Structural Changes–Destruction Of The U.S. Dollar

[savvy]

By David J. Jonsson

Uniting of Islamic Interests for Economic Gain

In an article—Arab Boycott Campaign Worries US Business, appearing on the Palestine Solidarity Campaign website there are quotations of particular interest given below. The quotations are from billionaire Saudi businessman HRH Prince Alwaleed bin Talal. Prince Alwaleed is a major investor in Citigroup, TimeWarner, News Corp. etc. Prince Alwaleed is the Chairman of the Kingdom Holding Company headquartered in Saudi Arabia. At the inauguration of his new Four Seasons hotel in Damascus on March 24, 2006 he is seen on the right side of the Syrian President Bashar al-Assad. According to Bryan Whitman a senior Defense Department spokesman, "there's no doubt" that Iraq has experienced problems along its western border with Syria, where terrorist crossings into Iraq have been alleged to occur.

Next month when the State Department publishes its annual Patterns of Global Terrorism report, Libya will remain on the list, Henry Crumpton, the U.S. State Department's coordinator for counterterrorism, told Reuters while in Colombia for a regional security conference.

Crumpton said Sudan—which is also on the list along with Cuba, Syria, North Korea and Iran -- will not make it off this year either, despite some advances in counterterrorism cooperation. He said no new state sponsors would be added. Reuters also reported that “Earlier on Friday Libyan leader Muammar Gaddafi gave a lecture on democracy via video link to an unprecedented gathering of U.S. and Libyan academics in New York, and touted Libya's political system as superior to "farcical" and "fake" parliamentary and representative democracies in the West.”


As a run up to the launch of the IPO for 30% of Kingdom Holdings on the Saudi Bourse, Kingdom Holdings placed a full page color ad in the London Financial Times showing their major investments including their headquarters building in Riyadh, Citigroup, News Corp and Four Seasons Hotels in the United States. Prince Alwaleed said he was going ahead with the decision despite the collapse in Gulf stock markets in recent weeks.

HRH Prince Alwaleed bin Talal on Economic Impact
Quoting from Prince Alwaleed in the article: Arab countries can influence U.S. decision-making "If they unite through economic interests, not political," he stressed. "We have to be logical and understand that the US administration is subject to U.S. public opinion," he said.

"We (Arabs) are not so active in this sphere (public opinion).”

“And to bring the decision-maker on your side, you not only have to be active inside the U.S. Congress or the administration but also inside U.S. society."

There is no subtler, surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose. –John Maynard Keynes

Structural Changes

The destruction of the Dollar is a complex issue. In most cases, the proponents of the destruction fall into the camps of marketers of gold and followers of Peak oil theories. In most instances the case is based on looking at one particular event and not connecting the dots among multiple simultaneous events. Any one event would not make the sky fall. I like many others discounted the theory on that basis. Unfortunately, the perfect storm of destruction the Dollar are also occurring at a time and contributing to the Perfect Storm which is ushering in the New World Order—the post post Cold War Era.

The goal of the Leftist/Marxist – Islamist Alliance is also to create a new world order. This alliance or Cabal realizes that that they may not have the military might against the greatest military power and hence plan to use economic, energy, transportation infrastructure and political action to achieve their goals. Therefore a critical element of the plan is replacing the Dollar as the world’s reserve currency. The Cabal brings together the members of Shanghai Cooperation Organization (SCO), the Organization of Islamic Conference (OIC) and its related organization the Islamic Development Bank (IDB), and Mercosur as well as other lesser participants.

The structural changes that are occurring include numerous trade agreements between members of Cabal that trade in a currency of their choice. The goal of these agreements is to develop large markets, which will ultimately equal or exceed the U.S. market thus allowing countries such as China to reduce their holding of U.S. treasuries. In many cases the market development also included arms traf in exchange for long-term government–to-government energy supply deals. The ultimate goal is to create the bipolar New World Order.

In a meeting at the Arab Brazilian Chamber of Commerce Jordanian Prince El Hassan Bin Talal—a Muslim and president of the Club of Rome and former Brazilian president Fernando Henrique Cardoso and with the mayor of São Paulo, José Serra on March 21, 2006, he stated that Latin America plays an important part in the strengthening of South-South cooperation. "Latin America plays an important part in bringing new dynamics to South-South dialogue. Talal believes that the countries of the so-called BRIC (Brazil, Russia, India and China) have conditions to articulate themselves to develop policies aimed at multilateralism and to influence the reform of the United Nations (UN). "The Prince was very impressed with the possibility of dialogue not only between Brazil and the Arab countries” “It is essential to fight for something,” he said, referring to a New World Order based on humanitarianism and peace.

[AppleEater]

You want to see real war? Just wait till the Chinese stop floating their currency.

[Mediocrates]

With 75% of their loans being quietly classified as 'nonperforming', you bet. The true value of that problem will destroy the Chinese economic miracle. Already the capital flight out of China is getting scary; estimated to be at a run rate of several hundred billion dollars a year.

[AppleEater]

With 75% of their loans being quietly classified as 'nonperforming', you bet. The true value of that problem will destroy the Chinese economic miracle. Already the capital flight out of China is getting scary; estimated to be at a run rate of several hundred billion dollars a year.


That's just a sign that war is on the rise. Look for China to float its currency in the next 5-10 years and watch the US dollar plummet. The Chinese gov't has been meticulously holding their currency fixed so that it doesn't explode in value. There is a ton of pressure for it to go upwards as we speak, and the US has put enormous pressure on China to float it -- so that inflation will take its toll in China, but the Chinese want to hold it down while they wait for the appropriate time for war. Once their logisitcal positions are stable, and the cause solidified, they will float the currency in the FX market and declare war on the States. The US dollar will become worthless overnight (they have no assets to cover its value -- even now), and America will be unable to acquire armaments and materials for its war machine. Israel will be on its own at that point.

Remember, in 10-15 years, when you're hiding in a basement shelter as the Chinese drop bombs from overhead, you heard it here first.

[Alfred E Neuman]

There is an 19th Century Mormon prophecy that says something to the effect of:

In the last days, if the American government is not cautious, the heathen Chinese will invade our northwest.

[Marjeyoun]

The Chinese`are corrupt but act in their countries interest at least. Like on cohesive corporation or family. Orchestrating their currency and economy with a theme of maximium benefit.
The US government can be bought for a few shekels and give away a million jobs for a few million well placed dollars.

The Chinese have to win.
For example, 90% of the Windows software used in China is pirated and the US wont do squat. It would be one of North America's biggest and most profitable exports-- movies too.

[ben Shimshon]

I have always believed that the Japanese lost the war in the Pacific in 1945 and have ever since waged an economic war against the USA. The Chinese have learned that an economic war will achieve superiority in the long term and will do the same.

[Mediocrates]

I have always believed that the Japanese lost the war in the Pacific in 1945 and have ever since waged an economic war against the USA. The Chinese have learned that an economic war will achieve superiority in the long term and will do the same.


Why wouldn't you compete furiously any way you could? I would fire anyone who didn't do that.

[ben Shimshon]

We in the west value our quality of life and that requires money, lots of it. The Chinese work for peanuts, eat peanuts and live primitively by our standards. This does not cost much money. That's why we cannot compete unless we export our manufacturing or import their finished products.

[scattergood]

These kinds of things about the dollar devaluation are fun to think about but require a lot more analysis.

About the Chinese, there is no way in hell they will float the Yuan until the paper money is pried from their dead hands. They hold hundreds of billions of dollars of US debt and the moment the Yuan floats, the exchange rate goes to hell and the value of their debt is wiped off the books. Imagine 1/5 or 1/4 of the cash assets of a country got devalued by 50 or 75%. It would be a huge shock to their economy, their savings, their purchasing power for things like oil, coal, gold, copper, etc., you know the things that keep a country running.

Which brings a bigger issue, the US dollar won't be massively devalued quickly because it is the standard pricing for most commodities. So as it becomes devalued, other countries can spend less to get the same amount, and the suppliers are paid in dollars which because they have been devalued aren't valueable. Here is how it really works:

1) Let's say the price of oil is $70 a barrel, and the exchange rate of the Euro to the Dollar is 1 Euro = $1.25. In that case, a barrel of oil coses 56 Euros.

2) Now let's say the dollar looses 1/2 it's value. The Euro now has a 1 Euro = $1.875 and the same $70 barrel of oil costs 37.33 Euros.

3) But here is the problem, the oil producer who get's $70 a barrel isn't happy because the Dollar has been devalued. So he really charges $105 a barrel which is the same as 56 Euro's, which is the same 56 Euros BEFORE DEVALUATION. So not only do they have to spend the same number of Euros to get oil (or gas, or coal, or copper, or gold, etc.),.

4) But wait there is more, the weaker dollar makes US exports better looking especially in comparison to a Yuan which has been revalued at 50-250% higher than it is now. So people buy more goods with Dollars, giving the US more ability to pay the higher commodity prices. Plus a weaker Euro doesn't have a good exchange rate to export their goods to the US, and US goods look cheaper to them then European goods an services

No, the far bigger threat comes from a new currency standardization for commodities, which would allow the US Dollar to float to it's more true value, which would be lower because of our massive borrowing (governmental, business, and personal). But that new standard isn't coming soon since it is the US for all people piss and moan that has the most transparent, stable, legally protected economic system in the world. Do Arab or Muslim bankers trust each other? Hell no.