Fears of dollar collapse as Saudis take fright

THREAT OF SOVEREIGN WEALTH FUNDS

A NEW SAUDI SOVEREIGN FUND
Excerpt: The Saudis plan to launch a SWF fund expected to dwarf the Abu Dhabi fund and become the world’s largest. Once more, the media tells the story backwards. The Financial Times of London mentioned the wave of Asian and Middle Eastern money, “playing an active role in channeling capital to Western companies, particularly financial companies hard hit by the US mortgage meltdown.” NO! They are channeling cash as they buy capital stakes, and equity stakes. CAPITAL IS SENT TO FOREIGN HANDS. Full Text

Hailed as a panacea for our failing financial sector, this missive takes a closer look at the underbelly of soverign wealth fund investment.

Originally posted by Vitchilo
The dollar will collapse and everyone who's selling oil or have huge stock of US currency will be in trouble. IMO China will be in trouble and Russia will be the winner of this whole debacle.

How did you work that one out?

there's also the runs on the banks everywhere in the US, in UK, in France... this looks VERY BAD.

Again, same question.

If anyone wins out of this, it will be the European Union because it will likely strengthen the PetroEuro.

SWF are a intresting beast and surely a major player. Their is much political posturing and uncertainty as to where is a safe place to invest capital nowaday's. some think emerging markets. other say there is no way emerging markets will "de-coup" from the "west's slowdown". Perhaps precious metals will be invested in heavily by these SWF or perhaps they will buy bonds in "strong" currency's like the EURO?

I think that any future change to a basket of currency's by the gulf oil kingdom's would be to better match the SWF strategy's they have developed. The effect this will have on the dollar is downward , but the 10,000,000,000$ question is how much? could be minor, the effect it would have here on oil prices? i'm not sure maybe OBE 1 or St Udio could chime in.

Also as far as the $ goes, it has already gone down a good deal, and wether it goes down much more DEPENDS on it's RELATIONSHIP with other currency's and specifically their economy's. If the market thinks the ECB will cut rates then the Euro will fall (and since it makes up 58% of the dollar index) then the dollar would rally) and the same goes for the british pound (to a much lesser degree) , keep in mind if china let's their yuan appreciate that would put downward pressure on the dollar, and the same goes for the yen. However if china let their yuan appreciate prices for their exports would rise significantly and they haven't been willing to take this opporunistic (some say suicidal) step

when they (Banksters) can't increase the debt anymore (in u.s) either the big boys get out and let the thing deflate (at least in europe and america) or they short the markets before moving the "lets increase the debt game" to new emeging market's where consumers are looking to enjoy the living standards the west has had. India , China anyone the game will continue over there and when they reach their limit the bankers collect their assets as collateral and a new system is set up, and as long as it charges intrest on debt the same result will occur.

the only thing "they" are purposefully doing is creating as much debt as they can.

watch the you tube vidoe money as debt

as far as enslaving , read the michael hudson article on "the new road to serfdom" he is a prominent economist and historian.

think of serfdom as a DEBT SLAVE don't worry you can work off your debt in prison camps if worse comes to worse Jk at least i hope



"Please allow me to introduce myself
I'm a man of wealth and taste
I've been around for a long, long year
Stole many a man's soul and faith

.......Pleased to meet you
Hope you guessed my name,
But what's confusing you
Is just the nature of my game

damn bankster Usury "devils"


[edit on 16-1-2008 by cpdaman]

[edit on 16-1-2008 by cpdaman]