Meltdown of U.S. Dollar Underway as China Dumps the Currency

I would have to wonder if the UN will get involved with this. It does seem that the world needs to have just one world trade currency and value. It would be interesting to hear the view from a real world financial analyst.

UN currency? World Bank? will this banks money only be virtual in cyberspace? It sounds like the begining of the NWO to me.

1) America's labor produces large corporations,
2) The rich buy up those corporations,
3) The rich move their labor sources overseas,
4) Americans lose their jobs.
5) There is no place to go to work here, because the companies we built have moved overseas.
6) The money makers aren't spending money hiring Americans at decent wages anymore,
6) Our dollar weakens,
7) Our productivity stops,
8) We enter a depression.



What caused this? The companies we built are owned by wealthy traitors with no sense of patriotic loyalty, not the people who did all the work to build them and make them profitable. Now they have all the money to hire people, and all the places people work.

And the people who deserve credit for their existence are left hanging in the wind.


Unless we re-define the terms of ownership of these giant corporations, they will abandon us all and let us starve. They are the infrastructure on which we base our economic prosperity. When they leave town, the rug is pulled out from under us.

reply to post by aleon1018


Here's an article on what effect "Free Trade" and world currencies will have on the masses:

www.appropriate-economics.org...

Or how about brining back all of the industries that, our governement let go to china or mexico. We don't need material possesions to be happy, so if you could deal with being broke for a few years while Industry gets re-established I think it is something good to get behind.

reply to post by CTrider

You do know that prices can be changed?

Right, if using my example how a $20k car is now worth $15k in respective currency exchange, the car would then be $25k which then, regardless of currency exchange sales will drop and the company goes bankrupt anyways.

You remember the US Japanese trade wars?

A devalueing American currency will result in international trade wars as price inflate to keep pace with currency exchanges.. eventually stiff tarrifs could be placed on products competing with American products (any nation for that matter) trying to keep inflation down. Which the result would be hyper inflation as prices rise to kill tarrifs.

A company like Toyota or Honda cannot raise their prices when competing for consumers who have no money.. Inflation typically means a rise in prices on goods, but also an influx of money to the consumer... here we have inflation without wage increases.. prices are not being driven by more people with more money able to buy twice as much as they once could.. instead, prices are rising because of fear, because of supply and demand.. so NO.. Toyota cannot feasably raise prices everytime the US dollar drops a pt.

First of all, if China would choose to dump their USD reserves for EUR it would theoretically be perfectly possible. Why wouldn't it? They just dump it in Forex markets and watch how low the dollar will drop before the order is completely filled.

OK.. no. If China dumped 1.4 TRILLION dollars into the Forex market, the dollar would drop so far in comparison to other world currencies in a matter of seconds China would have lost well over halfof its entire wealth..

And they still have to sell their products and services for Dollars..

Now, they can stop excepting dollars, but that does not make sense either.

The only thing China can do to save its self for being in bed with America, is to push trade with Europe.. which it has been .. moving away from America and towards Europe until China its self opens as a market.

Which with its growing middle class, it is.

Whispers of “conspiracy” have inevitably arisen inside China. Wang Yuanlong said that he would not entirely rule out the possibility that the US had purposely promoted USD depreciation, as this was much the same as repudiating debts. “Developing countries earn dollars by exporting precious resources, while the US only needs to keep the printing presses rolling. The US dollar owned by foreigners is actually a kind of debt,” he said.

Wang Yuanlong thinks China has reason to ask developed countries, the US in particular, to implement more responsible monetary policies. The current global economic slow down and financial market fluctuation are closely related to policies within the US. And since the USD is the global exchange currency, if the US allows USD depreciation, say, as a method of debt alleviation, then other countries will be seriously harmed.

As for whether the US government should bailout its markets, Morgan Stanley's Asia Chairman Stephen Roach declared that fund injections and interest rate cuts would only produce new asset bubbles and further reduce people’s willingness to deposit money in US banks, resulting only in a longer economic recession.

Source;
www.chinastakes.com...

Three years ago the US informed China that they under minded the value of the Yen. Hence putting drastic pressure on trades between the two countries. I guess this is the US's response to China not complying... Not sure about the US.. but in Canada no one owns any property. It all belongs to the government who can seize property when it falls under a certain condition..

Ok..found some info about states.. and whether one can "lose" their land.

The U.S. Supreme Court's 5-4 decision last Thursday upholding local governments' eminent domain rights to seize property for private economic development purposes should be an alarm bell for homeowners, Realtors and builders around the country.

source
realtytimes.com...

So.. hmmm so those foreign powers who think they can buy American assists with American dollars who think they can turn their liquid assets to something tangible are being setup yet again if they buy land. I'm sure someone more inclined in this area may be able to elaborate.




[edit on 15-4-2008 by Willbert]

The US inflation rate is about twice as high as the government’s inflation measures report. In order to hold down Social Security payments, the government changed the way it measures inflation. In the old measure, inflation measured the nominal cost of a defined standard of living. If the price of steak rose, up went the inflation rate. Today if the price of steak rises, the government assumes that people switch to hamburger. Inflation doesn’t go up. Instead, the standard of living it measures goes down.

This is just one of the many ways that the government pulls the wool over our eyes.

I watched "Sicko" over the weekend for the first time. It was an eye opener to say the least. As I was watching it I came to a realization that the only way America will change its ways is if there is a revolt on the ruling powers. Law is put in place to protect those in power. If and when there is a revolt.. those in power could take an extended vacation and let the whole go down the tube until the people come back crawling and begging for guidance. The US is so dependant on others governing them that they will never learn to rely on their nabours for assistance. That would go against the American dream of prosperity... To prosper it so milk others for their cash.. be it clients or owners.... It’s not like the old days when we all knew how to live off the land.. when those stores are barren... the sheep will be looking for a Sheppard...

hmmm sorry if this went off topic there.. it's all tied in.. there is no easy solution and someone will be holding the bag when this is all over.. the question is who?

Now Russia is reportedly cutting back on its oil exports.. they say it's climate.. or is it on purpose to drive oil prices higher.. futher devalueing the US dollar.

Yippy skippy, crash baby crash, crash and burn. Cheating depreciating funny money. Slave certificates are what they are. Do yourselves a favor and burn that nasty stuff before you condemn your descendents, your own children, to pay for your party here on Earth.

From an ecological standpoint, a planet wide economic collapse is a tree huggers dream come true. And I'm a tree hugger. And a dreamer too. Crash baby crash!

Lets shut down this rampant industrial rape of the Earth era with a massive planet wide economic crash, and free the slaves. (don't worry about starvation, the smart and the strong will survive)

It's all cheating worthless funny money. I fully support any effort to help crash the dollar, break the banks, and bring humanity and their out-of-control party to a grinding halt! (thank you China ~ dump the dollar!)

24-Mar-2007
The Coming Economic Catastrophe By Whitley Strieber

....It is that China has decided to stop buying US debt. This means that a huge purchaser of US treasury debt is no longer there. But that is only the beginning of the problem. Last week, when the US Federal Reserve announced that American interest rates would remain unchanged, the dollar immediately dropped to a 2-year low. This means that countries like China, loaded with US debt and thus US dollars, suffered a tremendous loss. China is seeking to protect what is actually a hopeless position by no longer buying into what is obviously a collapsing currency.

China’s decision is the equivalent of the Federal Reserve raising interest rates in the summer of 1929—a act with consequences that will be heard round the world, and will change all of our lives. The US media has the economic consciousness of a flea, so you won't hear much about it, unless the Administration tries to put pressure on China to resume buying. That's not a fix, though, it's just a delaying tactic, and probably only a brief one, because it places the Chinese currency in jeopardy. China has done what it has done because it has no more capacity to absorb US debt. As it is, it has a trillion dollars to sell into a market that is already glutted with dollars.

www.unknowncountry.com...

i've discussed this in the thread www.abovetopsecret.com... this began in 2007 and it has come back to slap us in the face

Originally posted by Karlhungis
reply to post by LostNemesis

 

I was thinking the same thing. My (albeit limited) understanding was that China and Saudi Arabia were pretty much the last 2 countries keeping us afloat.

I don't know what the end result of this mess will be. It doesn't seem like it will be good for any of us though.

You don't know what the end result will be?

Think of the depression and then add martial law to the equation... You can take it from there...

reply to post by ElectricUncleSam

Think of the depression and then add martial law to the equation... You can take it from there...

A recession yes.. a depression maybe.. martial law?

May I ask why Martial law is the outcome of the US economy slowing down?

The US Dollar went up, not down, today. Although it is surely in a long-term down trend, but it is not crashing (yet).

The rich and powerful have made no secret of the fact that they are dumping the Dollar and going into Euros and other safe havens. Four of these rich and powerful are Greenspan, Buffet, Gates, and Cheney (Secretive Dick did not volunteer the info, but public officials' assets are open to view; he in very heavily invested in European bond funds).

Also, as the Fed keeps cutting interest rates, the Dollar will appear less and less attractive to foreign investors (Dollar pays lower interest than Euro), and will force it downward. The selling could cascade into a crash. As the Dollar goes down, inflation goes up for Americans (inverse relationship); Fed claims to be guardian against inflation--it is really the secret creator of inflation.

If the Dollar crashed we would have hyperinflation, at least for awhile. Hyperinflation is devastating. It is what lead to so much desperation in the German people that they embraced Hitler as their savior. Depression would be much preferable to hyperinflation, but continued cutting of interest rates take us in that very dangerous direction.


[edit on 15-4-2008 by brygivrob]

Originally posted by LostNemesis
What does this mean?? Isn't China one of a couple countries that are the ONLY thing(s) left keeping our currency from being -CRASHED-???

If this article is true, could that mean the END? I mean.. it's needed a re haul or whatever. But what more needs to happen at this point, before something drastic will happen??

Yeah, because China is the one financing the war with our worthless dollar.

Frankly, it was only a matter of time. The fed is such a tool and has been since '13. You can only inflate a currency so much.

Folks, stock up on food.

I touched on this issue of CHINA having such great financial leverage over the US Dollar back in May of 2007.
China Buys-Up US Debt At A Rate Of $15 Billion Dollars Per Month
In this thread I wrote: "China is the #2 foreign holder of US debt behind Japan. However Japan is selling-off US debt holdings while China is increasing soon to become the #1 holder. If China chose to use its financial leverage against the US it would cripple our economy.
The US national debt grows at a rate of $1.39 billion dollars per day. China buys 36% of this debt. "

Also Important related threads:
US Debt 163rd worst out of of 163 nations. China #1

Nations Abandon US Dollar - Fear Of Collapse

reply to post by Rockpuck


Rockpuck logic is making much sense.

I think you would agree with me that the last economic depression did not result in martial law. And, fundamentally, how would a government pay for the security forces during martial law if the nation was in a depression?

Diversification of reserves occur all the time, Britain has updated her portfolio with Yens and Euro's over the last few years. And, if you want to get technical, if we add up all the Dollar treasuries Britain and her colonies hold, we own more than China and (in theory) are the biggest holder.

However, this is not the "nuclear" option that China is doing. That may come later.

reply to post by infinite

That may come later.

Well lets hope it doesn't.. Some here may think WW3 will start between some Arabs and a plotted terrorist attack..

I say it starts the day China surpasses America economically.. China purposefully attacking our economy would be considered a declaration of war in America.

They tried it several months ago.. instigated a purposeful "hic-up" sabotaging their own market to observe its effects.. within hours the entire worlds markets where falling in line with what China did..

And if you recall, the American government was far less then pleased..

Originally posted by Rockpuck
I say it starts the day China surpasses America economically.. China purposefully attacking our economy would be considered a declaration of war in America.

They tried it several months ago.. instigated a purposeful "hic-up" sabotaging their own market to observe its effects.. within hours the entire worlds markets where falling in line with what China did..

And if you recall, the American government was far less then pleased..

Finally, someone agrees with the theory I developed about China creating a market sell off in order to test her economic influence over the world. Notice nothing like that has happened since Why else would the Chinese government create a rumour?

The same method is used when officials talk in public about the Dollar.

I would differ, however, and say China will start an "economic war" with America when it is the second largest economy. It will be able to cope with the fallout.


[edit on 15-4-2008 by infinite]

Smart move, the dollar is becoming less and less reliable due to the greedy elites in America.

This isn't going to be good for the already rising prices. But, on the other hand it could stabilize the economy in a way.

but seriously a down turn in the USD will mean exports will become more attractive and jobs should increase... right?

This is true. Macroeconomics

Or how about brining back all of the industries that, our governement let go to china or mexico. We don't need material possesions to be happy, so if you could deal with being broke for a few years while Industry gets re-established I think it is something good to get behind.

"Our government" did not "let go" of these industries. Cheaper labor and the growing international markets were the cause. Besides this, I agree with your statement. We need to set new goals for our economy, and this will likely make things worse before they get better. We need to set an economic agenda based upon prosperity for all, not for prosperity for some and 'economic equality' for the rest.

We need a separation of corporation and state. The state tries to 'regulate' the economy, and in turn, strangles the middle class while the larger corporations pay off the politicians(look at what happened with Bear Sterns and JP Morgan). This is called privatized profit and socialized risk. When the government gets involved with the economy, the taxpayers pay for rich people to keep their wealth. Last time I checked, I haven't seen the government bail out any small businesses at the taxpayers expense.

In America, you have a right to succeed, but also the right to fail (unless you are wealthy).

reply to post by infinite


Aigh.. the Chinese government on purpose caused their own market to fluctuate quite a bit at once, obviously seeing the effect..

And it is no secret, the West has consumed its self to death...

China however, has hardly consumed at all.. its growing middle class will over shadow Europe and America combined if free-capitalism is allowed in China.. the last untapped Human resource.. 1 billion people to sell cheese burgers, tv adds, expensive clothing and cars to..

If America is the strongest nation on Earth because we consume more then anyone else.. if China's middle class continues to grow, and America's shrinks at the rate it currently is, within 20 years China will not only be a net exporter, have its own manufacturing base, but 300 million middle class citizens to consume, consume, consume.. China will take over America...

And I don't think we American's can except second place..

In the end, I am torn on the thought of it.. I lean more to an aggressive war on America's part to ensure the massive Chinese economy does not continue its path to over take the American economy, and military..

It's been 70ish years since the last time two or more world super powers waged war.. a real war.. not a war of influence.

If I recall my history correctly, never in Human history has a lone super power in the world stood for more then 50-60 years without engaging in one or more major military campaigns against rivals that threaten it's stability..