AFP -- What Nobody's Saying: The Bailout Will Kill the Dollar
"What nobody in the corporate media is mentioning amid all the blather about the $700-billion Paulson bailout proposal is the impact it will have on the US dollar.
We are told that this huge gift to the financial sector—the assumption, at top dollar, of all the bad debt they’ve piled up--will be at taxpayer expense, but that’s only the half of it. (Really only the quarter of it because since the US government is technically bankrupt already, spending more than it takes in each year, all that money will be borrowed, and will be added to the national debt, meaning that just as the real cost of the $500-billion Iraq War is closer to $2 trillion, the real cost of the $700 billion bailout will be more like $1.5-2.5 trillion.)
But besides the direct bill handed to taxpayers for this gigantic con, there is the fact that adding that much to the national debt is also going to drive the dollar down precipitously against foreign currencies. We’re already seeing that happen, even while they’re just talking about the bailout. The dollar is falling against all major currencies—the Euro, the Yen, the Renminbi and the British pound. And it will continue to fall as the details of the bailout come out.
This will add to already powerful pressures in countries like Saudi Arabia and China, which hold huge quantities of US dollars and US dollar-denominated debt, to shift out of dollars and into other currencies—particularly the Euro and the Yen. Last week, an article in China’s People’s Daily, which like Pravda in the old Soviet Union, is the official voice of the leadership in China, called for just such a move. Russia is also calling for an end to the dollar as the underpinning of the global economy.
For some years now, many economists have been predicting an end to the dollar as the world’s reserve currency, but this latest plan by the US Treasury will push such a shift forward from “some day” to “now.”
continued: http://www.atlanticfreepress.com/content/view/5153/81/
They can't say they weren't warned!
Here is yet another example of the warning that was given to congress who failed to act. Barney Frank as the chairman of the financial services committee, presided over the following hearing in October 2007.
http://www.prospect.org/cs/articles?article=the_alarming_par...
If this bill passes it will
If this bill passes it will strengthen the dollar until the money comes back into the system a second time (if it does came back in).
It's pretty simple to say that if you print money, the dollar crashes. This is true, but it doesn't happen over night. The reason for this is it is involved in many countries around the world. It is the reserve currency. If the dollar crashes almost the entire global economy will crash.
China can't dump its dollars because if it exchanges the dollars for its currency it will fall against the dollar, exports will decline and a recession will occur. This is the same for any country. The only alternative for them rather then keeping it in their bank (its losing money), they buy US dollar-denominated assets. This in-turn creates a credit bubble in the US giving us more buying power off the money we already lent out.
It is a very complex system but as soon as the derivatives market is hit, all hell will break loose. Printing $700 Billion dollars will do nothing long term. It will do something short term and prop up the economy, but you better watch out when it comes back around for a second trip.
The citizens of the US are stopping consumption. This hurts all export nations and this is the primary cause of the problem. It is very complex and shouldn't be taken as simple math.
Interesting words - touches on the dollar
The Fascist Coup Is Nearly Complete
By Greg McCoach | Sunday, September 28th, 2008
The fascist coup in the United States is nearly complete.
Over the past few years the U.S. government has abolished countless freedoms of the American people... all in the name of "national security."
They've spent trillions of tax dollars - forced upon citizens under penalty of imprisonment - on an imperialistic military to fight an un-winnable war on terror, while all but neglecting our growing domestic problems.
The government and CONgress protects big business to create a symbiotic business/government relationship giving supreme power to the corporate elite.
And to top it all off, they've controlled mass media (notwithstanding the internet) to put a lid on the truth.
But don't worry. They're looking out for your best interests.
One Small Step for Elitists, One Giant Leap for Fascism
Unless you've been living under a rock for the past few weeks, you've heard the U.S. government has now nationalized the entire mortgage industry with the acquisition of Freddie Mac and Fannie Mae. And now, it hopes to siphon $700 billion from American taxpayers to buy up the bad debt of financial institutions for the next two years.
Now, take a second or two... and think about how much $700 billion really is. It's seven hundred thousand million dollars! $700,000,000,000.00
Another perspective: It's enough to give every man, woman, and child in the city of Philadelphia a half-million dollars.
Listen... that $700 billion figure represents about 5.2% of the entire U.S. gross domestic product in 2007.
If approved, the bailout would raise the statutory limit on the national debt 6.6%... from $10.6 trillion to $11.3 trillion.
And what will U.S. taxpayers like you and I get in return?
Nothing. Zip. Zilch. Nada.
There are no plans for new regulations or oversights to help avoid this kind of crisis in the future.
There'll be no public interest givebacks to help the people whose homes are in the hands of the banks.
And, perhaps most shockingly of all, we will get absolutely no share in the profits if these fallen-from-grace financial giants bounce back... even though we are now assuming a great deal of the risk.
This is worse than a bad deal for us. In fact, it isn't even a deal!
The new rescue plan may restore a bit of investor confidence to battered financial markets. But investors will again begin to focus on the twin budget and current-account deficits and negative real U.S. interest rates. And eventually the government's plan will derail the dollar's three-month rally, which is, in effect...
The One Last Hurrah for the U.S. Dollar
The greenback has already started to retract. The U.S. Dollar Index, a measure of the value of the U.S. dollar relative to a basket of six foreign currencies, has pullback as much as 5.6% in the past two weeks.
Just my opinion
Freedom brings People together
Ron Paul was right
yes
http://www.votenader.org/blog/2008/09/10/statement-to-ron-pa...
http://www.flickr.com/photos/57925480@N00/2660779139/sizes/l/
Website:
http://www.libertypoet.com/
Twitter:
http://twitter.com/LibertyPoet
"How can we justify to the unemployed and underemployed in the United States the incredible cost of maintaining a global empire?" - Dr. Ron Paul
we have to cut their spending by taking our funds out of bonds.
THe New Deal was designed to allow government to use credit to stimulate the economy. THe government issued bonds and by doing so convinced the people that the use of credit was OK. We have to quit supporting this habit, let's transfer our money out of treasury bonds and into real money. This way the government is forced to mint coins and won't be able use the Federal Reserve to print money we have to pay interest on.
grant
There is something I have
There is something I have never really completely understood and that is the exact reason the "value" of the dollar depreciates. In other words, I can understand if a billion Honus Wagner cards were out there tomorrow and the value of those precious few drop. Why? Well, if there are a billion then I can probably acquire one and they are not so rare anymore and thus not so "special." But that makes sense of some actual property. It has some real value to it. It's a baseball card and thus has some real meaning to a person interested in baseball and what not. That creates the value.
However, there is nothing creating the value of the dollar. I have no interest in it in my life except the fact that i need it. Hence, it seems absurd for it to even fluctuate in the first place. What is the fluctuation based off of...nothing. It seems completely arbitrary. I don't want or not want a dollar. I need a dollar, which then translates into wanting more dollars. But that's not the same thing as wanting a baseball card or an Xbox or fruit or a car or whatever. These things have a point in a life and thus again where the value of it is created. The dollar is simply a mechanism of transaction and not something that even has a value.
Hence, come to think of it, I'm not even sure why inflation exists when there is nothing being inflated except nothing. I mean what is the problem in saying I will sell milk at $3 a gallon. Assuming all actual time and effort remains the same, why in the world should the monetary equivalent (and thus reward) change at all, even if there is another 4 gagillion dollars put into existence tomorrow.
Think of it as purchase
Think of it as purchase value, the act of inflation is always caused by an increase in the fiat money supply and the expansion of credit. This expansion creates eventually creates a substantial rise in the prices of all goods and services. Normally, under a commodity specie [gold/silver] monetary system if there is a rise in the actual supply of money then prices will increase for a while until the dollars stop bidding against themselves. In other words, in a real money economy, goods and services will eventually increase through capital production and prices will stabilize. That does not happen in a fiat monetary system because, by its very nature, all economic growth depends solely upon the expansion of credit and the money supply. So, instead of capital production being balanced by demand it is expanded because of the excess of fiat money and credit however, economic production cannot keep up with the amount of credit and money being created and pressed into the cycle of commerce. Thus, each “dollar” becomes less valuable because there are more dollars in circulation bidding for goods and services. The problem is that under a fiat monetary system the expansion of money and credit must constantly be increased for economic growth.
That's it in a nutshell, a very simply nutshell but it gives you the idea.
Rags make Paper; Paper makes Money; Money makes Banks;Banks make Loans; Loans make Beggars; Beggars make Rags
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
The USD will die when this proposed bill passes.
I told a reporter that yesterday as I ws being interviewed for an article to run in today's local paper. I gave him lots of info, and plenty to consider.
Warren Buffett
Is now pushing the fear button out there. "Act now or face the biggest financial meltdown in American History". Wait a second, didn't he make a gigantic profit buying up one of the taken over institutes? Honestly, there have been so many I can't recall, but I think Golden Sachs. He is supposedly worth 20B, have him put his money in this, not ours.
LOL Golden Sacks!!!! They
LOL Golden Sacks!!!! They definitely have balls of gold trying to push something like this on the american people.
OMG
What a Freudian slip !! LOL, yeah they should just call it the Golden Balls Bailout.
PAY ATTENTION!
Warren Buffet is a genius at MAKING MONEY FOR HIS INVESTORS, NOT PRESERVING OUR LIBERTIES.
There, I feel better.
I KNOW!!
That is why he wants the bailout to make more money. I get it, ok. There, now I feel better.
its crazy!! very sad we
its crazy!! very sad we elect officials who dont know the constitution or anything about our currecey.
Bump.
Great picture.
So be glad: in about 2013 will end all this, like 1945 12 years after it started...
There are only (?) 4-5 years left.:)
What do you think: Wil all these people of the FED commit suicide when they are put to court like Goebbels and Hitler?-
1933/2001+ parallels accelerating..
1) Mein Kampf/Project New American Century
2) 3rd Reich/43rd Administration
3) Reichstag fire/9-11
4) Austria (Anschluss)-Czechoslovakia (Munich Agreement)-
Poland/Afghanistan-Iraq-Iran
5) Enabling Act/Patriot Act
6) Gestapo/Blackwater
7) Weimar Republic bankruptcy/Federal Reserve bailout
collapsing economy
http://video.google.com/videoplay?docid=-515319560256183936
declaring martial law
http://www.armytimes.com/news/2008/09/army_homeland_090708w/
assuming dictatorship
http://www.ww4report.com/node/3940
This was explained LONG before Ron Paul came along
"Lenin is said to have declared that the best way to destroy the Capitalistic System was to debauch the currency. . . Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million can diagnose."
John Maynard Keynes,
The Economic Consequences of the Peace,
1920, page 235ff
"Lenin is said to have declared that the best way to destroy
the Capitalist System was to debaunch the currency. By a
continuing process of inflation, Governments can confiscate,
secretly and unobserved, an important part of the wealth
of their citizens."
--John Maynard Keynes (1883—1946)
English economist.
"Inflation" [1919] in _Essays in Persuasion_ [1931]
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"Ehhh, What's ups Doc?" B.Bunny "Scwewy Wabbit!"E. Fudd
People's Awareness Coalition: Deprogramming Sequence
now you see the reason for
now you see the reason for gold and silver!
I am more concerned about the return of my money than the return on my money. --Mark Twain
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
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"By a continuous process of
"By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some....The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose." - John Maynard Keynes Economic Consequences of the Peace, 1920
Cicero said:
"A nation can survive its fools and even the ambitious.But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and he carries his banners openly against the city. But the traitor moves among those within the gates freely, his sly whispers rustling through all alleys, heard in the very halls of government itself. For the traitor appears no traitor; he speaks in the accents familiar to his victim, and he wears their face and their garments and he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation; he works secretly and unknown in the night to undermine the pillars of a city; he infects the body politic so that it can no longer resist. A murderer is less to be feared. The traitor is the plague."
Rags make Paper; Paper makes Money; Money makes Banks;Banks make Loans; Loans make Beggars; Beggars make Rags
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
Dollar alive and well
Relax the dollar is not dead. What is dead or near death is the Federal Reserve Note.The FRN sometimes referred to as the fraudulent reserve note deserves the death that is coming to it. It can't be saved because the basis for its existance is flawed. Dr. Paul knows this and so do others. The objective now is to extend the charade as long as possible and prepare everyone for the next fiat currency system.
The dollar as defined by the coin act of 1792 has gone into hiding and has not been seen for a long time. It still exists and will reemerge as the premier currency of the world when We the People demand sound money.
You are correct sir.
To me gas is still at 25 cents a gallon.
Question
This destruction of the dollar has been explained by some economic experts...including Ron Paul.
My question is this..
Are our financial leaders (Paulson, Bernake, Congressmen etc. ) so ignorant that they do not understand this concept and THINK that they are doing the best thing for the country
OR
Do they full well know what they are doing and doing it anyway?
The answer to that question would be very telling.
they full well know! I am
they full well know!
I am more concerned about the return of my money than the return on my money. --Mark Twain
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
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They know. This article is brutally frank about it.
http://investopedia.com/printable.asp?a=/articles/economics/...
I am only speculating here.
But if I had to guess, I think it was always assumed that plunder and loot from empire would fill the hole in the economy, as it did for the Nazis.
When military adventures didn't go according to plan, it was just a case of postponing the inevitable. And putting your own money somewhere safe.
"As for me and my home. We will read Peter Schiff."
"Being an old farm boy myself, chickens coming home to roost never did make me sad; they've always made me glad." - Malcolm X.
Our government knows what it's doing
I don't think congress fully understands inflation and fiat money versus sound money.
Congress mandates the Fed, and the Fed is lucky that most of our congressmen are uninformed.
Bernanke understands it. Deep down he agrees with everything Ron Paul says, so does Alan Greenspan.
So, until a President writes the Exec. order to repeal the Federal Reserve act, this is what we are stuck with.
Bernanke should know
considering all the lessons he's received from RP. I think they either know and are overcome w/ greed, or just think they can work around it.
When RP and Bernanke last met Bernanke said they are going to use some kind of innovative financial instruments as a way to avoid inflation. I think it's more hubris than anything, as RP points out: they're all Keynesians...but I also wouldn't doubt that they are in with the big boys and just don't care.
--------------------------
"I killed the banks"
They've shown us the tip of the iceberg
Not one mention of the derivatives attached to these worthless investments. This all comes down to a $700B stall tactic until the election is over.
Traitors
I am just amazed at how many people think these people are just stupid and don't know what they are doing. How many people think Congressman voting for the bill don't understand economics. How many people don't realize Bush, Bernake, Paulson, and others are nothing more than traitors of our country as the above quote talks about. These people care nothing of what happens to us ... NOTHING. They have not a conscious.
Michael recommended a book in another post about a Dr. who stated she calculates 4% of earth's population has absolutely NO CONSCIOUS. Until the other 96% understand this there will never be peace on Earth. The simple fact of the matter that we can not fathom someone intentionally devising a plan to destroy entire nations to obtain domination over them. A plan that has been in place for over 100 years now and is ever so close to being finalized. Does this sound crazy? Absolutely to you or I, because we fall into the 96%.
These people are no different than a serial killer, only the serial killer is isolated and is satisfied with domination over one person at a time. But what happens when a group of people with the same mind-frame team up with each other and realize what they can do by manipulating people together. With no conscious lying, cheating, stealing, manipulating good hearted people, and yes even murder can be carrying out; without a blink of an eye ... maybe with a bit of joy. Something we should all consider.
Just my thought
Freedom brings People together
Ron Paul was right