America has become a deadbeat – and indeed, a militarily aggressive one as it seeks to hold onto the unique power it once earned by economic means. The problem is how to constrain its behavior. Yu Yongding, a former Chinese central bank advisor now with China’s Academy of Sciences, suggested that US Treasury Secretary Tim Geithner be advised that the United States should “save” first and foremost by cutting back its military budget. “U.S. tax revenue is not likely to increase in the short term because of low economic growth, inflexible expenditures and the cost of ‘fighting two wars.’”

At present it is foreign savings, not those of Americans that are financing the US budget defi cit by buying most Treasury bonds. The effect is taxation without representation for foreign voters as to how the US Government uses their forced savings. It therefore is necessary for financial diplomats to broaden the scope of their policymaking beyond the private-sector marketplace. Exchange rates are determined by many factors besides "consumers wielding credit cards,” the usual euphemism that the US media cite for America’s balance of- payments deficit. Since the 13th century, war has been a dominating factor in the balance of payments of leading nations – and of their national debts. Government bond financing consists mainly of war debts, as normal peacetime budgets tend to be balanced. This links the war budget directly to the balance of payments and exchange rates. Foreign nations see themselves stuck with unpayable IOUs – under conditions where, if they move to stop the US free lunch, the dollar will plunge and their dollar holdings will fall in value relative to their own domestic currencies and other currencies. If China’s currency rises by 10% against the dollar, its central bank will show the equivalent of a $200 million loss on its $2 trillion
of dollar holdings as denominated in yuan. This explains why, when bond ratings agencies talk of the US Treasury securities losing their AAA rating, they don’t mean that the government cannot simply print the paper dollars to “make good” on these bonds. They mean that dollars will depreciate in international value. And that is just what is now occurring. When Mr. Geithner put on his serious face and told an audience at Peking University in early June that he believed in a “strong dollar” and China’s US investments therefore were safe and sound, he was greeted with derisive laughter.

Anticipation of a rise in China’s exchange rate provides an incentive for speculators to seek to borrow in dollars to buy renminbi and benefit from the appreciation. For China, the problem is that this speculative inflow would become a self-fulfi lling prophecy by forcing up its currency. So the problem of international reserves is inherently linked to that of capital controls.

Why should China see its profitable companies sold for yet more freely-created US dollars, which the central bank must use to buy low-yielding US Treasury bills or lose yet further money on Wall Street?To avoid this quandary it is necessary to reverse the philosophy of open capital markets that the world has held ever since Bretton Woods in 1944. On the occasion of Mr. Geithner’s visit to China, “Zhou Xiaochuan, minister of the Peoples Bank of China, the country’s central bank, said pointedly that this was the first time since the semiannual talks began in 2006 that China needed to learn from American mistakes as well as its successes” when it came to deregulating capital markets and dismantling controls.

An era therefore is coming to an end. In the face of continued US overspending, de-dollarization threatens to force countries to return to the kind of dual exchange rates common between World Wars I and II: one exchange rate for commodity trade, another for capital movements and investments, at least from dollar-area economies. Even without capital controls, the nations meeting at Yekaterinburg are taking steps to avoid being the unwilling recipients of yet more dollars. Seeing that US global hegemony cannot continue without spending power that they themselves supply, governments are attempting to hasten what Chalmers Johnson has called “the sorrows of empire” in his book by that name – the bankruptcy of the US financial-military world order. If China, Russia and their non-aligned allies have their way, the United States will no longer live off the savings of others (in the form of it's own recycled dollars) nor have the money for unlimited military expenditures and adventures.
US officials wanted to attend the Yekaterinburg meeting as observers. They were told No. It is a word that Americans will hear much more in the future.

Dr. Hudson is President of The Institute for the Study of Long-Term Economic Trends (ISLET),a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of Super-Imperialism: The Economic Strategy of American Empire (1968 and 2003) and of The Myth of Aid (1971).
__________________

 

[Calabrio]

June 13, 2009 article.
Sorry I missed that when you posted it.

 

[PetesSweets86]

makes me wish I was in Europe...good thing I never sold my gold/silver :-D

 

[Calabrio]

makes me wish I was in Europe...

Things aren't going so well over there either.

And it's not over here, yet.
However, we need to radical change in D.C.- and the people in power now, and they are on both sides of the aisle, aren't willing to do it.
And this President and those around him are an absolute disaster. I don't doubt that many of his "advisers" are anxious to see a crash.

good thing I never sold my gold/silver :-D

It's good to hold on to.

 

[PetesSweets86]

ya, i even decided to ditch the 401k program with my spa to invest it into actual silver/gold

 

[Calabrio]

ya, i even decided to ditch the 401k program with my spa to invest it into actual silver/gold

I have no idea what the best course of action is right now...

 

[PetesSweets86]

well my guess is that people might, just MIGHT start thinking for themselves as well as their children's futures...the government should be producted by the people, for the people. Not run by the wealthy, taunted by the weathly, and stripped by the weathly. Funny how it's the Axis powers that got the second bill of rights that Rosevelt wanted to put into power before he died but people I know get chafted. I blame the people for not being smarter, but I always blame the government for they should know better. A country shouldn't be run on lies..it should be run on truth and liberty...I feel like stealing the statue of liberty and running to another country with it that actually shows LIBERTY and JUSTICE.

Hell the richer can get away with so much crime but my brother has to go to federal prison for 2 years for selling steroids to HIV/AIDS patients who were denied treatement for their HIV/AIDS

 

[Calabrio]

Pete, you're absolutely all over the place.
And you're way off base.

The 2nd Bill of Rights would not have been a good thing.
Nor are the programs enacted with that mindset even sustainable.

Government isn't the answer.
Centralizing all of the power in Washington, D.C. is not the answer.
Expanding the power and role of the government in our lives is not the answer.

Roosevelt is an example of the FAILED progressive policies of the last century. And many of them were embraced by Democrats AND Republicans. They did not work. And they are the source of many of the problems we're experiencing or about to experience now.

 

[PetesSweets86]

but yet they worked for the countries that they were inact? europe already has climbed quite well out of the economic sh*thole

 

[Calabrio]

but yet they worked for the countries that they were inact?

No, they haven't worked there either.

europe already has climbed quite well out of the economic sh*thole

No, Europe hasn't climbed out of the "sh!thole either.

But, using your logic, how could massive social spending solve anything when the problem being discussed is bankruptcy. We, the United States, can't afford any more. It's not sustainable. We're broke because of the spending and monetary policies of the past century.

 

[Calabrio]

Investors cling to gold as prices surge
By Javier Blas in London
Published: October 7 2009 20:11

Gold prices continued to surge on Wednesday, hitting a fresh record close to $1,050 a troy ounce as investors bet that trading momentum would push the precious metal still higher.

Barclays Capital said gold prices, which have risen 10.3 per cent since the end of August, could run to as high as $1,500 an ounce if previous technical trading patterns were extrapolated.

Read the rest of the article here

 

[PetesSweets86]

then there's the silver too. which i bought when the stock market collapsed and it was close to 10buck an ounce

 

[Calabrio]

then there's the silver too. which i bought when the stock market collapsed and it was close to 10buck an ounce

Well played. I think it's almost $18 right now.

 

[Calabrio]

Treasury Prices Fall On Weaker-Than-Expected 30-Yr Bond Auction
http://online.wsj.com/article/BT-CO-20091008-711428.html?mod=rss_Bonds

I wonder if the fed is going to buy them back again?

 

[hrmwrm]

June 13, 2009 article.
Sorry I missed that when you posted it.

that's okay. apparently everyone did.

 

[Calabrio]

that's okay. apparently everyone did.

There's some really important information in that article.
More pieces to the puzzle that are hidden from us:

Hank Paulson was the (secretary of the treasury):

Hank Paulson of Goldman Sachs steered its central bank into higher-yielding Fannie Mae and Freddie Mac securities, explaining that these were de facto public obligations. They collapsed in 2008, but at least the US Government took these two mortgagelending agencies over, formally adding their $5.2 trillion in obligations onto the national debt. In fact, it was largely foreign official investment that prompted the bailout. Imposing a loss for foreign official agencies would have broken the Treasury-bill standard then and there, not only by utterly destroying US credibility but because there simply are too few Governme bonds to absorb the dollars being flooded into the world economy by the soaring US balance-of-payments deficits.

 

[PetesSweets86]

Treasury Prices Fall On Weaker-Than-Expected 30-Yr Bond Auction
http://online.wsj.com/article/BT-CO-20091008-711428.html?mod=rss_Bonds

I wonder if the fed is going to buy them back again?

well the feds cause f*k themselves cause I bought all my silver from the Canadian treasury department. I love my investments. I REALLY wanted one of those canadian maple leafs that are .99999 Fine! they sweet!

 

[hrmwrm]

i don't think many comprehend the grave relevance of foriegn trading partners using their own or a new common monetary currency. it means every ones money can now float based on it's real value, instead of a false value to keep losses to a minimum. everything will no longer be solely traded as a comparative american value. which means the american dollar will be set to take it's true value in the world market.
and with climbing deficits, it's gonna be scary.

 

[PetesSweets86]

i don't think many comprehend the grave relevance of foriegn trading partners using their own or a new common monetary currency. it means every ones money can now float based on it's real value, instead of a false value to keep losses to a minimum. everything will no longer be solely traded as a comparative american value. which means the american dollar will be set to take it's true value in the world market.
and with climbing deficits, it's gonna be scary.

tha's why raw minerals is a universal trading device.