Are Iran, Russia, China behind dollar's free-fall?

Are Iran, Russia, China behind dollar's free-fall?

www.worldnetdaily.com

WASHINGTON – The hottest selling book in China right now is called "Currency Wars," which makes the case that the U.S. Federal Reserve is a puppet of the Rothschilds banking dynasty and it has persuaded some top officials Beijing should resist America's demands to appreciate its own undervalued currency, the yuan.

(visit the link for the full news article)


Related News Links:
news.yahoo.com

Related AboveTopSecret.com Discussion Threads:
China threatens 'nuclear option' of dollar sales
Is China declaring war on America?

[edit on 2-10-2007 by OBE1]

mod edit: Yahoo link fixed and deleted an expired link from Financial Times


[edit on 10/2/2007 by Gools]

I read about the publication of this book; Currency Wars a few weeks ago, but I wasn't fully aware of it's apparent popularity and influence in China, until I read this article today.

Here's an additional link to a piece carried in the Financial Times last week that gives some background on the book and it's author, but that seems to focus mostly what some consider to be the book's anti-Semitic slant. While this is an interesting angle in itself, and certainly open for discussion, since I haven't read the book, I prefer not to comment on this aspect. Instead, I'll just say that I believe that the Federal Reserve works at the behest of the US Government, primarily in favor of elitist banking interests whose goals don't necessarily coincide with the best interests of the majority...and move-on to address the broader topic of possible political retaliation via currency diversification.

I don't know if it was posted here on ATS over the weekend or not, but the Chinese did officially launch their new $200BB investment fund on Saturday. With the US congress and Beijing increasingly at loggerheads over trade/currency issues, the immediate concern is China's continued support of US Treasury purchases.

I expect to see at least 'limited' economic warfare, and I remain in the camp that believes an 'all-out' currency war would favor China in the long-run, due to the expanding economies of developing countries...especially the impressive B.R.I.C. block.

I also included a link to related news today, that pertains to Iranian oil sales, and US/Iranian relations. A high ranking Iranian oil official states that the country is now selling 85% of it's oil production in currencies other than Dollars...with the remaining 15% soon to follow.

www.worldnetdaily.com
(visit the link for the full news article)


[edit on 2-10-2007 by OBE1]

Scary stuff!! Don't forget to Digg it so it gets more attention, publicity is the only way to inform the ignorant masses and encourage them to do something about it... like VOTE RON PAUL!!

digg.com...

And while you're at it, educate yourselves too!

Money, Banking, and the Federal Reserve

Google Video Link

Freedom to Fascism

Google Video Link

[edit on 10/2/2007 by sp00n1]

[edit on 10/2/2007 by sp00n1]

yeah the man behind the freefall is non other than ben bernake...


what a crime...
glad my money is in gold

reply to post by TheRepublic



Chopper Ben? The guy that threatened inflation by dropping Ben Franklins out of swarms of helicopters over the entire country?!?!? NO WAY!!

When it comes to the dollar's decline there's plenty of finger pointing to go around:

- there was the Is China Quietly Dumping US Treasuries? story recently;

- "Bubbles" Greenspan has been talking down the dollar and announcing a recession to anyone who would listen;

- Helicopter Ben is living up to his nickname.

- don't forget Saudi Arabia who refused to follow the FED in it's rate cut (Fears of dollar collapse as Saudis take fright) and now we have this story: Saudi foreign assets slump to $248bn

RIYADH: Saudi Arabia's official reserves excluding gold declined and net foreign assets held by its central bank showed a rare drop in August as the world's largest oil exporter battles the repercussions of the dollar's fall.

"It could mean that instead of strengthening Sama's foreign asset position, some of the money might have been repatriated," he said.

"Saudi is selling oil at a high price and they are getting excellent receipts for that, and that money might have not been placed in the central bank's net foreign assets".

Khan Zahid, chief economist for Riyad Bank, said the drop in net foreign assets might have nothing to do with oil receipts. "If anything they would have gone up since oil prices are hitting record levels," he said.

One analyst, speaking on condition of anonymity, said the dollar's fall and the subprime crisis in the US contributed to the decline in Sama's assets.

So during a time of record oil prices, Saudi Arabia is not building it's currency reserves. They are actually declining! Anybody who knows anything about the the petrodollar will understand the monumental significance of these developments with Saudi Arabia.

In a situation where everyone who is holding US currency is "loosing value" the first one out of the door is the lesser looser while anybody who waits too long ends up the biggest looser. Iran is 85% of the way there, Venezuela made the move long ago, Russia as well, and now the big boys are on their way out the door.

I think Japan is about the only country left with large dollar reserves that is not showing signs of running for the doors. Then again, there's that whole unwinding of the yen carry trade thing to worry about...
.

reply to post by sp00n1


i think there may be some crediability to his theory though, in reality...
just as long as his helicopter is postitioned over my house...

Chinese buy into conspiracy theory
By Richard McGregor in Beijing

The Battle of Waterloo. The deaths of six US presidents. The rise of Adolf Hitler. The deflation of the Japanese bubble economy, the 1997-98 Asian financial crisis and even environmental destruction in the developing world. Link

I apologize for not having the skills to replace the faulty Financial Times link in my initial post. My thanks to the Mod for cleaning it up

The above FT piece is where you can find a little background info on the author. That Mr. Song Hongbing's book may actually have an influence on high level Chinese economic policy is, well, kinda mind boggleing. Even he says: “This book may be totally wrong, so before the next one, I have to make sure my understanding is right.

I guess this underscores just how isolated the Chinese have been.

So, critics of the book deride it as a kooky, anti-semitic conspiracy theory? There's another really kooky conspiracy theory out there too!! It states that the Rothschilds, who bought Rueters News Service and The Assosciated Press in the 1800's, have used their media empire for over a century to deride all of their critics as being anti-semitic even when their critic's arguments are based on nothing but sound economics and history!

The Rothschilds are the richest people on the planet, by far richer than bill gates. Their empire is estimated to be around $500 trillion in bullion, central bank shares, and class A shares in companies like Shell Oil and GE (which owns NBC).

They own and operated the London Bullion Market Association which essentially allows them tremendous influence over the price of gold.

Originally posted by TheRepublic
yeah the man behind the freefall is non other than ben bernake...

what a crime...
glad my money is in gold

Benny & the Ink Jets.

Lets not forget his predecessor, who bore the same responsibility as Ben: To maintain full employment with low inflation while maintaining the value of the currency. Before he took charge of the Fed, Alan Greenspan wrote things like:

In absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as the protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard. A free society needs the rule of gold. - 1966

After having made 11 consecutive rate cuts in 2001, and openly encouraging the subprime mortgage industry during his tenure, he was more apt to write things like:

Innovation has brought about a multitude of new products, such as subprime loans and niche credit programs for immigrants....Where once more-marginal applicants would simply have been denied credit, lenders are now able to quite efficiently judge the risk posed by individual applicants and to price that risk appropriately. - 2005

Hold-on to your stomachs...we're going back down.



I get more common sense and consistency from wild-eyed gold-bugs with dirt under their nails from making those midnight, backyard vault deposits

reply to post by Gools


On an off note Gools, gotta say I love reading your analysis on econmic concepts.

Always keep my eye out for the frog during these threads, thumbs up.

The OTC derivatives 'crisis' still confuses me. Where does this fit into the dollar slide, or is it more a global issue.

I've heard of upwards of $30 trillion of potentially worthless paper floating around.

Sure makes my overdraft look insignificant

Would think China's going to be somewhat careful messing in the US Dollar arena. The US has provisions for anti-dumping Duty which could be used against imported Chinese made goods. Making the ITEM cost of exporting from China to the USA more than reasonable. The consumer result being a far higher retail price, compared with even locally made goods.

Of course there's a concern there too as, if the raw materials were shipped from the US, Mexico or Canada to China it get's technical and some cases may still be classified as goods made in a NAFTA Country.
That wouldn't allow for anti-dumping Duty levied against the products which were assembled or even modified and assembled in China.

Dallas

Hasn't the trend for the last 25 or so years been a gradual decline in the worth of the US dollar anyway? With the current economic policies in place, these have probably only exaggerated an already existing trend.

Although, with China and Russia both being no friends of the IMF and having currency to spare, I wouldn't be surprised if they were working to weaken the dollar, with intent to create their own parallel loans system similar to that of the IMF. The idea has been floated a couple of times in academic and think tank circles as a possibility.

This in most respects is self inflicted by our own country. I mean just look at the way this administration is spending as though the federal reserve is their own personal bank. When ever they get into a bind with currency and the market woes they just print off more money. Does this not eventually deflate the dollar? I am not up on my economics.

I love reading about finances and economics here on ATS. Whenever I do, I like to turn my degrees upside down.

I don't think you people know just how large the U.S. economy is. Oil is not the only commodity to look at.

But, you guys have some funny ideas and I get a big kick out of them.

Originally posted by RogerT
The OTC derivatives 'crisis' still confuses me. Where does this fit into the dollar slide, or is it more a global issue.

I think the derivatives issue confuses most of us RogerT...even the counter-parties to the transactions. Profit-by-confusion and complexity appears as strategy. The expansion of credit, like the expansion of real money, has a detrimental effect on the value of the dollar. The subprime issue spread through financial sector exposing the vulnerability of OTC credit risk-transfer contracts...the derivatives associated with these less-than-prime mortgages. Like you said, this unregulated market is both huge, and global...so is the contagion.

By extension, I think what prompted the Fed to make the rather dramatic .50bp cut, and other concessions last month was the tie-up in the commercial paper market. No trust between lenders & investors. Even before the Sept. rate cut, we witnessed the beginning of a major market sell-off in August which was abruptly halted by the Fed lowering the discount lending rate...an emergency measure. The debt markets, unable to roll-over short term commercial paper, were forced to begin liquidating all asset classes in order to meet obligation deadlines. The Fed temporarily solved this 'liquidity crisis', and now they're accepting asset backed commercial paper as collateral to grease the corporate wheels & markets.

When US banks loose confidence in each other, and the Fed is forced to cut rates, foreign money losses confidence in the US...which puts further pressure on the bond markets & the Dollar. I believe that the Fed will support the banks, the markets, and the economy at whatever cost to the Buck.

Some even believe that the Fed sat back and lost control of the money supply (credit expansion) by design...engineering a softer Dollar as a way of managing our enourmous debt. Me...I'm not sure what to believe anymore except that like most debtors, we remain vulnerable to pressure from our creditors.

reply to post by OBE1


thanks for that.

I'd agree it looks like the dollar is going to be burned to a crisp in order to keep the markets going up. Looks like the Weimar Republic all over.

However, I think we are only one big scare away from another crash. Given the recent drops and massive volatility (especailly yen carry trade which was on one day, then off the next, then on again and off again several times), I wonder if the PPT can continue to provide a floor if confidence really starts to wilt. Well at least that's what I hope, cos' I'm short the dow, which is looking like a pretty silly move right now

Unfortunately I think the first place you have to look is your own back yard, after September 11th the dollar have never recovered, even the pound recovered (and actually gained some) from the attacks in London, but since 2001 the dollar sad to say has been pretty much laughed at by your average citizen, ive no idea what the big companies think, but here (at least to the people I know) the dollar is nothing more than monopoly money now, no one would ever think of using it outside the US.

Well we have to look at what is aiding our economy and that is the budget and trade deficits, right now the chief spokesman for the Euro is demanding the US to do better when it comes to the downfall of the dollar.

They are complaining that as the dollar keeps falling so the repercussions will be feel all around the world.

"Europe cannot be the area of the world's economy that will bear the consequences of others' inaction," Juncker said late Monday, Reuters reported

.

www.iht.com...

Now what I wonder is . . . Why our government seems so de-attach when it comes to the dangers of our dollar right now.

I am afraid to say that this is like been planned and encouraged, all you will hear from Washington is that the economy is just fine, people have jobs and that the deficit will be fine by 2012 it feels like our leaders seems to be betting on something that we do not know.

Our economy is financed by foreign nations, something that you do not see in the head line news is how much this financing goes around.

Our government doesn’t want to tell the American people the truth, that our economy is nothing more than an illusion of wealth, supported by debt, lies and lost of Chinese cheap imports.

Russia, China and Iran are just trying to do what they most do before they too start losing on the dollar steading decline.

Any country would dump the dollar if is for their own benefit.


[edit on 3-10-2007 by marg6043]