Economy.Traded.Here

Rise and Fall of the Darling US Dollar

2007-04-18T03:47:00.000-07:00

Economist Views :

What Does the USA Dollar Devaluation Mean to You?

Yahweh said to Israel that they perished for a lack of knowledge (Hos. 4:6). Most Americans, no matter their vocation, are totally ignorant of the current plight of the US dollar, especially in relation to the Euro. In short there is dollar crisis in the world economy due to the level of debt of America, who is the largest debtor in history, owing between $70-$100 trillion.
Americans have no knowledge that the US private control central bank, the Federal Reserve Bank, creates money out of this air and it is the chief cause of inflation in America and the creator of various financial bubbles in stock market and real estate.
The reason that Americans are ignorant of the current dollar and economic crisis is that the US controlled media has not reported on it. The US media is controlled by five or six major corporations; Disney owns ABC, CBS is owned by Viacom, GE owns NBC. In short, the truth is suppressed and kept from the American masses. This is the chief cause of the mind control of 99.0% of Americans.

Although many world authorities, such as the IMF (International Monetary Authority) and World Bank, said the dollar will be devalued. this has not been reported in the US media.

Effects of US Dollar decline

Formerly economic adviser to President Clinton Robert Reich said in Canada recently that the US dollar will collapse, which was not reported in the news. The devaluation of the U.S. dollar means a decline in the purchasing power of the dollar, which leads to a decline in living standard. For example, if the US dollar declines 40% and you had a million US dollars, the million dollars will only buy $600,000.00 worth of goods and services. You would have lost $400,000.00 in purchase power.

Any type of investment in dollars, such as saving accounts, saving bonds, annuities, pensions, etc., will suffer from this decline. In the coming decline of the dollar it will impoverish almost 50% of the white middle class and the other 40% will barely survive. Now between 5 -10% of Americans will prosper from this decline of the dollar because they have the knowledge of how to protect their asset.

U.S. dollar world currency

The US dollar is the world trading currency, which means all goods and services are priced in U.S. dollars. With a U.S. dollar devaluation, the impact on international trade is tremendous. Any countries trading with the US will Immediate raise their prices in anticipation of this devaluation.

All commodities, such as oil, coffee, chromium, copper, iron, etc., are setting record prices due the dollar decline and anticipation of the US dollar devaluation. This is one reason why oil is now over $50.00 per barrel. The oil producers know that the dollars they are receiving for their oil is declining in purchasing power, so they raise their prices to protect their investment. No one wants to hold a currency that is declining in value.

Dollar is reserve currency

Since no currency is fully backed by gold or silver, the US dollar is the world reserve currency. This decision was the result of the Bretton Wood agreement signed after World War II and means that the various nations' central banks, which create money for the countries, must have their currency backed by the US dollar. In short, these central banks must hold US dollars and Treasury instruments.

In other words, for over the last 50+ years the US dollar has served the same purpose as gold & silver in backing the currency. This arrangement is good as long as the dollar holds its value.
The dollar is a fait currency. Meaning, it has no precious metals backing it and is accepted by faith. The only currency that has maintained intrinsic value for the last 5,000 years is gold and silver.

Central banks will hold these dollars only up to certain point, If dollars were to decline drastically, they will be forced to sell them for they are losing value and their currency has no backing. So they will sell dollars, causing a further decline in the dollar and buy the next strongest currencies.

What causes dollar devaluation?

Now the problem arises when the US dollar begins to fall in value, as the result of the Federal Reserve Bank printing too many dollars to cover budget deficits, causing inflation, a decline in purchasing power.

Budget deficits, spending more than tax revenue collected, and trade deficits, buying more imports than you can sell exports, are two of the primary reasons for the US dollar decline today.

Now under Bush Jr.'s administration, the budget deficit is close to half-trillion dollars and the trade deficit is close to half-trillion dollars. So, the sum of these two deficits are one trillion dollars. Neither party has addressed these deficits which will get worse and this is beginning to cause a crisis in faith in dollars

It is the Asian countries, mainly Japan and China, that are supplying the US with between 1.5 - 2.0 billion per day for exports to keep the US economy going wit out these funds that the economy would crash.

What will people and nations do in the US dollar devaluation crisis?

Real money has been gold and silver for the last 5,000 years. As the US dollar declines in value, people, investors and nations flee to the strongest currencies such as the Swiss Franc and Euro.
Central banks and people also began to buy gold and silver as a hedge against the decline of the dollar. Gold and silver rise dramatically in price as the demand increased and everyone sell dollars.

Smart money have already made the move into gold and silver. Billionaires have already began to protect their assets from the coming dollar devaluation by buying gold and silver.
Warren Buffet, the richest American according to Forbes magazine, own 20% of the world silver supply. He states that he lost faith in American dollars.

Gates of Microsoft owns 10-20% of Pan American Silver mine and Billionare George Soros also has holdings in gold and silver mines.

It is the average American that is totally ignorant of what is happening with the American dollar. It has already declined over 30% as compared to the Euro in the last four years.
Americans, regardless of your occupation, if they want to preserve their wealth and protect their family from the ravishes of poverty, they must obtained a knowledge of gold silver investments, while these metals are relatively cheap.

Source URL : http://www.plim.org/01%20usa_dollar_devalua.htm

1929 MARKET CRASH PHOTOS

2007-04-18T03:44:00.000-07:00

Economist Views :

All of these 1929 MARKET CRASH PHOTOS can be viewed at the Source Site:

http://history1900s.about.com/library/photos/blyindexdepression.htm

1929 MARKET CRASH PHOTOS

2007-04-11T03:16:00.000-07:00

Economist Views : 1929 MARKET CRASH PHOTOS

Families on the Road With All Their Possessions During the Great Depression

Source :: http://history1900s.about.com/library/photos/blyindexdepression.htm

1929 MARKET CRASH PHOTOS

2007-04-11T03:14:00.000-07:00

Economist Views : 1929 MARKET CRASH PHOTOS

Covered Wagon in a Migratory Carrot Pullers' Camp During the Great Depression

Source :: http://history1900s.about.com/library/photos/blyindexdepression.htm

1929 MARKET CRASH PHOTOS

2007-04-11T03:13:00.000-07:00

Economist Views : 1929 MARKET CRASH PHOTOS

* Breadline in New York City During the Great Depression

Source :: http://history1900s.about.com/library/photos/blyindexdepression.htm

1929 STOCK MARKET CRASH PHOTOS

2007-04-11T03:03:00.000-07:00

Economist Views : 1929 MARKET CRASH PHOTOS

* 18-Year Old Mother from Oklahoma During the Great Depression

Source :: http://history1900s.about.com/library/photos/blyindexdepression.htm

1929 CRASH - CAUSES OF THE GREAT DEPRESSION

2007-04-10T02:37:00.000-07:00

Economist Views : CAUSES OF THE GREAT DEPRESSION

http://www.huppi.com/kangaroo/Causes.htm#keynesianism

A review of Keynesian theory To understand the Great Depression, it is important to know the theories of John Maynard Keynes (rhymes with "rains"). Keynes is known as the "father of modern economics" because he was the first to accurately describe some of the causes and cures for recessions and depressions. In a normal economy, Keynes said, there is a circular flow of money. My spending becomes part of your earnings, and your spending becomes part of my earnings. For various reasons, however, this circular flow can falter. People start hoarding money when times become tough; but times become tougher when everyone starts hoarding money. This breakdown results in a recession. To get the circular flow of money started again, Keynes suggested that the central bank -- in the U.S., the Federal Reserve System -- should expand the money supply. This would put more money in people's hands, inspire consumer confidence, and compel them to start spending again. A depression, Keynes believed, is an especially severe recession in which people hoard money no matter how much the central bank tries to expand the money supply. In that case, he suggested that government should do what the people were not: start spending. He called this "priming the pump" of the economy. Indeed, most economists believe that only massive U.S. defense spending in preparation for World War II cured the Great Depression. After its success during the war, almost all free governments around the world became Keynesian. Its policies have dramatically reduced the severity of recessions since then, and appear to have completely eliminated the depression from the world's economies. (More) Events of the 1920s The Roaring Twenties were an era dominated by Republican presidents: Warren Harding (1920-1923), Calvin Coolidge (1923-1929) and Herbert Hoover (1929-1933). Under their conservative economic philosophy of laissez-faire ("leave it alone"), markets were allowed to operate without government interference. Taxes and regulation were slashed dramatically, monopolies were allowed to form, and inequality of wealth and income reached record levels. The country was on the conservative's preferred gold standard, and the Federal Reserve was not allowed to significantly change the money supply. The fact that the Great Depression began in 1929, then, on the Republicans' watch, is a great embarrassment to conservative economists. Many try to blame the worsening of the Depression on Hoover, for supposedly betraying the laissez-faire ideology. As the time line in the next section will show, however, almost all of Hoover's government action occurred during his last year in office, long after the worst of the Depression had hit. In fact, he was voted out of office for doing "too little too late." The only notable exception to his earlier idleness was the Smoot-Hawley tariff of 1930, whose minor impact we shall explore in more detail later on. But much more importantly, the economy was clearly turning downward even before Hoover took office in 1929. Entire sectors of the economy were depressed throughout the decade, like agriculture, energy and mining. Even the two industries with the most spectacular growth -- construction and automobile manufacturing -- were contracting in the year before the stock market crash of 1929. About 600 banks a year were failing. Half the American people lived at or below the minimum subsistence level. By the time the stock market crashed, there was a major glut of goods on the market, with inventories three times their normal size. The fact that all this occurred even before the first act of government intervention is a major refutation of laissez-faire ideology (More) .

1929 CRASH - Who had created it

2007-04-10T02:31:00.001-07:00

Economist Views :

http://www.tarpley.net/29crash.htm

BRITISH FINANCIAL WARFARE: 1929; 1931- 33

HOW THE CITY OF LONDON CREATED THE GREAT DEPRESSION

The thesis of this paper is that the great economic and financial cataclysm of the first half of the twentieth century, which we have come to know as the Great Depression, was caused by the Bank of England, the British government, and the City of London. The potential for the Great Depression derived from the economic and human destruction wrought by World War I, which was itself a product of British geopolitics and especially of the British policy, exemplified by King Edward VII, of creating an encircling anti-German alliance in order to wage war. The economic destruction of Europe was continued after 1918 by the Peace of Paris (Versailles, St. Germain, Trianon, Neuilly, Sevres) imposed by the Allies on the defeated Central Powers. Especially important here were the 55 billion gold dollars in reparations inflicted on defeated Germany, along with the war debt burden of the supposedly victorious powers themselves. Never during the 1920's did world trade surpass the levels of 1913. Reparations and war debt were a recipe for economic stagnation.

1929 STOCK MARKET CRASH - What Really Happened ?

2007-04-08T23:05:00.001-07:00

Economist Views : What Really Happened in the 1929 STOCK MARKET CRASH and it took almost 22 years in reviving the ECONOMY.

http://www.whatreallyhappened.com/ARTICLE2/doodoo.html

US Dollar Devaluation : What Does the USA Dollar Devaluation Mean to You?

2007-04-05T03:02:00.000-07:00

Economist Views : http://www.plim.org/01%20usa_dollar_devalua.htm

What Does the USA Dollar Devaluation Mean to You?

Yahweh said to Israel that they perished for a lack of knowledge (Hos. 4:6). Most Americans, no matter their vocation, are totally ignorant of the current plight of the US dollar, especially in relation to the Euro. In short there is dollar crisis in the world economy due to the level of debt of America, who is the largest debtor in history, owing between $70-$100 trillion.
Americans have no knowledge that the US private control central bank, the Federal Reserve Bank, creates money out of this air and it is the chief cause of inflation in America and the creator of various financial bubbles in stock market and real estate.
The reason that Americans are ignorant of the current dollar and economic crisis is that the US controlled media has not reported on it. The US media is controlled by five or six major corporations; Disney owns ABC, CBS is owned by Viacom, GE owns NBC. In short, the truth is suppressed and kept from the American masses. This is the chief cause of the mind control of 99.0% of Americans.

Although many world authorities, such as the IMF (International Monetary Authority) and World Bank, said the dollar will be devalued. this has not been reported in the US media.

Effects of US Dollar decline

Formerly economic adviser to President Clinton Robert Reich said in Canada recently that the US dollar will collapse, which was not reported in the news.

The devaluation of the U.S. dollar means a decline in the purchasing power of the dollar, which leads to a decline in living standard. For example, if the US dollar declines 40% and you had a million US dollars, the million dollars will only buy $600,000.00 worth of goods and services. You would have lost $400,000.00 in purchase power.

Any type of investment in dollars, such as saving accounts, saving bonds, annuities, pensions, etc., will suffer from this decline. In the coming decline of the dollar it will impoverish almost 50% of the white middle class and the other 40% will barely survive. Now between 5 -10% of Americans will prosper from this decline of the dollar because they have the knowledge of how to protect their asset.

U.S. dollar world currency

The US dollar is the world trading currency, which means all goods and services are priced in U.S. dollars. With a U.S. dollar devaluation, the impact on international trade is tremendous. Any countries trading with the US will Immediate raise their prices in anticipation of this devaluation.

All commodities, such as oil, coffee, chromium, copper, iron, etc., are setting record prices due the dollar decline and anticipation of the US dollar devaluation. This is one reason why oil is now over $50.00 per barrel. The oil producers know that the dollars they are receiving for their oil is declining in purchasing power, so they raise their prices to protect their investment. No one wants to hold a currency that is declining in value.

Dollar is reserve currency

Since no currency is fully backed by gold or silver, the US dollar is the world reserve currency. This decision was the result of the Bretton Wood agreement signed after World War II and means that the various nations' central banks, which create money for the countries, must have their currency backed by the US dollar. In short, these central banks must hold US dollars and Treasury instruments.

In other words, for over the last 50+ years the US dollar has served the same purpose as gold & silver in backing the currency. This arrangement is good as long as the dollar holds its value.
The dollar is a fait currency. Meaning, it has no precious metals backing it and is accepted by faith. The only currency that has maintained intrinsic value for the last 5,000 years is gold and silver.

Central banks will hold these dollars only up to certain point, If dollars were to decline drastically, they will be forced to sell them for they are losing value and their currency has no backing. So they will sell dollars, causing a further decline in the dollar and buy the next strongest currencies.

What causes dollar devaluation?

Now the problem arises when the US dollar begins to fall in value, as the result of the Federal Reserve Bank printing too many dollars to cover budget deficits, causing inflation, a decline in purchasing power.

Budget deficits, spending more than tax revenue collected, and trade deficits, buying more imports than you can sell exports, are two of the primary reasons for the US dollar decline today.

Now under Bush Jr.'s administration, the budget deficit is close to half-trillion dollars and the trade deficit is close to half-trillion dollars. So, the sum of these two deficits are one trillion dollars. Neither party has addressed these deficits which will get worse and this is beginning to cause a crisis in faith in dollars

It is the Asian countries, mainly Japan and China, that are supplying the US with between 1.5 - 2.0 billion per day for exports to keep the US economy going wit out these funds that the economy would crash.

What will people and nations do in the US dollar devaluation crisis?

Real money has been gold and silver for the last 5,000 years. As the US dollar declines in value, people, investors and nations flee to the strongest currencies such as the Swiss Franc and Euro.
Central banks and people also began to buy gold and silver as a hedge against the decline of the dollar. Gold and silver rise dramatically in price as the demand increased and everyone sell dollars.

Smart money have already made the move into gold and silver. Billionaires have already began to protect their assets from the coming dollar devaluation by buying gold and silver.

Warren Buffet, the richest American according to Forbes magazine, own 20% of the world silver supply. He states that he lost faith in American dollars.

Gates of Microsoft owns 10-20% of Pan American Silver mine and Billionare George Soros also has holdings in gold and silver mines.

It is the average American that is totally ignorant of what is happening with the American dollar. It has already declined over 30% as compared to the Euro in the last four years.
Americans, regardless of your occupation, if they want to preserve their wealth and protect their family from the ravishes of poverty, they must obtained a knowledge of gold silver investments, while these metals are relatively cheap.

Recession - Greenspan warns of U.S. recession risk

2007-04-05T02:47:00.000-07:00

Economy Views : http://www.msnbc.msn.com/id/17343814/

Updated: 12:23 p.m. ET Feb. 26, 2007

Greenspan warns of U.S. recession risk

Former Fed chief says downturn possible by year's end

HONG KONG - Former U.S. Federal Reserve Chairman Alan Greenspan warned Monday that the American economy might slip into recession by year's end.
He said the U.S. economy has been expanding since 2001 and that there are signs the current economic cycle is coming to an end.
"When you get this far away from a recession invariably forces build up for the next recession, and indeed we are beginning to see that sign," Greenspan said via satellite link to a business conference in Hong Kong. "For example in the U.S., profit margins ... have begun to stabilize, which is an early sign we are in the later stages of a cycle."

Recession - Greenspan Warns of Likely U.S. Recession

2007-04-05T02:46:00.000-07:00

Economy Views : http://biz.yahoo.com/ap/070226/hong_kong_us_greenspan.html?.v=4

Greenspan Warns of Likely U.S. Recession

Monday February 26, 8:34 am ET

Alan Greenspan Warns That U.S. Economy May Slip Into Recession by End of Year
HONG KONG (AP) -- Former U.S. Federal Reserve Chairman Alan Greenspan warned Monday that the American economy might slip into recession by year's end.
He said the U.S. economy has been expanding since 2001 and that there are signs the current economic cycle is coming to an end.

"When you get this far away from a recession invariably forces build up for the next recession, and indeed we are beginning to see that sign," Greenspan said via satellite link to a business conference in Hong Kong. "For example in the U.S., profit margins ... have begun to stabilize, which is an early sign we are in the later stages of a cycle."

"While, yes, it is possible we can get a recession in the latter months of 2007, most forecasters are not making that judgment and indeed are projecting forward into 2008 ... with some slowdown," he said.
Greenspan said that while it would be "very precarious" to try to forecast that far into the future, he could not rule out the possibility of a recession late this year.
The U.S. economy grew at a surprisingly strong 3.5 percent rate in the fourth quarter of 2006, up from a 2 percent rate in the third quarter. A survey released Monday by the National Association for Business Economics showed that experts predict economic growth of 2.7 percent this year, the slowest rate since a 1.6 percent rise in 2002.
Greenspan also warned that the U.S. budget deficit, which for 2006 fell to $247.7 billion, the lowest in four years, remains a concern.
"The American budget deficit is clearly a very significant concern for all of us that are trying to evaluate both the American economy's immediate future and that of the rest of the world," he said via satellite at the VeryGC Global Business Insights 2007 Conference.
Greenspan also said he has seen no economic spillover effects from the slowdown in the U.S. housing market.
"We are now well into the contraction period and so far we have not had any major, significant spillover effects on the American economy from the contraction in housing," he said.

Recession - Greenspan fears recession

2007-04-05T02:42:00.000-07:00

Economist Views : http://money.cnn.com/2007/02/26/news/economy/greenspan/index.htm?postversion=2007022609

Greenspan fears recession - report

Former Fed chief warns that U.S. economy nearing end of growth period.

February 26 2007: 9:06 AM EST

NEW YORK (CNNMoney.com) -- Former Federal Reserve Chairman Alan Greenspan warned Monday that the economy may fall into recession by the end of 2007, according to a published report.
Greenspan told a business conference that it's difficult to forecast the timing of recessions but that it was "possible" that one could occur later this year, the Wall Street Journal reported.
Former Fed chief Alan Greenspan
The former Fed chief, who spoke to the conference by satellite link, said the U.S. economy has been growing since 2001 and that the economy cycle is nearing an end, according to the newspaper.
"When you get this far away from a recession, invariably forces build up for the next recession, and indeed we are beginning to see that sign, for example in the U.S., profit margins ... have begun to stabilize, which is an early sign we are in the later stages of a cycle," the Journal reported him as saying.
Greenspan also said the global economy looks to be stable and that both the U.S. and world economies are more resilient than before, according to the report.

Recession - Capital Outlays Slow, Stirring Recession Fears

2007-04-05T02:03:00.000-07:00

Economists Views : http://www.cnbc.com/id/17930693

CNBC's Liesman: Capital Outlays Slow, Stirring Recession Fears

Economists aren’t sure why capital spending is slowing, but they fret that the downturn may signal a coming recession, according to CNBC's senior economics correspondent Steve Liesman.
“It bothers me whenever I see capital expenditures slowing because, historically, it’s been such a critical part of the economy,” Maury Harris, chief economist at UBS, told Liesman. “This is happening at the same time that we have an on-going housing recession. I think it raises some red flags on the economy.”
The decline in capital spending comes as corporate interest rates are low and S&P 500 companies have about $600 billion in cash, Liesman said.
Last year, the level of share buybacks was close to the level of capital spending, Liesman said. Companies apparently decided they could get more bang for their buck by buying back stock than by purchasing new equipment, he said. Critics say such short-term spending will hurt the economy in the future.
Many believed capital spending by business would offset weakness in the housing and auto sectors, allowing what some have called the “Goldilocks economy” to continue.
But business spending on equipment and software declined in two of the last three quarters. Preliminary data suggest it’s likely to decline in the first quarter of 2007.
Economists say it’s rare to have consecutive quarterly declines in business spending that don’t precede or coincide with a recession, Liesman said.
Even Federal Reserve Chairman Ben Bernanke weighed in on capital spending during a recent appearance before Congress.
“Much of the weakness in recent months has been in types of capital goods used heavily by the construction and motor vehicle industries,” Bernanke said. “But we’ve seen some softening in demand for other types of capital goods as well.”
Most economists still look for the economy to rebound in the second half of the year, Liesman said But that rebound could be in doubt if capital spending doesn’t come back as well.

Economy - US and its Downfall causing Recession

2007-04-05T01:18:00.000-07:00

The Grandfather site of the US Economy

http://mwhodges.home.att.net/

The Site which gives true picture about the US Nation and its Updated everyday.

Thanks to Dr. Milton Friedman, Nobel Prize winner for excellence in economics.

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