B.R.I.C.; Getting Rid of the American Dollar

[DetroitDad]

http://www.commondreams.org/view/2009/06/15-0

There are meetings being held Monday and Tuesday in Yekaterinburg, Russia, [[formerly Sverdlovsk) among Chinese President Hu Jintao, Russian President Dmitry Medvedev and other top officials of the six-nation Shanghai Cooperation Organization. The United States, which asked to attend, was denied admittance. Watch what happens there carefully. The gathering is, in the words of economist Michael Hudson, “the most important meeting of the 21st century so far.”

It is the first formal step by our major trading partners to replace the dollar as the world’s reserve currency.

[DetroitDad]

http://www.financialsense.com/stormw.../analysis.html

I recommend reading this one, but here are a few excerpts to summarize.

BRIC stands for Brazil, Russia, India and China. Combining these four countries into a new economic powerhouse was the brainchild of a KGB general. In such waters, cold and forbidding, one finds ice in abundance. “We the leaders of the Federative Republic of Brazil, the Russian Federation, the Republic of India and the People’s Republic of China,� etc. What does it mean? The joint statement says: “The emerging and developing economies must have a greater voice and representation in international financial institutions….� Note the sharp edge of the iceberg itself: “We also believe that there is a strong need for a stable, predictable and more diversified international system.� [[Dominated by Russia and China.) “The poorest countries have been hit hardest by the financial crisis. The international community needs to step up efforts to provide liquid financial resources for these countries.� [[Read “bailout.�) The BRIC statement also proposes to deal with “climate change based on the principle of common differentiated responsibility….� [[Read “the Americans pay� to lower global temperatures.) “We underscore our support for a more democratic and just multi-polar world order … and collective decision-making for all states.� [[Read, “We support socialism and an international redistribution of wealth, and taking America down a peg or two.�)

That others are promoting conditions leading to your demise should be understood; that language itself is a tool in the promotion of life or death, should also be understood. But we understand next to nothing. We are too busy with things that do not matter. Meanwhile, we ignore something of great importance. We ignore something that is a matter of life and death.

[ccbatson]

One of the possible "solutions" to spending the US into oblivion...a way of disguising the inflation that is on its' way.

[Bobl]

From the commondreams source sited above:

"...The architects of this new global exchange realize that if they break the dollar they also break America’s military domination. Our military spending cannot be sustained without this cycle of heavy borrowing. The official U.S. defense budget for fiscal year 2008 is $623 billion, before we add on things like nuclear research. The next closest national military budget is China’s, at $65 billion, according to the Central Intelligence Agency..."

Sounds like the U.S. strategy for breaking the Soviet bank two decades ago...

[Bigb23]

These are dire times for America, thank you, DICK Cheney.

[Bigb23]

I'm sorry for the redacted site, but check this out for more info.

http://whitehouse.georgewbush.org/ad...ation/dick.asp

[ccbatson]

Dick Cheney? Someone has been brainwashed by the real culprits [[radical liberals). Notice who is pushing the outrageous spending and suggesting radical actions to monetize the debt. Quick hint, it isn't a retired Vice President.

[Lorax]

Thank you rethugnican wackos for bringing us this vision of our doomed future, closing before us like a fist.

Should this forecast become true we have alot more to worry about than a devalued dollar.

I have been discussing the possiblity of foreign nations, especially China trading in Euros or some other internationally created currency for years.

Trading oil, specifically, in something other than dollars would bring the whole house crashing down.

Obama should have let the banks collapse, and nationalize them entirely, freeing us of the fraudulent debt creating machines of private banking once and for all.

But, in the end, this will be seen as a great mistake- it's still going to come crashing down, it's just a matter of when.

[oladub]

In a country where saving face is important, our Treasury Secretary is openly laughed at by students.

"Chinese assets are very safe," Geithner said in response to a question after a speech at Peking University.
His answer drew loud laughter from his student audience, reflecting scepticism in China about the wisdom of a developing country accumulating a vast stockpile of foreign reserves instead of spending the money to raise living standards at home." -Reuters, June 1, 2009

With fewer buyers for more trasury bonds, maybe we should reach out and accept Zimbabwian currency in exchange for our bonds.

[Bobl]

Lorax:
You are correct. In fact, your quote:

"...Trading oil, specifically, in something other than dollars would bring the whole house crashing down..."

explains the real reason for the Iraq wars.

[Lorax]

Lorax:
You are correct. In fact, your quote:

"...Trading oil, specifically, in something other than dollars would bring the whole house crashing down..."

explains the real reason for the Iraq wars.

Thank you for recongizing it. Few people do.

We need to get down to fixing the fundamental problems with our financial system, and our trade imbalance.

We need to return to a tarrif based economy, we need to force oil companies to keep the oil and natural gas found on on our land and off shore in America, for Americans, and not offer it on the open market, which is exactly what would happen if the Rethugnicans had their way with "drill baby, drill". They're our natural resources, owned by the American people, and need to be kept here.

Government under Rethugnicans has been offering America for sale to the highest bidder for thirty years now. We need to stop this damaging practice, and get back to a nationalistic perspective on what America means to each of us individually, and all of us collectively.

I was hoping Obama would institute a WPA21 plan to put Americans back to work.

Investing in our own nation first will give a whole generation a better appreciation of what it means to be an American, and through the arts, engineering, civil service, architecture, preservation, conservation, and new energy development, we would stand a chance against the Chinese, Indians, Russians, in leading the development of new technologies to power our future.

Roosevelt had the right ideas, for his times, and they would, with few adaptations work for our current dilemma. The WPA, the CCC, and other organizations would train another generation to lead us out of the socially backward thinking that got us to where we are now.

[ccbatson]

Lorax, you are blaming conservative commentators for the crisis unfolding? Would you blame George Blaha [[no idea how to spell his last name) for the Piston's losing?

[Lorax]

What commentators?

I don't recall mentioning any commentators.

[ccbatson]

Oops, one post number up for you Lorax...#8.

[Lorax]

I wasn't referring to the writer of the article, but to the rethugnicans who brought us this current debacle.

This is where the blame lies.

[Detroitej72]

I wasn't referring to the writer of the article, but to the rethugnicans who brought us this current debacle.

This is where the blame lies.

That and the failed notion of "free trade" while the U.S. continues to be treated as an unequal with our trade partners.

I for one think we need to scrap all the trade agreements and go back to tariffs and protectionism, such as the kind promoted by Pat Buchanan.

[ccbatson]

Liberals really need to be deprogrammed and look at both history and basic economic principles. Why? To believe the pabulum spewed by radical socialists like Obama that the free market has failed [[when it has never been given a chance and while the true root of the crisis is socialist economic policies) knowing further that socialism has historically been a progressive and miserable failure over time in every instance of its' use....this mindset is beyond ignorant, more like cult like brainwashing.

[Bobl]

China says dollar to remain leading world currency

[oladub]

This is from Democrart James Howard Kunstler's June 22 column. The entire column is this well written. Pretty good comments too.

"the nation is lumbering toward an epochal moment of truth when the non-viability of how we get by day-to-day is exposed for all to see, including those other nations who have been lending us colossal sums of their hard-earned money to keep our operations afloat. This will be the moment when the US renounces its debt -- or just proves unable to continue pretending to service it. This moment is liable to come sometime after the middle of this summer. It will be the moment when all the green shoots babytalk stops and the scope of onrushing hardship becomes self-evident. It will be the moment when all of America finds itself in something like the aftermath of Hurricane Katrina, when the federal government proves comically impotent and the cold reality hits that we're now all on our own."

http://kunstler.com/blog/2009/06/a-s...tail.html#more

[mjs]

Oladub, this was the story you were referring to. Correct? http://www.reuters.com/article/compa...BrandChannel=0

In his speech, Geithner renewed pledges that the Obama administration would cut its huge fiscal deficits and promised "very disciplined" future spending, possibly including reintroduction of pay-as-you-go budget rules instead of nonstop borrowing.

Boy, do I ever hate this man. Always saying the sky isn't blue to maintain whatever special goal he has. Can't Obama see that now that we've satisifed the will of every one of Geithner's corporate welfare golf buddies, perhaps we should start listening to the smaller banks that did perfectly fine without government handouts? I don't think the little rich boy has ever had any in depth conversations with anyone that didn't get their job by tapping into their trust fund.

[ccbatson]

Kunstler WAS a Democrat? He can't still be one given his epiphany regarding the disaster of Democrat policies that he describes.

[oladub]

mjs, Agreed. I believe that was the same Reuters article. The Chinese are sensitive to loss of face. When Chinese students laughed at Geithner, they showed their contempt for President Obama's fiscal policy. It was sort of a dead canary in a coal mine sort of moment letting us know what we can expect from China. It didn't help that Geithner stumbled onto the national stage just when he was having tax problems.

bats, I've followed Kunstler for awhile. He is often disappointed with Democrats but considers Republicans to be hopeless.

[ccbatson]

I bet he is changing his tune in light of Obama. The only piece needed is for Republicans to become true conservatives and abandon big government spending tendencies.