March 25, 2009

China and Russia want a one-world currency, and the end of the dominance of the US dollar. Hmmm... Hmmmm....

What's going on here?

Smokescreen? Or serious proposal?

And could the dollar be destroyed in a day, or will it be a long, slow death?


Game it out.



42 comments:

Mammoth said...

We are going to wake up one morning to discover that, while we were sleeping, China dumped the dollar.

And then the sh!t will truly hit the fan.

Are you ready?

Anonymous said...

America is DEAD.

F*ck America Sucks.

DIE U PIGS

happy snapper said...

Mammoth,

correct, and it will create a once in a life time buying opportunity, then shortly there after the Greenback will resurface.

Remember the societies behind the currencies.

In the end the US can more then survive without China, but China cannot survive without the US.

Russia can survive without the US
but only 'survive'

Anonymous said...

China is an economic powerhouse. They produce things and sell those products to others. Of course, they want a stable currency.

The United States is a declining world power, hanging on to her glory days by any means necessary. Boob job, face lift, tummy tuck. It's all sad and pathetic and will end badly.

Fiat sucks. But don't buy gold and silver. I don't like competing with others for mine.

Butch said...

We are reaching the end stage of "Bretton Woods II".

What comes next is "Great Disintegration I", whereby the world's former monetary system falls into chaos.

Needless to say, this will not be good for (already-collapsing) world trade and capital flows.

But the bottom line is this:

The U.S. has totally abused its reserve currency position and also allowed Wall Street to screw the world with leveraged derivatives instruments.

And now we are all paying the price.

Who knows whether SDRs, regional currency blocs, or even gold and silver will emerge over time as the next international medium of exchange.

But I do know this:

We are in a rapidly-deteriorating situation.

Anonymous said...

The enmity between China and Russia goes back a long time. If they have finally found common ground with this issue, we truly are F*CKED.

keith said...

Doesn't the fact that the President is even talking about a one-world-currency freak you out?

Just a bit?

I didn't think we'd see this day. And then here it is. It will come.

Whether the US wants that to happen or not.

Harry Hamelin said...

Yes, the sound you hear is the Piper.

Time to pay.

patrat said...

I always hear "it's only important as a percent of GDP". What happens when your GDP (about 14 trillion) is equal to your national debt (approaching 14 trillion)? Serious question - I don't know. What if China wants to cash in their bonds? Would they? What if we can't make the interest payments on them? I am hearing the word quadrillion lately. My little brain was blown by all this long ago.

patrat said...

"The enmity between China and Russia goes back a long time. If they have finally found common ground with this issue, we truly are F*CKED."


Yep, been saying that for while. Them and the rest of the world 'cause, "everybody loves a winner".
Just like with the bully in the 'hood - it might come to blows.

Brandine said...

Ummm...yeah...and three headlines(in red font) on Drudge right now read:


Geithner 'open' to China proposal on currency... Developing...

White House economic adviser Goolsbee won't rule out...

Dollar drops on Geithner's 'loose talk'... "

(www.drudgereport.com)

I hope I can grow enough food. It ain't going to be pretty, if things continue as they are going. The PTB have entered the fast lane to bring about a total collapse of this country.

Anonymous said...

.


"He also forced everyone small and great, rich and poor, free and slave, to receive a mark on his right hand or on his forehead, so that no one could buy or sell unless he had the mark, which is the name of the beast or the number of his name".

Rev 13:16,17

Sound familiar?

Anonymous said...

I conside this extremely problematic.....what are we to do? I get paid in dollars, ok, I am not working now, but I have savings in dollars...wtf? Anyone have any constructive ideas - I am assuming many people on this board have cash stashed and would face the same problem....

Afterthought said...

From a strategic point of view America's smartest move is inflation: we dilute our debts away and slap our nearest competitors in the face.

From their point of view they have to weigh the pleasure of bitch slapping us against the destruction of the current world order, which isn't really ALL that bad.

Anonymous said...

writings on the wall dude...

Anonymous said...

What would such a currency be named?

and

Who would print it?

Printing is a big job. let's cut the middleman and go directly to implanting a tiny computer chip into a body part near you.

Rechargeable via satellite!!

"Such a deal" as our comrades would say.

Anonymous said...

I fully understand china's desire not to have their
dollars become worthless...
I CANNOT understand Obama/Geithner being so
accomodating... - has anyone explained to them that the whole point of the
exercise is to PREVENT them
from printing money like toilet paper - and if that happens, all of their current bailouts and spending spree must come to a screeeeeetching
halt - I don't think they
get it...

Anonymous said...

patrat,

it's just US dollars we can always make interest payments because we can just print some more.

Of course that's just as bad as defaulting from a "oh shit the $2 shop full of stuff from China is now a $2000 shop."

Anonymous said...

The dollar is toast.

The Fed and its partners-in-crime have squandered all trust in our financial system for a long time.

They are traitors and should be dealt with accordingly.

As for a one-world currency... widespread bartering/black market trading will undercut its domestic acceptance.

Tax revolts will further constrain and concentrate federal priorities.

A military coup is a very real possibilty in the near future.

State's rights will be severely challenged...

GazPutin said...

Keith, more protests in Kyiv and elsewhere in Ukraine coming this Friday. Hope you're out of there right now!

********************************

U.S. Embassy warning: Avoid upcoming protests, could turn confrontational

The following is an advisory notice by the U.S. Embassy in Kyiv to citizens in Ukraine: According to the Party of Regions, they will conduct a demonstration at the Maidan starting at 12:00 (Noon) Friday, March 27, 2009. Participation is anticipated to be heavy. The Party of Regions may also hold simultaneous demonstrations in other cities in Ukraine.


Demonstrations take place in Ukraine from time to time in response to world events or local developments. We remind American citizens that even demonstrations intended to be peaceful can turn confrontational and possible escalate into violence. American citizens are therefore urged to avoid the above mentioned area of demonstrations if possible, and to exercise caution if within the vicinity of any demonstrations. American citizens should stay current with media coverage of local events and be aware of their surroundings at all times.

http://www.kyivpost.com/city/38254

**********************************

Ukraine is going to blow soon! Yulia and Viktor can't keep the lid on it much longer...

Mike Hunt said...

Hmm, they would have to suggest an alternative first... how's the Euro working out for you? Not quite, I'd say.

How about the Middle East experiment to back their currency by gold, how's that working out?

It's still in the posturing stage but the game has now advanced a step.

Global trade is a good thing, as long as there is an overall balance between imports & exports.

-Mike

investorinpa said...

Keith, 3 quick thoughts..feel free to reply..

1) China does not have its own bond market, so it sort of uses the US treasuries as a bond market by default
2) China bought MORE and continues to buy more US related treasury assets (go on cnbc to see slideshow)
3) There are some in the US that WANT the dollar to not be the default currency so that this will allow the Fed Reserve to inflate away.

Weird times, no?

Mike Hunt said...

The thing that bugs me the most:

Obama stating that he doesn't agree that a global currency is a good idea.

That means for sure it's in the works and going to happen.

Take everything Obama says from a deception standpoint and that's EXACTLY what's happening.

Keefer, you are always talking about taking the contrarian play... have you considered my logic?

-Mike

Anonymous said...

The US is the consumption engine of the world. Until that changes, the US dollar will remain the reserve currency. The US took over that role after WWII after the meeting at Breton Woods. China is a manufacturing machine but has a predominantly poor population that will take quite some time before they can consume like the US. China must accept reduced consumption from the US but will not risk losing their best customer. Europe, Brazil, India just can't replace the demand, however much reduced it is globally. Whether they continue buying US Treasuries is another question. A global currency seems unlikely. The Euro is an example of the difficulty of maintaining a unified currency among disparate economies. Germany does not want shoulder the burden of eastern europe, etc. Fiat money, paper or electronic is here to stay. Central banking is here to stay. Fractional reserve banking is here to stay. Germany lost WWII has experienced hyperinflation but today is still an economic powerhouse. Global thermonuclear war, then maybe gold or bottle caps become money again. Gold is risky. Have some gold makes sense, replacing all your fiat with gold is gambling, and you better be nimble, physical gold is less liquid than fiat. Bernanke is trying to avoid a deflationary spiral, the question is whether the Bond market will let him without a dislocation with serious political ramifications.

chslaxcoach said...

Okay ... how come my Yahoo! Finance page no longer shows the US Dollar Index. Seriously, I used to use "DX-Y.NYB", but that doesn't work and I couldn't find a replacement.

Has the Ministry of Truth stepped in?

Anonymous said...

If China dumps the dollar it will sustain massive losses of GDP. Yeah, for example a waste basket at Walmart might go to $50 but elasticty in supply and demand will drop the price as people use a cardboard boxes instead.. Exactly the same effect as what happened to oil.

More likely they will just revaluate their currency. They can't afford to bite off the hand that feeds them.

rescu-bail-ed said...

@chslaxcoach
Yeah it looks like it. That one went first. Then yesterday ^BKX an index of American bank shares, which also gives a good view of how bad things are. I've been watching both for the last two years.
You can still find them on Bloomberg.com.

Mitesh Damania said...

Obama wants all currencies to devalue together which means ALL COUNTRIES must print in synchronous harmony, else the more conservative country will come out ahead.

Andrew from Russia said...

What's going on here?
Smokescreen? Or serious proposal?


Given the enormous attention this topic gets over here, I'd rate it as Random Noise™.
Remember we are in a weird countertrend rally when another decoupling theory is being tested. But it's too soon to change anything.

Saul said...

Names for a new world order currency? Hmmmm. How about...

UN Dollars? --My pick.

NWO's? --Too obvious.

World Bank Pesos? --Sounds cheap

GBD's? (Gold backed dollars) --Could be restrictive

Anonymous said...

why doesn't Barry O accuse them of 'racism' ...then have Al Sharpton and LA raza start torching Chinese restaurants..that'll scare 'em!

Cassandra said...

This is our future....

Once Russia regains its wealth by way of high oil prices, China and Russia will take the US down. China will handle the economic side by destroying the US currency and by demanding that the US start paying its debts or face a total cut-off in both financing and imports. Russia will pressure the US militarily by stationing Russian bombers permanently on Cuba and by signing an agreement with Cuba to lease Gitmo (Both Russia and Cuba will claim that the US lease is now void b/c the US violated its lease by using Gitmo as other than a naval station-i.e. as a POW camp) Russia will give notice to the US that it has 90 days to evacuate Gitmo or else. Russia will up the ante by claiming that Alaska was never sold to the US, only leased. And that lease is now up. Just when the US is gearing up to respond, Chinese and Russian hackers start a long and sustained cyber-attack on the US, crashing most computer systems, communication systems, electrical systems, and all other computer dependent systems. The US plunges into chaos. China demands full and immediate payment of the US debt. Russia offers its "help" to the US. If the US will return Alaska to Russia and surrenders Gitmo to Russia, Russia will pay to China one-half of the American debt. The US govt puts it to a national vote. The US votes to give Russia what it wants. China next demands that the US pay off the rest of its debt by turning over to China the states of Hawaii and California. The US compromsies with China and gives up Hawaii, but only in exchange of a one-fifth reduction in the US debt...

Meanwhile, throughout all of this, American Idol ratings hit the roof.

fruity pebbles said...

Cassandra, I do believe you!

And I think that singer, Adam, will take it all.

Anonymous said...

There is just so much going-on here, where do you start? Well, China is in bad shape because they aren't exporting, why don't they just sell goods within their own borders? Oh yeah, they don't pay the workers enough to buy their own sh*t. But if they could, then would there ever be recessions again in China? So China is dependent on import of raw materials and would like to see a world currency, now I'm seeing the plan, yes, build-up their own economy by tearing down the world currencies values, making it economical to build-up their wage income without having to deal with the inflated US dollar and loosing ground on their march forward.

But, doesn't every country show it's economic health by it's currency valuation? Isn't that a way to balance and re-balance the economic structure of the whole world economy. Doesn't it also isolate and identify problems as they arise and the market forces react appropriately and causing the individual to act accordingly?

There's a lot to be said for the free-market and I've always wondered why the US took the trip down wage deflation avenue, was it only to make the multi-national corporations more profitable, or was there something more sinister going-on? Why would we have to pay the price to make a few stock/bond holders rich beyond sickening greed and we have to live off credit and a devaluing of the dollar and our wages not going along with inflation?

Most of these big power players want total control, just like Jeffrey Dahmer wanted control of his victims, but a world currency or government wouldn't do that unless they had dictatorial power, I would think the hegemony of the dollar is just fine with them, until they could replace it with something else, like the euro, or the asso or the whatever. Maybe there is in play the destruction of the dollar, and a third world economy coming to the US where the rich few running the government control the many poor with lots of debt. I just don't see it on a global scale, it looks more like they just want to bring the US down, maybe that is how their brains function, instead of bringing the world "up", they take us "down".

In the end I guess it'll look like one big slave/master economy, unless the slaves get pissed. Maybe "they" underestimate the intelligence of the many and their will to engage the tptb?

Anonymous said...

Obbbaaammmmyyy wants a one world currency. He is the stooge of the NWO.

Anonymous said...

Cassasndra - jerking off to apocalyptic fantasies or brilliant troll?

Anonymous said...

If China dumps the dollar it will sustain massive losses of GDP. Yeah, for example a waste basket at Walmart might go to $50 but elasticty in supply and demand will drop the price as people use a cardboard boxes instead.. Exactly the same effect as what happened to oil.
=========================


Give me a fuckin break; has anyone ever ran a buissness. At 50 dollers I or any other non daytrader buissness man would be making millions of 5 gallon pails within a month. God people are so stupid. Give 100 million Americans a computor hand them 700 trillion dollers in fake derivative ponzi money and everyone is a wallstreet/investment god.

I swear, used to like people. THEY NOW DISGUST ME. Anyone who is honest and works for a living should be sold into slavery? The brain fucking dead lazy scammers (day traders) will rule? Forget China it is dead economically. Its goverment is as corrupt as our own. This is going to get so ugly. Thats all right.

Anonymous said...

@Saul-I'm thinking more like, "Imperial Credits", a la Star Wars.

Anonymous said...

"He also forced everyone small and great, rich and poor, free and slave, to receive a mark on his right hand or on his forehead, so that no one could buy or sell unless he had the mark, which is the name of the beast or the number of his name".

Rev 13:16,17

Sound familiar?



This poster "gets it".

I am sure it would be rather interesting for some to read the entire book of Revelations. Some lights just might come on.

Anonymous said...

Anon March 26, 2009 2:40 PM:

'When I was young I was the nicest guy I knew....I ain't no nice guy after all'

You are one step closer to understanding why people walking down the street look so glazed over.

Singular said...

Why shouldn't they? China and Russia don't owe America anything.

They will act in their best interests and if it's in their best interests to dump the dollar, they will do so.

I think it's inevitable the American dollar will be dumped.

The American economy is in shambles and America cannot be the issuer of the world's trading currency much longer.

People do not want to hold onto a currency that loses value day by day, just in order to transact international business.

I think China and Russia are now coming to the realization that the US dollar is near its end and they have to face the truth and stop being complacent and prepare themselves for the changed paradigms ... or if they don't, they too will go under.

Anonymous said...

YOU VOTED FOR THIS MARXIST SCUMBAG KEITH.

NOW REAP WHAT YOU SOWED