A DE-AMERICANIZED WORLD

 

~~~~~world

Liu Chang wrote this for China’s official news agency Xinhua, “It is perhaps a good time for the befuddled world to start considering building a de-Americanized world.” I can see why the world is considering that, with the recent budget crisis, debt ceiling crisis and the credit rating downgrades, United States finances certainly look shaky to me. It also looks like the Obama Regime is doing everything possible to facilitate a de-Americanized world.

Right now the dollar is the world reserve currency, so what is a reserve currency? Countries all over the world hold financial reserves, in bonds or money market instruments denominated in some other currency. They also hold gold and Special Drawing Rights issued by the International Monetary Fund. The reserves protect the country’s currency against speculative outflows. The Asian Financial Crisis of 1997-98 taught many countries the value of having large reserves of foreign currencies. Most countries are now pretty heavily invested in their foreign exchange reserves.

The U.S. dollar is the most common currency for international reserves, for many reasons. First, because of the size of our economy, there are plenty of dollar-denominated securities available. The market for United States Treasury securities is liquid and deep. “Liquid” means that the securities can be sold quickly. “Deep” means that a substantial amount can be bought or sold without affecting the price too much. These are desirable features of a foreign reserve currency. The Euro ranks second right now and the Japanese Yen and British pounds sterling following. A number of other currencies are used in small amounts.

The very volume of dollars in the world has given many people a conviction that the currency is worthless and doomed to lose its status as a global reserve currency. That describes me based on our national debt and unfunded requirements which amount to over two million dollars per family.

As of last year there was $1.2 trillion in circulation. Can you guess the bill that is in greatest supply? Not the $1, about 77% of the total circulation is the $100 bill. Most of those hundreds—about two-thirds of them—are held outside the United States. You probably don’t know that the most valuable Confederate Bills are the $1 Notes because they are the rarest. Today you can buy Zimbabwe 500 trillion dollar notes but not a single 1 dollar note. Are you getting the picture?

Can you imagine a U.S. Navy ship arriving in a foreign port unable to purchase fuel because the country refused to accept U.S. Dollars? Can you think of anything our government or the Federal Reserve has done favorable to our Dollar? Printing tons of Dollars might prop up our House of Cards for a few years, but other countries are not stupid. How many times can the Stock Market crash before it stays crashed?

If I accomplish nothing else in this blog, I want you to know of the very real possibility that the dollar will crash. You and I have no control other than to get out of the way. Those that we have entrusted with the job of reporting this collapse to us are hiding the truth. That’s why I look for signs that indicate that the lying liars are getting ready for the collapse. One of those lying liars is the International Monetary Fund (IMF). From previous blogs you know that the IMF, UN, trilateral Commission and others are all for a One World Government. Anyway, the IMF does not want to lose money as it hands out loans to distressed countries. In the past the money was US Almighty Dollars. However, the recent loan to Ukraine was denominated in SDRs. The great thing about SDRs is that you can change the underlying assets that give it value. It’s a moving goalpost. The Special Drawing Right is whatever the IMF wants it to be, and you can bet that the borrower is never going to come out ahead in any deal with the IMF.

So what is the SDR? It is essentially a unit of value backed by a basket of currencies:
US Dollars – 41.9%
Euros – 37.4%
Japanese Yen – 9.4%
British Pounds – 11.3%
If any one of those currencies crashes, the IMF can switch that currency out for another one. That strong Dollar component can change instantly to Chinese, Russian or Swiss currency. Is this the first step by the IMF in an attempt to limit the possible damage from a US dollar collapse? It is certainly a chink in the Petrodollar system. All I am suggesting is that YOU pay attention.

Some very smart people have been talking about 2014 as the year when everything changes. The problem is that the vast majority of those changes will happen in smoke-filled back rooms, away from the public eye. You won’t see them until it’s too late to do anything about it. I don’t believe ANY of the data coming from the IMF or the US Government. I just created a chart on the IMF website showing US inflation at about 2%. When President Obama took office, gasoline was $1.89 on the East Coast, today it is $3.89. Not being a billionaire, I do my own grocery shopping and notice how food prices are going up weekly. The Stock Market keeps going up too, but on very small volume. The big boys are buying Put Options so they will flourish when the market crashes.
Warren Buffett is putting his money in hard assets such as railroads, oil and gas. When Buffett acquired BNSF Railroad he likened the railroad’s foresight to the biblical figure Noah and his Ark, “Like Noah, who foresaw early on the need for dependable transportation, we know it’s our job to plan ahead.”

U.S. banks are picking our pockets in every conceivable way. I once cashed a Wells Fargo Check in a Wells Fargo Bank and they charged me $5 because I didn’t have an account with them. The rest of that story is that I WILL NEVER HAVE AN ACCOUNT WITH WELLS FARGO. One of my banks, ARVEST, decided to start charging a monthly fee for me to let them use my money. They did it while I was in the hospital and I didn’t much like the idea. The regional bank manager told me he could change my account to a free one since my balance would support it. I said, “No thanks, I no longer trust your bank.” I hope you have not forgotten that OUR government used OUR money to bail out the banks. Many local banks are now run by succeeding generations of the founders. These latter day managers would not make a wart on the founder’s behind. US banks are not all that competitive in the real world. Pay Pal sprung up while bankers were having their portraits painted. What else is about to happen will really shock them when they find out. Facebook, for example, could facilitate user-to-user payments for less money than a bank charges. There are rumors that Facebook plans to do that very thing by making it possible for people to send payments and store money via its social network. A Facebook spokesperson “declines to comment on rumors and speculation.”

The United States is no longer competitive with other countries and things are getting worse. A few states are still competitive but most become less competitive every single day. State Legislators are lobbied to spend money, not to save taxpayers’ money. Don’t think China, Russia and Saudi are not thinking about dumping the dollar. Don’t think they will warn you before they do it. Do you think the IRS, EPA, border crisis, Iraq, overregulation, highest corporate tax in the world, unions and Benghazi make the U.S. look more attractive? Do you have a plan; I doubt the Wall Street Talking Heads have a plan. If they were so smart they would not still be working. The Obama Regime has a plan and it does not include America or Americans. Read my blog, THE WORLD IS ENOUGH FOR OBAMA.

So what are people doing to prepare for the possible crash? Those who can afford it are buying as much gold and silver as they can. Others who have little extra cash are stocking up on extra essentials with a long shelf-life. Some people have fled the US, entirely. The people of Noah’s time did nothing until the door of the Ark was closed and no options were available to them.

In LUKE 21, Jesus speaks about the end times and then says this: 32 “I tell you the truth, this generation will certainly not pass away until all these things have happened. 33 Heaven and earth will pass away, but my words will never pass away. 34 “Be careful, or your hearts will be weighed down with dissipation, drunkenness and the anxieties of life, and that day will close on you unexpectedly like a trap. 35 For it will come upon all those who live on the face of the whole earth. 36 Be always on the watch, and pray that you may be able to escape all that is about to happen, and that you may be able to stand before the Son of Man.”

May God bless and keep you,
Gene

Advertisements

Tags: , , , , , , , , , , ,

One Response to “A DE-AMERICANIZED WORLD”

  1. Gunny G Says:

    Reblogged this on BLOGGING BAD w/Gunny G ~ "THE CLINGERS".

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: