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diggy
12-23-2007, 12:52 AM
By Jessica Hupp http://www.currencytrading.net/2007/7-countries-considering-abandoning-the-us-dollar-and-what-it-means/

It’s no secret that the dollar is on a downward spiral. Its value is dropping, and the Fed isn’t doing a whole lot to change that. As a result, a number of countries are considering a shift away from the dollar to preserve their assets. These are seven of the countries currently considering a move from the dollar, and how they’ll have an effect on its value and the US economy.

Saudi Arabia: The Telegraph reports (http://www.telegraph.co.uk/money/main.jhtml;jsessionid=BYRFMD0QYRQTVQFIQMFSFF4AVCBQ 0IV0?xml=/money/2007/09/19/bcnsaudi119.xml) that for the first time, Saudi Arabia has refused to cut interest rates along with the US Federal Reserve. This is seen as a signal that a break from the dollar currency peg is imminent. The kingdom is taking “appropriate measures” to protect itself from letting the dollar cause problems for their own economy. They’re concerned about the threat of inflation and don’t want to deal with “recessionary conditions” in the US. Hans Redeker of BNP Paribas believes (http://www.telegraph.co.uk/money/main.jhtml;jsessionid=BYRFMD0QYRQTVQFIQMFSFF4AVCBQ 0IV0?xml=/money/2007/09/19/bcnsaudi119.xml) this creates a “very dangerous situation for the dollar,” as Saudi Arabia alone has management of $800 billion. Experts fear that a break from the dollar in Saudi Arabia could set off a “stampede” from the dollar in the Middle East, a region that manages $3,500 billion.

South Korea: In 2005, Korea announced (http://www.washingtonpost.com/wp-dyn/articles/A45703-2005Feb22.html) its intention to shift its investments to currencies of countries other than the US. Although they’re simply making plans to diversify for the future, that doesn’t mean a large dollar drop isn’t in the works. There are whispers (http://www.bloomberg.com/apps/news?pid=20601087&sid=aR5NGOMkBJ9M&refer=home) that the Bank of Korea is planning on selling $1 billion US bonds in the near future, after a $100 million sale this past August.

China: After already dropping the dollar peg (http://news.bbc.co.uk/2/hi/business/4703477.stm) in 2005, China has more trouble up its sleeve. Currently, China is threatening (http://www.telegraph.co.uk/money/main.jhtml;jsessionid=GJCLXDYE1U4SNQFIQMFSFF4AVCBQ 0IV0?xml=/money/2007/08/07/bcnchina107a.xml) a “nuclear option” of huge dollar liquidation in response to possible trade sanctions intended to force a yuan revaluation. Although China “doesn’t want any undesirable phenomenon in the global financial order,” their large sum of US dollars does serve as a “bargaining chip.” As we’ve noted in the past (http://www.currencytrading.net/2007/how-china-could-crash-the-us-dollar-on-a-whim/), China has the power to take the wind out of the dollar.

Venezuela: Venezuela holds little loyalty to the dollar. In fact, they’ve shown overt disapproval, choosing to establish barter deals (http://www.feasta.org/documents/papers/oil1.htm) for oil. These barter deals, established under Hugo Chavez, allow Venezuela to trade oil with 12 Latin American countries and Cuba without using the dollar, shorting the US its usual subsidy. Chavez is not shy about this decision, and has publicly encouraged others to adopt similar arrangements. In 2000, Chavez recommended (http://www.feasta.org/documents/papers/oil1.htm) to OPEC that they “take advantage of high-tech electronic barter and bi-lateral exchanges of its oil with its developing country customers,” or in other words, stop using the dollar, or even the euro, for oil transactions. In September, Chavez instructed (http://www.bloomberg.com/apps/news?pid=20601086&refer=latin_america&sid=aGBuWpZJ9cPI) Venezuela’s state oil company Petroleos de Venezuela SA to change its dollar investments to euros and other currencies in order to mitigate risk.

Sudan: Sudan is, once again, planning (http://www.sudantribune.com/spip.php?article23958) to convert its dollar holdings to the euro and other currencies. Additionally, they’ve recommended to commercial banks, government departments, and private businesses to do the same. In 1997, the Central Bank of Sudan made a similar recommendation in reaction to US sactions from former President Clinton, but the implementation failed. This time around, 31 Sudanese companies have become subject to sanctions, preventing them from doing trade or financial transactions with the US. Officially, the sanctions are reported (http://www.sudantribune.com/spip.php?article23958) to have little effect, but there are indications that the economy is suffering due to these restrictions. A decision to move Sudan away from the dollar is intended to allow the country to work around these sanctions as well as any implemented in the future. However, a Khartoum committee recently concluded (http://www.sudantribune.com/spip.php?article23958) that proposals for a reduced dependence on the dollar are “not feasible.” Regardless, it is clear that Sudan’s intent is to attempt a break from the dollar in the future.

Iran: Iran is perhaps the most likely candidate for an imminent abandonment of the dollar. Recently, Iran requested (http://www.bloomberg.com/apps/news?pid=20601086&refer=latin_america&sid=aGBuWpZJ9cPI) that its shipments to Japan be traded for yen instead of dollars. Further, Iran has plans in the works to create an open commodity exchange (http://en.wikipedia.org/wiki/Iranian_Oil_Bourse) called the Iran Oil Bourse. This exchange would make it possible to trade oil and gas in non-dollar currencies, the euro in particular. Athough the oil bourse has missed at least three of its announced opening dates, it serves to make clear Iran’s intentions for the dollar. As of October 2007, Iran receives non-dollar currencies for 85% of its oil exports, and has plans to move the remaining 15% to currencies like the United Arab Emirates dirham.

Russia: Iran is not alone in its desire to establish an alternative to trading oil and other commodities in dollars. In 2006, Russian President Vladmir Putin expressed interest (http://news.goldseek.com/GoldForecaster/1147791900.php) in establishing a Russian stock exchange which would allow “oil, gas, and other goods to be paid for in Roubles.” Russia’s intentions are no secret–in the past, they’ve made it clear that they’re wary of holding too many dollar reserves. In 2004, Russian central bank First Deputy Chairmain Alexei Ulyukayev remarked (http://www.businessweek.com/magazine/content/04_49/b3911032_mz011.htm), “Most of our reserves are in dollars, and that’s a cause for concern.” He went on to explain that, after considering the dollar’s rate against the euro, Russia is “discussing the possibility of changing the reserve structure.” Then in 2005, Russia put an end to its dollar peg, opting instead to move towards a euro alignment. They’ve discussed (http://www.ft.com/cms/s/0/cb1cd3e0-771b-11d9-b897-00000e2511c8.html?nclick_check=1) pricing oil in euros, a move that could provide a large shift away from the dollar and towards the euro, as Russia is the world’s second-largest oil exporter.What does this all mean?
Countries are growing weary of losing money on the falling dollar. Many of them want to protect their financial interests, and a number of them want to end the US oversight that comes with using the dollar. Although it’s not clear how many of these countries will actually follow through on an abandonment of the dollar, it is clear that its status as a world currency is in trouble.
Obviously, an abandonment of the dollar is bad news for the currency. Simply put, as demand lessens, its value drops. Additionally, the revenue generated from the use of the dollar will be sorely missed if it’s lost. The dollar’s status as a cheaply-produced US export is a vital part of our economy. Losing this status could rock the financial lives of both Americans and the worldwide economy.

TSA
12-24-2007, 12:15 AM
idk if it's just a recession of is america falling the fuck off.

i think it's a mix of both, but with other countries getting richer and having more stable currencies now so the recession if gonna hit deeper.


plus a war dependant economy is only gonna take ya so far


nevertheless, get your Euro game up.

LORD NOSE
12-24-2007, 12:32 AM
3rd and 4th grade bullies look tough in the 3rd and 4th grade

by the 5th and 6th grade you tell the bully to "get outa here with that shit"

diggy
12-24-2007, 02:21 AM
3rd and 4th grade bullies look tough in the 3rd and 4th grade

by the 5th and 6th grade you tell the bully to "get outa here with that shit"



That's exactly what's happening. Bush the bully is just being ignored. Chavez is encouraging other leaders to stop using the U.S. dollar for trade so is Korea and Iran is also (reportedly) not using U.S. dollars. Some say that is why they (Iran/Korea) is part of the axis of evil believe it or not. But anyway, they refuse to be bullied.

In the rest of the worlds eyes, U.S. economy is weak. Even Russia and Saudis are not using U.S. dollars.
It only takes one to refuse to be bullied and if he's successful, others follow- domino effect.

I think it will get alot worst to the point of the dollar going so low it causes major problems. The financial institution will become undone, some peeps even predict civil war around 2010 and up, no exaggeration.

V4D3R
12-24-2007, 02:50 AM
^^Thats the plan - - there's a reason why Halliburton is building all those prison camps.

diggy
12-24-2007, 03:17 AM
^^Thats the plan - - there's a reason why Halliburton is building all those prison camps.



Ya, after the people rebel and act uncivil, the government now has the justification to roll in the tanks and soldiers squashing civil disobedience and reducing the population to a manageable number. They will ( in my opinion) lock up the guilty and then call for people to turn in their weapons--rendering people defenceless. Slavery starts after this.

LORD NOSE
12-24-2007, 03:41 AM
Ya, after the people rebel and act uncivil, the government now has the justification to roll in the tanks and soldiers squashing civil disobedience and reducing the population to a manageable number. They will ( in my opinion) lock up the guilty and then call for people to turn in their weapons--rendering people defenceless. Slavery starts after this.


thats where it gets weird - the soldiers driving the tanks will rebel - they won't go after their own american families - this is where AI,Robots,Biochemical Warfare come in - in time, they will not be able to use Humans to do their killing -

diggy
12-24-2007, 03:55 AM
thats where it gets weird - the soldiers driving the tanks will rebel - they won't go after their own american families - this is where AI,Robots,Biochemical Warfare come in - in time, they will not be able to use Humans to do their killing -



I heard somewhere ( I can't remember if from Alex Jones or some other site--I read from diff. sites.) that the soldiers will be foreigners, cuz all tyrants (more or less) use foreign fighters to do the dirty work. In the U.S. military, some of the fighters are immigrants who are not even U.S. citizens yet.

Also, I'm somewhat of a sceptic, and I am not too sure soldiers will rebel. I hope they do, cuz this New World I believe can only be strongly opposed from inside--the soldiers, not from outside--the citizens.

But I believe people for the most part strongly believe in the propaganda and are fast asleep. I don't have the hope that soldiers have the strong moral and mental capacity to go against power. Just my opinion.

LORD NOSE
12-24-2007, 04:05 AM
I heard somewhere ( I can't remember if from Alex Jones or some other site--I read from diff. sites.) that the soldiers will be foreigners, cuz all tyrants (more or less) use foreign fighters to do the dirty work. In the U.S. military, some of the fighters are immigrants who are not even U.S. citizens yet.

Also, I'm somewhat of a sceptic, and I am not too sure soldiers will rebel. I hope they do, cuz this New World I believe can only be strongly opposed from inside--the soldiers, not from outside--the citizens.

But I believe people for the most part strongly believe in the propaganda and are fast asleep. I don't have the hope that soldiers have the strong moral and mental capacity to go against power. Just my opinion.

So Called Illegal Aliens ?

Genetically Modified Humans being used as soldiers ?

why are so many "Quarantine the city" movies being made ?

i'm sure that many soldiers will rebel

the end result for some of us is Total freedom

many of us will benefit from all this madness

BornPower
12-24-2007, 10:37 AM
shit rolls downhill.

DUMBO
12-24-2007, 10:43 AM
while this potential change could be devastating for the US, they would finely get a feel for what the Volker shock and petro dollars did to poor countries in the 70s and 80s.

that said, i doubt china would get rid of the US currency - the US is the primary market for Chinese goods and so deflating American purchasing power would be cutting off its own foreign market - we all know the Chinese are not yet able to consume the goods they produce right now.

nevertheless the end is coming for the US: China is looking for world markets instead of just the US and once they are able to sustain themselves without the US market, they'll bounce to a more stable currency, not to mention they're beef with the US over Lou fucking Dobbs.

LORD NOSE
12-24-2007, 11:06 AM
you're stupid.

here's an example of someone who would like to know about how monetary policy relates to the trade imbalance and the larger economic picture but is just regurgitating some random info he's picked up without really knowing what it means. and sunny and v4d3r took the bait.

i'm not saying it to be mean, but if you want to actually use this forum as a place of knowledge then don't talk about shit which you obviously have very little knowledge of.

this has very little to do with the bush administration (or even the economy) and more to do with the US monetary policy and Blah blah blah blah blah ....

word of advice man - don't nobody care about all that shit you just typed - really - getting into all that blazay blah - I don't take Bait - i know what i'm doing - you have a democrat republican administration political policy programmed mind that doesn't fit into the Hip Hop culture - honestly - you speak as an outsider - you appear robotic like an agent with no badge - shit is falling - deal with it - or make believe that it isn't - you are forcing it though - your fear is obvious - starting your reply of with "you're stupid" shows us your intentions - clearly - again, how much do they pay you ?



how could sunny possibly see beneficial effects from the "madness"? historically, the kind of chaos you guys are thinking of precipitates the rise of a dictator.




you have allot of surface knowledge, but you can't go deep because you lack understanding - you could have just asked me - but your statements after your questions shows me that you would just like to see things the way you demand to see things - all the extras and filler speaks volumes on your programming

TSA
12-24-2007, 01:31 PM
Sunny Winters and V4der are the dumbest niggas on Wucorp.


by far.



I was just trying to big up a thread about something of meaning, something that steered from baseless bush administration illuminati paranoia/stupidity.

but here you faggots come and spew it all over here and ruin it for the rest of us.


I think you two should be ban from here, idk why big ben sends me messages telling me to stop being dumb on the knowtheledge forum, but leaves you guys to talk about Unicorns are portals.


and then related EVERYTHING back to Bush. Bush has little to do with this.


my understanding of monetary policy is fairly limited, so im not gonna come in here and say gay shit, you guys should follow my lead.

SID
12-24-2007, 04:30 PM
Peeps be abandoning the dolla to get ready for the amero....WORD!

LORD NOSE
12-24-2007, 04:58 PM
I think you two should be ban from here, idk why big ben sends me messages telling me to stop being dumb on the knowtheledge forum, but leaves you guys to talk about Unicorns are portals.


you should follow his advice and stop being dumb on the KTL forum

LORD NOSE
12-24-2007, 05:06 PM
fact is, economic hardship has never benefitted anyone except the most powerful people who can swoop in and buy up stuff on the cheap. so unless you got money bags, expecting an economic and/or financial collapse to benefit you or the people you care about is simply wishful thinking.

and politically it's even worse. rampant fear is what led this country blindly into iraq, as well as to the reelection of the worst president in US history. and that's nothing compared to the chaos that would ensue during a prolonged recession/depression in which millions of people lose their jobs, their homes, and their livelihood. i don't know where you live but you really need to get out more in order to understand how people think, and how they would respond in the event of such a crisis.


you sucking on the tit a lil too hard thats why it'll be very hard for you to benefit from the fall - you depend on it with for life - you are lost without them -


-paranoid a bit much?

nah - its just an observation and warning to those who are wide awake but may not be able to see through your fog - again, i know what i'm doing - to claim or better yet ask me if i'm paranoid concerning your intention, would be to say that i'm afraid of you and your traps - thats not the case at all

BornPower
12-27-2007, 09:30 AM
While you may be right, Huggah, it doesn't change the fact that if the system is in fact flawed then something must replace it. History shows that government styles go through cyles (democracy, dictatorship, monarchy, etc.) and no major government change has ever been made without bloodshed.

Fight Club, anyone?

diggy
10-24-2008, 03:12 AM
We here now!

TSA
10-24-2008, 12:49 PM
While you may be right, Huggah, it doesn't change the fact that if the system is in fact flawed then something must replace it. History shows that government styles go through cyles (democracy, dictatorship, monarchy, etc.) and no major government change has ever been made without bloodshed.

Fight Club, anyone?
countless major government changes have been done without bloodshed, at alike a 10/2 ratio in favor of 'without bloodshed'.

dumb ass.

and no. government doesn't go through cycles of democracy dictatorship and monarchy, dumb ass.

and Sudan trading in a currency other then dollar has nothing to do with government change.

dumb ass.



dumb asses.

Longbongcilvaringz
10-24-2008, 01:25 PM
word of advice man - don't nobody care about all that shit you just typed - really - getting into all that blazay blah - I don't take Bait - i know what i'm doing - you have a democrat republican administration political policy programmed mind that doesn't fit into the Hip Hop culture - honestly - you speak as an outsider - you appear robotic like an agent with no badge - shit is falling - deal with it - or make believe that it isn't - you are forcing it though - your fear is obvious - starting your reply of with "you're stupid" shows us your intentions - clearly - again, how much do they pay you ?

you have allot of surface knowledge, but you can't go deep because you lack understanding - you could have just asked me - but your statements after your questions shows me that you would just like to see things the way you demand to see things - all the extras and filler speaks volumes on your programming

hahaha

(has huggah had his posts deleted? or his account deleted?)