Economic State Of The Union
[Note: Written on 3/20/06~ Update Below]
Just a Precaution
Today is March 20th, and for those that keep up with World Events, this day marks Iran's start of the "Iran Oil Bourse." That means that Iran will start selling oil in Euros. In way of background, the World currently sells all of its oil in US Dollars, creating a large demand for dollars in other countries, as they must sell us cheap goods in order to obtain dollars to buy oil, or they must take loans from the World Bank/International Monetary Fund (with interest). This is currently known as Petrodollar Hegemony.....and it will come to an end tomorrow. The US Dollar is currently the reserve currency of the World right now partially for this reason, the other reason is because we have the military might to fight against any economic attacks against it. That means that 70f the savings that countries hold is in US dollars. This keeps the value of the dollar high in relation to other World currencies, which is why you have seen a shift of production out of America, in the form of free and unbalanced trade. Our current trade deficit is astounding, meaning we buy much much more from other countries than we sell to them.
Iraq was the first country to start selling their oil for Euros and we saw what that got them. This administration is currently hyping a potential conflict with Iran, just as they did with Iraq, based upon the false threat against our National Security. Many economists say that the effects if Iran's Oil Bourse is successful would be the equivalent in damage of dropping a nuclear bomb on US soil. The outcome of this would mean the instability of the US Dollar, forcing countries holding it in their reserves to trade it in for the Euro, making the value of the dollar plummet.
Meanwhile, Congress just approved increasing our debt ceiling to $9 trillion dollars and our total credit market debt (government, corporations, and households) is higher than it was before and during the Great Depression.
On top of it all, the Federal Reserve will stop publishing the M3 Report on March 23, 2006. Coincidence? I think not. This means that they will no longer tell people how much money is being printed and placed into circulation, and also how much money is being taken out of circulation. The current Federal Reserve Chairman, Ben Bernanke, just sworn into office on February 1, 2006, is a proponent of the fact that the International Banks/Federal Reserve took money out of circulation, which caused the Great Depression to happen. They stopped approving any loans, and all money from loans repaid were simply put back into the vaults. This caused a shortage of money in the World, and threw the World into an economic depression. With the accelerating alarm of Iran's Oil Bourse, they may be doing this to hide this action from happening again. Should the World stop using the US dollar as their reserve currency, the International Banks may revert to backing support for the Euro, rather than the US dollar as they do now, and may purposely promote a fall of the US dollar in order to instate the Euro as the single currency of the land. It is already the currency of all of Europe, and our administration has made no qualms in telling us that they want a New World Order, where all of us are under a one world government, with America as its military might. That is not a conspiracy theory. Bush & Co. has spoken of it even just recently.
What does this mean for the average citizen? It means that for at least the next month or so, until America either decides to attack Iran to protect the dollar (which could be disastrous as well because we can hardly afford another war~ not to mention the fact that China, Russia, Syria, and India may come to Iran's defense, inciting World War III in the process), or our leaders tell us that we are in the clear and they will begin publishing the M3 again, I highly recommend you keep as much actual cash on you as possible, and not in the banks or stock market. I know that they are FDIC insured, but the FDIC only holds in reserves enough money to cover about 2/3 of the deposits in banks today, and as you may know, the top 20f wealthy people in American holds 80f the nation's wealth, so who do you think they will pay first? Should there be a major crisis like happened during the crash before the Great Depression, with our current debt levels as high as they are, there is a strong likelihood the Banks would not want to bail us out should the value of the dollar fall, because it would not be in their financial interests. Further, in the event of a major crash, I really recommend keeping as much food as possible stocked in your cabinets at all times. A fall of the US dollar will mean that we will not be able to import goods on any kind of level that we do now, so we are best to be prepared for that occurrence.
I only stress these things as a precaution. I do not claim to know the future, but I see the warning signs, as do others, and it can never hurt to be prepared can it?
Protect yourself and those you love.
~Written by Me
[Update 4/18/06]
Well, the administration's bullying of Iran on the false nuclear issue has forced them to DELAY the Iran Oil Bourse from going into effect. However, the M3 is still not being published!!!!
Just a Precaution
Today is March 20th, and for those that keep up with World Events, this day marks Iran's start of the "Iran Oil Bourse." That means that Iran will start selling oil in Euros. In way of background, the World currently sells all of its oil in US Dollars, creating a large demand for dollars in other countries, as they must sell us cheap goods in order to obtain dollars to buy oil, or they must take loans from the World Bank/International Monetary Fund (with interest). This is currently known as Petrodollar Hegemony.....and it will come to an end tomorrow. The US Dollar is currently the reserve currency of the World right now partially for this reason, the other reason is because we have the military might to fight against any economic attacks against it. That means that 70f the savings that countries hold is in US dollars. This keeps the value of the dollar high in relation to other World currencies, which is why you have seen a shift of production out of America, in the form of free and unbalanced trade. Our current trade deficit is astounding, meaning we buy much much more from other countries than we sell to them.
Iraq was the first country to start selling their oil for Euros and we saw what that got them. This administration is currently hyping a potential conflict with Iran, just as they did with Iraq, based upon the false threat against our National Security. Many economists say that the effects if Iran's Oil Bourse is successful would be the equivalent in damage of dropping a nuclear bomb on US soil. The outcome of this would mean the instability of the US Dollar, forcing countries holding it in their reserves to trade it in for the Euro, making the value of the dollar plummet.
Meanwhile, Congress just approved increasing our debt ceiling to $9 trillion dollars and our total credit market debt (government, corporations, and households) is higher than it was before and during the Great Depression.
On top of it all, the Federal Reserve will stop publishing the M3 Report on March 23, 2006. Coincidence? I think not. This means that they will no longer tell people how much money is being printed and placed into circulation, and also how much money is being taken out of circulation. The current Federal Reserve Chairman, Ben Bernanke, just sworn into office on February 1, 2006, is a proponent of the fact that the International Banks/Federal Reserve took money out of circulation, which caused the Great Depression to happen. They stopped approving any loans, and all money from loans repaid were simply put back into the vaults. This caused a shortage of money in the World, and threw the World into an economic depression. With the accelerating alarm of Iran's Oil Bourse, they may be doing this to hide this action from happening again. Should the World stop using the US dollar as their reserve currency, the International Banks may revert to backing support for the Euro, rather than the US dollar as they do now, and may purposely promote a fall of the US dollar in order to instate the Euro as the single currency of the land. It is already the currency of all of Europe, and our administration has made no qualms in telling us that they want a New World Order, where all of us are under a one world government, with America as its military might. That is not a conspiracy theory. Bush & Co. has spoken of it even just recently.
What does this mean for the average citizen? It means that for at least the next month or so, until America either decides to attack Iran to protect the dollar (which could be disastrous as well because we can hardly afford another war~ not to mention the fact that China, Russia, Syria, and India may come to Iran's defense, inciting World War III in the process), or our leaders tell us that we are in the clear and they will begin publishing the M3 again, I highly recommend you keep as much actual cash on you as possible, and not in the banks or stock market. I know that they are FDIC insured, but the FDIC only holds in reserves enough money to cover about 2/3 of the deposits in banks today, and as you may know, the top 20f wealthy people in American holds 80f the nation's wealth, so who do you think they will pay first? Should there be a major crisis like happened during the crash before the Great Depression, with our current debt levels as high as they are, there is a strong likelihood the Banks would not want to bail us out should the value of the dollar fall, because it would not be in their financial interests. Further, in the event of a major crash, I really recommend keeping as much food as possible stocked in your cabinets at all times. A fall of the US dollar will mean that we will not be able to import goods on any kind of level that we do now, so we are best to be prepared for that occurrence.
I only stress these things as a precaution. I do not claim to know the future, but I see the warning signs, as do others, and it can never hurt to be prepared can it?
Protect yourself and those you love.
~Written by Me
[Update 4/18/06]
Well, the administration's bullying of Iran on the false nuclear issue has forced them to DELAY the Iran Oil Bourse from going into effect. However, the M3 is still not being published!!!!
posted by Audrey at 6:18 PM
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