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alstry (36.24)

11.10.9 The End Is Near AND The Arrogance Of Fools

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October 17, 2009 – Comments (7)

 Iran to completely drop dollar from foreign exchange

Iran's Trade Promotion Organization has announced a near future plan to completely exclude the US dollar from the country's foreign revenues and reserves.

Iran has recently asked Japan to replace the US dollar with the yen in oil deals it has with the Islamic Republic, Mehr News quoted the organization as saying on Friday.

Since October 2007, Iran has received 85 percent of its oil revenues in currencies other than the US dollar and Tehran is determined to find a substitute for the US dollar for the rest of its 15 percent of oil revenues, the report added.

Iran suggests other currencies such as the euro and the United Arab Emirates' dirham to replace the US dollar for oil revenues.

The constant declining value of the dollar and persisting economic crisis in the US has forced many countries to drop the currency in favor of a more stable and valuable one.

Saudi Arabia, South Korea, China, Venezuela, Sudan and Russia have taken steps to replace the US dollar in their foreign exchange reserves.
http://www.presstv.ir/detail.aspx?id=108867&sectionid=351020102

WHY?????

Oct. 17 (Bloomberg) -- The dollar dropped the most against the euro in more than a month and reached a 14-month low on speculation the Federal Reserve will trail other central banks in boosting interest rates.

AT THIS POINT, IT IS NOT JUST IRAQ OR IRAN.....EVERYONE IS JUMPING ON THE TRAIN

It is amazing how little press the foreign nations moving away from the dollar is getting in American mainstream news.  Few in America really understand the consequences.  If you are not the reserve currency, you MUST export to get money....and America has very little exports relative to our current economy. 

Most of our CURRENT economy is simply Government printing and spending money.

What is $1.42 trillion? It's more than the total national debt for the first 200 years of the Republic, more than the entire economy of India, almost as much as Canada's, and more than $4,700 for every man, woman and child in the United States.

If such behavior was permissible....every nation would be printing trillions to create a domestic economic boom.  BUT IT IS NOT...as it destroys the integrity of currency and the value as well.

LOOK WHAT IS HAPPENING TO STATE AND LOCAL GOVERNMENTS BECAUSE THEY CAN'T SIMPLY PRINT......

As Americans we have very little knowledge or appreciation for the behavior as it has never been an issue in our history....but talk to a Greek, or Argentinian, or German and they can clearly explain the consequences. 

HOWEVER, the consequences for losing reserve status will be MUCH greater to America...as our current economic make up generates very little foreign reserves and converting our economy will take time....

Just watch what happens if the world decides to sell dollars all at the same time......if you think a stock market crash is a BIG deal....you ain't seen nothing yet.

7 Comments – Post Your Own

#1) On October 17, 2009 at 8:06 AM, alstry (36.24) wrote:

Russia ready to abandon dollar in oil, gas trade with China Russia is ready to consider using the Russian and Chinese national currencies instead of the dollar in bilateral oil and gas dealings, Prime Minister Vladimir Putin said on Wednesday.

China, Russia agree multi-billion dollar trade deals Russia's Prime Minister Vladimir Putin held talks with Chinese counterpart Wen Jiabao in Beijing Tuesday, as the two countries agreed to bilateral economic and trade deals worth $4 billion, Chinese state media reported.

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#2) On October 17, 2009 at 8:19 AM, rofgile (99.33) wrote:

Hi Alstry,

 There's an interesting story in the NYTimes you might like like: "The View from Inside the Depression".

 The story is about a journal of a man's (Benjamin Roth's) diary that was later published as a book.  Its interesting because he kept worrying about inflation (due to government spending and debt levels vs GDP) and being surprised that it never happened, and also he kept thinking the economy was coming out of the depression because the market would go up.  

 Often he would talk about how the market would be up for six months, all his friends would buy in- and then it would crash again and take all their money.

----

 Anyways - I thought you might like this story.  I'm just doing my lazy saturday morning paper reading.. favorite time of the day!

 I'm more agnostic about the economy still - I am still expecting us to get to S&P 1100, but hoping I'm not Mr. Roth, seeing the end of the recession and just about to be bitten.

 -Rof

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#3) On October 17, 2009 at 9:52 AM, alstry (36.24) wrote:

It is an interesting story.  But you cannot compare the issues facing America in the Depression to current times.

In the Depression our currency was strong......government ran a surplus.  Instead of food stamps people stood in lines for food(those people would have been considered unemployed and added into the count)...our economy was a growing producer economy with growing exports generating relatively strong foreign reserves.

Now we produce relatively little compared to our spend....the primary driver keeping us going right now is simply printing money out of thin air and servicing each other.

If our currency is no longer accepted in trade......few will be willing to work for dollars and what is our economy really?

We must restructure.....the question is how.......will we make the dollar worthless or will we restore integrity back to our currency.

 

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#4) On October 17, 2009 at 9:57 AM, JerseyShoreGirl (< 20) wrote:

Max Keiser Face Off:  Part 1 of 2 (Pt 2 in Sidebar) ....

Alstry, Keiser is using the term "financial terrorist"!!

http://www.youtube.com/watch?v=pFMgwL-Tq4s

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#5) On October 17, 2009 at 10:04 AM, alstry (36.24) wrote:

I guess Max is a little behind Alstry.

But to bankers, we are the terrorists.......because they know what will happen once the nation actually perceives its condition and learns they have been fraudulently looted.

If you really think about it, few of the citizens are qualified to borrow any more, there are few projects worth lending, and really the only way banks are making money right now is trading against us and not through traditional banking.

Based on the fact that the money we owe them is rapidly deteriorating in value and our accounts are running dry....the game is quickly coming to an end.

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#6) On October 17, 2009 at 10:09 AM, bigcat1969 (92.80) wrote:

I like that Times says that we know now that the New Deal spending was a wonderful idea and there should have been more of it.  Come on the New Deal had nothing to do with the end of the Depression.  Roosevelt didn't end the depression Hitler did.  The War not only ended unemployment for men, but also added women to the workforce, suddenly the percent of the population zoomed to levels never seen before in the country.  Not only that, but because of freezes on building cars and housing to put everything into the war effort, when the war ended there was a huge demand for real estate and autos.

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#7) On October 17, 2009 at 10:12 AM, JerseyShoreGirl (< 20) wrote:

The Rich Have Stolen Our Economy

http://waronyou.com/topics/the-rich-have-stolen-the-economy/

And the 'climate change' bill that will be signed in Copenhagen in December will cede our sovereignty and 'spread our wealth' all around the word .. happy, happy, joy, joy.

http://www.youtube.com/watch?v=PMe5dOgbu40&feature=player_embedded

Wake up people!  Cap 'n Trade, Global Warming and Climate change is "transfer of wealth" under a nice, green wrapper!!

 

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