Author Topic: Dollar Being Isolated  (Read 7846 times)

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Offline Weisshaupt

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Re: Dollar Being Isolated
« Reply #60 on: August 29, 2014, 04:57:34 PM »
It probably would have happened already,  if the rest of the world wasn't even a bigger basket case then we are.   There really is no paper currency that COULD be the world standard at the moment.   Every one thinks the Chinese could,  but they have fundamental problems that are even worse then ours.

Well that is the thing, and every article you read arguing against the dollar loosing the reserve will say it: The dollar sucks the least. 
What they NEVER ask is "What would it take for another currency to suck the least?"
The dollar has significant play all over the world and the systems to make it easily fungible and used in world trade are already in place - and it doesn't hurt that major commodities markets - like oil - are priced in Dollars - requiring others- however briefly- to obtain dollars to buy the commodity - which is really how most countries running a trade Deficit with the US spend them..

So a better system would have to have a international trade banking system, allow the buying of major commodities directly without the need for the dollar to be involved, and  be just ever so slightly more stable and trusted than the US Dollar. 

the BRICS nations are working very hard to bring all of that about, and they are about 25%  of world GDP. If the new bank they are starting issues something similar to the Wolrd Banks's SDRs, and those SDR are based at least in part on a basket of various commodities produced or held by BRICS nations, they have a very serious chance of taking the reserve status from the Dollar.  It may not be a currency controlled by one nation - but controlled mostly by Russia and China, with input form India ..  and if every BRICS BUCK is exchangeable for a set amount of gold, silver, oil, diamonds, rare-earths etc,  then they have backed it BETTER than the dollar is backed. The dollar used to be a set exchange for gold and silver -for the FULL value of those commodities-- i.e the value of the dollar was directly related and pegged  to the value of gold and silver.  The BRICS nations can peg it to 10% of the value of that basket and it will still suck the least.

They are building it now.  At some point OPEC will announce it will price and sell Oil both in dollars and in BRICS bucks and then the real moves will happen.

Offline Libertas

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Re: Dollar Being Isolated
« Reply #61 on: September 01, 2014, 05:23:17 PM »
I agree, if a currency were to be backed by a basket of commodities then it would suck the least, but it would be stronger if it coincided with market reforms that eliminate and severely punished corruption, fraud and cronyism.  But the latter is much more problematic than the former so manipulation will still be too strong of a means to be avoided.

What is tragic is the Fed not seeing it and pushing for it itself, it may be the only thing that rescues the dollar.
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Offline Weisshaupt

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Re: Dollar Being Isolated
« Reply #62 on: September 02, 2014, 09:06:45 AM »
For everyone saying ( including Obama)  Russia is "isolated" here is a map




Quote
new Publicus

Color the BRICS nation green. I dare you.
[/url]

Offline Libertas

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Re: Dollar Being Isolated
« Reply #63 on: September 02, 2014, 11:48:54 AM »
I dare them to think they are going to keep India in the fold with the ChiCom's attacking them all the time...plus, what will the others do if Pakistan invades or their meltdown spills over into disputed territory?  What will the ChiCom's do if the Rooskies fail to deliver fossil fuel?  People act like the BRICs are the bees-knees, but it is all driven by their hatred of the US and EU...and yeah the US led by that floppy-eared buffoon Obama is an easy target and he and his ilk royally suck at everything but screwing us all over and yeah the EU is a bunch of sissy socialists willing to surrender their nation and their lives to 7th Century savages...but Russia, China, Brazil & India got it all together?

Hey look, that poop doesn't stink as much as this poop, lets herald that poop as the best!  Woo Hoo!

 ::facepalm::

PS-Africa and most of the Middle East...yeah, not the world as far as I care...
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Offline Weisshaupt

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Re: Dollar Being Isolated
« Reply #64 on: September 02, 2014, 02:12:25 PM »
I dare them to think they are going to keep India in the fold with the ChiCom's attacking them all the time...plus, what will the others do if Pakistan invades or their meltdown spills over into disputed territory?  What will the ChiCom's do if the Rooskies fail to deliver fossil fuel?  People act like the BRICs are the bees-knees, but it is all driven by their hatred of the US and EU...and yeah the US led by that floppy-eared buffoon Obama is an easy target and he and his ilk royally suck at everything but screwing us all over and yeah the EU is a bunch of sissy socialists willing to surrender their nation and their lives to 7th Century savages...but Russia, China, Brazil & India got it all together?

Hey look, that poop doesn't stink as much as this poop, lets herald that poop as the best!  Woo Hoo!

 ::facepalm::

PS-Africa and most of the Middle East...yeah, not the world as far as I care...

I don't know. Wars are expensive.  If BRICS is smart they won't start squabbling (much)  till the dollar is done and they have the reserve. Of course by then, they will have so much power there may not be a need to squabble. China I think is just trying to establish the pecking order with India, and mkae sure they understand they are in BRICS only so long as China says they are.. otherwise they will be kicked back to die with the Western Nations.
 

Offline Libertas

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Re: Dollar Being Isolated
« Reply #65 on: September 03, 2014, 07:05:47 AM »
I dare them to think they are going to keep India in the fold with the ChiCom's attacking them all the time...plus, what will the others do if Pakistan invades or their meltdown spills over into disputed territory?  What will the ChiCom's do if the Rooskies fail to deliver fossil fuel?  People act like the BRICs are the bees-knees, but it is all driven by their hatred of the US and EU...and yeah the US led by that floppy-eared buffoon Obama is an easy target and he and his ilk royally suck at everything but screwing us all over and yeah the EU is a bunch of sissy socialists willing to surrender their nation and their lives to 7th Century savages...but Russia, China, Brazil & India got it all together?

Hey look, that poop doesn't stink as much as this poop, lets herald that poop as the best!  Woo Hoo!

 ::facepalm::

PS-Africa and most of the Middle East...yeah, not the world as far as I care...

I don't know. Wars are expensive.  If BRICS is smart they won't start squabbling (much)  till the dollar is done and they have the reserve. Of course by then, they will have so much power there may not be a need to squabble. China I think is just trying to establish the pecking order with India, and mkae sure they understand they are in BRICS only so long as China says they are.. otherwise they will be kicked back to die with the Western Nations.

Yeah, perhaps I am projecting too much traditional American independence to see "knees" being a more noble choice than "death" on cultures used to being someones bitch.  I gotta watch out for that bias in myself.
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Offline Weisshaupt

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Re: Dollar Being Isolated
« Reply #66 on: September 09, 2014, 01:26:46 PM »
INteresting - China moves troops to Russian Border

I bet this is more defensive in nature.  They want to make sure Putin understands that China is not to be messed with and he better keep his attention  and sights focused on Eastern Europe

Offline Libertas

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Re: Dollar Being Isolated
« Reply #67 on: September 10, 2014, 07:15:18 AM »
INteresting - China moves troops to Russian Border

I bet this is more defensive in nature.  They want to make sure Putin understands that China is not to be messed with and he better keep his attention  and sights focused on Eastern Europe

Bingo!  You win a stuffed Panda!   ::thumbsup::

12k troops is spit in the wind for China but is more problematic for Russia, it's a subtle reminder not to jack around in their sphere.

Sure would be nice if this partnership suffered the same fate as Stalin & Hitler's little bromance...but I am not going to hold my breath on that hope...
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Offline Libertas

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Re: Dollar Being Isolated
« Reply #68 on: September 16, 2014, 07:47:39 AM »
I wonder how this factors into the China is going to kick our ass and the Yuan will replace the dollar dynamic?  Or if it really matters anyway?

http://www.zerohedge.com/news/2014-09-15/chinas-scariest-chart

I think maybe the latter.

Once again, Doc nails it -

Dr. Engali - "They can all read the handwriting on the wall. The problem is we live on a prison planet. There is no escape."


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Offline Weisshaupt

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Re: Dollar Being Isolated
« Reply #69 on: September 22, 2014, 08:30:58 AM »

Offline Libertas

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Re: Dollar Being Isolated
« Reply #70 on: September 22, 2014, 11:29:58 AM »
Russia considering investing in BRICS BONDS instead of US Treasuries.

Now who could have seen that coming?

Oh! Oh!  I know?

Not them!!! 

It will take time to see how all this shakes out...maybe we'll see a Balkanization of nations into various groups...so in place of nations in various stages of cooperartion and competition it is associations in cooperation and competition...with the useless institutions left in the dust...

It may not necessarily be all bad...not right away anyway...it will be seen if a new market for paper picks up the slack (more of the friendly paper-swapping?) or if it falls the Central Bankers to monetize away...
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Offline Libertas

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Re: Dollar Being Isolated
« Reply #71 on: September 30, 2014, 07:46:23 AM »
Yeah, this is interesting...

http://www.zerohedge.com/news/2014-09-29/europe-china-start-direct-trading-euros-yuan-de-dollarization-expands

...the part that gets me though is the clincher at the end, the Obamites want this de-dollarization, it's all part of adjusting down to the New Normal, and it incidentally makes it much easier to enslave people, hook them into accepting less and less rights, if only the keep some sort of gravy-train and easy living chugging along...

...no way this story ends anything other than horrifically!
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Offline Weisshaupt

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Re: Dollar Being Isolated
« Reply #72 on: September 30, 2014, 09:05:53 AM »
Yeah, this is interesting...

http://www.zerohedge.com/news/2014-09-29/europe-china-start-direct-trading-euros-yuan-de-dollarization-expands

...the part that gets me though is the clincher at the end, the Obamites want this de-dollarization, it's all part of adjusting down to the New Normal, and it incidentally makes it much easier to enslave people, hook them into accepting less and less rights, if only the keep some sort of gravy-train and easy living chugging along...

...no way this story ends anything other than horrifically!

De-dollarization is a destabilizing force.  Never let a Crisis go to waste and all of that.. but the Food has to come from somewhere.. and even if America remains a Viable, but diminished world power.. it can't do so for very long..  if even 1/2 of the overseas dollars come home, massive inflation will result,  and you can't pay for the "easy living" lifestyle without massive tax increases ( stifling growth and recovery ) or massive printing which simply accelerate the problem.

So its unclear to me that TPTB WANT this.  Upping the number of people on govt assistance won't help if you can't actually provide assistance- and as the dollar wanes in the world we may get to the point where our food crops are sold overseas instead of at home- because no one here can afford to outbid the foreigners switching to the new BRICS currency.

Offline Libertas

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Re: Dollar Being Isolated
« Reply #73 on: September 30, 2014, 11:19:42 AM »
Yeah, this is interesting...

http://www.zerohedge.com/news/2014-09-29/europe-china-start-direct-trading-euros-yuan-de-dollarization-expands

...the part that gets me though is the clincher at the end, the Obamites want this de-dollarization, it's all part of adjusting down to the New Normal, and it incidentally makes it much easier to enslave people, hook them into accepting less and less rights, if only the keep some sort of gravy-train and easy living chugging along...

...no way this story ends anything other than horrifically!

De-dollarization is a destabilizing force.  Never let a Crisis go to waste and all of that.. but the Food has to come from somewhere.. and even if America remains a Viable, but diminished world power.. it can't do so for very long..  if even 1/2 of the overseas dollars come home, massive inflation will result,  and you can't pay for the "easy living" lifestyle without massive tax increases ( stifling growth and recovery ) or massive printing which simply accelerate the problem.

So its unclear to me that TPTB WANT this.  Upping the number of people on govt assistance won't help if you can't actually provide assistance- and as the dollar wanes in the world we may get to the point where our food crops are sold overseas instead of at home- because no one here can afford to outbid the foreigners switching to the new BRICS currency.

I never said Obama was smart...in fact I know for a fact I've never accused him of that, or his minions...but yes, the crony capitalist PTBs have to know this is a dead end...but maybe they all plan to abscond with their ill-gotten gains and let the nation go to Hell, statist pol's get to institute martial law and sweep out whatever vestiges of liberty may remain (if any) and ride the carcass into Hell...

And as far as crop sales go...if the government bans BRICsBuxx, the option is to accept something else (gold? silver?) which doesn't matter to the farmer who will get pooched with BarryBucks...

I think we'd be forced out of all global markets entirely at some point...the Prog's will have turned us into a pariah nation ala present day North Korea...
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Offline Libertas

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Re: Dollar Being Isolated
« Reply #74 on: October 06, 2014, 07:33:46 AM »
This is interesting...

http://www.zerohedge.com/news/2014-10-05/us-dollar-about-inflict-carnage-all-around-planet

For the US, it’s now shooting fish in a barrel – but just for now. The three-pronged plan the Fed has started to execute is plain for everyone to see:
 
1) Stop QE. This hauls back in to the US dollars from around the planet, from a million parties that owe debt denominated in USD. Already happening at a frantic pace, though no-one involved would advertize it.
 
2) Raise the value of the greenback. This makes it that more expensive for all parties under 1) to pay off their debts. They have to offer ever more just to stand still. And when they can’t, assets will be confiscated.
 
3) Raise interest rates. The final blow. It will make life much harder on the US government too, but they’ll have trillions of dollars flowing in to cope with that. It’ll put millions of Americans into the equivalent of medieval torture instruments, and out of their homes and cars and jobs, but that too will be initially softened by the dollars coming home to papa. Crucial take home: they’ve given up on the US real economy, likely a long time ago.

...but I see #3 as a massive minefield...how can they raise rates and kill off the pseudo good times and not suffer politically?  Unless they see the latter as sewn up, I am not buying this strategy.
« Last Edit: October 06, 2014, 12:01:15 PM by Libertas »
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Offline Weisshaupt

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Re: Dollar Being Isolated
« Reply #75 on: October 06, 2014, 09:49:50 AM »
This is interesting...

For the US, it’s now shooting fish in a barrel – but just for now. The three-pronged plan the Fed has started to execute is plain for everyone to see:
 
1) Stop QE. This hauls back in to the US dollars from around the planet, from a million parties that owe debt denominated in USD. Already happening at a frantic pace, though no-one involved would advertize it.
 
2) Raise the value of the greenback. This makes it that more expensive for all parties under 1) to pay off their debts. They have to offer ever more just to stand still. And when they can’t, assets will be confiscated. see http://www.zerohedge.com/news/2014-10-06/barclays-warns-king-dollar-could-crush-earnings
 
3) Raise interest rates. The final blow. It will make life much harder on the US government too, but they’ll have trillions of dollars flowing in to cope with that. It’ll put millions of Americans into the equivalent of medieval torture instruments, and out of their homes and cars and jobs, but that too will be initially softened by the dollars coming home to papa. Crucial take home: they’ve given up on the US real economy, likely a long time ago.

...but I see #3 as a massive minefield...how can they raise rates and kill off the pseudo good times and not suffer politically?  Unless they see the latter as sewn up, I am not buying this strategy.

These are the steps that would need to be taken to solve the problem. I think there is ZERO chance of that happening. Is there a link that goes with this or is this your opinion of what is happening?

1) I don't think QE has ended, is ending or ever will end (before the collapse)   I think its going strong, just using different methodology.. transactions via cronies, etc. Its off the official books is all. Its primary purpose is to prevent the Dollar price of assets from falling - and it does this by artifically bidding them up using printed money. That is going to continue for the foreseeable future because the Stock Market is 100%  on life support now.  Falling prices means falling government tax  revenue and still more printing. Better to make it less obvious and continue doing it

2) Not that I think this is easily within their control, but a strong greenback means foreigners  cannot purchase our goods and services. This is what forces the "race to the bottom" thing where everyone prints more, but just wants to suck the least.  It also would encourage the adoption of other currencies for world trade as the greenback becomes harder to get for short term transactions.  If they did this it would force MORE foreclouses etc as people have to pay of inflated loans with deflated dollars. 

3) A Rise in interest rates would help savers in the long run and actually encourage investment in the United States again.  Long term this is the right thing to do.  Our govt however, is 17 trillion in debt, and while much of that has been "twisted" into longer term securities at low rates, new debt would really pile on as the Welfare system gets even more over burdened and no one can pay their mortgages or taxes ( because of the deflation..)  So you either suspend welfare and deal with the riots, or you keep kicking the can.  Our pols are either evil or stupid-- so Yeah, the stupid will kick the can.  The Evil  bring in Ebola so they can avoid the riots.

Seriously I don't see any of this happening till after the collapse... which will be different than what we have been seeing in Europe.. You won't see interest rates explode, because the bond auctions will always be successful - with money printed and handed to cronies to make it look legit. The Stock Market via clandestine QE will just keep growing. Tax revenue will keep hitting new records, because price inflation is going to make your profits look fantastic.. even though your margins are shrunk to zero and the Graham Cracker boxes you are selling  are only half full.

No you will know the collapse has arrived because suddenly welfare and Social Security  payments are "indexed to inflation" and adjusted every six months, then every month, then every week.  You know, providing all of the non-contributing zeros and euthanize-able 75 year olds aren't already dead of ebola.

But I think this ebola outbreak, now, at the point where our Southern Border has collapsed and in the second half of Obama's second term are all you need to know about what is coming.  The economic collapse has now been rendered moot for us.  They are using a bio-weapon to exterminate us, and there is very, very little that can be done to stop it.  The elite have had their immunizations, and whatever 1 out of five of the population survives (which leaves 1.5 billion)  can be culled under martial law as required to preserve skill sets to reach  the desired 500 Million. Its game over. NWO wins.   Enjoy the time you have left.

 
« Last Edit: October 06, 2014, 10:15:56 AM by Weisshaupt »

Offline Libertas

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Re: Dollar Being Isolated
« Reply #76 on: October 06, 2014, 12:00:58 PM »
Oops, sorry...here is the link - http://www.zerohedge.com/news/2014-10-05/us-dollar-about-inflict-carnage-all-around-planet

I just pasted the conclusion this Raul guys came up with, and I agree with your economic analysis completely and hope your depopulation theory is wrong, if there is to be any depopulation efforts it should be by liberty-minded people wiping out the rest!

I'll add the link back to my original post.
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Offline Libertas

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Re: Dollar Being Isolated
« Reply #77 on: October 08, 2014, 02:45:21 PM »
Fed continues to help our enemies...beating the crap out of the dollar is winning!

http://www.zerohedge.com/news/2014-10-08/dollar-dumps-post-fomc-minutes-stocks-bonds-bullion-bid

The Kabuki Market thrives on psychosis!!!

Up, Up and Away!!!!!!!!!!!!!!!!!!
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Offline Libertas

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Re: Dollar Being Isolated
« Reply #78 on: October 13, 2014, 01:08:48 PM »
OK, now this is hilarious...

http://www.zerohedge.com/news/2014-10-13/china-russia-sign-cny150-billion-local-currency-swap-plunging-oil-prices-sting-putin

...currency swap my  ::mooning:: !   ::hysterical::

This is basically Barter Town!  The PetroRuble is CRAP!  No way do the ChiCom's want that arse-wipe!   ::laughonfloor::

The Russophile ZeroHedgers are smoking crack!  This will end up being a oil for finished goods swap for Russia & China!

And price controls?  Heh, good luck with that crap, Putin you Soviet-era schmuck!   ::laughonfloor::
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Offline Libertas

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Re: Dollar Being Isolated
« Reply #79 on: November 10, 2014, 07:40:25 AM »
8,500 tons of gold ought to be a nice basis for a currency...

http://www.zerohedge.com/news/2014-11-09/china-aims-official-gold-reserves-8500-tonnes

...but the ChiCom economy is not different than any other, it cooks the books quite nicely, and at some point it was to become a real economy or that sought-after position as new reserve currency might not be the feather in the hat they think it will be...
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