When will the US Dollar fall from Grace?
The agreement with OPEC in the 1970s to price oil in dollars has provided tremendous artificial strength to the dollar as the preeminent reserve currency. This has created a universal demand for the dollar, and soaks up the huge number of new dollars generated each year. Last year alone M3 increased over $700 billion.
The artificial demand for our dollar, along with our military might, places us in the unique position to “rule” the world without productive work or savings, and without limits on consumer spending or deficits. The problem is, it can’t last.
Ron Paul 2/2006
The sad part is Congress knows the Federal Gov't is in it deep.
If the Middle Eastern Oil is what is mainly keeping our Dollar afloat How can we ever get out of The Middle East?
Bingo!
"If the Middle Eastern Oil is what is mainly keeping our Dollar afloat How can we ever get out of The Middle East?"
Bingo! You said it! That's why nobody but Ron Paul is promising to pull out. They all have vested interests. Our occupation of the Middle East has little/nothing to do with a "War on Terror." It has everything to do with a worthless dollar.
Right after the election,
Right after the election, they will crash the economy - no matter who wins.
If it's Ron Paul, America and the world will recover rather easily in a short time.
If it's anyone else, it will be another decade of FDR big government socialism that will destroy the dollar and usher in the "Amero."
Well
I think the problem is, they don't have all the infrastucture in place to debase and replace yet... they screwed up.
So we have now a window... a time where the Remnant may be able to do something. If not this race, then next. It's not a big window... but it's there. The problem again is time... they're not going to be able to prop the dollar up long enough I don't think... they got arrogant, and overextended.
Hate to say it, but we may very well get our revolution... without the love part.
~Live life to its fullest, with an open heart, open arms and most important... an open mind~
"Euros Accepted" signs pop up in New York City
http://news.yahoo.com/s/nm/20080206/us_nm/newyork_euros_dc;_...
NEW YORK (Reuters) - In the latest example that the U.S. dollar just ain't what it used to be, some shops in New York City have begun accepting euros and other foreign currency as payment for merchandise.
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"We had decided that money is money and we'll take it and just do the exchange whenever we can with our bank," Robert Chu, owner of East Village Wines, told Reuters television.
The increasingly weak U.S. dollar, once considered the king among currencies, has brought waves of European tourists to New York with money to burn and looking to take advantage of hugely favorable exchange rates.
"We didn't realize we would take so much in and there were that many people traveling or having euros to bring in. But some days, you'd be surprised at how many euros you get," Chu said.
"Now we have to get familiar with other currencies and the (British) pound and the Canadian dollars we take," he said.
While shops in many U.S. towns on the Canadian border have long accepted Canadian currency and some stores on the Texas-Mexico border take pesos, the acceptance of foreign money in Manhattan was unheard of until recently.
Not far from Chu's downtown wine emporium, Billy Leroy of Billy's Antiques & Props said the vast numbers of Europeans shopping in the neighborhood got him thinking, "My God, I should take euros in at the store."
Leroy doesn't even bother to exchange them.
"I'm happy if I take in 200 euros, because what I do is keep them," he said. "So when I go back to Paris, I don't have to go through the nightmare of going to an exchange place."
Oh, oh
Bush is prepared to attack Iran to stop them from using euros. And now merchants in New York are daring to accept them instead of the dollar? I wonder how soon the black-op helicopters will be landing at Times Square.
no black-op helicopters...they'll just cut off their internet
If Iran refused to take dollars for oil and ended up losing telecommunications perhaps NY will have the same type of accident occur there?
Some news report a total of five undersea cables have been cut and the MSM is trying to report it to the sheeple as an accident....one cable being cut would be an accident but 3, 4 or 5???
Many suspect the cable cutting has to do with the Iranian Oil Bourse and the fact that the U.S. does not want it to go into effect.
Read this article....it's a good read as it educates us
FROM GOLD ===> DOLLARS ===> OIL
and why there would be interest in cutting of Iran's Proposed Iranian Oil Bourse. It's long but worth it's weight in knowledge!
http://www.energybulletin.net/12125.html
And lastly: U.S. sees Russia, China, OPEC financial threat
http://sg.news.yahoo.com/rtrs/20080205/tbs-security-usa-thre...
Ron Paul made many predictions last year about the economy and the MSM played them off, telling the sheeples that RP didn't have a good grasp on reality, that RP was wrong and tried to dismiss RP by calling him a kook.
Hmmmm. It appears as if most of RP's predictions have become our reality.
Take the time to read the articles and share them with anybody whom you care about or hold dear to you.....Because knowledge is POWER!
Thanks Tina!
Your posts are always sharp.. glad to see that you are on the ball
Can you please kill the bold at the end of your post tho?
~Live life to its fullest, with an open heart, open arms and most important... an open mind~
How long until it's "illegal"?
How long until it's illegal to accept foreign currencies in the United States unless you're a licensed "money exchanger"?
If the gulf states get together and create a new gold-backed GCC currency in order to decouple their currencies from the dollar to better trade their oil, how long then?
What if major retailers (like Target, for example), accepted Euros?
I suspect it will not be long.
A nice Summary of our Stimulus Package
A fun read.. not
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/03/...
The sad part is the comments.. people think that Obama is going to save them.
Although he's technically wrong in the article, from what I've read on another site... this is actually a nice bailout for the banks... so they get the most profit from it.
~Live life to its fullest, with an open heart, open arms and most important... an open mind~
Slapshot Is Mostly Wrong
You claim that $1 worth of the S&P 500 purchased in 1926 would be worth $2,268 today. This is completely wrong.
First, your ignorance shows because the S&P 500 did not exist until 1957. But I'll play along by using the Dow Jones Industrial Average instead.
In 1926, the Dow was around 150 points. Today, it closed at 12,182. That is an increase of 8121%. 150x81.21=12182. Multiply $1 by 81.21 gets you...$81.21.
Your gold calculation is correct, though.
In 1926, gold was $20.67 per ounce. Now it is $923.20 per ounce. That's an increase of 4466%. Multiply $1 by 44.66 gets you...$44.66.
So yes, if you invested in 1926, the Dow would have yielded nearly twice the return. But how many of us invested in 1926 in anything? Anyone? That's what I thought.
Let's assume we are retiring tomorrow, at age 65. You were smart and started investing when you were 25. That first $1 you invested in 1968 would be worth $12.43 now if it were invested in the Dow and $23.67 if it were invested in gold. Gold performed 190% better.
If you go back only 10 years instead of 40, which is probably close to reality for most people reading this, that $1 is worth $1.57 Dow or $3.20 Gold. Gold performed 204% better.
So what changed somewhere in the middle of the 20th century that caused gold to overtake stocks? It was the decoupling of the dollar from gold in 1971 that boosted inflation ever since. Inflation has been killing stock market performance ever since, and inflation is getting worse every year. Unless something changes, this trend will continue, and gold performance will accelerate compared to stocks.
By the way...
Have to comment.. nice number crunching! And to bring the decoupling of the dollar from gold in 71 into the post shows that you've figured the real reason we're screwed.. ;)
~Live life to its fullest, with an open heart, open arms and most important... an open mind~
He also kinda missed that
if you had bought stock in 1926, you've a very good chance that it was wiped in the depression.
And the upshot of the whole night is.. the economy isn't doing well... I'ma ignore slapshot until he can tell me how the IRS is part of the US government.. which means I'll never have to reply to him again... (I love going that route... they either take the red pill and come back an RP person or I don't have to talk to them any more.)
~Live life to its fullest, with an open heart, open arms and most important... an open mind~
That Petro Dollar vid was super!
Every Pauler should watch only 8 min.
Slapshot, Read this
http://www.kitco.com/ind/harrison/jun062005.html
Umm, he predicted a recession in 2006
Good thing we've had a chance to test his predictions:
Yeah, there was no recession in 2006, sorry. It's debatable whether there will be one in 2008, but there certainly wasn't one in 2006.
We've been propped out of a recession since 2001
I've more required reading for you.. remember that PPT I told you about yesterday?
~Live life to its fullest, with an open heart, open arms and most important... an open mind~
He wrote this in 2005
If he's so smart, then he should have mentioned that.
He has no credibility if, in 2005, he predicted a recession for 2006 that didn't materialize. If your point is that "we were really in recession in 2001--2008" then this guy failed to notice that too.
But, funny enough, we weren't in recession if we were "propped out of it."
Your theories are collapsing on themselves. Give up now.
~sigh~
You also believe that the economy is in great shape, the Fed is part of the US goverment like the IRS, S@P is a good thing to buy in a recession, gold is a horrible purchase against economic problems... what's next, some kinda Easter bunny?
Plunge Protection Team.. can you type that and tell me what it means to you?
~Live life to its fullest, with an open heart, open arms and most important... an open mind~
I belive the IRS is part of the government?
I'm not sure what there is to "believe" that the IRS is part of the government.
You can argue that it's a good part or a bad part, but you'd like me to pretend that it doesn't EXIST?
Take your meds, dude.
Thank you..
you just proved a good point to others reading.. you're an idiot.
The IRS has never been a part of the US government. FACT.
Off the boards, troll boy.
~Live life to its fullest, with an open heart, open arms and most important... an open mind~
Quoting this for preservation
I couldn't make this stuff up, it's too good.
The IRS isn't part of the government? Really?
That's funny, since the Department of the Treasury seems to think that the IRS is part of the Treasury. And even funnier since Congress bothered to write an entire ttitle of the United States Code about the IRS.
And Congress reorganized it in 1998 by passing the Internal Revenue Service Restructuring and Reform Act of 1998.
YOU SAID:
Look it up silly
The IRS has never been part of the US government... any Ron Paul supporter knows this. If you're so sure, show me the article that set up the Internal Revenue Service. As a matter of fact, show me the law that says that they can collect tax from an American citizen.
Thi is the point where you lookup and watch ~Freedom to Fascism~.
I'm not going to speak to you again until you've seen it and told me you have.
Here's your chance to take the red pill... I hope you don't.
~Live life to its fullest, with an open heart, open arms and most important... an open mind~
im an economst and this guy is plain full of shit.
you can pick any specific time in history to mislead. i dont care what happen in 1980 compared to the s&p i only care whats happening now. i owned the s&p from 1980 till 2000 but i was bright enough to get out and into gold at 276 an ounce and higher averaging up along the way. the 1980's is the past im only concerned with the future and history tells me that all fiat money ends where it begin WORTHLESS while gold remain valuable threw out. even the bible and im not religious mention gold as money. history goes thru cycle and right now history is not going to be kind to america and its fiat money system of bills of credit. it will cave in on itself with or without the help of ron paul.
Wait a second, wasn't that around the time?
Brentonwoods Agreement.
I suggest Slapshot look it up.
You're not an economist
If you think "throughout" is spelled "threw out" then you're probably not actually an economist.
Gold has no value unless people are willing to trade food, shelter, clothing and other useful things for it. In a crisis, nobody is going to be willing to give up those kids of necessities for a shiny yellow rock. It's very pretty, but it doesn't grow food, keep you warm at night, or power your automobile.
how do i know you are an idiot
you spoke!
its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!
Tard boi
you have an internet connection.. use it. Look up the Great Depression. You'll find that it happened here, in the United States. Read up on it. Gold was used not only to transfer wealth through that time by savvy investors, gold and silver were used as currency.
Ok.. I'm tired of playing the kick the puppy deal... I'll stop pickin on the poor boi for the night.
~Live life to its fullest, with an open heart, open arms and most important... an open mind~
And "in a crisis" (read:
And "in a crisis" (read: economic crisis), just what good are your crappy green dollars going to be? At least gold and silver will preserve wealth THROUGH the crisis, whereas all your dollars will just be bad toilet paper.
Hey Devon, I've discovered the signature of the true troll: they never try to deny it, but just keep up with their misinformation, like our friend slapshot here.
Right?
He's kinda good at just skipping to the next topic once nailed to the cross on it... true mark of a bad debater.. and sore loser. He was telling me last night that the dollar could not be propped up, because you can buy futures.. LOL Then I told him about the PPT and he had no idea what that was.. so I'm figuring he's a McCain supporter, since McCain flubbed that one too in that debate.
I dunno.. it's like he learned a lil about economics somewhere, then he stopped thinking... it's all just the whole MSM ecomony crap. So that's another indication to me that he's just a troll... any decent RP supporter has already seen thru that crap.
~Live life to its fullest, with an open heart, open arms and most important... an open mind~
You are now lying, again
You are either lying or haven't actually read anything I've posted.
You suggested that the Fed was somehow propping up the dollar by cutting interest rates. I informed you that it works the exact opposite way; cutting interest rates devalues a currency. (If interest rates are high in a local currency then people buy into that currency to take advantage of the rates, driving the price of the currency up).
You then suggested that it'd be possible to prop up the currency by buying it. I suggested that there's a trillion-dollar-a-day foreign exchange market (FOREX--look into it) and it would cost billions of dollars a day to make a dent in prices on the FOREX market.
Please don't misrepresent what people say.