U.S. TO DEFAULT ON ITS DEBT – SUMMER 2009

[jficquette]

All governments use Fiat currencies now. Fiat currencies are backed by the strength of the country that issues it.

You can’t have a world currency without a world government to back it.

The US is in for some big problems but Europe and Asia will get hurt worst and can not provide an alternative to the dollar.

So for now we are and will remain the reserve currency.

John

[kewp]

Still the problem remains we can’t print and the world wants a different reserve currency. The fed is in a box

Given the recent dollar rally apparently this is not the case.

And the fed can print as much as it wants, that’s the magic of a fiat reserve currency. It won’t devalue the dollar as long as the global money supply remains relatively constant. And its not inflationary as the ‘destroyed’ dollars are already priced into the current commodity futures.

A dollar buys more real estate, oil and equities than it did a year ago. Seems like a good deal for debt-free salary earners like myself.

Whats all the commotion about? 🙂

[kewp]

Still the problem remains we can’t print and the world wants a different reserve currency. The fed is in a box

Given the recent dollar rally apparently this is not the case.

And the fed can print as much as it wants, that’s the magic of a fiat reserve currency. It won’t devalue the dollar as long as the global money supply remains relatively constant. And its not inflationary as the ‘destroyed’ dollars are already priced into the current commodity futures.

A dollar buys more real estate, oil and equities than it did a year ago. Seems like a good deal for debt-free salary earners like myself.

Whats all the commotion about? 🙂

[kewp]

Still the problem remains we can’t print and the world wants a different reserve currency. The fed is in a box

Given the recent dollar rally apparently this is not the case.

And the fed can print as much as it wants, that’s the magic of a fiat reserve currency. It won’t devalue the dollar as long as the global money supply remains relatively constant. And its not inflationary as the ‘destroyed’ dollars are already priced into the current commodity futures.

A dollar buys more real estate, oil and equities than it did a year ago. Seems like a good deal for debt-free salary earners like myself.

Whats all the commotion about? 🙂

[kewp]

Still the problem remains we can’t print and the world wants a different reserve currency. The fed is in a box

Given the recent dollar rally apparently this is not the case.

And the fed can print as much as it wants, that’s the magic of a fiat reserve currency. It won’t devalue the dollar as long as the global money supply remains relatively constant. And its not inflationary as the ‘destroyed’ dollars are already priced into the current commodity futures.

A dollar buys more real estate, oil and equities than it did a year ago. Seems like a good deal for debt-free salary earners like myself.

Whats all the commotion about? 🙂

[kewp]

Still the problem remains we can’t print and the world wants a different reserve currency. The fed is in a box

Given the recent dollar rally apparently this is not the case.

And the fed can print as much as it wants, that’s the magic of a fiat reserve currency. It won’t devalue the dollar as long as the global money supply remains relatively constant. And its not inflationary as the ‘destroyed’ dollars are already priced into the current commodity futures.

A dollar buys more real estate, oil and equities than it did a year ago. Seems like a good deal for debt-free salary earners like myself.

Whats all the commotion about? 🙂

[Arraya]

[quote=kewp]Still the problem remains we can’t print and the world wants a different reserve currency. The fed is in a box

Given the recent dollar rally apparently this is not the case.

And the fed can print as much as it wants, that’s the magic of a fiat reserve currency. It won’t devalue the dollar as long as the global money supply remains relatively constant. And its not inflationary as the ‘destroyed’ dollars are already priced into the current commodity futures.

A dollar buys more real estate, oil and equities than it did a year ago. Seems like a good deal for debt-free salary earners like myself.

Whats all the commotion about? :)[/quote]

The dollar rally is an aberration and does not indicate anything except people rushed to treasuries when the stock market started crashing.

What the commotion about is the numerous ‘signs’, ‘reports’ , ‘articles’ that the world wants a new reserve currency coupled with the fact we are going into a deflationary depression. At economic summit this weekend they are going discuss “roles of currency and maybe the need to reduce the number of currencies”.

Obviously, Paulson did not send me a memo on this but it looks like the dollar is going to die probably sometime after the election when they create or use another currency to be the reserve.

Everything is lies coming out of their mouths, you gotta use your antenna and connect some dots.

Here is a good article on how the mismanagement of the US’s finances hurts other countries economies because of the dollar reserve connection. Lengthy article but well worth the read.

http://www.atimes.com/atimes/China_Business/JG30Cb01.html

Page 1 of 4
CHINA’S DOLLAR MILLSTONE, Part 1
Breaking free from dollar hegemony
By Henry C K Liu

The vast expansion of US-led globalized trade since the Cold War ended in 1991 had been fueled by unsustainable serial debt bubbles built on dollar hegemony, which came into existence on a global scale with the emergence of deregulated global financial markets that made cross-border flow of funds routine since the 1990s.

Dollar hegemony is a geopolitically constructed peculiarity through which critical commodities, the most notable being oil, are denominated in fiat dollars, not backed by gold or other species since then president Richard Nixon took the US dollar off gold in 1971. The recycling of petro-dollars into other dollar assets is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973. After that, everyone accepts dollars because dollars can buy oil, and every

———————————————————–

Also, listen to this interview.

http://www.contraryinvestorscafe.com/broadcast.php?media=141

[Arraya]

[quote=kewp]Still the problem remains we can’t print and the world wants a different reserve currency. The fed is in a box

Given the recent dollar rally apparently this is not the case.

And the fed can print as much as it wants, that’s the magic of a fiat reserve currency. It won’t devalue the dollar as long as the global money supply remains relatively constant. And its not inflationary as the ‘destroyed’ dollars are already priced into the current commodity futures.

A dollar buys more real estate, oil and equities than it did a year ago. Seems like a good deal for debt-free salary earners like myself.

Whats all the commotion about? :)[/quote]

The dollar rally is an aberration and does not indicate anything except people rushed to treasuries when the stock market started crashing.

What the commotion about is the numerous ‘signs’, ‘reports’ , ‘articles’ that the world wants a new reserve currency coupled with the fact we are going into a deflationary depression. At economic summit this weekend they are going discuss “roles of currency and maybe the need to reduce the number of currencies”.

Obviously, Paulson did not send me a memo on this but it looks like the dollar is going to die probably sometime after the election when they create or use another currency to be the reserve.

Everything is lies coming out of their mouths, you gotta use your antenna and connect some dots.

Here is a good article on how the mismanagement of the US’s finances hurts other countries economies because of the dollar reserve connection. Lengthy article but well worth the read.

http://www.atimes.com/atimes/China_Business/JG30Cb01.html

Page 1 of 4
CHINA’S DOLLAR MILLSTONE, Part 1
Breaking free from dollar hegemony
By Henry C K Liu

The vast expansion of US-led globalized trade since the Cold War ended in 1991 had been fueled by unsustainable serial debt bubbles built on dollar hegemony, which came into existence on a global scale with the emergence of deregulated global financial markets that made cross-border flow of funds routine since the 1990s.

Dollar hegemony is a geopolitically constructed peculiarity through which critical commodities, the most notable being oil, are denominated in fiat dollars, not backed by gold or other species since then president Richard Nixon took the US dollar off gold in 1971. The recycling of petro-dollars into other dollar assets is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973. After that, everyone accepts dollars because dollars can buy oil, and every

———————————————————–

Also, listen to this interview.

http://www.contraryinvestorscafe.com/broadcast.php?media=141

[Arraya]

[quote=kewp]Still the problem remains we can’t print and the world wants a different reserve currency. The fed is in a box

Given the recent dollar rally apparently this is not the case.

And the fed can print as much as it wants, that’s the magic of a fiat reserve currency. It won’t devalue the dollar as long as the global money supply remains relatively constant. And its not inflationary as the ‘destroyed’ dollars are already priced into the current commodity futures.

A dollar buys more real estate, oil and equities than it did a year ago. Seems like a good deal for debt-free salary earners like myself.

Whats all the commotion about? :)[/quote]

The dollar rally is an aberration and does not indicate anything except people rushed to treasuries when the stock market started crashing.

What the commotion about is the numerous ‘signs’, ‘reports’ , ‘articles’ that the world wants a new reserve currency coupled with the fact we are going into a deflationary depression. At economic summit this weekend they are going discuss “roles of currency and maybe the need to reduce the number of currencies”.

Obviously, Paulson did not send me a memo on this but it looks like the dollar is going to die probably sometime after the election when they create or use another currency to be the reserve.

Everything is lies coming out of their mouths, you gotta use your antenna and connect some dots.

Here is a good article on how the mismanagement of the US’s finances hurts other countries economies because of the dollar reserve connection. Lengthy article but well worth the read.

http://www.atimes.com/atimes/China_Business/JG30Cb01.html

Page 1 of 4
CHINA’S DOLLAR MILLSTONE, Part 1
Breaking free from dollar hegemony
By Henry C K Liu

The vast expansion of US-led globalized trade since the Cold War ended in 1991 had been fueled by unsustainable serial debt bubbles built on dollar hegemony, which came into existence on a global scale with the emergence of deregulated global financial markets that made cross-border flow of funds routine since the 1990s.

Dollar hegemony is a geopolitically constructed peculiarity through which critical commodities, the most notable being oil, are denominated in fiat dollars, not backed by gold or other species since then president Richard Nixon took the US dollar off gold in 1971. The recycling of petro-dollars into other dollar assets is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973. After that, everyone accepts dollars because dollars can buy oil, and every

———————————————————–

Also, listen to this interview.

http://www.contraryinvestorscafe.com/broadcast.php?media=141

[Arraya]

[quote=kewp]Still the problem remains we can’t print and the world wants a different reserve currency. The fed is in a box

Given the recent dollar rally apparently this is not the case.

And the fed can print as much as it wants, that’s the magic of a fiat reserve currency. It won’t devalue the dollar as long as the global money supply remains relatively constant. And its not inflationary as the ‘destroyed’ dollars are already priced into the current commodity futures.

A dollar buys more real estate, oil and equities than it did a year ago. Seems like a good deal for debt-free salary earners like myself.

Whats all the commotion about? :)[/quote]

The dollar rally is an aberration and does not indicate anything except people rushed to treasuries when the stock market started crashing.

What the commotion about is the numerous ‘signs’, ‘reports’ , ‘articles’ that the world wants a new reserve currency coupled with the fact we are going into a deflationary depression. At economic summit this weekend they are going discuss “roles of currency and maybe the need to reduce the number of currencies”.

Obviously, Paulson did not send me a memo on this but it looks like the dollar is going to die probably sometime after the election when they create or use another currency to be the reserve.

Everything is lies coming out of their mouths, you gotta use your antenna and connect some dots.

Here is a good article on how the mismanagement of the US’s finances hurts other countries economies because of the dollar reserve connection. Lengthy article but well worth the read.

http://www.atimes.com/atimes/China_Business/JG30Cb01.html

Page 1 of 4
CHINA’S DOLLAR MILLSTONE, Part 1
Breaking free from dollar hegemony
By Henry C K Liu

The vast expansion of US-led globalized trade since the Cold War ended in 1991 had been fueled by unsustainable serial debt bubbles built on dollar hegemony, which came into existence on a global scale with the emergence of deregulated global financial markets that made cross-border flow of funds routine since the 1990s.

Dollar hegemony is a geopolitically constructed peculiarity through which critical commodities, the most notable being oil, are denominated in fiat dollars, not backed by gold or other species since then president Richard Nixon took the US dollar off gold in 1971. The recycling of petro-dollars into other dollar assets is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973. After that, everyone accepts dollars because dollars can buy oil, and every

———————————————————–

Also, listen to this interview.

http://www.contraryinvestorscafe.com/broadcast.php?media=141

[Arraya]

[quote=kewp]Still the problem remains we can’t print and the world wants a different reserve currency. The fed is in a box

Given the recent dollar rally apparently this is not the case.

And the fed can print as much as it wants, that’s the magic of a fiat reserve currency. It won’t devalue the dollar as long as the global money supply remains relatively constant. And its not inflationary as the ‘destroyed’ dollars are already priced into the current commodity futures.

A dollar buys more real estate, oil and equities than it did a year ago. Seems like a good deal for debt-free salary earners like myself.

Whats all the commotion about? :)[/quote]

The dollar rally is an aberration and does not indicate anything except people rushed to treasuries when the stock market started crashing.

What the commotion about is the numerous ‘signs’, ‘reports’ , ‘articles’ that the world wants a new reserve currency coupled with the fact we are going into a deflationary depression. At economic summit this weekend they are going discuss “roles of currency and maybe the need to reduce the number of currencies”.

Obviously, Paulson did not send me a memo on this but it looks like the dollar is going to die probably sometime after the election when they create or use another currency to be the reserve.

Everything is lies coming out of their mouths, you gotta use your antenna and connect some dots.

Here is a good article on how the mismanagement of the US’s finances hurts other countries economies because of the dollar reserve connection. Lengthy article but well worth the read.

http://www.atimes.com/atimes/China_Business/JG30Cb01.html

Page 1 of 4
CHINA’S DOLLAR MILLSTONE, Part 1
Breaking free from dollar hegemony
By Henry C K Liu

The vast expansion of US-led globalized trade since the Cold War ended in 1991 had been fueled by unsustainable serial debt bubbles built on dollar hegemony, which came into existence on a global scale with the emergence of deregulated global financial markets that made cross-border flow of funds routine since the 1990s.

Dollar hegemony is a geopolitically constructed peculiarity through which critical commodities, the most notable being oil, are denominated in fiat dollars, not backed by gold or other species since then president Richard Nixon took the US dollar off gold in 1971. The recycling of petro-dollars into other dollar assets is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973. After that, everyone accepts dollars because dollars can buy oil, and every

———————————————————–

Also, listen to this interview.

http://www.contraryinvestorscafe.com/broadcast.php?media=141

[kewp]

Here is a good article on how the mismanagement of the US’s finances hurts other countries economies because of the dollar reserve connection. Lengthy article but well worth the read.

This article makes the common mistake that our national debt is something we have no control over.

That is simply not true, see:

http://en.wikipedia.org/wiki/U.S._public_debt

Our current situation is entirely due to the Bush administrations policies of waging war and expanding the government while also cutting taxes.

Reverse that trend and the debt goes down.

That article also makes a common mistake of assuming that China and the U.S. are in competition.

That’s not exactly true. The reality is that its the wealthiest 1% of the worlds population vs. the rest of us.

And the very rich like things just how they are. The ruling elite in China are much more afraid of their own citizens than they are of us. They will do whatever it takes to maintain the status quo.

[kewp]

Here is a good article on how the mismanagement of the US’s finances hurts other countries economies because of the dollar reserve connection. Lengthy article but well worth the read.

This article makes the common mistake that our national debt is something we have no control over.

That is simply not true, see:

http://en.wikipedia.org/wiki/U.S._public_debt

Our current situation is entirely due to the Bush administrations policies of waging war and expanding the government while also cutting taxes.

Reverse that trend and the debt goes down.

That article also makes a common mistake of assuming that China and the U.S. are in competition.

That’s not exactly true. The reality is that its the wealthiest 1% of the worlds population vs. the rest of us.

And the very rich like things just how they are. The ruling elite in China are much more afraid of their own citizens than they are of us. They will do whatever it takes to maintain the status quo.

[kewp]

Here is a good article on how the mismanagement of the US’s finances hurts other countries economies because of the dollar reserve connection. Lengthy article but well worth the read.

This article makes the common mistake that our national debt is something we have no control over.

That is simply not true, see:

http://en.wikipedia.org/wiki/U.S._public_debt

Our current situation is entirely due to the Bush administrations policies of waging war and expanding the government while also cutting taxes.

Reverse that trend and the debt goes down.

That article also makes a common mistake of assuming that China and the U.S. are in competition.

That’s not exactly true. The reality is that its the wealthiest 1% of the worlds population vs. the rest of us.

And the very rich like things just how they are. The ruling elite in China are much more afraid of their own citizens than they are of us. They will do whatever it takes to maintain the status quo.

[kewp]

Here is a good article on how the mismanagement of the US’s finances hurts other countries economies because of the dollar reserve connection. Lengthy article but well worth the read.

This article makes the common mistake that our national debt is something we have no control over.

That is simply not true, see:

http://en.wikipedia.org/wiki/U.S._public_debt

Our current situation is entirely due to the Bush administrations policies of waging war and expanding the government while also cutting taxes.

Reverse that trend and the debt goes down.

That article also makes a common mistake of assuming that China and the U.S. are in competition.

That’s not exactly true. The reality is that its the wealthiest 1% of the worlds population vs. the rest of us.

And the very rich like things just how they are. The ruling elite in China are much more afraid of their own citizens than they are of us. They will do whatever it takes to maintain the status quo.

[Author]

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