Thread: The American Dollar

Hi

What do you all think of this report?
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LINDSEY WILLIAMS NEWSLETTER MARCH 2007 The Condition of the Dollar By Lindsey Williams There is so much to touch on regarding the dollar this month, I hardly know where to start. Regardless of where I begin, the news is not good and affects all of us.

First on our list is China. They have now announced that they are refusing to accept American Corporations purchasing into their stock market any longer as they did in the past. China also said that they are no longer going to be purchasing our securities as they have in the past, including bonds and T-bills. China's decisions and subsequent announcements at the beginning of the week has sent a panic across the World's markets.

Additionally, OPEC met recently and they have also stated they will be diversifying into other currencies instead of just the American dollar. They will now begin accepting other currencies and limit the trade of oil via the American dollar.

March 21st 2007 will be one of the most significant dates this month. Iran has outlawed the American dollar and will put anyone in jail that uses it in their country after that date. They have the ominous notoriety of being the first nation in the world to do such a thing. The real issue in Iran is NOT nuclear, but rather the decision to not use the American dollar for trade and the sale of oil. On the heels of Iran's decision, North Korea has followed suit and also outlawed the use of the American dollar in their country. Finally, Malaysia the next day did the same thing.

Central banks around the world are increasingly diversifying their reserves, including cutting holdings of American dollars, according to a survey sponsored by Royal Bank of Scotland Group PLC, the U.K.'s second-largest bank. Italy, Russia, Sweden and Switzerland have made "major adjustments" in foreign-exchange holdings favoring the Euro and the British pound, according to the poll conducted by Central Banking Publications Ltd. between September and December. "Central banks are open to saying they've been diversifying to improve returns and reduce exposure to any single currency," said Sean Callow, senior currency strategist at Westpac Banking Corp. in Singapore. There's no doubt that when they say 'diversification' they mean selling dollars.

paddy

I think if this is in fact the case, then the US should try to keep it as big of a secret as Iraq is keeping the RV. This kind of reporting will make Americans do crazy things with their money that could assist in driving down the value of the USD.

JMO

ok i admit it does not look good for the us dollar but my question is if these countries can refuse the us dollar then why can't say ok we refuse any of yours what happens then?

Back to BARTER then???

For the time being, economic strength grows and improves NOT just by one's economic resource and supply or development, but all those mentioned are indeed subject for the global trade which in turn recognises the worth of the said country's currency meeting up those criteria.

Can one safely, comfortably say: here's 100 bucks, hand over that barrel worth of oil!

Why it won't work? Oh... you thought that $100 was a good deal huh?

On the current market, when it trails around $70 a barrel, there is actually 150 bucks hovering above that to make it be rated at $70 by the time it gets to the ports!!!

$100 is being too generous and so, cutting off the dollar will not mean you can survive "as of from then" without the US dollar in place or being kicked out of the equation ....not just yet for as good as another 35 years... so place your bets...in Dinars, Dongs or Iranian currency perhaps???

The US in deficit is what makes the BUCK spin in confidence and allows global trade to flourish...that is what most countries are in favour of and so does the thinktanks in America!!!


YB. -