< HOME  Wednesday, May 03, 2006

US Dollar Gets Flushed Down World Toilet

The almight dollar - the one our corrupt government and the FED had us put ALL our faith in - is about to be flushed down the world's proverbial toilet.
U.S. currency was called "unreliable as a reserve currency" by Finance Minister Alexei Kudrin, made a taboo word by the Public Chamber and centrist politicians, and ditched by the general public amid reports of its imminent depreciation.

The U.S. dollar has fallen to its lowest rate against the ruble in a year, 27.2424, with signs that further drops are likely, prompting analysts to propose that the time to save or speculate in rubles has come.

"In the short to mid-term, the choice has to be for the ruble," said Yaroslav Lissovolik, chief economist with investment bank Deutsche UFG.
The greenback can kiss global hegemony goodbye.
Once the bedrock of savings for millions of Russians, the dollar signified stability in contrast with the massive devaluation and concurrent volatility of the ruble that followed the fall of the Soviet Union. Prices, contracts and company investments were often quoted in dollars and, perhaps alongside, in rubles.

In the last four years, however, there has been an "accumulating disappointment" with the dollar in Russia, said Yelena Matrosova, head of the Center for Macroeconomic Research at BDO Unicon consultancy.

Continuing issues over U.S. trade, budget and current account deficits have kept the dollar unstable against other currencies. The ruble has appreciated by more than 13.8 percent in nominal value against the dollar since December 2002, despite efforts by the Central Bank to rein in any changes.

"This was partly why the u.e. came into being," Matrosova said, referring to the "conditional unit," a measure that many companies and retailers use to fix a price to a particular ruble rate.

This month, however, the State Duma is to vote in a first reading to increase fines tenfold to 100,000 rubles ($3,670) for businesses that advertise in dollars, euros or conditional units. The deputy behind the move, Vladislav Reznik, head of the Duma's Credit Organizations and Financial Markets Committee, had earlier said the ruble was stable and strong enough not to require substitutes.
Russia is ACTIVELY distancing itself from the US dollar.
While Reznik's words and recent calls by the Public Chamber to ban state officials from citing figures in dollars or euros have a patriotic slant, they reflect a widespread sentiment as well as market realities, analysts said.

Spurred by the dollar's decline, Russians' trust of foreign currency has weakened over the last few years. The population held $1.8 billion less in foreign cash by the end of 2005 than at the beginning of that year, a 6 percent drop, according to official figures.

The money has been redirected to bank deposits, converted into rubles, spent or invested, the evidence of which can be seen in a revitalized retail banking sector, an ongoing consumer boom and a bullish stock market propped up in no small way by domestic investors.

"What it does say is that people are largely giving up the dollar. It is no longer a safe haven," Matrosova said.
Meanwhile, it's basically the only thing 'of value' Americans have left - our industries have been gutted.
Andrew Howell, Citigroup's chief strategist for emerging markets in Europe, said he saw Russia's newfound faith in the ruble as part of a trend in emerging-market countries that are shedding their dollar crutches on the back of a strengthening local currency.

"It's inevitable that you will see less and less dollar-denominated transactions and more and more ruble-denominated transactions," he said.

At the state level, Russia has signaled it will opt for the euro as an alternative. Oleg Vyugin, the country's securities market regulator, told the Russian Economic Forum in London last month that the Central Bank's move away from the dollar would be "smooth and gradual."
Yeah, for them! Because they have a different currency to rely on!
"Kudrin's words have a global effect on the value of the dollar and on where Russia will invest its reserves," said Yevgeny Nadorshin, chief economist at Trust investment bank.

Russia's foreign currency and gold reserves grew by 46.3 percent in 2005, the fastest of any country. As of April 14, the reserves stood at $212 billion, the world's fifth-largest and close behind those of South Korea.

"Kudrin is the man that decides which currency those reserves are held in," Nadorshin said.

Two hours after Kudrin's remark, the dollar dropped 0.2 percent in value against the ruble, to 27.52 rubles to the dollar. The dollar had fallen only 0.66 percent the previous four weeks.

"What's interesting is that you've never heard of any major Russian authority saying that the dollar has structural problems," Howell said. "Four years ago, that would not have hit the mark, but now it's timely and logical."
That was then. This is now.
For the last 10 years, U.S. budget and trade deficits have created an imbalance that negatively affects the dollar's value worldwide. "A resolution of this means a major adjustment in the interest rates, which means a weakening of the dollar," Howell said.
THAT is for anyone who still thinks that increasing interest rates fights inflation.

INTEREST is by definition inflationary since it derives its value from the dollar to which it attaches.

When the FED increases interest rates, all it does is redistribute wealth - away from borrowers and to moneylenders.
"The world has been too dollarized in the last decade," Deutsche UFG's Lissovolik said, adding that the market's global trend in the short to medium term would be to diversify into the euro and other convertible currencies.

Already, several central banks, including those of Sweden and Venezuela, have outlined a policy to increase the weighting of the euro in their foreign currency reserves at the expense of the dollar. The central banks of Argentina and Russia both signaled a move toward gold to hedge against the dollar's volatility. Gold has been trading at 25-year highs at more than $660 per ounce.

What stops the ruble from gaining full prominence, however, is not the fact that it is not a convertible currency or that it is only now starting to gain the trust of the general public, Lissovolik said. People want to know that the value of their ruble will not significantly depreciate in a year, he said.
It's all about TRUST - something our own government has utterly demolished around the world with over 50 years of FRAUD and GLOBAL IMPERIALISM.

America has only one chance to save itself from the death grip of international bankers - nationalize our monetary system.

Thank borkafatty for the scoop!


At Wednesday, May 03, 2006, Anonymous Anonymous said...

why not get a write in party started ,call it the purple faced party, where red and blue blend together. number 1 priority. enacting rico charges against the bush admin, the fed reserve chair board members, the cfr, the trilateral com.,heritage think tank,pnac members,bilderbergers, military industrial complex board members, halli, carlysle, bechtel, kbr , blackwater , custer &battles,etc........ do you realize that when charged under rico statutes, all assetes can be seized immediately, pre trial. use their offshore accounts to pay for prosecuting these weasels. also another platform would be before repealing patriot act and all other unconstitutional acts, charge all current named above under the patriot act provisions of enemy combatants as well as so we could be at our leisure before releasing the ones deemed not to be , by our special citizens review board.
Here comes the real justice, then market these thugs on ppv tv humiliation series, where lottery tickets are sold daily with the chance to win a trip and humiliate the political enemy combatant of your choice for 15 minutes, we could do this nonstop for 25 years, and make enough to pay for legitimate government health care and education for all as repartation for what they have stolen away from us with their ineptness wreckless treasonous acts. hey if you agree, run with it, paint your faces purple and explain how that with breaking up into groups throughout all voting districts in america , we can coordinate and win with a certified group of candidates that will follow these 2 platforms and do away with beauracracy and insurance and take the funds from the 2 previous methods above to achieve.the purple faces alone needs no further advertisement , other than the people with the painted faces to explain the process. you dont have to be on the ballot if enough write ins are there. and when we all have purple faces on election day, how can diebold and electronic voting machines say anything different. solutions would be simple from there. a simple world can be achieved

At Wednesday, May 03, 2006, Blogger qrswave said...

Anon- That's brilliant - I love it!

I especially like the part about seizing their assets, charging them under the patriot act, and humiliating them on national tv!

One bucket of purple paint coming up!

At Wednesday, May 03, 2006, Blogger Mark Prime (tpm/Confession Zero) said...

Paint me purple! Never thought I's say that...but now that I have I feel better! :>) Nice idea.

Fine post by the way, grsw.

At Wednesday, May 03, 2006, Anonymous Anonymous said...

Actually, the forces that manipulate our money are beyond the scope of the Bush administration. They are internationalists bent on a centralized world power that will rule over individual nation states. They are using the economic forces of money and international corporate monopolies to mold their new world. These corporate structures are so intermeshed with each other through board memberships and stock ownerships that they form a single-mindedness in their worldwide business strategies. Our current money system is not a system of wealth; it is a system of control. We have a system of fiat money that is not backed up by anything of value. So why does it spend just as readily as a gold backed currency? Because fiat money, like all money, no matter whether it is backed by gold or not, represents units of labor. That is the great secret of money. Whenever this fact is pointed out, it is always discredited, as the truth often is. The fact is, when we exchange our labor for money, money assumes the value of that labor making it portable and directly exchangeable for goods. When you control the money, you control the labor, which leads to wage slavery. The only truly free society is a society where the individual owns his own labor. In spite of what the gold supporters say, a fiat money system does work but it must be regulated by labor. Money must be created at the point work is done and spent into the system first by the worker and always at full value. Our current system is perverted because bankers create our money and spend it into the system through debt, giving them all the advantages of the wealth created by our labor and the ability to control it by systematically inflating and deflating the system.
When the typical American considers the great problems our country faces, they are naturally overwhelmed because they know it is too much for simple reform to solve and they are right. There is however, one reform we can make that will save this country. We can demand legitimate money system reform and take the ability to create and distribute money away from the bankers and give it to the laborers. I’m not preaching marxism here. We don’t need class warfare; we just need monetary reform. Something our country has done many times. The U.S. Treasury should print our money and pay the workers directly. Paychecks could be brought to a Post Office or a bank and exchanged for bran new dollars to be spent into the economy. The amount of money in the system would be regulated by the amount of work being done. This would completely cut out the Central Bank. Of course, this is an over simplification in order to make my point clear, but the system need not be so complicated. Our current system is purposely complicated to keep us in the dark about money. Once the power of the Bankers is destroyed and Americans finally have control over their own labor and their own money, the rest of the problems we have with government and business would quickly fall into place. Only then will we know what freedom really is.

At Wednesday, May 03, 2006, Blogger qrswave said...

poetryman, great! That makes two, anon!

btw, the name's "Q" -rswave not "G".

Don't feel bad, though, so many people confuse it for a G. I guess it's the typeface...:)

"qrswave" is the EKG representation of the ventricular heartbeat (in case you're interested).




Hey, where are you from??? Send me email. We gotta chat!

At Wednesday, May 03, 2006, Blogger Bill said...

count me in there m8ty's

great posts!

At Thursday, May 04, 2006, Anonymous Anonymous said...

Just a hunch, but all the perfidy coming out of the White House will likely make sense in about ten years time (probably less), not unlike Jesus' parable about the crafty steward. Their lunacy could only be aligned with reason if they knew a lot about something we didn't. I mean, even the armed forces are for sale at the expense of American cities.

At Thursday, May 04, 2006, Anonymous Anonymous said...

It is said that President Kennedy was assasinated because he wanted to take back control of money away from the conveniently called called "Federal Reserve" (which is owned by private banks and individuals who have nothing to do with the Govt). I guess they felt threatened because it is so easy simply printing money basically for free, then lending it to the Federal Govt at interest!


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