The demise of the dollar

[Littlesooz]

The demise of the dollar

In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

The demise of the dollar - Business News, Business - The Independent

[nana]

I saw this on Fox Business this a.m. Gold is up to $1030 an ounce; that's a $30 dollar jump from last week. Oil is up too.

[Faith]

I was wondering...

How many of you are buying some 'gold?'

[nana]

I was wondering...

How many of you are buying some 'gold?'

I have.

[nana]

Gold Sets New All-Time High as Dollar Crumbles


Gold Sets New All-Time High as Dollar Crumbles

Tuesday, October 6, 2009 10:40 AM


Gold hit a record high at $1,036.40 an ounce as the dollar dropped on a report, later denied, that Gulf Arab states were considering abandoning the U.S. currency for oil trade.

A positive technical picture for gold fueled buying on the fund side, traders said. However, the weight of near-record long positions in New York gold futures still leaves the market vulnerable to correction.

Spot gold was bid at $1,032.05 an ounce at 1319 GMT (9:19 a.m. EDT) against $1,016.65 late on Monday.

U.S. gold futures also hit an all-time high, with gold futures for December delivery on the COMEX division of the New York Mercantile Exchange hitting a peak of $1,038.00 an ounce. They were later up $16.10 at $1,033.90.

"Investors (and) funds keep buying as the technical side looks good," said senior Commerzbank trader Michael Kempinski. "Even without the weak U.S. dollar, gold is performing quite well."

Gold also hit six-month highs when priced in sterling and euros, breaking above 700 euros an ounce for the first time since early April.

The dollar slipped sharply in Asian trade after UK newspaper the Independent said Gulf Arab states were in secret discussions to end the use of dollars in oil trading.

The newspaper said the states were in talks with Russia, China, Japan and France to replace the unit with a basket of currencies. The dollar pared losses after the report was denied by Saudi and Russian authorities, but stayed soft.

Dollar weakness, if sustained, could push gold prices to new all-time highs above the peak they hit in March last year, analysts said.

Peter Fertig, a consultant at Quantitative Commodity Research, said the final quarter was typically strong for gold, due to rising jewelry demand -- a weaker than usual factor this year -- and as the dollar is seasonally soft.

"That is the major driver of investment demand," he said.

"The speculation, even if it has been denied, that Gulf states would like to peg oil prices to a currency basket and not the U.S. dollar alone has been a positive factor for gold, while weakening the dollar against other major currencies."

Peter Schiff: Gold Going To $5,000

Friday, October 2, 2009 10:43 AM

By: Julie Crawshaw

Peter Schiff: Gold Going To $5,000

Euro Pacific Capital head Peter Schiff predicts the Dow will fall another 90 percent from current levels when measured against gold, which he says will hit $5,000 an ounce.

Schiff credits poor policy decisions over the past nine years for setting the U.S. dollar up to take a major fall against commodities and other currencies when China and Japan finally stop buying our debt.

"Ben Bernanke is keeping his record of perfection intact of never getting anything right,” Schiff told Yahoo! Tech Ticker.

“Once again he's gotten it wrong."

"If the Fed really thought the economy was sound, why does he have it on life support? If he pulls the plug, our sick economy is going to die."

“The reality is, that if we put interest rates anywhere near where they ought to be, we would bankrupt most of our financial entities and we’d have a real collapse,” Schiff says.

“We’re never going to have a real recovery until the market lets us have a real recession.”

“Our phony consumer-based economy isn’t viable; it only exists as long as the Chinese and Japanese lend us money to buy their stuff.”

The dollar has suffered heavy selling against the other major currencies in recent weeks, with the yen and euro seeing strong gains, a condition some analysts see continuing.

“The next couple of years is all about dollar weakness,” Stephen Green, senior economist at Global Research at Standard Chartered Bank told CNBC.

“It’s all about Asia currency strength.”

[anath]

The dollar is going bye-bye in international trade. I don't think there will be an Amero....it appears we'll likely jump straight to a global currency. But then, I'm not gonna be here to see this occur........

[Lion and Lamb]

The dollar is going bye-bye in international trade. I don't think there will be an Amero....it appears we'll likely jump straight to a global currency. But then, I'm not gonna be here to see this occur........

Only a full blown war will dismantle the dollar. Just like the Ottoman and part of the British Empire was broken up in WW1, and the British was finished off in WW2, so will it go with the American Empire. BUT again, I really think we have a ways to go.

Look, everyone talks about China holding so much of our debt. Well, they can't sell it. If China is holding hypothetically 5 Trillion in US debt, and they went to sell it. by the time they were done they MIGHT get 5 billion. Because as they unloaded it, the price would keep dropping. This would ALSO cripple the Chinese economy. AND, the gangsters and banksters in Washington know this. That is why they are so brazen.

[Faith]

I just heard today on Fox News that China is buying everything in their sight to 'de value' the dollar,and of course, our corrupt government continues to print...

My husband works at a power plant,and China is trying to buy into the power company...

Money can buy anything today...

[VersysRyder]

In my humble opinion, unskilled though I may be in foreign trade and foreign affairs, I believe China is going to be the next in line as the hegemony. Especially since right now we're so deeply indebted to them that they can dictate to us what we do and do not do.

[Lion and Lamb]

In my humble opinion, unskilled though I may be in foreign trade and foreign affairs, I believe China is going to be the next in line as the hegemony. Especially since right now we're so deeply indebted to them that they can dictate to us what we do and do not do.

We ARE indebted to them. But in this casino game...so what? Realize it doesn't matter. They can't get rid of the debt. AND they have to keep on buying more debt in order to keep their investment up.

BUT what they ARE doing is using those same dollars to BUY our companies, and real estate. NOT only here but around the world

[WKUHilltopper]

My husband works at a power plant,and China is trying to buy into the power company...

Nothing like having your enemies owning and controlling strategic resources...like a power company. But I guess if you're a Marxist in the White House, you welcome your comrades. Good grief, this country is so finished.

[Faith]

Hilltopper~

It's happening to America allot now.

We're selling out America...

[WKUHilltopper]

Look, everyone talks about China holding so much of our debt. Well, they can't sell it. If China is holding hypothetically 5 Trillion in US debt, and they went to sell it. by the time they were done they MIGHT get 5 billion. Because as they unloaded it, the price would keep dropping. This would ALSO cripple the Chinese economy. AND, the gangsters and banksters in Washington know this. That is why they are so brazen.

China doesn't care about short term results--in the US business world, we manage to the quarter (especially if you're a publicly traded company on, say, the NYSE). Your quarter results mean everything to keep your stock up (many restrictive lending covenants with banks require your stock to have a certain market value or you could be in default).

So for China to take a nose bleed--even if it takes out their economy for 10 years but accomplishes their long term goals--means nothing to them. Besides, the commie bosses will still be able to eat and still be in control over the serfs. In their mind, so what if the "riff raff" get hurt. Won't effect the bosses one bit.

[Lion and Lamb]

Hilltopper,

Your synopsis, that China would be willing to take a 6 TRILLION Dollar "nose-bleed" makes no sense in this current world economic environment. China is wanting NOW to become the lead nation, they cannot afford to do what you are prescribing.

[nana]

China doesn't care about short term results--in the US business world, we manage to the quarter (especially if you're a publicly traded company on, say, the NYSE). Your quarter results mean everything to keep your stock up (many restrictive lending covenants with banks require your stock to have a certain market value or you could be in default).

So for China to take a nose bleed--even if it takes out their economy for 10 years but accomplishes their long term goals--means nothing to them. Besides, the commie bosses will still be able to eat and still be in control over the serfs. In their mind, so what if the "riff raff" get hurt. Won't effect the bosses one bit.

You are absolutely right! China is hedging their bets against the dollar with Euros, gold, silver, copper, and other hard assets. They will take the loss on the short term and make it back on backside of a dollar collapse which will cause the Euro, gold silver, to explode. This is a no lose situation for them. They know the dollar will collapse (or be collapsed) and they're positioning to profit big. China's US debt holdings are no longer part of the equation. They have already written it off as a loss because they know we can never repay.

[WKUHilltopper]

You are absolutely right! China is hedging their bets against the dollar with Euros, gold, silver, copper, and other hard assets. They will take the loss on the short term and make it back on backside of a dollar collapse which will cause the Euro, gold silver, to explode. This is a no lose situation for them. They know the dollar will collapse (or be collapsed) and they're positioning to profit big. China's US debt holdings are no longer part of the equation. They have already written it off as a loss because they know we can never repay.

Oh yeah...it's like the old Call option, Put option hedge game. Besides, they're Commies. As long as they're the boss--and there's only a handful of them, they'll play that hedge. Plus, we'll be dumping what industry we have left to them for a nickle. If it takes them five hundred years for them to make their play, that's what they'll do.

[WKUHilltopper]

Hilltopper,

Your synopsis, that China would be willing to take a 6 TRILLION Dollar "nose-bleed" makes no sense in this current world economic environment. China is wanting NOW to become the lead nation, they cannot afford to do what you are prescribing.

Oh, they'll be the leader--even if it's the leader of nothing left but sticks, hovels and waste land. That's their best case scenario. If everyone goes down, 6 trillion means nothing anyway--because it is nothing. Slate wiped clean.

[Faith]

Personally I really don't know what is going to happen to our '$' except that it's going to FALL.....

I do know under the sixth trumpet of Revelation 9:16, there will be an army of 200 million...mounted troops could be China.

An army will come from the East crossing the dried-up Euphrates River.

Great dams have already been placed across the Euphrates River to divert water for irrigation so that at times the riverbed is dry.

A large invasion from the East and North in the end times is predicted in Daniel 11:44.

.....so that tells me that China has not fallen,and is strong, until the war in Rev. 9...