The economy is under attack!

Discussion in 'Economy' started by Moneytalks, Nov 27, 2004.

  1. Moneytalks
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    Moneytalks Rookie

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    For some reason nobody seems to have realised that America is under a
    greater threat than that from terrorism. By not opening our eyes to
    the tough issues soon enough, or in the ignorance we are kept in by
    our liberal-agenda media we have missed the greatest threat to our
    wellbeing in three generations. Let me explain - it is vital we face
    up to this NOW:

    The dollar has been the principal global reserve currency since the
    early 1970s when the value of America stopped being expressed in how
    much gold there was to back up the currency. Kissinger negotiated a
    highly beneficial treaty with the Saudis so that all OPEC oil was
    traded in dollars alone. No economy can grow or thrive without oil,
    and for this reason all nations in the world have to keep a supply of
    dollars with which to trade and succeed.
    The benefit to America is that all imports can be paid for in dollars
    without exchange rate risk. What is more, dollars can be printed so
    long as oil can be produced - even if it is by Iran - and this wealth
    will flow back to America ;) So long as the dollar is the reserve
    currency of choice - as is principally maintained by the 1973 OPEC
    rule - then the economy of the United States is safe and the budget
    deficit can be propped up. Now get this...
    In 1998 the Euro was launched and began trading in the global
    currency markets. By 2000 is had become strong against the dollar,
    and the French (oh yes, the French) and some other European states
    convinced Saddam Hussein that he could get more money in the
    oil-for-food program by breaking the OPEC rule and trading his oil
    for Euros - which he did. It wasnt long before Libya, Iran, Venezuela
    and other big oil producers began to talk about doing the same. The
    Russians too have now shown an interest in trading Euros, and their
    biggest OPEC ally is Venezuela under Chavez. Just before we went to
    war on Iraq again, the Iranians (the world's third biggest oil
    producers) established 50% of their oil trade in Euros instead of
    Dollars. Even Saudis are reconsidering the wisdom of staying by the
    dollar 100% for oil, simply because it is so weak on the global
    markets and oil prices are higher in real terms than ever before.

    The status of the dollar as a global reserve currency has in the
    space of a few years been seriously undermined, and the situation is
    getting worse. Iraq may be back on dollars now they are under
    control, but the Euro is getting stronger and the dollar weaker and
    other nations are dropping their dollar stocks based on simple free
    market economic interests. China - the world's fastest growing
    economy - has cut its stock to - I believe - a mere $50 billion ('not much').
    If oil prices stay high and the dollar stays as weak as it is,
    oil-reliant and recession-hit large economies such as Japan may also
    have to start ditching their bucks and dollar-denominated stocks to
    buy into the euro.

    What we risk having is not just a dollar recession, but a potential
    collapse of the economy worse than was seen in the dust-bowl years of
    the 1920s. And it is all about external market forces responding to
    the overseas foreign policy (war and instability).

    Surely this threat to the dollar alone justified the Iraq war? Why
    didnt the allied governments come clean about it instead of
    manufacturing stories about 'fighting for democracy' and 'terrorism'?
    Our global image is now at its lowest ever - and unlikely to get any
    better in the next 4-5 years.

    I advise any investors to look at gold and the gold futures markets,
    or shares in gold related blue chips. Or possibly Euros if you want
    to destroy your own country's economy for a quick buck.
     
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  2. eric
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    eric Guest

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    While I agree with much of your post, I just don't see it happening.
     
  3. freeandfun1
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    freeandfun1 VIP Member

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    you're preaching to the choir as far as I am concerned...... I have been stating the same for quite some time now.....
     
  4. hylandrdet
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    hylandrdet Member

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    No kidding Sherlock!

    The European Union's primary purpose was to damage the value of our dollar through a massive economic merger!

    Bin Laden's motive, behind the attack on the WTC, was to try damage our dollar in destroying the world's most powerful trade center!

    The war on terrorism is taking the attention away from our economy.

    Pay attention to detail before you vote next time!
     
  5. freeandfun1
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    freeandfun1 VIP Member

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    The WoT is just part of everything. Bush had done a pretty good job of turning our economy around - all things considered.

    Contrary to your popular belief, many of us did consider both the WoT and the economy and that is WHY we voted for Bush. doh!
     

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