Gold and Silver Prices Signal the Destruction of the Dollar

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[ame=http://www.youtube.com/watch?v=doSpeRyBHw8]YouTube - Gold and Silver Prices Signal the Destruction of the Dollar[/ame]

Gold and Silver are just getting started. I argue that the USD Index is worthless as central banks worldwide devalue fiat currencies. This is a coordinated effort to destroy the US middle class.

 

[waltky]

Granny says dat's a fine howdy-do after savin' their butts with the Marshall Plan...

IMF calls for dollar alternative
February 10, 2011 -- The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world's reserve currency. The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.

SDRs represent potential claims on the currencies of IMF members. They were created by the IMF in 1969 and can be converted into whatever currency a borrower requires at exchange rates based on a weighted basket of international currencies. The IMF typically lends countries funds denominated in SDRs While they are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar.

Dominique Strauss-Kahn, managing director of the IMF, acknowledged there are some "technical hurdles" involved with SDRs, but he believes they could help correct global imbalances and shore up the global financial system. "Over time, there may also be a role for the SDR to contribute to a more stable international monetary system," he said. The goal is to have a reserve asset for central banks that better reflects the global economy since the dollar is vulnerable to swings in the domestic economy and changes in U.S. policy.

In addition to serving as a reserve currency, the IMF also proposed creating SDR-denominated bonds, which could reduce central banks' dependence on U.S. Treasuries. The Fund also suggested that certain assets, such as oil and gold, which are traded in U.S. dollars, could be priced using SDRs. Oil prices usually go up when the dollar depreciates. Supporters say using SDRs to price oil on the global market could help prevent spikes in energy prices that often occur when the dollar weakens significantly.

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IMF Chief: Status Quo Could Sow Seeds of Next Crisis
February 10, 2011 - The head of the International Monetary Fund warns that another financial crisis could arise if the international monetary system is not reformed.

IMF chief Dominique Strauss-Kahn said that even though the global recovery is underway, the international monetary system still needs to be reformed. "Global imbalances are back. Large and volatile capital flows, exchange rate pressures, rapidly growing excess reserves - all this is on the front burner once again. And, I do believe that left unresolved, these problems could even sow the seeds for the next crisis," said Strauss-Kahn.

Panelists, including Fred Bergsten, the director of the Peterson Institute for International Economics, discussed a movement toward developing regional entities that could work with the IMF to prevent future crises. "I think it's fair to say that Europe's response to its current crisis will lead to the creation of a European Monetary Fund. It probably won't use those words to describe it, but if it walks like a dog, you know, call it a dog," said Bergsten.

Bergsten said the IMF's cooperation with Europe has been exemplary. And he added that Asia also is moving toward something akin to an Asian Monetary Fund, but at a slower pace. Strauss-Kahn acknowledged that there has been "fair criticism" that the IMF failed to provide an early warning for the global financial crisis. In response, he said, the body has strengthened its surveillance system.

But he also defended the IMF, saying that when it does raise concerns, governments do not want to hear them because governments tend to think in the short term. "In most cases, what we say is 'we see problems down the road,' but what is 'down the road' for the IMF is a century away on the political timeline," said Strauss-Kahn.

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[waltky]

Uncle Ferd say he gonna build Granny a apple cart so she can sell apples to help pay for gas for his truck...

Soaring Oil Prices Could Stun World Economic Growth
March 16, 2011 - The sharp rise in oil prices as a result of political turmoil in North Africa and the Middle East could deal a major blow to global economic growth over the next two years. Developing nations could be hit the hardest.

The increase comes as countries are still recovering from a global recession. Britain’s Overseas Development Institute [ODI] says there could be an overall one percent decline in GDP, or Gross Domestic Product, which is the value of goods and services produced within a country. Some African countries could see a much bigger decline, possibly three to four percent.

An overall one percent decline translates into a loss of about $500 billion from the global economy. The overall sub-Saharan economy could lose $8 billion.

Dirk Willem te Velde, ODI’s head of program at the economic development group, says, “The oil price at the moment is about 40 percent higher than it was on average last year. So an increase in the price of oil by 40 percent will have quite some implications for the world economy and also developing countries and in particular oil importing countries.”

Some benefit, but many don’t