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Post by sometimeman on Nov 19, 2007 23:03:59 GMT -4
WND Exclusive BIZNETDAILY Alarm: China signals flight from dollarInvestment CEO says he's 'never seen people more nervous' Posted: November 7, 2007 5:16 p.m. Eastern www.worldnetdaily.com/news/article.asp?ARTICLE_ID=58563© 2007 WorldNetDaily.com An unprecedented signal from senior Chinese leaders that the Asian economic giant might abandon the U.S. dollar sent shockwaves through the markets today as the Dow Jones Industrial Average lost 360 points and the greenback fell to a record low against the euro. Xu Jian, a Chinese central bank vice director, told a conference in Beijing, "The dollar is "losing its status as the world currency." Meanwhile, at the same meeting, Cheng Siwei, vice chairman of China's National People's Congress, said, "We will favor stronger currencies over weaker ones, and will readjust accordingly." Craig R. Smith, CEO of Swiss America Trading Corp., told WND he's been in the investment business for 30 years and has "never seen people more nervous." Alarmed by today's economic news, he dispatched a note to brokers with a warning of ominous potential consequences if China and other trading partners abandon the dollar. "If that were to happen, all bets are off, and we will be in a depression that makes 1929 look like child's play," he said, "or we will experience Weimar Republic inflation as the dollar makes extreme moves toward devaluations." "We cannot spend money we don't have, anymore," he said. "The only thing that keeps us alive as a nation is our ability to borrow. We spend more money that we make."
Now, Smith said, "the world is saying, 'We lent you that much money, we're not going to do it anymore.'" |
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Post by shortcircuit on Nov 21, 2007 21:44:17 GMT -4
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Post by sometimeman on Nov 22, 2007 9:26:46 GMT -4
Sometimeman said somewhere on this board how it would be: 1) Global economic collaspe 2)Massive civil unrest 3)Union of Chrurch and State 4) Death penalty--Comply or Die 5) Return of the Creator I think this article supports this view Read it, Pray, tell every one you know about it. Vote Ron Paul
WHEN BAD IS GOODWhat is money anyway? Here's the REAL reason the US Dollar is shrinking... and will continue to shrink! When you finish reading this article, you may change your mind about the war in Iraq. www.mondovista.com/money.html |
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Post by sometimeman on Nov 26, 2007 11:36:57 GMT -4
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Post by summerose on Nov 26, 2007 11:42:13 GMT -4
That is scary! Glad I don't have any money in the stock market.
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Post by shortcircuit on Nov 28, 2007 20:07:42 GMT -4
Billionaire to Canada: Time for amero is now
Published on Tuesday, November 27, 2007.
Source: WorldNetDaily - Jerome Corsi
Stephen Jarislowsky, a billionaire money manager and investor the Canadian newspaper Globe and Mail bills as the Canadian Warren Buffet, has told a parliamentary committee Canada and the United States both should abandon their national dollar currencies and move to a regional North American currency as soon as possible.
"I think we have to really seriously start thinking of the model of a continental currency just like Europe," Jarislowsky told the Canadian House of Commons' finance committee, according to the Globe and Mail in Toronto.
Jarislowsky's call for immediate action belied an article published in the Boston Globe on Sundaythat said the call for the amero to become the new North American regional currency was "purely theoretical."
In an exclusive telephone interview with WND, Jarislowsky repeated his call for a European Union-style currency to be created between Canada and the United States.
"The idea would be a European Union-type set-up," Jarislowsky said, "with a North American Central Bank that would issue the new currency and sit over the Bank of Canada and the Federal Reserve Bank in the United States."
"An alternative would be to create a peg on the U.S. dollar which would allow the Bank of Canada to adjust the Canadian dollarin a 5 percent plus or minus range, based on the fluctuation in value of the U.S. dollar," he explained.
Still, Jarislowsky was less confident the U.S. dollar peg would work.
"The Bank of Canada only pinpoints inflation," he told WND. "My idea would be to have the Bank of Canada manage the Canadian dollar with a view both to inflation and the U.S. dollar. The Bank of Canada has never been very receptive to this idea."
Jarislowsky insisted Canada was going to be forced to do something because the increased value of the Canadian dollar vis-à-vis the U.S. dollar was likely to depress business activity in Canada and cause a recession.
"Two-thirds of the Canadian economy is tied to the U.S. economy," Jarislowsky pointed out. "Some 85 percent of our exports are headed for the U.S. market. Our economy is tied to the U.S. dollar, whether we like it or not."
In an interview published with the Globe and Mail, Jarislowsky emphasized the likely adverse impact on the Canadian economy triggered by the rise in the value of the Canadian dollar.
"We don't have a single mill in Canada which isn't losing cash at the current exchange rate despite the fact we invested hundreds of millions in dollars into new equipment when we had the money," Jarislowsky said.
"I believe that if we stay at the present levels, the entire forest products industry practically is going to be in liquidation-bankruptcy and there's going to be an enormous loss of employment," he continued.
Jarislowsky told the House of Commons finance committee that a regional North American currency would reduce the adverse currency exchange risk being experienced in Canada since the Canadian dollar has risen more than 20 percent against the U.S. dollar this year.
Jarislowsky brushed aside stated opposition from the Canadian Finance Department, including a negative recommendation to Finance Minister Jim Flaherty because of concerns a common North American currency would mean an erosion of sovereignty for Canada.
"I know Finance Minister Flaherty quite well," Jarislowsky told WND. "Sure, first he will have to deny he is taking seriously the idea of a new currency, then later he will come out and say he was forced to create one anyway."
Jarislowsky insisted he made very seriously the suggestion to create a euro-style currency for North America.
"Pretty soon, the Finance Ministry will have no choice but to create a new currency," Jarislowsky argued, "unless the Canadian dollar all of a sudden changes course and reverses against the U.S. dollar all on its own."
"In the provinces we are already seeing economic activity slowdown because of the rise in value of the Canadian dollar," he insisted. "If our automobile and lumber industries begin to decline, we will have a serious recession as a result."
"The Finance Ministry knows how closely our economy in Canada is tied to the U.S. market," he continued. "A common currency would avoid the problems we are now facing with currency exchange risk added to the normal risks of doing business."
Jarislowsky currently heads the Canadian investment firm Jarislowsky Fraser Limited, headquartered in Montreal.
According to Canadian Business, Jarislowsky has amassed a personal fortune of $1.2 billion, ranking him as the 25th richest person in Canada.
Canadian Business also claims the average private client at Jarislowsky Fraser typically has more than $10 million in liquid assets to invest.
Forbes put Jarislowsky's net worth at $1.5 billion, ranking him No. 512 in the list of the world's richest people in 2006.
Forbes estimates that Jarislowsky Fraser currently manages $50 billion for a select list of institutional clients and high-net-worth individuals.
Jarislowsky's 2005 book, "The Investment Zoo: Taming the Bulls and the Bears," was a business best-seller in Canada.
The Canadian dollar reached parity with the U.S. dollar at the end of September. Since then, the Canadian dollar has been tradingabove the U.S. dollar, at values not seen since the 1960s.
The Canadian dollar closed yesterday at $1.01 to the U.S. dollar on major currency exchanges.
Canada's Finance Department did not respond to WND requests for a comment.
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Post by shortcircuit on Nov 28, 2007 20:10:32 GMT -4
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Post by sometimeman on Nov 29, 2007 14:30:53 GMT -4
November 29, 2007
Impending Destruction Of The US EconomyHubris and arrogance are too ensconced in Washington for policymakers to be aware of the economic policy trap in which they have placed the US economy. If the subprime mortgage meltdown is half as bad as predicted, low US interest rates will be required in order to contain the crisis. But if the dollar's plight is half as bad as predicted, high US interest rates will be required if foreigners are to continue to hold dollars and to finance US budget and trade deficits. Which will Washington sacrifice, the domestic financial system and over-extended homeowners or its ability to finance deficits? Posted Nov 29, 2007 09:12 AM PST www.rense.com/general79/impend.htm |
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Post by sometimeman on Dec 2, 2007 8:22:15 GMT -4
"It" Is Not Federal and There is no "Reserve"
This is how it works: The banksters created money from thin air based on the credit of the US government. Every dollar they "loaned" the US government was a new dollar in their pocket.
No nation is free if it cannot control its own credit, i.e. print its own currency at will. We are not free. The central banking cartel controls us by threatening to withdraw our credit i.e. currency causing economic turmoil.
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Post by shortcircuit on Dec 2, 2007 13:49:19 GMT -4
U.S. Government, Banks Near a Plan to Freeze Subprime Rates
Published on Friday, November 30, 2007.
Source: Cryptogon
This Wall Street Journal front page story reads like news from some banana republic! You’ve got millions of slobs who took out toxic waste, impossible to pay back loans and the largest banks in the land engaged in a Mexican standoff.
Who’s going to pay for all those subprime mortgage lotto winners?
U.S. Dollar holders, that’s who.
And think of the message that this will send to prudent, responsible home buyers who took fixed rate loans! Are they going to hit the mortgage lotto, too? Or do they just get to watch their savings go up in smoke to save the large banks?
Holy crap.
Via: Wall Street Journal:
The Bush administration and major financial institutions are close to agreeing on a plan that would temporarily freeze interest rates on certain troubled subprime home loans, according to people familiar with the negotiations.
An accord could reassure investors and strapped homeowners, both of whom are anxious as interest rates on more than two million adjustable mortgages are scheduled to jump over the next two years. It could also give a boost to the Bush administration, which is facing criticism for inaction amid the recent housing turmoil.
The plan is being negotiated between regulators including the Treasury Department and a coalition of mortgage-related companies including Citigroup Inc., Wells Fargo & Co., Washington Mutual Inc. and Countrywide Financial Corp. People familiar with the talks say the individual members have agreed to follow any agreement reached by the coalition, which is called the Hope Now Alliance.
Details of the plan, which could be announced as early as next week, are still being worked out. In general, the government and the coalition have largely agreed to extend the lower introductory rate on home loans for certain borrowers who will have trouble making payments once their mortgages increase.
Many subprime loans carry a low “teaser” interest rate for the first two or three years, then reset to a higher rate for the remainder of the term, which is typically 30 years in total. In a typical case, the rate would rise to around 9.5% to 11% from 7% or 8%. That would boost an average borrower’s payment by several hundred dollars a month.
Exactly which borrowers will qualify for the freeze and how long the freeze would last are yet to be determined. Under one scenario, the freeze could run as long as seven years. The parties are developing standard criteria that would determine eligibility. The criteria should be finalized by the end of year.
Mortgage servicers — the companies that collect loan payments — are a key part of the coalition, because they are the companies that deal directly with borrowers. Often the servicer is different from the company that originally made the loan. Citigroup and Countrywide are among the nation’s biggest mortgage servicers. The mortgage servicers in the coalition represent 84% of the overall subprime market. The coalition also includes lenders, investors and mortgage counselors.
The Bush administration has been looking for ways to stem the fallout from the mortgage crisis. Treasury Secretary Henry Paulson and Housing and Urban Development Secretary Alphonso Jackson helped assemble the coalition so that government officials could have a single counterpart with which to discuss terms of a plan.
While the government can’t force the industry to modify loans, Mr. Paulson and other administration officials have been using moral suasion to push for workouts, telling the companies it is in their interest to avoid foreclosure since most parties can lose money when that happens. A similar plan to freeze interest rates temporarily was recently announced by California Gov. Arnold Schwarzenegger and four major loan servicers, including Countrywide.
Among the holdouts have been investors, who typically hold securities backed by mortgages. If interest rates are frozen, they would lose the potential benefit of higher payments. But investors have cautiously moved toward cooperation, likely on the grounds that it’s better to get some interest than none at all.
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Post by shortcircuit on Dec 8, 2007 20:37:46 GMT -4
Iran Drops Dollar In Oil Transactions
Published on Saturday, December 08, 2007.
Source: RawStory
Major crude producer Iran has completely stopped carrying out its oil transactions in dollars, Oil Minister Gholam Hossein Nozari said on Saturday, labelling the greenback an "unreliable" currency.
"At the moment selling oil in dollars has been completely halted, in line with the policy of selling crude in non-dollar currencies," Nozari was quoted as saying by the ISNA news agency.
"The dollar is an unreliable currency, considering its devaluation and the oil exporters' losses," he added.
The world's fourth largest oil exporter, Iran has massively reduced its dependence on the dollar over the past year in the face of US pressures on its financial system.
The United States has successfully encouraged major European and Asian banks to cut their dealings with Iran in a bid to make the Islamic republic give way on its controversial nuclear programme.
Washington has also blacklisted major Iranian banks for alleged support of terrorism and seeking nuclear weapons, charges denied by Tehran.
Iran has reduced its assets in dollars held in foreign banks and urged OPEC to take collective action to price oil in other currencies such as the euro, instead of the US currency which is used across the world at present.
The fall of the dollar, which has weakened considerably against the euro and other currencies in the past 12 months, has affected the revenues of OPEC members because most of them price and sell their oil exports in the US currency.
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Post by shortcircuit on Dec 8, 2007 20:51:29 GMT -4
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Post by sometimeman on Dec 13, 2007 9:12:31 GMT -4
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Post by shortcircuit on Dec 15, 2007 17:29:18 GMT -4
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Post by shortcircuit on Dec 15, 2007 17:30:47 GMT -4
World Stocks Plunge Despite Infusion
Published on Friday, December 14, 2007.
Source: Daily Mail
Stocks worldwide have plummeted in the wake of yesterday's unprecedented decision by leading central banks to pump billions into money markets in a bid to avoid a worldwide recession.
The Bank of England has joined the U.S. Federal Reserve, the European Central Bank and their counterparts in Canada and Switzerland to pump at least £55billion into money markets.
However this morning the FTSE 100 fell more than 70 points to 6458.7 and the markets in Japan, Hong Kong and Taiwan all suffered nervous starts to the day's trading.
Investors are worried that the shock decision by the world's banks could mean that the credit crisis is likely to get worse.
It is hoped that the loans - £ 22.7billion of which will go to the UK - will help make lending between banks easier, avoiding any repeat of the Northern Rock crisis.
The Rock ran into trouble because the current economic climate has encouraged banks to hoard their cash, rather than lend it to each other.
Northern Rock could therefore not borrow the money it needed from other banks, and was forced to go to the Bank of England as a "lender of last resort" at punitive rates.
The central banks' decision is designed to stop other lenders getting into the same situation - and to avoid panic among both consumers and the City.
It came amid signs that Gordon Brown is bracing himself for a slowdown that could dent his credentials as the architect of Labour's record of economic stability.
A Bank of England spokesman said: "This co-ordinated set of actions is a response to stresses in the inter-bank markets, which have increased in recent weeks, reflecting sentiment about the global financial sector.
"The actions demonstrate that central banks are working together to try to forestall any prospective sharp tightening in credit conditions."
A source at the Bank added that the latest move is not designed to prop up any individual lender, but is rather aimed at alleviating pressures in the overall market.
This is significant, because the Bank is worried that City observers could interpret the massive loan as a covert way of getting cash to a particular lender which has got itself in trouble.
The co-ordinated move took the City by surprise, fuelling fears that the global credit crunch is threatening the economic health of the world's major powers.
With the housing market in turmoil, it was seen as a pre-emptive strike to prevent a worldwide financial meltdown on the back of the American "sub-prime" mortgage crisis.
Bankers hope it will make mortgages easier to arrange amid signs that credit is drying up on the High Street.
Downing Street welcomed the move as an example of the kind of "global co-operation and preventative action" that Mr Brown has called for in the past.
It came only a week after the Bank of England cut interest rates by a quarter point.
The Federal Reserve also reduced U.S. rates by a quarter point - the latest in a series of aggressive cuts.
Yesterday's announcement marked the first joint international effort to support the markets since the September 11 terror attacks.
Observers said the scale and nature of the cash injection is unprecedented.
It underlines the parlous state of the global banking system, where some lenders have been brought to the brink of collapse because of the problems in America's mortgage market.
Experts estimate the record defaults on so-called sub-prime loans advanced to Americans with poor credit histories could lead to up to £200billion of losses at global banks.
Giants such as Wall Street's Citigroup and Switzerland's UBS have gone cap in hand to Asian and Middle Eastern investors asking for cash to support their businesses after racking up tens of billions in losses.
Britain has been far from immune, with the run on Northern Rock leading the Bank of England to hand over billions of pounds of taxpayers' money to keep it afloat.
The Bank will next week offer £11.35billion to selected commercial lenders with a UK presence.
A similar auction for another £11.35billion will take place in the New Year.
Banks will "bid" for the cash and will have to pay a premium rate.
Major British-based lenders will also be able to apply for help from the other central banks.
The loans will last for three months and the Bank could step in again if the cash injection fails to have the desired effect.
The banks will still have to provide collateral and meet certain conditions in order to get help, and only those judged to be in sound financial condition will be able to participate.
The Bank of England held a similar auction for three-month loans in September.
However, there were no bidders, because banks were worried that the stigma attached to the auction would reduce confidence in them so soon after the run on Northern Rock.
That auction had a punitive minimum rate set at one per cent above the Bank's base rate, whereas the new auctions do not have a minimum rate.
The Bank has been accused of being slow off the mark in dealing with the stress in financial markets, and some experts described its decision to participate in the global loan scheme as another Uturn from its hardline stance.
Governor Mervyn King has been reluctant to rescue big banks which are in trouble because of their foolish investments - but with the world markets under increasing pressure, he has been forced to act.
The British Bankers' Association welcomed the move, calling it a "constructive and imaginative initiative".
It added: "It is also importantly an international solution to an international issue."
Julian Jessop, of analysts Capital Economics, said the move is welcome, but that further interest rate cuts would be needed to have a real effect.
He added: "Central banks have combined to reduce the risk that the credit crunch tips the most vulnerable economies into recession. But even if these measures are successful, the world economy is still facing a marked U.S-led slowdown in 2008.
"It does not resolve the more fundamental weaknesses in the world's major economies.
"Official interest rates will still have to be cut significantly further in the U.S. and the UK, and are likely to fall earlier than generally expected in the eurozone too."
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