US Embassy's Quietly Told to Buy Local Currencies!

Carl Denninger alerted me to this rumor. Apparently the Harry Schultz Letter reported:

"Some U.S. embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of U.S. cash to purchase currencies from those governments, quietly. But not pound sterling. Inside the State Dept., there is a sense of sadness and foreboding that 'something' is about to happen ... within 180 days, but could be 120-150 days."

I couldn't find the direct source, but this quote is all over the web. I didn't see any discussion here, but didn't look very hard either. If this is true, HERE IT COMES!

Here is a direct link to his write up.

market-ticker.denninger.net...

The Schultz write up is here!

www.marketwatch.com...

No doubt, something is afoot! I see a bad moon on the rise...

Probably one of the most important threads on ATS at the moment!

S+F

I have kept out of the financial discussions as strongly said it was coming for years, and knowing the real crash would be protracted and spurred on by other world events, History if anyone cares to read it shows this time and time again, also knowing a lot about the way of the markets and finances etc I have grown sick of those who live in 24 hour news and think like a film everything happens in 1 hour 20 minutes, the same attitude and lack of understanding has been displayed by many over h5N1 which when i first heard of it thought of Winter...


Financially....it's a waiting game to Stagflation, Hyperinflation or World War....

Indeed maybe the flu is an angel of mercy taking out the young, it may leave the World War option closed of to those who have used it before in similair situations.....

Flag this get it on twitter, let people know that their governments plan 180 days in advance for disaster but keep telling them all is well...

Elf

Rumors are rumors. The question is how reliable is the source?

Here's a starter:





Can anyone comment on the integrity/reliability of this Bob Chapman guy? Is he the kind who might pull a publicity stunt?

reply to post by pause4thought


Good Point Pause...

However he seems as well like you and me etc to have seen the coming crash... and the original is actually in

The Harry Schultz Letter

Which on market ticker was

Pick of the year 2008

out of all such communiques...

Which is really even though not tin foil hat territory on the fringes of Trends research in the markets etc.... and has had a stronger forcasting than any of the major analysts, and also is read within the industry....

What is being said makes sense.... I dont have time like I used to for ATS.. but if anyone has it will be apparent from the physical gold volume sells by regions and currency trades in not futures etc but hard cash over the coming month or two.....

I tend to see as the forcasters previous and many pan global calls that have been better than avarage in predictions to be a strong contender for taking this seriously indeed.

The history, events and type of claimed actions all seem to point to it being ok.

Kind Regards,

Elf.

Edit to add, I have been myself breifly watching VIX and VOX which is again getting very high showing that there is NO LONG term stability in the markets at all, all the banks are capital raising... and are continuing to do so, all the bail outs are going to them to shore them up and nothing is actually being spent on the streets from it.... a dam has been plugged but not rebuilt, and the plug used is made of something that the water behind it slowly erodes and will create a bigger hole when it goes again, unfortunately..


[edit on 25-6-2009 by MischeviousElf]

I thought that this was in response to the possible September Bank Holiday that is being proposed for world-wide participation.
Remember reading about it on cnn money news and Jubak's stock market blogs...earlier in this week.

Hmmm...does appear that there is more to it however.

Peace...

US Embassies often allow people to pay for services in local currencies and dollars. Perhaps, if true, the Embassies are buying local currencies so that they're able to better "make change". You know what I mean?

can it be confirmed

reply to post by UMayBRite!



Nice find, why do I continue to be surprised at the level of corruption that is going on in this country? You figure that by now nothing will surprise me.

I guess the real question is what will we do? As well as What can we do?

reply to post by burntheships


hmmmm
From the market watch columnist that quoted the rumor :

I've seen Schultz (rumor source) make massive changes in direction like this before, notably adroitly abandoning gold for bonds in the early 1980s.

He may seem wild. But he's worth watching.

I wouldn't pay much attention to this.

reply to post by venividivici


If we follow your logic we would pay attention to nothing! plucky will not put her head in the sand! KD is worth reading...that is all.

(This plucky posting is in no way is meant to frazzle anyone's feathers, unless those feathers frazzled deserve it.)

Schultz doesn't give a source as near as I can tell. Its possibly a tip from one of his subscribers. He's really been "dissed" for reporting it.
Most of the web that that's picked it up aren't particularly reliable. You know the type!

While it is normal for embassies to have reserves of local currency, stockpiling it would not be normal. This implies a differential devaluing of the dollar. Don't expect other major currencies to fare much better, though. If the rumors are true, it gives us some idea of the timeline for all this to settle out and an new international currency to take effect.

Still there are some things to consider:

1. US bank capitalization under the stress test was based on economic data that is already overly optimistic.
   
   
2. The Fed is quietly gaming the markets. Foreigners have cut way back on purchase of treasuries, but it appears the Fed is buying them up, keeping interest rates temporarily low. It can't continue long.
   
   
3. The Fed's policies caused the problem(maybe merely delayed the inevitable), timed the October crisis, and will likely precipitate the collapse. If it is impossible to prevent, they will attempt to time it to the elites advantage. Does this include chaos at this time?
   
   
4. Real Estate is far from a bottom. Commercial has just begun to blow.
   
   
5. We are going to see a wave of small business failures.
   
   
6. Credit card defaults parallel unemployment. This will produce a fresh area
   for bank stress.
   
   
7. All in all we are more and more likely to see an overnight collapse of the dollar. So get out of cash.
   

I expect fairly quick International action, possibly IMF International Currency. Sort of preplanned...
Expect draconian security measures and crackdown on dissent. This is likely the result of MSM manipulation. Suddenly they will report on government corruption etc that they have been white washing. A lot of people will suddenly wake up - hungry and pissed!
A lot of government officials will get in trouble, but this will be appeasement. A lot of elite insiders will suddenly find themselves in trouble(like in the French Revolution)
The emphasis will be on economic recovery with every body getting somewhat screwed, but given enough hope to go back to work.

We are likely to see some kind of MSM supported "Spiritual Solution" that will be manipulation and demagoguery.


What to do?

Get out of paper money.
Buy old silver coins.
Buy food, survival stuff. Stock pile tradable items. Extra weapons and ammo will be as much valued as trade items as self defense.
You might want to report your guns stolen. Get your buddy to clean you out...
Study what happened in Argentina if you want to find out what we are really likely to face.

reply to post by UMayBRite!


What you pointed out, is what seems will take place. What are you referring to about Argentina? I vaguely remember a few things about a collapse in Finance and such.

Your plan on stocking up makes since but I am barely keeping my head above the water, how would you recommend people like me get buy? I know that once the system does collapse I will grab my weapon and raid the nearest Wal-Mart for food, clothes, water, and seeds to plant veggies in the spring. But, I live in the city (Cincinnati) I have no land to retreat to nor does anyone else in my family. I have 3 small girls and a wife who isn’t much of a help when it comes to raiding and looting, what would you recommend people like me do?

reply to post by poedxsoldiervet

What are you referring to about Argentina?

Take an hour to watch the video in the OP of this thread and you won't regret it. It is very revealing...

Guys, how long are you going to listen to Denninger's fear mongering lies?

I make it a point to post to each thread on him, because he continues to make bogus, wildly incorrect, yet supposedly "inside information" type statements that NEVER come true.

Seriously, do some searching on the predictions he's made that have been posted here. Every one is sworn on his mother's grave and haven't even remotely come true!

I know its fun to think about, but it's really a waste of time, and just fuel for the guy to continue on with his out of this world warnings.

According to him, WWIII was beginning overnight last fall, along 3-4 world ending, card falling scenarios since. This is just another ploy for attention.

No offense to the OP - I just have to say my piece on this guy. The Chicken Little factor is high here.

Originally posted by pause4thought
reply to post by poedxsoldiervet

 

What are you referring to about Argentina?

Take an hour to watch the video in the OP of this thread and you won't regret it. It is very revealing...

Holy Moley!!!

I find is sad that people are scare-mongering just for personal benefit (e.g., driving up sales of gold coins).

In the end, people on both sides will have to admit that it is time to take radical measures to clean up the mess we've created. A combination of:

1) Drastically simplifying or scrapping our current income tax system in favor of a better taxation system that encourages personal savings and capital investment in the USA and stop the problem of capital flight.

2) Cleaning up the financial system by reigning in exotic investment instruments (hedge funds, derivatives, credit default swaps) and increasing minimum margin requirements on stock futures and commodities trading, both of which will substantially make it far more difficult for wild price swings on any equities traded.

3) Getting the banks out of the equities business to protect bank assets.

4) Massive reform of how government agencies work to reduce overhead or to "sunset" the agencies as needed.

5) Looking at going back to a precious metals-backed currency based on a combination of gold, silver and platinum.

6) Replace the Federal Reserve with a Third Bank of the United States modelled on the Bank of England.

Implement these six steps and our economy will put itself on a solid foundation for future growth.

[edit on 25-6-2009 by SactoGuy001]

reply to post by slicely


I kinda like your brave talk in the face of all this. What happens when your knees freeze, your liver starts to quiver, and you need to scream and nothing comes out.

There will be mass panic in the US by the end of the year. A bank holiday is not too hard to believe.

A new bill floating around congress will give the Fed almost complete power. Goodbye IRAs, goodbye 401Ks, the Fed will tell you what you have coming.

Also a "constitution free zone" around the US permits warrantless searches.
Just try to get cash or gold out of the country. A freeze on electronic transfers to foreign countries of accounts would prevent moving the money offshore.

Feel free to leave the country anytime, only your assets stay here.

Do not forget about the "Amero."

It has been my opinion that all along that Obama's primary job
was to implement and sell the American people a new form of
currency, the Amero.

It you look a recent fiscal events you will see that the US dollar
is perched atop the largest bubble yet, the commercial real estate
bubble. This coupled with the thousands of failed businesses in
America will soon cause this bubble to implode. Obama will be
our savior with his plan for a new currency (except this new currency
has been planned for many years.

My prediction is for late in Obama's second term. First, we will have
a crisis, and new solutions will be sought. Then the Amero will be
introduced to America. It will be Obama's job to put the spin on it
and sell it to us. I predict that in the end he will have done such a
good job of assuring retirees this will save their investments that
Americans will welcome this with open arms...
and more than likely Obama will be seen in history as a great
American president.

Because the Amero will work for a long time, until, we the sheeple get
nice and fat and fluffy. Then it will be time for the PTB to come and
shear us again.

BAaaaaaa

reply to post by rival


"My prediction is for late in Obama's second term."

I can't see how there's that much time left. Things are moving along much faster. The SHTF this very year, albeit late in the year.