Thursday, April 5, 2012
Joseph Foster - The Destruction of America...
The Destruction of
China and have unveiled plans to promote direct exchange of their currencies in a bid to cut costs for companies and boost bilateral trade. Japan
Russia and have been using their own national currencies when trading with each other for more than a year now. Leaders from both China Russia and have been strongly advocating for a new global reserve currency for several years, and both nations seem determined to break the power that the U.S. dollar has over international trade. China
seems absolutely determined to change the way that international trade is done. At this point, approximately 70,000 Chinese companies are using Chinese currency in cross-border transactions. China
China and the have agreed to ditch the U.S. dollar and use their own currencies in oil transactions with each other. United Arab Emirates
has been one of the most aggressive nations when it comes to moving away from the U.S. dollar in international trade. For example, it has been reported that Iran India will begin to use gold to buy oil from . Iran
Saudi Arabia and China have teamed up to construct a massive new oil refinery in , and leaders from both nations have been working to aggressively expand trade between the two nations. Saudi Arabia
The heading of the Article below. Is the dollar reign over? I will change the title to that of the Destruction of America. It points out how
is on the March in destroying the west economically. Its success was due to the west flawed trade policy, as a factor, it has allowed itself to be mired in failed policies that did not cause the west to meet the changes taken place around the world, it continues to live by past glories. Some say we won the cold war we actually lost that war because it caused China China and that went to sleep to wake up. Now that giant Russia that went to sleep for four thousand years has awaken. It has become the factory of the world serving the needs of a global population in excess of 6 Billion, Sometimes Americans forget that China China is not wholly depended on the US trade alone, for the has only a population of 300 million. During my journey to US China from the UK, I made a night stop over at Dubai a city that has emerged as a Global city and a business Hub, a city that mega oil money has transformed as a Shangri-La in the Middle East, a city that replicate the sky line. My stop over gave me a glimpse of what is going on in China, my flight by United Emirate Airline that will put to shame western Airlines as to service and comfort for its passengers, it flies the largest Air plane in the world a 550 Double Decker passenger plane built by Air Bus, the majority of its passengers are merchants from all parts of Africa, the middle East and Europe, their quest is to shop for their business back home cheaply produced goods that was once made in the west, their customers like Americans are also addicted to low price product, China is more than willing to satisfy their addiction. The purpose of my trip unlike the others was not for shopping but to do some research on China, before completing the transcript of my book, ‘Seeing Red’’ Manhattan
The USA once the greatest Nation on earth is falling, it enjoyed a period of manufacturing monopoly after WW11 that it was the principal producer of consumer goods for the world, its manufactured products were exported to all of the none communist countries, its currency was in demand that the word dollar sounded to many like Gold. It has achieved the highest per Capita income and rated number one, today its per capita income has slipped to number 13. Today that role of glory that the
US achieved is being taken over by . Here is what Napoleon said two hundred years ago that when China wakes up it will shake the world. Today it is shaking the world economically. China
What is shocking is
China a communist country has found a way to cause capitalism to work for the benefit of more efficiently. The country is run by perhaps 36 people not mired by politics and is well focused to destroy the western world economically. China
Western world consumers have become addicted to cheap goods,
is only too happy to comply and satisfy western world consumer needs for cheap low price products, that keeps flowing to Wal-Mart the largest retailer in the World. Some of you may say, what is the response in China Washington there is none from . Washington politicians have lost touch as to what is happening in front of their eyes they are more focused on mudslinging towards each other, and some are dreaming perhaps of starting another war, some have forgotten the mistakes made which created two flawed wars that gave no benefit to the US nor advanced Democracy in the two countries that the US invaded. Well folks perhaps rise and fall of empires may have been ordained by God since that is what has occurred in History. Washington
The Author mentioned that today Americans are hiding their Nationality when they leave the shores of the
and some pretend that they are Canadians. As an American living in Europe due to my business I have first-hand knowledge and observed a change when once Americans were admired around the world and many will make it known to others that yes we are Americans, and we now dominate the world in our achievement economically, and we indeed landed a man on the moon, that era of greatness is gradually coming to an end, we are now consumed with watching the Supreme court grappling with medical benefit passed by the congress. We shall all await the verdict of the court. USA
When the founding fathers wrote the constitution they were focused on how to prevent Tyranny, and did not have medical care on their mind. If they did, perhaps they may have written in the constitution that the state is obligated to provide medical care for its citizens.
Bernanke our Federal reserve Chairman has caused us to perhaps stop celebrating about the drop of
unemployment when he said he doubts if it is sustainable due to the western world slow growth. US
The question may be asked for the future, will this Global economy one day benefit the masses of the Western population, or will it to only benefit the few on Wall Street.
My gratitude to the author for his informative article that may perhaps, wake up some of our politicians in
from their deep sleep. Washington
Joseph Foster, Author ‘’Seeing Red’’ ‘How America is losing the future’
my blog Stand Up For America! – Seeing Red; http://boblupoli.blogspot.com/
March 27, 2012 9:05 am Comments Author: The Economic Collapse Blog
The U.S. dollar has probably been the closest thing to a true global currency that the world has ever seen. For decades, the use of the U.S. dollar has been absolutely dominant in international trade. This has had tremendous benefits for the
U.S. financial system and for U.S. consumers, and it has given the government tremendous power and influence around the globe. Today, more than 60 percent of all foreign currency reserves in the world are in U.S. dollars. But there are big changes on the horizon. The mainstream media in the U.S. has been strangely silent about this, but some of the biggest economies on earth have been making agreements with each other to move away from using the U.S. dollar in international trade. There is also some oil producing nations which have begun selling oil in currencies other than the U.S. dollar, which is a major threat to the petrodollar system which has been in place for nearly four decades. And big international institutions such as the UN and the IMF have even been issuing official reports about the need to move away from the U.S. dollar and toward a new global reserve currency. So the reign of the U.S. dollar as the world reserve currency is definitely being threatened, and the coming shift in international trade is going to have massive implications for the United States economy. U.S.
A lot of this is being fueled by
. China China has the second largest economy on the face of the earth, and the size of the Chinese economy is projected to pass the size of the economy by 2016. In fact, one economist is even projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040. U.S.
is sitting there and wondering why the U.S. dollar should continue to be so preeminent if the Chinese economy is about to become the number one economy on the planet. China
Over the past few years,
China and other emerging powers such as have been quietly making agreements to move away from the U.S. dollar in international trade. The supremacy of the U.S. dollar is not nearly as solid as most Americans believe that it is. Russia
economy continues to fade, it is going to be really hard to argue that the U.S. dollar should continue to function as the primary reserve currency of the world. Things are rapidly changing, and most Americans have no idea where these trends are taking us. U.S.
The following are 10 reasons why the reign of the dollar as the world reserve currency is about to come to an end….
China and Are Dumping the U.S. Dollar in Bilateral Trade Japan
A few months ago, the second largest economy on earth (China) and the third largest economy on earth (Japan) struck a deal which will promote the use of their own currencies (rather than the U.S. dollar) when trading with each other. This was an incredibly important agreement that was virtually totally ignored by the
media. The following is from a BBC report about that agreement…. U.S.
The deal will allow firms to convert the Chinese and Japanese currencies directly into each other.
Currently businesses in both countries need to buy US dollars before converting them into the desired currency, adding extra costs.
#2 the BRICS (
Brazil, Russia, India, China, and ) Plan To Start Using Their Own Currencies When Trading With Each Other South Africa
The BRICS continue to flex their muscles. A new agreement will promote the use of their own national currencies when trading with each other rather than the U.S. dollar. The following is from a news source in India….
The five major emerging economies of BRICS — Brazil, Russia, India, China and South Africa — are set to inject greater economic momentum into their grouping by signing two pacts for promoting intra-BRICS trade at the fourth summit of their leaders here Thursday.
The two agreements that will enable credit facility in local currency for businesses of BRICS countries will be signed in the presence of the leaders of the five countries, Sudhir Vyas, secretary (economic relations) in the external affairs ministry, told reporters here.
The pacts are expected to scale up intra-BRICS trade which has been growing at the rate of 28 percent over the last few years, but at $230 billion, remains much below the potential of the five economic powerhouses.
#3 The Russia/China Currency Agreement
#4 The Growing Use Of Chinese Currency In
Who do you think is
Africa’s biggest trading partner?
It isn’t the
. United States
China became Africa’s biggest trading partner, and is now aggressively seeking to expand the use of Chinese currency on that continent. China
A report from
Africa’s largest bank, Standard Bank, recently stated the following….
“We expect at least $100 billion (about R768 billion) in Sino-African trade – more than the total bilateral trade between
China and Africa in 2010 – to be settled in the renminbi by 2015.”
China/ Deal United Arab Emirates
The UAE is a fairly small player, but this is definitely a threat to the petrodollar system. What will happen to the petrodollar if other oil producing countries in the
Middle East follow suit?
Tensions between the
U.S. and Iran are not likely to go away any time soon, and Iran is likely to continue to do what it can to inflict pain on the in the financial world. United States
#7 The China/Saudi
Who imports the most oil from
? Saudi Arabia
It is not the
. United States
Rather, it is
As I wrote about the other day,
China imported 1.39 million barrels of oil per day from in February, which was a 39 percent increase from one year earlier. Saudi Arabia
So how long is
Saudi Arabia going to stick with the petrodollar if is their most important customer? China
That is a very important question.
#8 The United Nations Has Been Pushing For A
New World Reserve Currency
The United Nations has been issuing reports that openly call for an alternative to the U.S. dollar as the reserve currency of the world.
In particular, one UN report envisions “a new global reserve system” in which the
no longer has dominance…. U.S.
“A new global reserve system could be created, one that no longer relies on the
dollar as the single major reserve currency.” United States
#9 The IMF Has Been Pushing For A
New World Reserve Currency
The International Monetary Fund has also published a series of reports calling for the U.S. dollar to be replaced as the reserve currency of the world.
In particular, one IMF paper entitled “Reserve Accumulation and International Monetary Stability” that was published a while back actually proposed that a future global currency be named the “Bancor” and that a future global central bank could be put in charge of issuing it….
“A global currency, bancor, issued by a global central bank (see Supplement 1, section V) would be designed as a stable store of value that is not tied exclusively to the conditions of any particular economy. As trade and finance continue to grow rapidly and global integration increases, the importance of this broader perspective is expected to continue growing.”
#10 Most Of The Rest Of The World Hates The
Global sentiment toward the
has dramatically shifted, and this should not be underestimated. United States
Decades ago, we were one of the most loved nations on earth.
Now we are one of the most hated.
If you doubt this, just do some international traveling.
Europe (where we are supposed to have friends), Americans are treated like dirt. Many American travelers have resorted to wearing Canadian pins so that they will not be treated like garbage while traveling over there.
If the rest of the world still loved us, they would probably be glad to continue using the U.S. dollar. But because we are now so unpopular, that gives other nations even more incentive to dump the dollar in international trade.
So what will happen if the reign of the U.S. dollar as the world reserve currency comes to an end?
Well, some of the potential effects were described in a recent article by Michael Payne….
“The demise of the dollar will also bring radical changes to the American lifestyle. When this economic tsunami hits
, it will make the 2008 recession and its aftermath look like no more than a slight bump in the road. It will bring very undesirable changes to the American lifestyle through massive inflation, high interest rates on mortgages and cars, and substantial increases in the cost of food, clothing and gasoline; it will have a detrimental effect on every aspect of our lives.” America
Most Americans don’t realize how low the price of gasoline in the
is compared to much of the rest of the world. United States
There are areas in
Europe where they pay about twice what we do for gasoline. Yes, taxes have a lot to do with that, but the fact that the U.S. dollar is used for almost all oil transactions also plays a significant role.
consumes nearly a quarter of the world’s oil. Our entire economy is based upon our ability to cheaply transport goods and services over vast distances. America
So what happens if the price of gasoline doubles or triples from where it is at now?
In addition, if the reign of the U.S. dollar as global reserve currency ends, the
government is going to have a much harder time financing its debt. U.S.
Right now, there is a huge demand for U.S. dollars and for U.S. government debt since countries around the world have to keep huge reserves of
currency lying around for the sake of international trade. U.S.
But what if that all changed?
What if the appetite for U.S. dollars and
debt dried up dramatically? U.S.
That is something to think about.
At the moment, the global financial system is centered on the
. United States
But that will not always be the case.
The things talked about in this article will not happen overnight, but it is important to note that these changes are picking up steam.
Under the right conditions, a shift in momentum can become a landslide or an avalanche.
Clearly, the conditions are right for a significant move away from the U.S. dollar in international trade.
So when will this major shift occur?
Only time will tell.
Posted by Wild Rose at 12:29 PM