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jesusfreakinco (29.12)

FOOLS: The USD could crash by the end of 2009 and here is why... Don't be a fool

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October 05, 2009 – Comments (12) | RELATED TICKERS: FED , CRO.DL , OKS

The demise of the dollar

THE MOST IMPORTANT BLOG BY ANY BLOGGER IN 2009.  HERE IT IS.

"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."

JFC - hint - buy Yen, Yuan, Euros, and gold. Yes, I said gold...

"The Americans, who are aware the meetings have taken place – although they have not discovered the details –"  yeah right...  Like the don't know they are being sabotaged by their allies.  Any wonder we didn't get the 2016 Olympics?

"The transitional currency in the move away from dollars, according to Chinese banking sources, may well be gold."

JFC - duh?  Did they said GOLD?

"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."

JFC - those reading Sinclair know about this already.  JS is negotiating with the Chinese and, perhaps, is a perhaps a mouthpiece for them...

"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."

JFC - prepare.  The stampede could come any day (or as late as 2018...).

Full article

 

12 Comments – Post Your Own

#1) On October 06, 2009 at 12:09 AM, KamranatUCLA (29.20) wrote:

duuuuuuuuuuuuuuuuuuuuuuuuuuuuh

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#2) On October 06, 2009 at 6:32 AM, hhasia (62.43) wrote:

This move has been on the agenda for the past 2 years.  It is just now getting media attention. Each step is calculated to neuter US dominance, in favor of the "new West".

HHAsia

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#3) On October 06, 2009 at 8:05 AM, maxhoffa (< 20) wrote:

we've read about china buying gold, but in a way that doesn't hurt them too much with respect to price.  there was a significantly-timed spike in gold price a few hours ago . . .

right at the close of hong kong, an $8 spike

yesterdays big spike looks like it could have been at the close of
london

sunday's smaller run up was at the open of hong kong

the last major dip was on friday, 2 oct at the open of new
york. gold dropped like a rock that day, down about $12 to
start.

london was still open, and gold immediately responded with a
massive $25 spike up over the next 2 hours.

london closed a few hours later (leaving only the NY market open) and gold dipped $10 over the next two hours.

odd that since friday, it's looked like a case of the world
gold market vs NY gold market. there has been very flat
trading now when only NY was open, spikes at the open and
close of other global gold markets.

it's been an odd 96hrs for gold. maybe nothing to it at
all, but on the charts it looks, well, odd.

especially w/in the context of this article (which we've all read in some form over the past 6mos or so).

now . . . if i was a conspiracy guy . . . here is how i would
interpret the above price moves . . .

at the g-20 there were serious talks of phasing out the buck
WRT oil, switching from the petro-dollar to some other
petro-currency

probably with gold as the currency to bridge the gap between
today and this future petro-currency, whatever it is, as the article
claims, in 9 years

at open of business on friday, NY smacks gold down
significantly, basically a show of testosterone . . . saying
in effect 'yeah, well if you want to switch to gold let us
show you just how quickly we can bring down the value of
your treasuries so you better think twice' . . .

at which point *someone* --cough cough china-- responds with
an immediate massive buy, basically doubling the strength
of the NY dip, saying in effect 'nice try, but we HAVE
thought about it and times have changed' . . .

but i'm not a conspiracy guy

the silence out of NY the last couple days is odd

and i think the times have in fact changed

but who knows?

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#4) On October 06, 2009 at 8:58 AM, lquadland10 (< 20) wrote:

1.00 in 1911 = 1.00  1912 introduce the IMF aka the FED. Now 2009 1.00 = 4 cents. Good job IMF. Oh and IMF country's are mad not at IRAN for Nucelar. They are mad because he thretoned to sell oil in the  EURO. Personally I believe to end the FED and bring back the silver certific dollar Actually I find this refreshing. Think. What better way to get rid of the New World Order that the G-20 is trying to do. See the Closing Bell interview with the guy from the G-20.

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#5) On October 06, 2009 at 8:59 AM, lquadland10 (< 20) wrote:

1.00 in 1911 = 1.00  1912 introduce the IMF aka the FED. Now 2009 1.00 = 4 cents. Good job IMF. Oh and IMF country's are mad not at IRAN for Nucelar. They are mad because he thretoned to sell oil in the  EURO. Personally I believe to end the FED and bring back the silver certific dollar Actually I find this refreshing. Think. What better way to get rid of the New World Order that the G-20 is trying to do. See the Closing Bell interview with the guy from the G-20.

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#6) On October 06, 2009 at 9:04 AM, lquadland10 (< 20) wrote:

They just anounced that 3 countrys want to sell oil in another currency other than the dollar on MSnbc.

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#7) On October 06, 2009 at 10:38 AM, kdakota630 (29.81) wrote:

Sorry, buddy, I reposted that story and link about a half hour ago when I got into work.

My apologies.

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#8) On October 06, 2009 at 1:47 PM, hhasia (62.43) wrote:

Maxhoffa

Nice post. I agree with the comments. I would like to add the silence in ny is totally understandable.  The COMEX sells paper promises of "gold" at a set price.  If the country purchasing that note calls for delivery of the final product... the gold bars..., ny is  S..T out of luck, they do not have the physical product in the mass quantities that the paper claims.  IE they naked shortsell the gold. To not have a complete collapse with the demand for the bars, the paper inflates. So China gets the physical gold first hand, buys the mine! Stuff the worthless paper that has no backing, even if it is stamped redeamable for "gold".

HHAsia

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#9) On October 06, 2009 at 1:57 PM, Jbay76 (< 20) wrote:

what gold ETF's would you recommend?

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#10) On October 06, 2009 at 3:11 PM, jesusfreakinco (29.12) wrote:

Jbay76 -

in CAPS or real life?

in real life - none because of hhasia's comments above - ETFs are proxies for the real thing and could get busted any day.  They are without physical and are at risk for failure

for CAPS - there are many.  Take a look at my portfolio - most green thumbs are miners or ETFs.  Take a look at Sinchy's portfolio as he is the expert in all things gold.

JFC

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#11) On October 06, 2009 at 5:32 PM, vriguy (78.46) wrote:

No problem.  We'll just withdraw our armed forces that are keeping the peace in the Middle East.  Then we tell those regimes ... we could protect you, but it is going to cost you: pay us in oil (or gold).

Ditto Japan and S. Korea, Ditto Western Europe.

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#12) On October 06, 2009 at 6:14 PM, jesusfreakinco (29.12) wrote:

Vriguy,

I am guessing that is what our administration is counting on.  We'll see if that is enough.  High stakes poker with China likely holding the Ace right now.

JFC

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