In The Kingdom of The Dollar
Why did so many economic tragedies and crises happen in the past?
They did partially because of the lack of data for people living in each era to refer to, since their cases themselves were yet to become data of the past.
But, they did mainly because of their lack of respect to the God, which inevitably led to their ignorance of history.
SECTION I: US ECONOMY IN STAGFLATION
Some Japanese experts have admitted that the US is apparently in stagflation.
Prices of crude oil and other commodities are increasing, due to money games by hedge funds supported by Saudi Arabia and the likes and also due to ever increasing demand in China and India for natural resources and foods.
US Consumers are buying less, due to damages caused by financial crimes such as the subprime loan schemes, making smaller sales and profits of businesses.
As predicted by some economists in the world late in the last year, the US economy has now entered the stage of stagflation.
But, it is OK. It is not destructive at all, since there is a principle of reaction even in economy which will stabilize a biased trend through supply-demand relationship and so on.
What’s more, the global economic framework bolstered by the dollar dominance will contain such wax and wane of living economy.
Money games can be ultimately controlled by the world governments; China and India will be ultimately disciplined; technological innovation, development of new energy sources, and enhanced coordination in global trade will ultimately contain a crisis caused by shortage of crude oil and foods (at least in the commodities market); and US consumers will enjoy new credit creation which will allow for credit buying as before, so long as the rest of the world continues to buy dollars and infuse money and funds into the US money market…
So, you must know the key is the value or glamour of the dollar.
SECTION II: A DOLLAR FOR YOUR THOUGHTS
If the dollar completely loses respect globally, things will be drastically different.
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There are two issues, really, that pop up in discussions. The first centers on what effect a falling dollar might have on the American economy, which is already in a rather tenuous position. Conclusions about potential effects are far from uniform...
The other side of the dropping dollar coin is its effect on our trading partners, and particularly on those in Asia and the Middle East with massive dollar holdings...
http://www.economist.com/blogs/freeexchange/2007/11/a_dollar_for_your_thoughts.cfm
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Weaker dollars mean globally less respect for the U.S.
Japan, Saudi Arabia, and China will stop buying US Treasury Bonds or infusing funds to Wall Street.
US financial institutions cannot give munificent credit to consumers any more.
American citizens cannot borrow money from banks and businesses cannot rely on funding mechanism in the market.
It will be the end of American Dream for US citizens.
But, Americans can work and live humbly, say, at 40% of the living standard of the present one.
Of course, neither high-tech military nor costly NASA space exploration programs will be the thing of the past.
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linhares wrote:
This is the US's largest problem. And it seems invisible to Americans. As a Brazilian who deeply knows what it's like to carry worthless money around, I'm praying for a miracle. But, as we know, that doesn't seem to do much good in economics.
There will be a rush from the dollar, bringing international panic, soon. I wouldn't be surprised to see the dollar lose over half its value (compared to gold or major currencies) before 2010. To mention that "imports are only 16 percent of GDP" is not to take into account the rising price of oil and other commodities. The inflationary pressures will be immense, as they always are. American exporters should not have much to celebrate, for their own economy will be in such a bad shape, that things they've taken for granted, such as credit, will cease to exist.
All of my investments have gone from the dollar to the Euro…
But most of all, I wonder when exactly did the US become a third world country
http://www.economist.com/blogs/freeexchange/2007/11/a_dollar_for_your_thoughts.cfm
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Indeed, rich men mean those who can enjoy provision of credit when or whenever they need it.
Poor men mean those who are not allowed necessary credit accommodation, like a third world country.
SECTION III: REAL TIME ECONOMICS
G7 this spring was very symbolic in performing function it is always supposed to do.
They decided to secure respect for the dollar.
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But whatever the cause, the dollar has steadied, and even climbed a bit, since the group issued its communiqué on April 11. The dollar fell 7.28% against the euro between Jan. 1 and the G-7 meeting. Since then, the dollar has recovered 2.55% against the euro. Likewise, the dollar tumbled 8.76% against the Japanese yen between New Year’s and the G-7 meeting, and has gained 2.30% since then…
“We believe that the euro, globally speaking, is overvalued,” French Prime Minister Francois Fillon told reporters during a visit to Washington last week.
“The U.S. authorities repeat ad nauseam that the dollar is too weak and that the U.S. economy deserves a stronger dollar,” Mr. Fillon said. “We need to find together a way to make sure that this happens in fact.”
http://blogs.wsj.com/economics/2008/05/09/white-house-leads-effort-to-prop-up-dollar/?mod=WSJBlog
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But, there are two types of people in the U.S.: the poor and the rich.
The rich may be happy as they see FRB busy sustaining the value of the dollar with international cooperation.
But, what about the effect on poor Americans?
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have watched the Senate questioning the “Energy Secretary”???. This guy is a complete idiot!! did anyone watched last night? He has absolute no clue of the present reality. My opinion is that we have allowed our politicians to break away from the reality by giving them all they needed and this are the results: economy down the tubs, dollar does not worth crap,and we still seating on our hands and watching how the government and the Fed stealing money out of our pockets!!!
Please wake up and act upon!!!until is not to late!!!Impeach the pres/v.p and all the corrupt government members!!
Get rid of Bernanke and Paulson. They destroying the US!!
Comment by Future?? - May 23, 2008 at 12:26 pm
http://blogs.wsj.com/economics/2008/05/09/white-house-leads-effort-to-prop-up-dollar/?mod=WSJBlog
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The gap between the super rich and moderate rich is also getting bigger in the U.S.
The super rich are those whose interests are first taken into consideration by FRB.
And, it is a big surprise that American voters are now going to vote for either of Presidential candidates who don’t dare to discuss the function and mission of FRB.
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There is an interesting conspiracy theory on FRB.
A Japanese photo-journalist has been discussing this issue on his site.
(http://blog.goo.ne.jp/leonlobo2 )
FRB must have turned a blind eye by intent to the illegal subprime-loan sales schemes widely spreading among US consumers.
It is because FRB tried to artificially cause or generate the Mighty Depression.
Through the new Depression, FRB intended to have financial institutions fall into a critical situation so as to realize financial oligarchy.
(Even not in the Depression, it is expected 200,000 or so employees in the US financial sector will be dismissed in a year or two.)
But, when this Depression is over, FRB and a small number of major banks and security companies are expected to further consolidate their power base.
Yet, in order to rescue former FRB chairman Mr. Greenspan, FRB has stopped the execution of this subprime loan-triggered Great Depression scenario.
Maybe, President Mr. Bush might have interfered, since this is the year of the Presidential Election.
Regardless of authenticity of this conspiracy theory, the value of the dollar is still a big issue.
And, I do not think that FRB people are smart enough to protect, keep, or revive the glory of the US Dollar.
I really do not, since they do not love God and history enough.
(Not only the US Dollar but also the Euro and the Yen can be your one-way ticket to the hell.
Exchange the dollar with the sea, the Euro with the sky, and the Yen with the sun, so that you can be loved in the Kingdom of the God.
http://www.fukuchan.ac/music/latin/lamer.html )
Luk 21:25 And there shall be signs in the sun, and in the moon, and in the stars; and upon the earth distress of nations, with perplexity; the sea and the waves roaring;
Luk 21:26 Men's hearts failing them for fear, and for looking after those things which are coming on the earth: for the powers of heaven shall be shaken.
Luk 21:27 And then shall they see the Son of man coming in a cloud with power and great glory.