Thursday, March 3, 2011

Why the Dollar's Reign Is Near an End

The single most astonishing fact about foreign exchange is not the high volume of transactions, as incredible as that growth has been. Nor is it the volatility of currency rates, as wild as the markets are these days.
Instead, it's the extent to which the market remains dollar-centric.

Journal Report

Read the full Foreign Exchange report .
Consider this: When a South Korean wine wholesaler wants to import Chilean cabernet, the Korean importer buys U.S. dollars, not pesos, with which to pay the Chilean exporter. Indeed, the dollar is virtually the exclusive vehicle for foreign-exchange transactions between Chile and Korea, despite the fact that less than 20% of the merchandise trade of both countries is with the U.S.
Chile and Korea are hardly an anomaly: Fully 85% of foreign-exchange transactions world-wide are trades of other currencies for dollars. What's more, what is true of foreign-exchange transactions is true of other international business. The Organization of Petroleum Exporting Countries sets the price of oil in dollars. The dollar is the currency of denomination of half of all international debt securities. More than 60% of the foreign reserves of central banks and governments are in dollars.
The greenback, in other words, is not just America's currency. It's the world's.
But as astonishing as that is, what may be even more astonishing is this: The dollar's reign is coming to an end.
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  1. Was watching CBS at 10:00AM central time when the words "CHAOS IS COMING" in black letters with white background flashed across the TV screen. I want to know if anybody else seen it

  2. Lol. Just went to CBS website. There is a show called "Chaos" coming on in April. I guess CBS thought this would be a funny way of promoting the show.

  3. Okay, we all know the dollar is collapsing. How many articles have we seen that said the same thing? How many times has Peter Schiff come on TV and said it on MSNBC? Yes, the dollar is collapsing. The best use of them right now is as political leaflets telling everyone they are not free but slaves.

  4. In black or red ink.

  5. I personally like the part about the Eurozone or China replacing the dollar. What a joke I also love how it's always "she's acomin' - this summer fer sure"

    Know what I say ? Sheep dip. Live your lives the best you can - these idiots got no more idea of what's really going to happen than you or I.

  6. Yes, I agree... Massive dollar rally after dip to touch 70 by this spring. Ready? As my friend Turd says; BTFD!

  7. The dominant 1% of the internationalized elite and their 10% hangers in monopoly US capitalism now own the bulk of the physical property assets and money and the profit incomes derived from that ownership.
    American old industrial capitalists ,using the dollar hegemony system have changed from being profit makers employing workers in American industrial commodity wealth production into usury finance and commercial capitalists , making the bulk of their profits in the finance sector usury and ‘Free Trade’. America with its huge government and trade deficit debts was making its “profits” solely from foreign credit supply and investments In selling US Treasury ,Fannie Freddie and dud property bonds.

    Fractional reserve banking, ‘printing bank money out of fresh air” allowed the banksters to create a nation of Debt peons to fiat paper. Money printing for financing government deficit spending profited the Central bank paper dollar monopoly and Fiat paper Treasury bondholders ,often foreign ,who own the “National debt” .
    A Ponzi capitalism !
    Dependent on new debt /credit issuance ,financed by foreign vendor finance from commodity wealth producing countries, like the US military Oil kings of the ME ,China, Japan , all re-circulating their dollar profits back to America . Pricing Oil in Dollars creates a worldwide demand for dollars to buy oil.
    America was dependent on these investment flows to pay the interest and dividends profits promised to bondholders and other past investors in America, including in US commercial and housing property loans.

    The US Treasury and the Fed now acts as a financial pimp for the banksters mortgage financing for housing and have become the nations landlord and mortgage bond enforcer on behalf of the “free enterprise” bond owners.

    The US economic system has rotted away into third world levels of corruption .

    The old housing property titles system itself has been corrupted by banksters wholesale fraud in developing sub prime and other dud “exotic” bond profits , all facilitated by their paid agents in government and the courts pretending not to notice and who neglected enforcing traditional property law.

    Proper legal titles for 60 % of US houses were converted into a digital entry on a computer in order to avoid state property transfer taxes !
    It is now difficult to prove who owns what property titles or mortgage claims.

    When this Great Ponzi imploded in 2008 with the collapse of the money/credit supply markets , the US abandoned all pretence of ordinary capitalism and organized a financial coup in congress led by banksters for control of the US Treasury in partnership with the privately owned Central bank to seize dictatorial control of the nations $ printing press.

    The past losses of the Ponzi financial sector including the losses of foreign banks
    were socialized and the money markets stabilized by being guaranteed against future losses by government.
    Trillions of US dollars were handed over to the finance sector capitalists. Government bailed out capitals past losses by promising “recovery” of the Ponzi economy, an impossibility in an unproductive services economy without credit

    The economy dependent on credit supply still shrunk, millions of workers lost their jobs and millions of “homeowners” found that in this economy ,with a collapsing property bubble and tougher restrictions on mortgage re-fi and credit card loans , could not afford to keep up debt payments.
    Those who find themselves underwater that can, walk away from their debts , thereby feeding a cycle of further falls in property prices as bankers restrict loans for others to buy.

    Millions of Americans workers have lost their jobs ,1 in 6 live on food stamp charity.
    All for bailing out the losses of that looting elite.
    Ordinary American debt peons find their own interests are the opposite of that Elite capitalist classes bailouts , dead dollar hegemony and wars for empire system.

  8. happening already, step by step. today's age is now, immediate, split second tech attention span causing people to look for the big bang of doller announcement by the prez that it's dead, they'll be no big bang doller dead announcement, just the slow drain of value. probably bounce up some in a few months in respect to other currencies but the purchasing power will remain in a slow drain

    funny read on the idaho thing, on that page are other links about idaho news, one was how this city went along a hiking/jogging trail(not city park) and marked dog poop with little red Idaho's come along way-down

  9. When your currency is also the world reserve currency, you are forced to run deficit. This is natural law of economic. No wonder America has the largest debt in the history of humanity.

  10. The US $ as " world reserve currency',
    is only the pretty face of the empire backed fiat dollar hegemony system.

    The Fed is "forced" to create dollars and deficits.
    Yes, 5.42 and if the price of oil rises to say $ 150 or %200 a barrel as the US seems determined to force with instability in the Middle East and threats of “human rights” driven military intervention into the internal affairs of Libya, this will surely create a bigger international demand for dollars to buy oil priced in dollars.

    US Treasury bills for financing US deficit spending will be in high demand.

    “Quantative Easing”, money printing Ben, will be happy to be “forced” to print and provide
    The foreigners ‘demand’ for dollar paper to buy oil will be used to rev up the US printing presses in order to export the economic crisis by sending more inflation to the rest of the world.

    This will not help food prices for the people in the Third World.

    But these newly hatched dollar chickens will also come home to roost back in the good old USA landing quickly on the retail gas pumps.

    How much a gallon then?

    An already economically weak, insolvent, already bailed out US economy will have some difficulties handling very high petrol and heating fuel prices the second time around without a huge inflationary effect spreading in the whole economy ,as the purchasing power of the dollars is devalued in the Us too in a sea of printers ink.
    Qe 3 ?
    Here it comes!


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