Tag Archives: DOLLAR DAYS

DOLLAR DECOUPLING SPEEDS UP ACROSS THE GLOBE

 

Iran to completely drop dollar from foreign exchange

Sat, 17 Oct 2009 01:31:04 GMT

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Iran’s Trade Promotion Organization has announced a near future plan to completely exclude the US dollar from the country’s foreign revenues and reserves.

Iran has recently asked Japan to replace the US dollar with the yen in oil deals it has with the Islamic Republic, Mehr News quoted the organization as saying on Friday. Continue reading

THE AMERICAN HOUSE'S CRUMBLING FOUNDATION

GREETINGS,

Confidential Memos Indicate Oil SDR Pricing Shift Would Be “Most Damaging” To United States And Precipitate “Serious Market Reaction”

Tyler Durden's picture

Submitted by Tyler Durden on 10/06/2009 10:29 -0500

    A recently declassified, formerly Confidential, 30 year old memo prepared by Henry Owen for President Jimmy Carter’s eyes only, highlights the perils facing the United States if oil were to be priced in SDRs instead of dollars, a topic which is all the rage today as rumors are swirling that this is an imminent transition to be “put” upon the United States.

    In response to your request, we have considered, and discussed with other agencies, whether the US should favor use of SDRs instead of dollars, to pay for cure oil… I have concluded that dollar pricing should be maintained — a view that is shared by State, Treasury and CEA. 

    The reasons:

    1. An announcement that dollars were no longer being used as the unit of account in paying for oil would trigger selling of dollars on the foreign exchange markets. So we would suffer.

    2. I don’t see any offsetting gain, since OPEC would probably raise prices in SDR terms, as necessary to recover revenue losses if the SDR appreciated relative to the dollar.

    And the conclusion:

    We might be able to persuade the OPEC countries to make the shift if the dollar weakened but that’s precisely when the move would be most damaging to us.

    Poor Mr. Owen- little did he realize that a mere 3 decades after this memo was penned, the administration would be consumed by a bunch of Wall Street pandering, middle class extortionists, who seek nothing else than to inflate the trillions of toxic “asset” loans that make up the broken backbone of the American financial system. It would come as no surprise if the move is now in fact spearheaded by the same administration which has no other purpose in life than to destroy what little savings Americans have and to throw all their cash to prop up artificially inflated equity prices so that insiders can sell their stock at agreeable levels, and so the toxic companies can use the run up to issue follow on offerings, moderating their untenable debt holdings.

     

     

    Even more troubling, in another declassified memo, former Undersecretary of the Treasury and President of the New York Fed, Anthony Solomon, reaches this damning conclusion:

    The choice of the unit of account for oil pricing is basically under the producing countries’ control. There is no particular economic reason why a shift from the dollar would be contrary to U.S. interest — unless the dollar were to depreciate significant in relation to the currencies in the pricing basket. But there could be major psychological effects. Given the unsettled conditions in the foreign exchange market [TD: so true today, 30 years later], such a step at this time could be interpreted as a lack of confidence in the dollar and as presaging a shift in OPEC investment policy away from the dollar. It could precipitate a serious market reaction.

     

    Alas, even President Carter, seen by many as one of the worst American president in American history was smart enough to not bury his own middle class at the expense of landed Wall Street interests. It is a pity that his current incarnation, advised by the Bernanke-Summers-Geithner think tank, has such diametrically opposing motivations.

    h/t Geoffrey Batt for document procurement

EVERYDAY MORE AND MORE INFORMATION IS BEING REVEALED TO EXPOSE THE WOBBLING WEAKENING FOUNDATION OF AMERICA(ECONOMICALLY,MILITARILY,AND SPIRITUALLY) WHICH WAS ONCE UNHEARD OF TO THINK SUCH….THE ONCE ROCK HARD(IN APPEARANCE) AMERICAN POWER PROJECTION IS NO MORE AND THE THREAD BY WHICH IT MAY HANG IS SPLITTING ITS LAST FIBERS.

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THE LAWS OF CAUSE AND EFFECT…THE GIFT THAT JUST KEEPS ON GIVING

GREETINGS,

ELIJAH MUHAMMAD—-,”I want to tell you who think that you are inferior, who think that you are nothing, who think that the white race is superior and the wisest people there ever were — that you are mistaken.

5 I want to satisfy your minds, my friends, my brothers, my sisters, that you fear not that the white world will destroy us. They cannot do it. We have a Savior with us.

6 We have a Savior that is born. I do not think any white ruler is silly enough to destroy the Muslims. I do not think that the white government of America would try to force us to our knees by not giving us employment. If they do so, come to me. Continue reading