Iranian leader dismisses US currency,calling the currency "a worthless piece of paper

Iran leader dismisses US currency,calling the currency "a worthless piece of paper".

news.bbc.co.uk

Iranian President Mahmoud Ahmadinejad has suggested an end to the trading of oil in US dollars, calling the currency "a worthless piece of paper".

(visit the link for the full news article)


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[edit on 19-11-2007 by manson_322]

[edit on 19-11-2007 by manson_322]

[edit on 19-11-2007 by manson_322]

[edit on 19-11-2007 by manson_322]

Mod Edit: Fixed title

[edit on 11/19/07 by FredT]

In the latest installment of our exciting "the dollar is doomed" series, we look at Iran's perception of the value of printed cotton paper. Needless to say, they didn't believe it carried any value

Basically, even supermodels like Gisele do not wnat dollars
What do Brazilian supermodel Gisele Bundchen and the People's Republic of China and now Iran have in common? The answer, as of last week, is that both distrust the dollar.

Patricia Bundchen, the twin sister and manager of the world's top model, announced that Gisele now prefers to be paid in euros rather than dollars. Almost simultaneously, the Chinese central bank predicted that the dollar is likely to lose its status as the world's leading currency.

One could easily overlook a supermodel's currency preferences, but China is a different story. It's the beast breathing down America's neck.

The most important country in the world for the United States isn't Great Britain, Germany, Saudi Arabia, Russia or Iraq. China holds that dubious distinction, because it is also the country the US can least do without. Without its willingness to buy an almost unlimited supply of US treasury bonds, there would be no American spending miracle. Without a spending miracle there would be no economic growth. In other words, without China the US superpower would lose a significant share of its economic clout.

So far Beijing has behaved like the benevolent shopkeeper who willingly extends credit to his customers. The Americans receive shipments of Chinese-made television sets, toys and underwear, but the Chinese do not import a comparable volume of US goods. The gap between buying and selling amounts to about $5 billion every week.

but with USA trying to impose its hegemony on China , the chinese govt has sent the message to USA(the Chinese central bank predicted that the dollar is likely to lose its status as the world's leading currency.)
that USA is dependent on it and if USA acts smart , then it will face devastating consequences

For the United States, a Chinese decision to abandon the dollar would be tantamount to Pearl Harbor without the war. It would represent a challenge to the world's biggest economy by the world's fastest growing economy. Millions of people would see their standard of living suffer as a result, and American self-confidence, already shaky, would crumble even further. The United States would suffer a serious blow on its very own turf, the economy.



news.bbc.co.uk
(visit the link for the full news article)

[edit on 19-11-2007 by manson_322]

[edit on 19-11-2007 by manson_322]

In reality, he is very very correct.

Our money is backed by absolutely NOTHING as a result of the Federal Reserve Mafia coup that took place in the earlier part of last century.

The real shame is, most Americans don't even seem to realize this.

Jasn

I would love to see Bush's face on the $1 bills. That would be great!


Then, I would buy about 7'000 $1 bills to train my family on the use of new toilet paper.

I, personally would love to smear Bush's smirk with something cleaner and better smelling than his blatant lying!

Thank God I am not in America, and I can speak my mind, since we, here, don't have the 'right kind of democracy' like in the US.

Originally posted by ignaciobeltran
Then, I would buy about 7'000 $1 bills to train my family on the use of new toilet paper.

That sounds like an expensive proposition. There are starving kids in Ethiopia. Finish your beer!

On topic, I don't think it would really affect the dollar much, Ahmadinejad saying these things. It's not like Iran is trading a lot with the US. By the way, to the OP -- good intro. Refreshing to read something more than a couple of lines of thought in the news submissions

I wonder how much of it he was paid to play his part in the upcoming showdown....

Originally posted by SimiusDei
In reality, he is very very correct.

Our money is backed by absolutely NOTHING as a result of the Federal Reserve Mafia coup that took place in the earlier part of last century.

The real shame is, most Americans don't even seem to realize this.

Jasn

Our money is backed by absolutely NOTHING as a result of the Federal Reserve Mafia coup that took place in the earlier part of last century

could you tell me how this happened

reply to post by SimiusDei


That's an oversimplification of the issue. Why does gold have value? Why do Monets have value? Why does quartz not have value? Because the market deems it to have value or not. The government can no more arbitrarily conjure currency than I; it has a value because the free market deems it to have value.

The problems with the dollar are not so related to the fact of the dollar, which has been around for years, but more to increasing consumer debt and worries about stability in the US and abroad.

Meanwhile, if they were to go to another currency, they would probably go to another major currency like the Euro, most of which are fiat currencies, so I don't understand what the point here is.

This is exactly the point. the Euro is no better than the dollar. Infact, the ECB is doing the same thing as the US. Euro money supply is growing more every year and there is a huge division growing where there are more extreme poor people, looking for govt program $$ and extremely rich in europe. This division is growing bigger every year. I would rather be in the US during and imploding credit and housing market, than be in Europe during social recession.

All any currency is ment to be is a medium of exchange, with a temporary store unit of value. With the world expanding and becoming more globalized there’s less incentive to hold onto cash and more incentive to invest, hence the vast storm out of dollars into investments. The closest thing that is not a fiat currency or an expansive investment is gold. This cycle will go in and out randomly years apart.

The dollar might keep going lower and I’m sure people love the anti-americian/bush tie to its situation right now, but when the world economy contracts, the dollar will rise again.


[edit on 19-11-2007 by psperos]

Originally posted by psperos
This is exactly the point. the Euro is no better than the dollar. Infact, the ECB is doing the same thing as the US.

Hardly any currency is "backed" by gold these days as it limits supply. Hence why everyone dropped the gold standard. The increase in money supply enabled economies to grow. An increase in supply shouldn't be taken as a sign of weakness, but instead, comparing the value of the currency and what you can buy with it is a better indicator.

Originally posted by psperos
Euro money supply is growing more every year

As is every currency in the world. Your point? More people are using euro's now, so supply has to increase otherwise the value will rocket and the whole thing would fail.

Originally posted by psperos
and there is a huge division growing where there are more extreme poor people, looking for govt program $$ and extremely rich in europe. This division is growing bigger every year.

Really? Where? Care to furnish some facts and figures? or perhaps you have a personal expierience? the reason I ask is that we are seeing standards of living rise year on year, with improvements to services and, generally speaking, growing economies.

We still have an industrial base in Europe too and don't owe the Chinese trillions of Mickey Mouse Fun Bucks.

Originally posted by psperos
I would rather be in the US during and imploding credit and housing market, than be in Europe during social recession.

Social recession? Explain. If it means less spending on social programs, then I think your off the mark. The Uk NHS has seen massive increase in investment over the past decade and received even more money this year.

Originally posted by psperos
All any currency is ment to be is a medium of exchange, with a temporary store unit of value. With the world expanding and becoming more globalized there’s less incentive to hold onto cash and more incentive to invest, hence the vast storm out of dollars into investments. The closest thing that is not a fiat currency or an expansive investment is gold. This cycle will go in and out randomly years apart.

Agreed.

Originally posted by psperos
The dollar might keep going lower and I’m sure people love the anti-americian/bush tie to its situation right now, but when the world economy contracts, the dollar will rise again.

Fail to see your logic there.

America exports little of value. I cannot remember the last time I bought a product made in the USA. The only thing holding the dollar up is the need for every country to hold billions in reserves in order to buy Oil.

If the oil producing countries switch to a different currency, then the supply of that currency will be squeezed, pushing up it's value.

On the flip side, there will be a glut of dollars on the market no one needs anymore, so it's value will fall as everyone will be looking to dispose of their reserves. Seeing as there is nothing backing the dollar and America produces little of note, then the dollar will sink, regardless of what the world economy does.

Originally posted by SimiusDei
In reality, he is very very correct.

Our money is backed by absolutely NOTHING as a result of the Federal Reserve Mafia coup that took place in the earlier part of last century.

The real shame is, most Americans don't even seem to realize this.

Jasn

I have often wondered whether the U.S. Fort Knox gold depository is still guarded to prevent anyone from learning that the gold was long ago sold off on the world market. It is probably empty, or filled with worthless gold tinted brick instead of gold bullion.

reply to post by manson_322


He can carry all the Euro coins he can but when that paper sinks
he'll be sorry at the new exchange rate.

Sucker for the Illuminati gangster bankers.

Fool and we know it.

reply to post by TheAvenger


evidence???

Originally posted by Beachcoma




On topic, I don't think it would really affect the dollar much, Ahmadinejad saying these things. It's not like Iran is trading a lot with the US. By the way, to the OP -- good intro.. Refreshing to read something more than a couple of lines of thought in the news submissions

thanks

he's absolutely right. our dollars are worthless. in so, we should start using gold currency. make the world change their views.

reply to post by Togetic


And ALL currency that is backed by NOTHING is a bad idea.


That is, of course, unless you WANT it to become completely worthless over time.


Now, anytime the government needs extra money printed, the Federal Reserve authorizes it and then it is printed and distributed WITH interest.

Can you tell me what exactly it is that WE, the American people, pay the interest FOR? The money is nothing but debt.

It's the same as if I were go go to the store, buy a pack of printer paper and come home and run off my own version of hundred dollar bills. They would, technically, hold he exact same value.


There is a reason why people feel the gold and silver standards are good ideas. It's because money based on these standards is LIMITED thus preventing an economic failure. Instead, we have currency that is run off by the truckload and has absolutely nothing backing it up.

It's like someone who has perfect credit getting as many credit cards as he/she can. Eventually, they will be completely bankrupt with no hope of EVER recovering from the debt.


Every time you hear about the national debt, you are hearing about a FAIRY TALE! The debt is based on something that is not there.


Jasn

Originally posted by SimiusDei
reply to post by Togetic

 

And ALL currency that is backed by NOTHING is a bad idea.

But the currency is not backed by "nothing," it is just not backed by a solid commodity. That's the difference. Intangible things have value all of the time. When you sell a business, you sell the "goodwill": the value of the relationship built up with the customers. Technically, this is "nothing," but still has value. Likewise, a promise could not be legal consideration because it has no value.

Imagine that two people, A and B, each offer to sell you a voucher. Each voucher gives you the right to go into A and B's house and take their television (each has the same television). But you know that A is near bankruptcy and B has no financial problems whatsoever. Which voucher is worth more, A or B's? Under your rubric, they are both of equal value because the risk involved with A's voucher (that he will go bankrupt and have to sell his television before you can claim it) has no value. The voucher is simply worth one television. Naturally, B's voucher is going to be worth more because you are confident that B will be able to deliver the goods when the time comes. And this is the essential element that you are ignoring: that confidence in the supplier is an immutable element of any currency. A gold standard tries to blunt that economic, market reality and leads to greater problem.

Furthermore, even currencies on a pegged standard have problems also. See the Asian fiscal crisis and (as I recall) the Argentinean fiscal crisis for examples.

There is a point when a pegged currency is important. That is when you are faced with the choice of currency stability and hyper-inflation. But it is meant to be a temporary fix.

As a final point, if we care about the free market, doesn't it make sense to have fiat currency that is independently valued by the market instead of having its value pegged to a commodity?

Originally posted by ignaciobeltran


I, personally would love to smear Bush's smirk with something cleaner and better smelling than his blatant lying!

Thank God I am not in America, and I can speak my mind, since we, here, don't have the 'right kind of democracy' like in the US.

You do realize that you could say exactly what you just said in the U.S without getting penalized, right? Do you know anything about our country?

Originally posted by Herman
You do realize that you could say exactly what you just said in the U.S without getting penalized, right? Do you know anything about our country?

I hope that was sarcasm.....

As I have heard several stories of people who've been arrested for posting against Bush on message boards, to Alex Jones being arrested for trying to ask Bush a question..

At least here in the UK, we can throw eggs, get into fights and generally harangue our Politicians without fear of arrest....

Why does that statement seem all too familiar?.. that the dollar is just a worthless piece of paper

“I don’t give a godd@#n,” Bush retorted. “I’m the President and the Commander-in-Chief. Do it my way.”

“Mr. President,” one aide in the meeting said. “There is a valid case that the provisions in this law undermine the Constitution.”

“Stop throwing the Constitution in my face,” Bush screamed back. “It’s just a godd@m*ed piece of paper!”
www.capitolhillblue.com...