Author: laoda1

The Gathering Storm - ditching the US$ [Copy link] 中文

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Post time 2009-3-20 19:25:02 |Display all floors
Originally posted by wchao37 at 2009-3-20 13:32


I'm serious.  So many people have lost their homes and cars and investments into one Ponzi Scheme after another that you just can't help feeling sorry for them.  

As to the other half who ca ...



that why his name is called HEAD MADOFF
What's on your mind now........ooooooooooooooo la la....Kind Regards

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Post time 2009-3-21 16:08:26 |Display all floors
Originally posted by caringhk at 2009-3-20 19:25



that why his name is called HEAD MADOFF


Head madoff?

mm sarm mm sei:lol

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Post time 2009-3-21 18:38:31 |Display all floors

China and Russia Don't Want the Worthless $

By Gleb Bryanski

MOSCOW, March 19 (Reuters) - China and other emerging nations back Russia's call for a discussion on how to replace the dollar as the world's primary reserve currency, a senior Russian government source said on Thursday. Russia has proposed the creation of a new reserve currency, to be issued by international financial institutions, among other measures in the text of its proposals to the April G20 summit published last Monday.

Calls for a rethink of the dollar's status as world's sole benchmark currency come amid concerns about its long-term value as the U.S. Federal Reserve moved to pump more than a trillion dollars of new cash into the ailing economy late Wednesday.

Russia met representatives of China, India and Brazil ahead of the G20 finance ministers meeting last week, as the big emerging powers seek to up their influence on decisionmaking globally. Their first ever joint communique did not mention a new currency but the source said the issue was discussed.

"They (China) did not formally put forward their position for the G20 summit but unofficially they had distributed their paper regarding the same ideas (the need for the new currency)," the source told Reuters, speaking on condition of anonymity.

The source said the Chinese paper envisaged the International Monetary Fund's Special Drawing Rights (SDRs) being first assigned a role of a clearing currency on some transactions and then gradually becoming the main global reserve currency. "They said that the role of reserve currency should be given to SDR," the source said.

A U.N. panel of experts is also looking at using expanded SDRs, originally created by the International Monetary Fund in 1969, but now used mainly as an accounting unit within similar organisations as a new reserve currency instead of the dollar.

Currency specialist Avinash Persaud, a member of the U.N. panel, told a Reuters Funds Summit on Wednesday that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.

The SDR and the old Ecu are essentially combinations of currencies, weighted to a constituent's economic clout, which can be valued against other currencies and against those inside the basket.

The Russian source said Moscow was aware that the emergence of the new global currency would not happen overnight and said its goal was to initiate a discussion about it at the G20 summit in London on April 2.

The source said that India did not object to the discussion but was not prepared to take the lead. The source said South Korea and South Africa backed the idea, while developed nations were not "allergic" to it.

"We are not waiting for everyone to say: 'How beautifully it has all been formulated, let's subscribe to it'," the source said. "The main idea is to start a discussion about it."

Russia holds about half of its reserves, the world's third-largest, in dollars, with the rest in euros and pounds. Prime Minister Vladimir Putin has called on reserve currency issuers to show more financial discipline.

Finance Minister Alexei Kudrin told reporters on the sidelines of the G20 finance ministers meeting that it would take up to 30 years to create a new super-currency, suggesting there was no unity in Russia on the issue.

President Dmitry Medvedev's top economic aide and G20 sherpa Arkady Dvorkovich is behind the Kremlin's G20 proposals, made public one day after Kudrin returned from England. (Reporting by Gleb Bryanski; editing by Mike Dolan/Patrick Graham)
the anglos are rsponsible for ...

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Post time 2009-3-21 19:03:28 |Display all floors
Calls for a rethink of the dollar's status as world's sole benchmark currency come amid concerns about its long-term value as the U.S. Federal Reserve moved to pump more than a trillion dollars of new cash into the ailing economy late Wednesday.


China's concern is that the U.S. will raise interest rates on its TBs in order to attract buyers in a tighter market. If they do this, the real value of U.S. TBs will depreciate, as will China's holdings of TBs.

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Post time 2009-3-21 21:24:14 |Display all floors
Finance Minister Alexei Kudrin told reporters on the sidelines of the G20 finance ministers meeting that it would take up to 30 years to create a new super-currency, suggesting there was no unity in Russia on the issue.


That's one of the reasons they even dared to print money like crazy.

Last chance bargain before the fire sale.

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Post time 2009-3-22 03:24:00 |Display all floors

The Mother of All Bells

"...................the US Federal Reserve effectively telling foreigners, such as the Chinese, that
the US does not need their money; it will print its own...."

                                                       ---------------------------------//-----------------------------

March 19, 2009 (Bloomberg) -- By committing to buy Treasuries and double his purchases of mortgage debt, Federal Reserve Chairman Ben S. Bernanke signaled his determination to avoid a repeat of the Great Depression and his willingness to pump as much cash into the economy as needed to end the current crisis. [Bye Bye dollar]

U.S. central bankers decided yesterday to buy as much as $300 billion of long-term Treasuries and more than double mortgage-debt purchases to $1.45 trillion [Completely insane], aiming to lower home-loan and other interest rates. The Fed kept its main rate at almost zero and may keep it there for an "extended" time.

The moves sparked the biggest drop in 10-year Treasury yields since 1962, rallies in the stock market and gold and a plunge in the dollar against the euro. Economist Richard Hoey said Bernanke has created the "Rambo Fed," referring to the Sylvester Stallone character skilled with weapons.

"This is a very powerful and aggressive move," Hoey, chief economist at Bank of New York Mellon Corp., said in an interview with Bloomberg Television. "One of the reasons I've been arguing we won't have a depression is we've got a Fed chairman who understands the problem and is going to come with the right diagnosis and the right medicine."
With the purchases of Treasuries and housing debt, Bernanke is effectively using the Fed's powers to print money and aim it where he and other officials believe it will have the greatest impact in lowering borrowing costs.................

                                         -----------------------------------//-------------------------------------


The Mother of All Bells
by Peter Schiff
     
There is an old adage on Wall Street that no one rings a bell at major market tops or bottoms. That may be true in normal times, but as many have noticed, we are now completely through the looking glass. In this parallel reality, Ben Bernanke has just rung the loudest bell ever heard in the foreign exchange and government debt markets. Investors who ignore the clanging do so at their own peril. The bell’s reverberations will be felt by everyday Americans, whose lives are about to change in ways few can imagine. While nearly every facet of America’s economy has been devastated over the past six months, our national currency has thus far skipped through the carnage with nary a scratch. Ironically, the U.S. dollar has been the beneficiary of the global economic crises which the United States set in motion. As a result, our economy has thus far been spared the full force of the storm.

This week the Federal Reserve finally made clear what should have been obvious for some time – the only weapon that the Fed is willing to use to fight the economic downturn is a continuing torrent of pure, undiluted, inflation. The announcement should be seen as a game changer that redirects the fury of the financial storm directly onto our shores.

In its statement, the Fed announced its intention to purchase an additional $1 trillion worth of U.S. treasury and agency debt. The purchases, of course, will be made with money created out of thin air through the Fed’s printing presses. Few can doubt that they will persist with these operations until the economy returns to its former health. Whether or not this can ever be accomplished with a printing press alone has never been seriously considered. Bernanke himself admits that we are in uncharted waters, with no map or compass, just simply a hope that more dollars are the answer.

Rather than solving our problems, more inflation will only add to the crisis. Falling asset prices, the credit crunch, declining consumer spending, bankruptcies, foreclosures, and layoffs are all part of the necessary rebalancing of our economy. These wrenching movements, however painful, are the market’s attempts to resolve the serious problems at the root of our bubble economy. Attempts to literally paper-over these problems will lead to disaster.

Now that the Fed has recklessly shown its hand, the mad dash to get out of Treasuries and dollars should not be far off. The more the Fed prints to buy bonds the less the dollar is worth. Holders of our debt (read China and Japan) understand this dynamic. We must expect that they will not only refuse to buy new bonds, but they will look to unload those bonds they already own.

Under normal circumstances, if creditors grew concerned that inflation was eating into their returns, the Fed would raise interest rates to entice them to buy. However, the Fed will avoid this course of action as it fears higher rates are too heavy a burden for our debt-laden economy to bear. To maintain artificially low rates, the Fed will be forced to purchase trillions more debt then it expects as it becomes the only buyer in a seller’s market.

Just last week, Chinese premier Wen Jiabao voiced concern about his country’s massive investments in U.S. government debt. In the most unequivocal statement yet by the Chinese leadership on this issue, Wen made it plain that he was concerned with depreciation, not default. With his fears now officially confirmed by the Fed statement, we must wonder when the Chinese will finally change course.

There is a growing consensus that if China no longer wants to buy our bonds, we can simply print the money and buy them ourselves. This naïve view fails to consider the consequences implicit in such a change. When the Treasury sells bonds to China, no new dollars are printed. Instead, China prints yuan which it then uses to buy treasuries. This effectively allows America to export its inflation to China. However, now that we will be printing the money ourselves, the full inflationary impact will fall directly on us.

With such a policy in place, America has now become a banana republic. It won’t be too long before our living standards reflect our new status. Got Gold?

by Peter Schiff
March 21, 2009

Peter Schiff

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Post time 2009-3-24 20:02:03 |Display all floors

Replace US dollar: China

"Seize the day, seize the hour." - Mao

This the opportune time to cremate the US dollar as the World Reserve Currency and prepare
the funeral rites for US Global Tyranny.....

                                           --------------------------------//-------------------------------

Replace US dollar: China

SHANGHAI (March 24, 2009)- CHINA'S central bank said it wants to replace the US dollar as the international reserve currency with a new system run by the International Monetary Fund (IMF).

People's Bank of China Governor Zhou Xiaochuan wrote on the bank's website that the goal is to stabilise the international economic system by creating a system not easily influenced by the policies of individual countries.

'The outbreak of the crisis and its spillover to the entire world reflected the inherent vulnerabilities and systemic risks in the existing international monetary system,' Mr Zhou wrote in an essay posted on Monday.

China relies on the US dollar-dominated monetary system, which has raised concerns over what impact Washington's moves to help the US economy could have on China's US$1.95 trillion (S$2.94 trillion) in foreign exchange reserves.

Mr Zhou's comments come ahead of the G20 summit that starts on April 2 in London, where world leaders and international organisations including the IMF are to discuss reforming the financial system.

Russia has also proposed the summit discuss creating a supranational reserve currency.

Mr Zhou suggested the IMF's Special Drawing Rights, or SDR, could serve as a super-sovereign reserve currency.

The IMF created the SDR as an international reserve asset in 1969, but it is only used by governments and international institutions.

'The reform should be guided by a grand vision and start with specific deliverables,' Mr Zhou wrote. 'It should be a gradual process that yields win-win results for all.' -- AFP

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