Is the U.S. Insolvent
- Thread starter Albertabound
- Start date
More on the Federal Reserve and Income Tax
http://video.google.com/videoplay?docid=-4312730277175242198
http://video.google.com/videoplay?docid=-4312730277175242198
The Condition of the Dollar
By Lindsey Williams
Global Research, March 6, 2007
Lindsey William Newsletter
There is so much to touch on regarding the dollar this month, I hardly know where to start. Regardless of where I begin, the news is not good and affects all of us.
First on our list is China. They have now announced that they are refusing to accept American Corporations purchasing into their stock market any longer as they did in the past. China also said that they are no longer going to be purchasing our securities as they have in the past, including bonds and T-bills. China's decisions and subsequent announcements at the beginning of the week has sent a panic across the World's markets.
Additionally, OPEC met recently and they have also stated they will be diversifying into other currencies instead of just the American dollar. They will now begin accepting other currencies and limit the trade of oil via the American dollar.
March 21st 2007 will be one of the most significant dates this month. Iran has outlawed the American dollar and will put anyone in jail that uses it in their country after that date. They have the ominous notoriety of being the first nation in the world to do such a thing. The real issue in Iran is NOT nuclear, but rather the decision to not use the American dollar for trade and the sale of oil. On the heels of Iran's decision, North Korea has followed suit and also outlawed the use of the American dollar in their country. Finally, Malaysia the next day did the same thing.
Central banks around the world are increasingly diversifying their reserves, including cutting holdings of American dollars, according to a survey sponsored by Royal Bank of Scotland Group PLC, the U.K.'s second-largest bank. Italy, Russia, Sweden and Switzerland have made "major adjustments" in foreign-exchange holdings favoring the Euro and the British pound, according to the poll conducted by Central Banking Publications Ltd. between September and December. "Central banks are open to saying they've been diversifying to improve returns and reduce exposure to any single currency," said Sean Callow, senior currency strategist at Westpac Banking Corp. in Singapore. There's no doubt that when they say 'diversification' they mean selling dollars.
Last week a friend of mine told me they called their bank president in Vancouver, BC and he agreed with everything I have been saying about the dollar. What amazed me the most was her comment that he told her his bank is currently making preparations for the crash of the American dollar!
My dear friends, I urge you to structure yourself and get out of the liquid dollar immediately. I suggest that you get out of stock markets and into international hard assets such as real estate, gold and other assets. Structure your family by setting up proper International Business Corporations and Foundations that will preserve your finances.
By Lindsey Williams
Global Research, March 6, 2007
Lindsey William Newsletter
There is so much to touch on regarding the dollar this month, I hardly know where to start. Regardless of where I begin, the news is not good and affects all of us.
First on our list is China. They have now announced that they are refusing to accept American Corporations purchasing into their stock market any longer as they did in the past. China also said that they are no longer going to be purchasing our securities as they have in the past, including bonds and T-bills. China's decisions and subsequent announcements at the beginning of the week has sent a panic across the World's markets.
Additionally, OPEC met recently and they have also stated they will be diversifying into other currencies instead of just the American dollar. They will now begin accepting other currencies and limit the trade of oil via the American dollar.
March 21st 2007 will be one of the most significant dates this month. Iran has outlawed the American dollar and will put anyone in jail that uses it in their country after that date. They have the ominous notoriety of being the first nation in the world to do such a thing. The real issue in Iran is NOT nuclear, but rather the decision to not use the American dollar for trade and the sale of oil. On the heels of Iran's decision, North Korea has followed suit and also outlawed the use of the American dollar in their country. Finally, Malaysia the next day did the same thing.
Central banks around the world are increasingly diversifying their reserves, including cutting holdings of American dollars, according to a survey sponsored by Royal Bank of Scotland Group PLC, the U.K.'s second-largest bank. Italy, Russia, Sweden and Switzerland have made "major adjustments" in foreign-exchange holdings favoring the Euro and the British pound, according to the poll conducted by Central Banking Publications Ltd. between September and December. "Central banks are open to saying they've been diversifying to improve returns and reduce exposure to any single currency," said Sean Callow, senior currency strategist at Westpac Banking Corp. in Singapore. There's no doubt that when they say 'diversification' they mean selling dollars.
Last week a friend of mine told me they called their bank president in Vancouver, BC and he agreed with everything I have been saying about the dollar. What amazed me the most was her comment that he told her his bank is currently making preparations for the crash of the American dollar!
My dear friends, I urge you to structure yourself and get out of the liquid dollar immediately. I suggest that you get out of stock markets and into international hard assets such as real estate, gold and other assets. Structure your family by setting up proper International Business Corporations and Foundations that will preserve your finances.
The signs are all around you, pay attention and you will clearly see it happening before your eyes. I am speaking from a Canadian view point.
Albertabound,
I'm watching the Check Cashing and Payroll Loans business here in my city. Not a bad business deal for the lender. 72% Interest is not unusual and they prey on US military personnel primarily. The debt buildup due to the obscene interest rate is phenomenal. Then the predatory mortgage business is rampant here. The money changers lobbied for big changes in banking regulation and once it completed they took off. The foreclosure rates here have tripled and now the regulators are starting to take a second look at what has been approved recently setting the stage for this to happen. But the bottom line is still a electorate who has turned a blind eye to this and as we are now seeing, our veterans are being shunned too. Even as a vet I refuse to seek treatment at any Veteran's faclity because I demand to be seen by physician's who earned A's & B's in Medical School and speak English.
The figures are being very carefully manipulated by those now charged with shepherding our economy and the numbers they release do show glowing improvements but I feel it is all just lipstick on the pig. If the recent request for additional billions is approved the debt situation will get worse. There is a ceiling and I think we're getting closer to it too.
I'm watching the Check Cashing and Payroll Loans business here in my city. Not a bad business deal for the lender. 72% Interest is not unusual and they prey on US military personnel primarily. The debt buildup due to the obscene interest rate is phenomenal. Then the predatory mortgage business is rampant here. The money changers lobbied for big changes in banking regulation and once it completed they took off. The foreclosure rates here have tripled and now the regulators are starting to take a second look at what has been approved recently setting the stage for this to happen. But the bottom line is still a electorate who has turned a blind eye to this and as we are now seeing, our veterans are being shunned too. Even as a vet I refuse to seek treatment at any Veteran's faclity because I demand to be seen by physician's who earned A's & B's in Medical School and speak English.
The figures are being very carefully manipulated by those now charged with shepherding our economy and the numbers they release do show glowing improvements but I feel it is all just lipstick on the pig. If the recent request for additional billions is approved the debt situation will get worse. There is a ceiling and I think we're getting closer to it too.
Whatever the numbers are the biggest US Defense cobtractor during the Iraqi war is Kellogg-Browne-Root who is wholly bowned by halliburton who just announced they are moving their entire operation to Dubai. The WSJ intimates that this may be because the IRS knows exactly how much KBR has made during the war and is expecting to tax all of that amount and Halliburton is angry. If all of the big guys pull out like this who will be left to pay down the debt? The daily amount of the national debt grows exponentially.
The debt is always an interesting creature. A lot's written about it, appropriate tears shed, arrows loosed, expletives thrown. But it never seems to matter. A householder could never accomplish the debt feats a government does and yet we're always told even governments must operate within the real world. Looks all like AI to me anymore.
no way
that's huge. its got inflation written all over it.
any of the bond bores out there have an FP or Bloomberg on that?
I cannot tell, my ball has clouded over with the mist of time, the spirit of the orb requires an offering of small fluid denominations.:smile:
no need to rush to barter just yet, but it would be nice to know the details of the announcement the newswire reporters would be too stupid or too whipped to mention. like whether China plans to call or turnover what they have in reserve as it reaches term.
I rushed to barter a long time ago, tax havens come in all sizes, the blind rarely get paid.I don't do details, but if economics is a function of conquest, and it is, then I would expect the Chinese to exercise the upperhand as soon as they have a clear shot.:smile:
not yet
the battle between good and evil in the Pacific Rim plays out over Taiwan with the balance of power out of Japan. that won't be for a while yet.
best article I've dragged up so far is this one...
http://fe4.news.re3.yahoo.com/s/ap/...s&printer=1;_ylt=Aod1gh7hE3OaJVAAMZYFHVJv24cA
investor jawboning aside, so far it looks like the Williams article overstates its case. not that the move isn't significant.
the battle between good and evil in the Pacific Rim plays out over Taiwan with the balance of power out of Japan. that won't be for a while yet.
best article I've dragged up so far is this one...
http://fe4.news.re3.yahoo.com/s/ap/...s&printer=1;_ylt=Aod1gh7hE3OaJVAAMZYFHVJv24cA
investor jawboning aside, so far it looks like the Williams article overstates its case. not that the move isn't significant.
The decxision by the Chinese should come as no surprise to any of us in the west. they are protecting their markets and right now their trump card is they are the principle holder of US Bonds. It is apparent to me that the pressures placed on them by countries in the west to reevalute their currency standards and practices is clearly regarded as unwanted intervention. They have the one thing the big investors want. Cheap labor and lot's of it too. The largest producer of GM vehicles is China. The largest producer of Toyota vehicles is the US but the money goes back to Japan. China is seriously interested in the German intention to divest itself of the Chrysler Motors and may well become the next owner. if so, the Chrysler jobs will go to China also.
Why not Albertabound. The fire sale last weekend of Bear Stearns was hastened when the investment bankers found out China has its group ready to buy it out with some US cash it has in its National Bank. It is common knowledge that there are those hired by the Chinese to ferret out any available US monetary institutions or valuable harge properties in the major cities are on the prowl. They are investing heavily in San Francisco, San Diego, Phoenix, New Orleans and Biloxi. So I'll bet they are ready to do business in the other major cities as well. This upsets the money changers who do not like the cavalier attitudes of the Chinese who have their own code of ethics and investment prowess which in no way allows the westerners to look inside. Now Indian, Indonesian and Venezuelan groups are shopping here too. The foreign money market cannot afford to let the dollar sink too badly but they have no control over the rampant spending the US government is doing currently. The President is now standing at the podium and reminds me of the Emporer who had no clothes on. Everyone of his group patronizes him while he is literally in the dark. He isn't noted for his wise investments. It all came to him from older and wiser family members.
The sale of Bear Stearns had nothing to do with China. China already had invested capital in Bear Stearns and was ready to invest more.
Sovereign wealth funds have already invested nearly $100 billion in US financial companies because of the debacle in the mortgage market, all of it which is at a significant loss. Had that capital not been forthcoming, the credit crunch would have been worse.
The Fed forced the sale to mitigate counterparty risk - i.e. to ensure that parties on the other side of derivative contracts were made whole. Counterparty risk is probably the greatest threat to the financial system.
Sovereign wealth funds have already invested nearly $100 billion in US financial companies because of the debacle in the mortgage market, all of it which is at a significant loss. Had that capital not been forthcoming, the credit crunch would have been worse.
The Fed forced the sale to mitigate counterparty risk - i.e. to ensure that parties on the other side of derivative contracts were made whole. Counterparty risk is probably the greatest threat to the financial system.