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| DOLLAR WHAT HAPPENED, WHERES IT GOIN, FIND OUT HERE >>> -------------------------------------------------------------- ============================================================== CURRENCY EXCHANGE RATE >>> WOW THE DOLLAR IS STRONG " IN AFRICA " ============================================================== Dollar Dead, merely awaits Burial It is only fitting on a day where the price of gold hit a new, nominal high that I should discuss the last days of the U.S. dollar as “reserve currency”. An ounce of gold is what it is: the world's oldest and most widely- accepted money. It can never increase (or decrease) in value. Instead, it is the pseudo-money, the paper “fiat currencies” which are currently all plunging steadily downward in value – with no currency able to keep up with the collapse of the U.S. dollar. Concurrent with the new nominal high for gold, the big “news” of the day was a pair of news articles about the global oil trade. One article out of London claims that a “secret” agreement is being reached between Middle East oil-producers and the rising “BRIC” economies to work to exclude the U.S. dollar in the future trade of crude oil – phasing it out steadily over a 9-year period. The second major news item was a parallel story out of the Middle East, where the Gulf oil-producers denied that such a deal is being reached. Shakespeare had a famous quote which deftly deals with such denials: “[Thou] doth protest too much, methinks.” Here are the facts, and readers can decide for themselves whether to attach any credence to the news out of London. For decades, the Gulf oil producers have had their currencies “pegged” to the U.S. dollar (a fixed exchange rate versus the dollar) as part of their massive oil-export business to the U.S. For many years, this was a mutually beneficial arrangement for the despots of these regimes. U.S. military “muscle” kept their totalitarian regimes in power – and the U.S. got cheap oil in return. However, as the U.S. economy degenerated into a Ponzi-scheme economy (where total collapse is now only avoided through creating ever-larger asset-bubbles), the currency-peg of the Gulf regimes has become poisonous to their own economies – essentially forcing them to “import” U.S. inflation (which the U.S. government claims doesn't exist). Years of double-digit inflation in these countries during the U.S.'s housing-bubble caused serious hardship on their generally poor populations, while the “easy money” of the Greenspan/Bernanke era led to their own, ugly asset-bubbles. This was followed by Wall Street's ruthless take-down of the crude oil market in 2008 – part of its “scorched-earth policy” where it dragged the global economy down with it (to frighten the U.S. government into giving in to its $10 trillion in “blackmail” demands). Even before the Wall Street take-down, Gulf states were already starting to end their “pegs” (and thus their reliance) on the U.S. dollar. Indeed, it is likely that crushing the crude oil market was in part vindictiveness on the by Wall Street – punishing the Gulf states for turning their backs on the U.S. Ultimately, between the double-digit inflation and the crushing economic blow of seeing crude oil dragged down to $30/barrel, the Gulf oil-producers can hardly be faulted for ending what has become a totally one-sided relationship with the U.S. dollar (and U.S. economy). If this wasn't sufficient, by itself, to provide the impetus for the secret deal (or “non-deal”) between Gulf oil- producers and their new, best customers, the U.S. government has provided the final impetus itself – with its permanent near-zero interest rates. After spending two years insisting that it would never follow the example of Japan – and its own flawed response to a combination housing- and financial-bubble – the U.S. has duplicated all the tried-and-failed policies of the Japanese government, led by permanently supplying “free money” to markets through its near- zero interest rates. As a result of this policy-of-failure, the U.S. dollar is becoming the new “carry-trade” currency. For those who still aren't familiar with this often-used term, it is really a very simple proposition. People with access to international currency markets find the nation with the lowest interest rates (the “free money”) - and borrow huge sums of that currency for nothing. They then take this “free money” and either invest it in the “hottest” (i.e. highest-yielding) sectors or equity markets in other economies, or simply buy bonds from markets with much higher interest rates. Because it is a simple way for anyone with large cash-holdings to make easy profits, the “carry trade” with the Japanese yen quickly became a multi-trillion dollar gambit. The consequence of the carry-trade is that the currency which provides “free money” is now dumped into global markets in unprecedented quantities. As happens with anything which is grossly over-supplied to a market, its price must fall. Thus, the U.S.'s incompetent, two-party dictatorship is essentially forcing former economic “partners” like the Gulf States to drop their reliance on the dollar as a matter of economic survival – due to their essentially permanent, near-zero interest-rate policy. Yes, I know, the Wall Street Liars, their government-puppets, and the media propaganda-machine all like to talk about “exit strategies” for the U.S. government. I have already dealt with this pathetic nonsense. With over $57 trillion in total public and private debt, each 1% interest in U.S. interest rates drains more than $500 billion per year out of the U.S. economy (roughly equal to a 5% drop in GDP for each 1% increase in interest rates). Apart from the fact that the hopelessly insolvent U.S. economy cannot afford to pay for even a 1% increase in its interest rates, it can even less afford the 'hits' to its GDP which are implied by such interest rate increases. Thus, much like Japan, the U.S. is looking at a generation of a dormant economy (the cost of using all available capital to prop-up its “zombie banks”) along with near-zero interest rates as a best-case scenario. The less- optimistic (and more realistic) scenarios are that it fails to do as well as Japan did. Instead, the more likely options are that the U.S. either suffers a debt-implosion (like the former Soviet Union), or ignites hyperinflation – through the reckless money-printing required to avoid a debt-implosion. In all of these three scenarios it is nothing short of economic suicide to have holdings in U.S. dollars, or to simply hold dollars as a currency “reserve”. These economic realities mean that even if the recent rumor is false that a deal to doom the dollar has already been reached, the economic fundamentals created by the U.S. government not only make such a transition certain, but make it imperative to conduct this transition as quickly as possible without creating more severe disruptions in the global economy. It is partially due to the simultaneous (“competitive”) devaluation of all global currencies and partly due to the lack of an obvious, immediate successor to the U.S. dollar that the future of precious metals is assured. Gold (and silver) are the only forms of money which cannot be devalued. Thus, with 6 billion humans having a choice between holding rapidly-depreciating paper currencies or holding real “money”, the choice of clear. The new, nominal high today for gold is not an ending, it is a beginning - while for the U.S. dollar, the "obituary" is already written. All that is missing is the date of its death. ============================================================== ============================================================== What about the Amero currency? See more of the North American market on our Market view page. Amero is as we know for now, a hypothetical but much talked about and probable currency. The Amero would combine the Mexican Peso, Canadian dollar (CAD) and US dollar (USD) in to one single currency and would also be the hypothetical North American Union´s official currency. Not unlike to what the Euro has been for the European Union today, the Amero would be for the North American Union. The facts behind are fairly strong that something will happen within a foreseeable future. The recent strong fall behind the US dollar (See US dollar index chart below) is something that we can not ignore and it raises questions about its future strength as a world currency and possible collapse where the only way to save the US and world economy may be to create this hypothetical currency. The recent credit chaos in the united states sub prime market could be another keystone, orchestrated by the Federal reserve and other big bankers to cause the US dollar to crash. Although there are no evidence for this yet, people should be aware of the possibilities! (More to read below.) Currency cooperation has occured in America on many lower levels. A few countries – such as Argentina, Brazil and Canada – have now and again tied their currency to the US dollar, and during 2000, Ecuador started using the US dollar as its sole currency. The US dollar is actually already a second currency in many parts of the Caribbean and Central America. In both Panama and El Salvador the US dollar serves as parallel legal tender, and also in Cuba where 1 peso currently equals US dollar 1.08 (previously, it was until 24 March 2005, 1 peso = 1 US dollar). Some Experts thus argue that a currency union is all but inevitable, whether it is desired or not. If a currency union will be the future reality, apart from The United States, Canada and Mexico, we can probably expect many other countries in central and south America joining the currency union straight afterwards. Above is a very interesting proposed symbol/logo for The Amero made by The Fraser Institute. According to Dr. Herbert G. Grubel, Senior Fellow, The Fraser Institute, "Under the proposed plan, bank notes and coins of the currency (tentatively called the "amero" ) will have "amero" symbols on one side and national emblems on the other to preserve important symbols of national identity. The conversion of existing currencies into the amero will take place at rates that leave unchanged each country's real income, wealth, and international competitiveness at the time of conversion." Download the whole study about "The Case for the Amero" from The Fraser Institute. As far as of today, no official symbol or logo has been released or verifide in any way. During the recent year the three countries national banks also seem to manipulate their currencies into 1USD = 1CAD = 10 Mexican Peso. (see market view page)Is this just a way to make the transition to the Amero easier to take or just another coincident? As time goes by the evidence for a new north American currency grows stronger. The days of the US dollar is over, we see more and more evidence of this as many countries central banks try to sell out their US dollar reserves and get paid for merchandise and natural resources in Euros or Japanese Yen. Just recently the Chinese Central bank was threatening to sell out all their US dollar reserve and cause an imminent crash if the trade embargos continued (see news page). This quickly got covered up and nothing else has been heard about it. The important thing to realize is that the US dollar is not at all as strong as the Fed would like us to believe and any country with a sufficiently strong economy could easily cause the dollar to crash. The million dollar question is, when will it happen? Some experts have been talking about it since the end of the 90's but it's not really until very recently the CNBC correspondent Stephen Previs opened up many peoples mind about this possible currency in a comment about the bullish gold price. You can see more about this in the Video site - section. As far a crashes and chaos goes, we know that it can never fully be understood when it will happen, it always comes as a surprise. Allthough many people believe that the world economy will keep on rolling for another 2 years (until 2009-2010) before it is time to back off with general investments. Looking at this timeframe, it is probable that a currency union will be created sometime shortly after that. ============================================================= Amero to become USA’s new currency when dollar collapses Front page / World / Americas 02.12.2008 Source: Pravda.Ru Pages: 1 Pictures of the new currency that will supposedly replace the US dollar have appeared on the Russian Internet. The United States is reportedly working on the new currency, the amero, which will be common for the USA, Mexico and Canada. The unstable financial situation in the world, the collapsing oil prices and the growing foreign debt of the United States may eventually crush the US dollar as the world’s major currency. Needless to say that the US authorities reject the rumors and promise to keep the dollar afloat. Amero to become USA’s new currency when dollar collapses Amero notes have no portraits of US presidents on them and resemble the Belarussian rubles. For example, there is an image of a deer depicted on a 50-amero note, whereas a picture of a pyramid of Mexican Indians can be seen on a 100-amero note. The amero follows the model of the European Union and its euro. It brings up the idea that the new currency can be adopted by the USA, Canada and Mexico within the scope of the North American Union, which the Bush administration established in 2005 under the Security and Prosperity Partnership of North America (SPP). On April 6, 2005, the US Treasury announced the formation of the Financial Services Working Group to assist in the SPP’s ‘prosperity’ plans. According to its own press release, the US Treasury’s Financial Services Working Group said it “will play a critical role in the SPP.” Conspiracy theorists contend that the governments of the United States, Canada, and Mexico are already taking steps to implement such a currency, as part of a "North American Union (NAU)" No current members of any country's government have officially stated a desire to create such a body, nor introduce a common currency. The idea for a North American currency union was first proposed in 1999 by Canadian economist Herbert G. Grubel. A senior fellow of the conservative Fraser Institute think-tank, he published a book titled The Case for the Amero in September 1999, the year that the euro became a virtual currency. Another Canadian think- tank, the C.D. Howe Institute, advocates the creation of a shared currency between Canada and the United States . After the report came out, center-left nationalist groups in Canada expressed their opposition to any currency union because they view it as an attempt by American businesses to gain access to Canada 's extensive natural resources while dismantling the nation's social services. The 100,000 member strong Council of Canadians, a progressive advocacy group, has declared one of its central issues to be the threat of "deep integration". Dr. Robert Pastor, in a 2001 book, suggested a common currency should be a foundation of "macro economic cooperation" among the three NAFTA countries. However, the 2005 Independent Task Force on North America, which he chaired, did not recommend a common currency, nor does Pastor in the section for additional and dissenting views suggest a common currency should be a goal. ============================================================= Why Barack Obama Does NOT Deserve the Nobel Peace Prize Front page / Opinion / Columnists 13.10.2009 Source: Pravda.Ru By Peter Baofu, Ph.D. What exactly has Barack Obama achieved for world peace to deserve the Nobel Peace Prize in 2009? Polish President Lech Walesa, who won the Nobel peace prize in 1983, bluntly said when asked about the decision to award Obama the peace prize: “So soon? Too early. He has no contribution so far.” Rick Moran asked, in a news update by Charles Babington for the Associated Press (Oct. 09): “What's Obama done? What peace has he negotiated?” The Economist, published in the U.K., also asked, in the Oct. 09 issue: “But is the award premature? Although the prize may be given in the spirit of encouraging Mr. Obama’s government, it might have been better to wait for more solid achievements.” Even Obama himself tried to calm down the gasps when he later confessed at the White House: “Let me be clear: I do not view it as a recognition of my own accomplishments….To be honest, I do not feel that I deserve to be…honored by this prize.” So why should the Nobel Peace Prize Committee award such a prize to a man who has made no concrete contribution to world peace so far (and has become the President of the United States only for the last few months)? And why should Obama accept the prize at all, if he sincerely believes that he does not deserve it as he said so himself? The award decision is all the more shocking, when one realizes that some supporters of Obama secretly submitted the nomination application to the Nobel Peace Prize Committee sometime before the mandatory February 1, 2009 nomination deadline, that is, either even before Obama officially became the President of the United State or even before he had the chance to settle down in his job as the President of the United States, let alone any “concrete achievements in peacemaking” to claim, as Karl Ritter and others revealed in the Oct. 09 AP news update. The Norwegian Nobel Committee has its “official” explanation, however, in that the decision was made not on the basis of Obama’s concrete achievements in peacemaking (which he has none) but because of his rhetorical “inspirations” for a more peaceful world, as “Aagot Valle, a lawmaker for the Socialist Left party who joined the Nobel committee this year, said she hoped the selection would be viewed as 'support and a commitment for Obama'” - as reported in Ritter’s news update. This official explanation by the Norwegian Nobel Committee, sadly speaking, is very disturbing, for two major reasons; the first is that Obama remains a war-making president, and the second is that the decision also raises serious questions about the ideological politics of the Norwegian Nobel Committee (and its dangerous consequences for world peace). Let me explain these two points below. ============================================================== THE N.A.U. POLICE |
