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This week marks the end of the dollar’s reign as the world’s reserve currency. It marks the start of a terrible period of economic and political decline in the United States. And it signals the last gasp of the American imperium. That’s over. It is not coming back. And what is to come will be very, very painful.
Barack Obama, and the criminal class on Wall Street, aided by a corporate media that continues to peddle fatuous gossip and trash talk as news while we endure the greatest economic crisis in our history, may have fooled us, but the rest of the world knows we are bankrupt. And these nations are damned if they are going to continue to prop up an inflated dollar and sustain the massive federal budget deficits, swollen to over $2 trillion, which fund America’s imperial expansion in Eurasia and our system of casino capitalism. They have us by the throat. They are about to squeeze.
There are meetings being held Monday and Tuesday in Yekaterinburg, Russia, (formerly Sverdlovsk) among Chinese President Hu Jintao, Russian President Dmitry Medvedev and other top officials of the six-nation Shanghai Cooperation Organization. The United States, which asked to attend, was denied admittance. Watch what happens there carefully. The gathering is, in the words of economist Michael Hudson, “the most important meeting of the 21st century so far.”
It is the first formal step by our major trading partners to replace the dollar as the world’s reserve currency. If they succeed, the dollar will dramatically plummet in value, the cost of imports, including oil, will skyrocket, interest rates will climb and jobs will hemorrhage at a rate that will make the last few months look like boom times. State and federal services will be reduced or shut down for lack of funds. The United States will begin to resemble the Weimar Republic or Zimbabwe. Obama, endowed by many with the qualities of a savior, will suddenly look pitiful, inept and weak. And the rage that has kindled a handful of shootings and hate crimes in the past few weeks will engulf vast segments of a disenfranchised and bewildered working and middle class. The people of this class will demand vengeance, radical change, order and moral renewal, which an array of proto-fascists, from the Christian right to the goons who disseminate hate talk on Fox News, will assure the country they will impose.
You should be more accurate.
Since 1933, there have been no dollars in circulation.
Federal Reserve notes, authorized by Title 12 United States Code sec. 411, are obligations (debt) of the United States. They are redeemable, on demand, for lawful money (gold coin). But in 1933, Congress repudiated that promise.
So how did FRNs circulate as money?
Thanks to millions of "human resources" who signed up with Socialist InSecurity. Each "contributor" *(Federal Insurance CONTRIBUTION Act) became equally liable for the worthless IOUs. Under the law of notes, each enumerated socialist / bankrupt could no longer object to their tender in discharge (not payment) of debt.
The constitution still forbids anything but silver and gold coin as tender in PAYMENT of debt. Since 1933, few, if any Americans have paid their debts.
Coincidentally, a bankrupt is someone who cannot pay his debts. And in the Federal law, they substituted the word "debtor" for bankrupt, to soften the blow.
By our collective consent (you did volunteer, didn't you?), the American paper dollar bill has been passed from hand to hand, in countless transactions. Now you know WHY you have to pay a tax on retail transactions, and the privilege to possess houses, cars, personal items, etc, etc. You never paid for them!
(Read the law. It's available to the public, in any county courthouse law library.)
With the website link that you provide, and the list of participants...I wouldn't go short yet on the US$...Not from this information.
Many individuals and companies in America made a lot of money during the last 8 years, and most of that money went into housing and consumer goods, but a lot of it went to build overseas manufacturing plants in India & China. The manufacturing base led US out of the Great Depression, and will lead China and India out of theirs, but we will go the way of Great Briton. Russia will fare better because of it's vast untapped natural resources.
"Prechter, known for predicting the 1987 stock market crash, joins a growing coterie of market heavyweights in forecasting the United States will lose its top credit rating as the government issues trillions of dollars in debt to fund efforts to bail out the economy."
Sigh... no one bothers to read the law, anymore.
MONEY. In usual and ordinary acceptation it means gold, silver, or paper money used as circulating medium of exchange, and does not embrace notes, bonds, evidences of debt, or other personal or real estate.
Lane v. Railey, 280 Ky. 319, 133 S.W.2d 74, 79, 81.
BLACK’S LAW DICTIONARY, 4th Edition, p. 1157.
Pursuant to Title 12 USC sec. 411, "dollar bills" aka Federal Reserve NOTES, are evidences of debt.
NOTES are NOT MONEY.
They are promises to pay money - in the future.
And Congress repudiated that promise in House Joint Resolution 192, in 1933.
FRNs are worthless IOUs, borrowed, at usury, into existence by a Congress that borrowed MORE than it paid in interest, in 2007, and 2008.
Many individuals and companies in America made a lot of money during the last 8 years, and most of that money went into housing and consumer goods, but a lot of it went to build overseas manufacturing plants in India & China. The manufacturing base led US out of the Great Depression, and will lead China and India out of theirs, but we will go the way of Great Briton. Russia will fare better because of it's vast untapped natural resources.
There are many things to consider.
Russia has natural resources, but struggles with it's economy because of price fluctuations (which have a devastating effect on their highly bureacratic, poorly managed companies).
China is not a world economic power when looking at it's wealth per capita. With their centralized government, and a middle class growing impatient with it - political events can take a drastic turn there. And, they have a history of suddenly shutting themselves off from the world - the Cultural Revolution was not that long ago.
There are a lot of $$$ out there - Much of it owned by U.S. companies. While we hear of the large public companies - There are many smaller and very rich privately owned companies, and very healthy US owned multi-nationals.
China and Russia are not innovators (for instance in technology) - at least not with the ability of the U.S.A..
It is always popular to "kick" the U.S.A. around. But always, when there is a crisis, all eyes turn to us.
Russia has natural resources, but struggles with it's economy because of price fluctuations (which have a devastating effect on their highly bureacratic, poorly managed companies).
China is not a world economic power when looking at it's wealth per capita. With their centralized government, and a middle class growing impatient with it - political events can take a drastic turn there. And, they have a history of suddenly shutting themselves off from the world - the Cultural Revolution was not that long ago.
There are a lot of $$$ out there - Much of it owned by U.S. companies. While we hear of the large public companies - There are many smaller and very rich privately owned companies, and very healthy US owned multi-nationals.
China and Russia are not innovators (for instance in technology) - at least not with the ability of the U.S.A..
It is always popular to "kick" the U.S.A. around. But always, when there is a crisis, all eyes turn to us.
I think you are short-changing the Chinese, Indians and Russians when it comes to technological advances. Remember that China gave the world gunpowder, iron, bronze, the plow, etc. and were much more advanced than Europe, then went into a tailspin for centuries from which they are now emerging as the truly great power that it is. India likewise is an 'old' civilization that has enormous brain power, and is the outsourcing capital of the world. Russia was the first to put a man in orbit, and is now emerging anew, freed from governmental restraints. These are not Mickey Mouse threats to our economy sovereignty. They were greater than us in the past, and are looking to reclaim the crown. They see us in decline, and now meet together and exclude us - what does that tell you? Would any nation have done that 10 years ago? We have become complacent in our percieved superiority, thinking that it would just always continue, and now will have to face the facts of a changing world.
Look at Russia, for an example of real world thinking. Though they are an oil power, and exporter, they recently completed electrification of the Trans Siberian Rail road.
America?
We're still burning millions of barrels of diesel to operate our mainline railroads... long haul trucks... oh my oh my.
Oil can be saved from the diesel that railroads use today (231,000 barrels/day in 2006) and from truck freight (2,552,000 barrels/day in 2006) by switching to electrified rail. Trucks carry about a quarter fewer ton-miles than rail, but with 11 times the oil.
Based on those figures, we consume 1,015,795,000 barrels / year of diesel that we could avoid, if we had a national initiative to switch to electric rail. Wouldn't it be better to spend the 75 billion here, instead of shipping it overseas?
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I wouldn't lose sleep over this...
