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Posts Tagged ‘currency’

The Deadly Effect of Fiat Currency

April 7, 2011 Comments off

wealthcycles

Many of the world’s woes can be attributed to our global fiat currency system—price inflation, food shortages, political instability, and speculative booms and busts. But perhaps the most devastating and horrible of the consequences of our fiat currency system  is the terrible and unceasing prevalence of war. Today, we wince as we watch the U.S. enter into a third current foreign conflict, under the guise of a multi-national, humanitarian Libyan intervention. Yet, with the amount of excess currency flooding the global economy and the U.S. Federal Reserve’s seemingly limitless willingness to create more, history tells us it is practically inevitable that the result would be more war.

It is no coincidence that, even in ancient societies, the invention of fiat currency—currency Read more…

U.S. Dollar at 15 Month Low

March 22, 2011 Comments off

midasletter.com

The dollar fell to a 15-month low against a basket of currencies on Tuesday, with sterling among the biggest gainers after a rise in UK inflation increased the chances of a UK interest rate hike sooner rather than later.

Relative interest rate expectations also lifted the euro to its highest against the dollar this year, but a reported options barrier at $1.4250 and a sharp sell-off in euro/sterling following the UK inflation data capped its gains.

Consumer prices in the UK last month rose by 4.4 percent, a 28-month high, and more than double the Bank of England’s mid-point target of 2 percent. Money markets are now fully pricing in a quarter point rate hike from the Bank of England in July, versus August before the data.

The yen, meanwhile, was little changed on the day in a tight Read more…

Soros: Communist Chinese Model Of Order May Become “The Envy Of The World”

March 11, 2011 Comments off

infowars.com

Billionaire investor George Soros has once again cited China’s dictatorship as the model for the rest of the world in a speech at an elite gathering in Europe.

Soros told the exclusive Travellers Club, that “China’s model of state capitalism, in which the interests of the individual are subordinated to those of the government, poses a danger if its example becomes“the envy of the world.”

“Perfect order and global governance are not realistic expectations.” Read more…

China Takes Giant Step Towards Making the Yuan the World’s Reserve Currency

March 3, 2011 Comments off

globalresearch.ca

For years, I’ve been writing about the long-term decline of the Dollar, and the rise of the Chinese Yuan … and it’s potential to become the world’s next reserve currency.

As I pointed out in 2007, many countries have started moving out of the Dollar as the basis for international trade settlements, including:

  • Venezuela and 12 other Latin American countries as well as Cuba
  • Many other countries

In 2008, I wrote: Read more…

The Chinese government started stockpiling food 3 years ago: What has the US government been doing beside spending money we don’t have?

March 1, 2011 Comments off

nowpublic.com

I wrote this three years ago, when the Chinese were reportedly stockpiling food in their cities. The world economic and political situation has worsened. With rising food prices, massive unemployment, union protests and government debt driving states to the brink of shut down and bankruptcy, the situation has worsened–and we owe the Chinese more than ever. ED.

by Monica Davis

Rumor has it that the Chinese government is advising its cities to start stockpiling food and fuel.  The government news agency reports that the central government has told the largest cities to stockpile at least two weeks of food, until the world economic turmoil caused by the banking industry’s foreclosure woes slows down.  Lots of luck on that.

With China’s exposure in the twitchy American financial markets, it is no wonder that the Chinese are getting nervous.  They have a lot at stake in the American economy, as do many foreign investors, past and present.

In a historical analysis of foreign investment in the United States, one writer notes that: Read more…

A New World Order Reserve Currency

February 3, 2011 2 comments

What do the riots in Egypt and a new world reserve currency have in common?

Perhaps more than we think.

Consider the following statements from George Soros in a recent interview:

Some statements of Soros (who happens to be a Fabian Socialist):

The efficient market hypothesis has failed.

Markets are not tending toward equilibrium.

There is imperfect knowledge of regulators and market participants.

He has an economic theory that is “more relevant” than the dominant one and is supporting an institute for new economic thinking….

Inflation (in the United States) is helpful because the burden of debt was getting too heavy.

The problem is you don’t have a Read more…

Which Of The Currencies Of The World Is Going To Crash First?

January 22, 2011 Comments off

Last year was an absolutely fascinating time for world currency markets.  The yen, the dollar and the euro all took their turns in the spotlight.  Each experienced wild swings at various times, but the overall theme that we saw was that faith in paper currencies is dying.  The biggest reason for this is the horrific sovereign debt crisis that has swept the globe.  The United States, Japan and a whole host of European nations are all drowning in debt.  The U.S. and Japan are both steamrolling toward insolvency, and several European nations would have already defaulted on their debts if they had not been bailed out.  So which of the major currencies of the world is going to crash first?  Will one (or more) of the big currencies fall before the end of 2011?  Once one major currency collapses will the rest start to fall like dominoes?  The truth is that the world has never seen a sovereign debt crisis of this magnitude in all of human history.  Almost the entire globe is drowning in a sea of red ink and it has brought us right to the brink of financial disaster.

So which of the currencies of the world is going to be the first to come crashing down?  Well, let’s take a quick look at the yen, the euro and the dollar…. Read more…

Obama’s Push for China Currency Changes Could Cost U.S. Consumers

January 17, 2011 Comments off

When President Obama meets with Chinese President Hu Jintao this week, one of the top items on the agenda will be resolving a dispute over how China sets the value of its currency. If Obama gets his way, it could spur U.S. exports, but it could also mean higher prices for American consumers.

For over a decade, China has held down the value of its currency, the Yuan, in relation to the dollar. That helps keep the cost of the goods Americans buy from China low and the price of American goods sold in China high. The cheap Chinese currency has helped open a wide trade imbalance between the two countries. In 2010, China’s trade advantage with the U.S. was more than $252 billion.

The Obama administration has made stopping China’s currency manipulation a central focus of the president’s push to increase American exports.

“China still closely manages the level of its exchange rate and restricts the ability of capital to move in and out of the country,” Treasury Secretary Timothy Geithner said is a speech last week. “As the [International Monetary Fund] has said consistently, these policies have the effect of keeping the Chinese currency substantially undervalued.”

On the surface, it’s a positive for Read more…

Categories: America, China Tags: , , , , ,

Alex Jones and Porter Stansberry

January 6, 2011 1 comment

The Economic Implosion of America is Here.

 

Read more…

IN THE STOCK MARKET, IT’S 1937 ALL OVER AGAIN

January 3, 2011 Comments off

One of the most worrisome problems in the stock market right now is that we are basically repeating the exact same situation that occurred from 1937 to 1942.

Most Americans think we’ve had this amazing stock market recovery since the financial crisis of 2008… and we have to a certain extent.

But we are by no means out of the woods.

In fact, during America’s last real economic collapse, in the 1930s and 1940s, we saw a similar drop and recovery… before the markets crashed all over again.

In fact, the situation is eerily similar.

Look at this chart… it’s one of the scariest I’ve seen in a long time. It shows an overlay of what happened in the stock market in 1937 compared to 2008. In both situations, we saw big crashes, of about the exact same magnitude… then a big recovery, again of about the same size.

But what will happen next?

Well, if history is any guide, we could well have another big leg down in the stock market. That’s exactly what happened 70 years ago.

And with all of the problems left unresolved in our economy today, it could certainly happen again, especially if the U.S. dollar loses its reserve status.

http://www.stansberryresearch.com/pro/1011PSIENDVD/PPSILC42/PR