The dollar may fall? again?

[Logan]

I received this from Sherry Jackson and wanted to share.

The dollar may fall this March

01/14/2006 16:41America's foreign debt currently standing at $8,184 trillion will hit the debt ceiling as early as February-March 2006
The United States is heading to financial crisis at top speed. That is correct, America will default on its foreign debt sooner or later if the actual trends remain unchanged. Consequently, the whole dollar-based world (including savings in U.S. currency) may crumble. In actuality, the public have grown tired of numerous forecasts regarding an imminent collapse of the U.S. economy. The picture looks pretty grim this time around. Several factors will have an extremely detrimental effect on the dollar, according to U.S. Secretary of the Treasury John Snow who forwarded a letter full of ominous predictions to 21 members of U.S. Congress. The letter was made public after the markets had been closed for Christmas and New Year's holidays - a rather appropriate precautionary move in terms of the international foreign exchange market, which is extremely sensitive to any sound produced by U.S. bureaucrats.
In his letter, Snow predicts a crisis in February this year. Citing U.S. government forecasts, Snow believes that America's foreign debt currently standing at $8,184 trillion will hit the debt ceiling as early as February-March 2006. For decades the White House has been borrowing money to cover expenditures that exceeded the real economic growth rates. As a result, the U.S. public debt currently totals to $8.1 trillion, a huge figure compared to the U.S. GDP that is slightly above $11 trillion.
U.S. Congress sets a debt ceiling which U.S. government must not exceed in borrowing. Exceeding the ceiling brings about the so-called technical default i.e. U.S. fails to pay its foreign debt in full at the right time. However, the government has been continuously raising the foreign debt limits over the last 50 years.
The United States has been on the verge of default for several times in the past. The recent pre-crisis situations occurred in 2002 and 2003. In the former case (the war in Afghanistan started in 2002), the then Secretary of the Treasury Paul O'Neil demanded to increase the limits a mere 10 days before the estimated expiry of foreign debt ceiling (about $6 trillion at the time). President George W. Bush had to step in to resolve the situation. The new Secretary of the Treasury John Snow raised the issue again in 2003, the year of U.S.-led invasion to Iraq.
The situation looks the same these days. An additional minimum amount of $171 billion in foreign loans over the limit is required to satisfy the needs of the U.S. economy (though growth rates are far from being spectacular), otherwise the U.S. will face the first foreign debt default in its history.
"We will run out of funds for financing the government operations by mid-March at the latest even if the U.S. Department of the Treasury takes all possible legal measures to keep the foreign debt ceiling from going up," says Snow. Under his scenario, the government will have to take "emergency measures" to pay the bills. The measures mostly boil down to cutting the spending in all areas from social sector to national security.
We should not forget that the United States is normally reluctant when it comes to taking steps that could lack popularity with the public and power bloc. By and large, the United States is not good at fighting its ever-growing appetites that result in technical default. The default will lead to a sharp drop of the dollar with respect to all world currencies on the international foreign exchange market. The dollar reserves and debt securities of all countries will depreciate. Time will show how bad things can get under the circumstances. The upcoming default will undoubtedly have an impact on the world economy.
Still, it is difficult to say how much damage the default will cause to the United States. Meanwhile, experts point out that America is definitely getting ready for default.
The thing is, a number of events are due take place in March. The events look very alarming to the world of the dollar.
First, Iran is to officially switch into the euro in its foreign trade operations including oil exports. Second, China is hinting at a potential increase of the euro share in its Central Bank basket of currencies. The dollar share currently holds 70% of the basket. The dollar will be severely affected should the two countries, an oil and gas producer and a manufacturer, take action in a simultaneous manner.
Besides, the U.S. Federal Reserve is going to stop publishing the so-called "M 3 aggregate" reports i.e. data on increase rates in money supply. Given the New Year's predictions by John Snow, the Fed's intentions look pretty suspicious. In other words, the international community will have no tool for measuring a real value of the dollar. Russia has no reason to panic over the coming changes since it keeps its M 3 aggregate data in the dark too.
The Fed is going to pull the plug on the data in March this year. Several events should occur in different countries more or less at the same time and thus damage credibility of the U.S. securities. Risk-averse investors get rid of speculative securities e.g. the dollar securities under the circumstances.
All in all, the situation is quite alarming though it looks like a play being staged on purpose. The currency market and the U.S. foreign policy are hard to foretell. It would be inappropriate to jump to conclusions.

Discuss this article on Pravda.Ru English Forum

Read the original in Russian: http://pravda.ru/economics/finance/e...73337-dollar-0 (Translated by: Guerman Grachev)

Pravda.Ru

[Admin]

I took this photo in Paris a couple of years ago and thought it would be an appropriate response to this article.

[Ice]

As always, I hold the opinion that silver and gold should be sought out. If you can make it yours... do it!

Ice

I concur with the above statement Ice.. however, the only way to make that Gold or Silver "yours" is to find your own in raw form, secret it away and let no-one have knowledge of it until it is needed.

If you purchase the Gold or Silver with FRN's, it has a lien on it from the Federal Reserve.. and when the lien-holder comes looking, they can rightfully take it from you.

http://www.treasury.gov/education/fa...l-tender.shtml
FAQ #2 answer from the United States Treasury
Federal Reserve notes represent a first lien on all the assets of the Federal Reserve Banks, and on the collateral specifically held against them.
The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy.

Thus... all that has been purchased with FRN's does not belong to you until such time as you have paid for it with -- guess what-- gold and or silver.

Jerry

[idknow]

Originally Posted by jerrypitts

I concur with the above statement Ice.. however, the only way to make that Gold or Silver "yours" is to find your own in raw form, secret it away and let no-one have knowledge of it until it is needed.

If you purchase the Gold or Silver with FRN's, it has a lien on it from the Federal Reserve.. and when the lien-holder comes looking, they can rightfully take it from you.

http://www.treasury.gov/education/fa...l-tender.shtml
FAQ #2 answer from the United States Treasury
Federal Reserve notes represent a first lien on all the assets of the Federal Reserve Banks, and on the collateral specifically held against them.
The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy.

Thus... all that has been purchased with FRN's does not belong to you until such time as you have paid for it with -- guess what-- gold and or silver.

Jerry

and the economy is our blood, sweat, tears and hard-labor;
so, it's us who are leveraged.

Please explain your application of the word leveraged. Is that leverage working for us or against us. If it were working for us, then it would seem that the National Debt would be zero, while the other countries of the world were indebted to us, instead of the Federal Reserve holding a lein against all the property within this Country.

Jerry

[Ice]

Labor IS property and that property is purchased with... guess what?

[idknow]

Originally Posted by jerrypitts

Please explain your application of the word leveraged. Is that leverage working for us or against us. If it were working for us, then it would seem that the National Debt would be zero, while the other countries of the world were indebted to us, instead of the Federal Reserve holding a lein against all the property within this Country.

Jerry

Jerry, I almost missed that the question above was to me; you didnt quote.

As for my use of "leveraged" if i've misused the word i apologise.

Allow me to attempt to explain.

I note that in a following post, our labor is our property. Elsewhere
on the Forum, I saw mention of the truth that where fiat "money" is used
there is NO exchange of labor-property for valuable consideration;

elsewhere in another post, someone wrote that "slaves" dont recieve payment
in exchange for labor provided, and since there is no value in either our
coin nor paper-bills and that's what we recieve in exchange for our
labor-property, then we are being robbed of our property.

@dictionary.com, here are several excerpts:

Leverage, n.:
2. Positional advantage; power to act effectively: ``started his...
career with far more social advantage than his father had enjoyed.''
3. the use of credit or borrowed funds to improve one's speculative capacity
and increase the rate of return of investment, as in, buying securities on margin.

as transitive v.:
1b. to supplement (money, for example) with leverage.

from another source:

2. the amount of debt used to finance a firm's assests. A firm with
significantly more debt than equity is considered to be highly leveraged.

N. B., I say that ALL monetary measures of a company's financial health are debt.
Since we all know that there is no money-with-value, then there cannot be
a measure of positive health in any company that measures itself with FRN's!

[continuing]


from another source:

2. the amount of debt used to finance a firm's assests. A firm with
significantly more debt than equity is considered to be highly leveraged.

N. B., I say that ALL monetary measures of a company's financial health are debt.
Since we all know that there is no money-with-value, then there cannot be
a measure of positive health in any company that measures itself with FRN's!

[continuing]

So, given that "leverage" describes the degree or amount of
debt that one (individual people or company) has taken upon one's self,
it seems to me that "leverage," being an obfuscating synonym for debt,
is contrary to scripture, and thus to be eshewed.

We ARE leveraged to the hilt and the only way to arrive at jubilee is
to first turn to our heavenly father for our liberty IN christ and (IMO)
second, to learn as we do here on the Forum!

what say you, Jerry?

Great Question!

[Mark]

Originally Posted by jerrypitts

I concur with the above statement Ice.. however, the only way to make that Gold or Silver "yours" is to find your own in raw form, secret it away and let no-one have knowledge of it until it is needed.

If you purchase the Gold or Silver with FRN's, it has a lien on it from the Federal Reserve.. and when the lien-holder comes looking, they can rightfully take it from you.

http://www.treasury.gov/education/fa...l-tender.shtml
FAQ #2 answer from the United States Treasury
Federal Reserve notes represent a first lien on all the assets of the Federal Reserve Banks, and on the collateral specifically held against them.
The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy.

Pease,
Mark

Thus... all that has been purchased with FRN's does not belong to you until such time as you have paid for it with -- guess what-- gold and or silver.

Jerry

Not sure about the truth of the matter, but John Quade (formally with the Jural Society of California with Randy Lee and the bunch) in an interview on L.I.F.E. radio Las Vegas (1971), stated that the IRS could not confiscated pre-1964 silver currency. And in fact, that if you where raided by the IRS and had $10,000 worth of pre-1964 silver currency sitting on the kitchen table; they couldn’t touch it, but take everything else. If that is in fact the truth, and still the case, might be worth looking into.
I still have that interview on CD if anyone would be interested. Would be a large file, but if permitted, I could upload it to this site.

By and through the explanation you have offered, I have to admit that we are "leveraged". Leveraged to the point of involuntary servitude.

As a furtherance to the same topic, but yet not the same topic, I ran across this article today:

http://home.austin.rr.com/fema/articles/bonfire.htm

It clearly shows, that despite what what Mark would say or quote from others, the executive orders that are in place, opens the door for any and all personal possessions to be confiscated. These same executive orders if implemented would also allow government agents to force your family to be divided and shipped off to different locations,,, much the same as in Nazi Germany.

I was in prison when EO 12919 was initiated, and remember reading about it in Mother Earth News.. then a magazine of what I thought to be the hippy culture, turns out that they were right on the mark... this country has gone to crap.

Jerry.