Friday, February 8, 2008

Signs Of The Times? Is The Dollar Losing Favor?

Signs are popping up in New York City which now say "Euros accepted"
some shops in New York City have begun accepting euros and other foreign currency as payment for merchandise.

"We had decided that money is money and we'll take it and just do the exchange whenever we can with our bank," Robert Chu, owner of East Village Wines, told Reuters television.

The increasingly weak U.S. dollar, once considered the king among currencies, has brought waves of European tourists to New York with money to burn and looking to take advantage of hugely favorable exchange rates.....

While shops in many U.S. towns on the Canadian border have long accepted Canadian currency and some stores on the Texas-Mexico border take pesos, the acceptance of foreign money in Manhattan was unheard of until recently.

If "money is money" - perhaps they would also take actual gold and silver backed Liberty dollars?? (I know I'd rather have those - and in fact I do own some)

When the dollar, which is fiat money and backed by nothing, becomes as worthless as the paper it is printed on we will probably see the emergence of the Amero (although that will be no different). People in the U.S. are going to be hit hard. Whoever is at the helm of this country will argue that we have to form a North American Union to compete with the Euro.

In truth this is what will happen when the dollar collapses.
Many things, most of them bad. When foreign investors and central banks stop demanding dollars, U.S. bond prices will fall, which is another way of saying that U.S. interest rates will rise. Mortgage and credit card rates will soar, bursting the housing bubble. Home prices in hot markets like California and New York will fall by 50% or more in a matter of months, bankrupting millions of over-extended homeowners. The U.S. government will respond by opening the monetary floodgates, printing as many paper dollars as necessary to keep the economy from collapsing. This surge in supply will send the value of the dollar through the floor. Prices for most things will skyrocket, and people whose life savings are in cash, bank CDs or dollar-denominated bonds, will be wiped out. Most U.S. consumer finance companies will be ruined, along with their stockholders.

THEN the Dollar Disease will go global. The only reason Japan or Europe have been able to generate their current meager rates of growth is the willingness of U.S. consumers to buy their Hondas and BMWs. As the dollar plunges, Asian and European goods, priced in suddenly-appreciating currencies, will become prohibitively expensive for U.S. consumers, who will respond by buying U.S.-made alternatives or nothing at all. Correctly interpreting this change in buying patterns as a threat to their vital export sectors, European and Asian leaders will respond with the only weapon they have left: monetary inflation. They’ll cut interest rates and buy dollars with their currencies, flooding the world with euros and yen the way the U.S. now floods the world with dollars. The result of these “competitive devaluations” will be a death spiral for all major fiat currencies, in which European and Japanese bonds will, eventually, fare as badly as their U.S. cousins.
It's a good time to buy gold bullion, or at least to pay off your loans and try to protect some of your assets. Fear mongering? Doom and Gloom? Some might say yes...but it looks to me like we would do well to take some precautions because the signs are around us.

The predictions are that dozens of large banks will fail by 2010 as losses from soured loans mount and regulators crack down on lenders that take too much risk, especially in real estate and construction, an analyst said. "The initial round of failures will come from smaller banks with limited access to capital and overexposure to commercial real estate".

The destruction of the dollar is what Osama Bin Laden and his cohorts have been waiting for. He knows war is expensive. Why did they choose the World Trade Center to attack? Because it was our financial center... it was symbolic of what was really to come.

That "kook" Ron Paul knows too. Pity no one has been listening to him and his prescription for monetary recovery. (and yes - he is STILL a Republican running for president despite the media saying that McCain has no competition).


Anonymous said...

The destruction of the dollar is what Osama Bin Laden and his cohorts have been waiting for. He knows war is expensive. Why did they choose the World Trade Center to attack? Because it was our financial center... it was symbolic of what was really to come. Why did they choose the World Trade Center to attack? Because it was our financial center... it was symbolic of what was really to come.

Dear Judy,

It is so great to watch you wake up before our very eyes, now, there is only this that is stopping you from being completely awake.

Osama Bin Laden was not responsible for attacking the twin towers; even the FBI says there is not enough evidence to put him on their wanted list for this crime.

I am afraid to tell you that the people who are behind the destruction of the dollar are the same people who brought down the twin towers and WTC Number 7 by controlled demolition.

Over the months you have been moving towards the complete truth, at your own pace and in your own time. You must now confront this most terrible crime, who was really behind it, and what is happening to your country. You need to do this because everything bad that has happened since 2001 has been because of this lie; it is the root of the weed that needs to be pulled up and burned to stop all the other weeds from despoiling the garden that is america.

That means doing your own research, finding unimpeachable sources of information that are beyond reproach, and then confronting the truth. It is a horrible thing to have to give up one's beliefs and to throw away the certainties and basic assumptions that are the bedrock of your life, but think of it this way; if you were to read your own blog with the 'eyes of Judy' from three years ago, would you believe everything that you yourself are posting today as the truth?

'North American Union'
'The Amero'
'Federal reserve not Federal'
'Federal income tax is unconstitutional'
'America turning fascist'

etc etc.

The truth of the matter, and all matters is, that things that are true remain true, even if you do not accept them. The VietNam war was started on a lie, the Gulf of Tonkin incident. The current Iraq invasion was illegal, and the us government lied to attack that country and murder its leader. All of these things and more are absolutely, indisputably true. No one questions their veracity. Sooner or later, everyone will come to accept the truth about the twin towers and WTC building number 7. Do you want to be there before or after everyone arrives?

You cannot simultaneously believe that John McCain and Romney are both wrong about american foreign policy AND also believe that Osama Bin Laden brought down those buildings; their whole belief system is built on that lie, and the lie that there is such a thing as 'islamo-fascism' a neocon doublespeak, neuro linguistic programming, brainwashing construct designed to corall the good american people like cattle.

You are a highly intelligent, insightful person. Your posts here prove that again and again. You also don't take any nonsense from commenters; you seem to have a will of iron. It is most refreshing. I am posting this comment to implore you to take a close look at this subject, this terrible hurdle, which once you clear it, will do alot to crystalize much of what is going on. Apply your intellectual rigor to it; once you do, you will not fail to come to truth.

Judy Aron said...

Well, let's just say I am still reading... but yes - I have come to see some things that I did not see before, and the Sean Hannitys, Anderson Coopers, et al., are not to be trusted. I have to admit that it was Aaron Russo who first opened my eyes. Freedom to Fascism was powerful for me. People need to get away from Main Stream Media and do some investigating on their own and read and listen and analyze all viewpoints.

With regard to the cable TV news - one only has to look to today's events with a reporter maligning Chelsea Clinton (he said she was "pimped out") to see the power the elites like Clinton have over reporters... the guy essentially got fired ... free speech? Yeah right.