Collapse of the Currency: The End of the Dollar???

[Cruise]

 

[t0k3]

Re: Dollar Collapse - America - It's Time To Fucking Panic

But but,it's only a recession.
We will bounce back like we always do


Good post.

 

[QueEx]

Re: Dollar Collapse - America - It's Time To Fucking Panic

panic mongering.

 

[Zmaniac723]

Re: Dollar Collapse - America - It's Time To Fucking Panic

You have to be very selective in the stuff John Beck says. Sometimes he gets caught up in the moment and says some ridiculous shit. But a lot of the stuff he says is on point.

 

[Cruise]

2009 will be an interesting year.

Red Alert: Gold Backwardation!!!

December 2, 2008, was a landmark in the saga of the collapsing international monetary system, yet it did not deserve to be reported in the press: gold went to backwardation for the first time ever in history. The condition got worse on December 3rd, when the corresponding figures were 2% and 0.29%. This means that the gold basis has turned negative, and the condition of backwardation persisted for at least 48 hours. I am writing this in the wee hours of December 4th, when trading of gold futures has not yet started in New York.

Of course, it is too early to say whether gold has gone to permanent backwardation, or whether the condition will rectify itself (it probably will).

Be that as it may, it does not matter. The fact that it has happened is the coup de grâce for the regime of irredeemable currency. It will bleed to death, maybe rather slowly, even if no other hits, blows, or shocks are dealt to the system. Very few people realize what is going on and, of course, official sources and the news media won't be helpful to them to explain the significance of all this. I am trying to be helpful to the discriminating reader.

Gold going to permanent backwardation means that gold is no longer for sale at any price, whether it is quoted in dollars, yens, euros, or Swiss francs. The situation is exactly the same as it has been for years: gold is not for sale at any price quoted in Zimbabwe currency, however high the quote is. To put it differently, all offers to sell gold are being withdrawn, whether it concerns newly mined gold, scrap gold, bullion gold or coined gold.

I founded Gold Standard University Live (GSUL) two years ago and dedicated it to research of monetary issues that are pointedly ignored by universities, government think-tanks, and the financial press, centered around the question of long-term viability of the regime of irredeemable currency.

Historical experiments with that type of currency were many but all of them, without exception, have ended in ignominious failure accompanied with great economic pain, unless the experiment was called off in good time and the authorities returned to monetary rectitude, that is, to a metallic monetary standard. It is also worth pointing out that the present experiment is unique in that all countries of the world indulge in it.

Not one country is on a metallic monetary standard, under which the Treasury and the Central Bank are subject to the same contract law as ordinary citizens. They cannot issue irredeemable promises to pay and keep them in monetary circulation through a conspiracy known as check-kiting.

Not one country will be spared from the fire and brimstone that once rained on the cities of Sodom and Gomorrah as a punishment of God for immoral behavior.

In all previous episodes there were some countries around that did not listen to the siren song and stayed on the gold standard. They could give a helping hand to the deviant ones, thus limiting economic pain. Today there are no such countries. If you want to be saved, you must be prepared to save yourself.

You cannot understand the process whereby a fiat money system self-destructs without understanding the gold and silver basis. The Quantity Theory of Money does not provide an explanation, because deflation may well precede hyperinflation, as it appears to be the case right now.

For these reasons I placed the study of the gold and silver basis on the top of the list...

These can serve as an early warning system that will signal the beginning of the end. The end is approaching with the inevitability of the climax in a Greek tragedy, as the heroes and heroines are drawn to their own destruction.

The present reactionary experiment with paper money is entering its death-throes.

... the confrontation of the Titanic (representing the international monetary system) with the iceberg (representing gold and its vanishing basis) as the latter is emerging from the fog too late to avoid collision.

 

[Lamarr]

It'll be too late when you realize the Repubs and Dems have been working together for, at least the last 25 years!

 

[Imhotep]

Obama Administration Softens Its Stance on China Currency

WASHINGTON—The Obama administration declined to label China a currency manipulator, a move that could smooth relations with the Asian giant but also inflame tensions with groups that believe Beijing is artificially weakening its currency to gain a trade advantage.

The decision, unveiled in the administration's regular report to Congress on international currency practices, represents a sharp break from President Barack Obama's position while he campaigned for office.

It also contradicts Treasury Secretary Timothy Geithner's position in late January, when he said China was manipulating its currency, though the administration was careful not to repeat that language. At the time, Mr. Geithner, responding in writing to questions from Congress, said the administration would "use aggressively all diplomatic avenues … to seek change in China's currency practices."

A lower currency can boost a country's exports by making them relatively inexpensive compared with competitors'.

In Wednesday's report, the administration said it believes China's currency, the yuan, is still undervalued, but that the country has taken steps to rebalance its economy, including allowing the yuan to rise and announcing a two-year, $590 billion stimulus program.

The Obama administration justified the apparent switch in rhetoric by noting that China's currency has continued to rise against the dollar while other emerging-market currencies have fallen amid the global recession.

"China has taken steps to enhance exchange-rate flexibility," Mr. Geithner said in a statement. He cited statistics showing China's currency appreciating at a "real effective rate" of 16.6% from June 2008 to February 2009.

Most of China's currency appreciation against the U.S. dollar came in the first half of 2008, before the financial crisis worsened. Since the beginning of 2009, the yuan has stayed relatively stable against the U.S. dollar.

The softening stance comes as economic relations between China and the U.S. have grown more tense. China recently expressed concern about its huge stock of U.S. Treasury securities. The U.S. relies on borrowing from the Chinese, and Obama administration officials have sought to reassure China about the safety of U.S. assets.

When he campaigned for president, Mr. Obama was among the toughest critics of China, accusing the country of manipulating its currency and signing on to legislation to punish China for manipulating its currency.

A senior administration official called the review of China's currency "an ongoing process' and said the Chinese have "shown great commitment to play a stabilizing role."

The change drew criticism from some of Mr. Obama's staunch supporters. "It's disappointing," said Scott Paul, executive director of the Alliance for American Manufacturing, a coalition of manufacturers and the United Steelworkers union. "I don't know what changed between Secretary Geithner's statement in January and today."

Mr. Paul didn't accuse Mr. Obama of breaking a campaign promise, but said the "proof is in the results' of whether the administration's policies will prompt China to further revalue the yuan.

Sen. Charles Schumer (D., N.Y.), one of China's toughest critics in Congress, said the administration made the right call.

"In these conditions, the fact that China's currency has not depreciated but even appreciated a little while all other currencies depreciated against the dollar does show some progress," he said. Mr. Schumer said he still believes China is manipulating its currency, but that "this wouldn't have been the opportune time" to designate the country as a manipulator.

Sen. Lindsey Graham (R., S.C.), long a critic of China's currency practices, said the issue appears to "have taken a political turn," and added that "something happened between the confirmation hearing and the report."

Mr. Graham said he's grateful for the recent appreciation in the value of the yuan, but said more must be done to address the existing currency imbalance. There's "just no doubt" China is manipulating its currency, he said.

The manipulator label would be a symbolic slap at a time when the two countries are becoming increasingly reliant on one another. The U.S. borrows huge sums of money from the Chinese, and China exports many of its goods to the U.S. Such a designation also would have required the Treasury to open formal negotiations with Beijing over currency policy.

Industries eager for China to open its markets said the administration made the right choice. "This was the prudent call and a sensible approach to this complex issue," said Robert Nichols, president of the Financial Services Forum, a trade group representing the largest financial institutions in the U.S.

Engaging China on the currency issue remains "the most effective way to achieve the goal of a flexible, market-based exchange rate," he said.

Source
http://online.wsj.com/article/SB123982680459622079.html

Related
Why Supplanting the Dollar Would Be Good for America

 

[QueEx]

Re: Obama Administration Softens Its Stance on China Currency

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[The Amerikkkan Idol]

Norwegian Krone in 2010!!!