Filed under: Abu Dhabi, Alan Greenspan, Alex Jones, asia, bernanke, bonds, central bank, China, Credit Crisis, DEBT, dollar peg, Economic Collapse, economic depression, Economy, Euro, Federal Reserve, food crisis, food market, food prices, George Bush, Great Depression, Greenback, gulf, imf, Inflation, interest rate cuts, Joseph Stiglitz, liquidation, rate cut, sterling, Stock Market, UAE, US Economy, US Treasury, World Bank
Traitor Greenspan Urges Gulf States To Abandon Dollar
Former Fed chief’s insistence that Arab nations dump greenback peg could lead to economic chaos in America
Paul Joseph Watson
Prison Planet
February 26, 2008
Alan Greenspan has again exposed himself as a traitor working against the interests of the American people by urging Gulf states to abandon the dollar peg, a move that could result in financial chaos and an economic depression in America.
The dollar peg mandates Gulf nations to price their assets in U.S. dollars and follow U.S. monetary policy at a time when the Fed is cutting interest rates, a system that has produced a boom in oil revenues but led to high inflation as the dollar weakens.
“It [de-pegging] is probably the most useful thing that can be done to stop the increasing influence of foreign assets on the monetary system and therefore the monetary base which is basically the major force in inflationary pressures,” Greenspan told the Abu Dhabi Corporate Leadership Forum yesterday.
“In the short term free floating … will not fully dissipate inflationary pressure, although it would significantly do so,” added Greenspan, giving a green light for Gulf states to drop the dollar peg.
According to Economist editor Pam Woodall, Greenspan’s comments heralded the beginning of the end for the US dollar as the currency of choice for foreign exchange reserves.
“If Asian central banks hold today more than 80 per cent of the global foreign exchange reserves, which indicates the shift of the global economy domination towards Asia, it seems quite awkward that the UAE still maintains the peg of its currency to the US dollar,” she told Gulf News.
Greenspan’s zeal to destroy the dollar is evident in numerous public statements he has made predicting the replacement of the dollar with the Euro as the world reserve currency.
The former Fed chairman has repeatedly badmouthed the dollar and hyped the inevitability of economic chaos at a time when market confidence is in the toilet. Greenspan’s rhetoric matches that of the IMF, who in October of last year bizarrely slammed the dollar as “overvalued” at the same time the greenback hit its all time low against the Euro.
A decision on behalf of the Gulf states to abandon the dollar peg would have disastrous consequences for the greenback and the American economy.
Such a move could lead the likes of the United Arab Emirates and Saudi Arabia to diversify their foreign exchange holdings out of dollars. This would amount to a vote of “no confidence” in the dollar and may cause other countries with large dollar reserves, such as China and Japan, to follow suit and begin dumping the greenback en masse.
China has threatened repeatedly to use the “nuclear option” and liquidate its vast holding of US treasuries in response to continued pressure on the Communist state to force a yuan revaluation. According to a widely-read London Telegraph report, such an event “could trigger a dollar crash” and also “cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession.”
Runaway inflation would also ensue, making the cost of living unaffordable to even middle class Americans as food prices skyrocket and international aid organizations like the World Food Programme predict rationing and food riots.
The dollar has held firm against the Euro and recovered some losses against Sterling over the past two months, but it has still lost 12 per cent of its value against the trade-weighted index over the last two years and has plunged by a whopping 60 per cent against the Euro since Bush entered the White House.
Stiglitz Blames Greenspan For Recession
Former World Bank Chief Economist says US probably already in recession
Steve Watson
Infowars.net
February 26, 2008
Former chief economist of the World Bank, Joseph Stiglitz, has said that the US economy is already in recession and is pointing the finger of blame directly towards former Federal Reserve chairman Alan Greenspan.
Remarking that the economy is “probably” now in recession, Stiglitz told Bloomberg Television that “There is a very significant slowdown in the U.S. economy… The housing bubble has broken and housing prices are coming down. Most experts think they will have to come down substantially more.”
Stiglitz stressed that Alan Greenspan “is right that this downturn is going to be the worst downturn in a quarter century, but he’s largely to blame,” adding “It’s not just that he was asleep at the wheel, he actively looked the other way”.
Stiglitz’s comments come on the back of news that Greenspan has been actively urging Gulf states to abandon the dollar peg, a move that could result in financial chaos and a further economic depression in America. We have previously reported on Greenspan’s penchant for working to destroy the US economy.
Stiglitz also took a swipe at current Fed chairman Ben S. Bernanke, charging him with failing to counter the deterioration of the real-estate market by procrastinating over interest rate cuts.
“The dramatic lowering of the main interest rate by 75 basis points [last month] was a panic not a prudent measure.” Stiglitz said.
The Nobel-prize winning economist also cited the $3 trillion cost of the Iraq war as a key factor in the economic downturn, saying it has increased the budget deficit and consumed resources that would otherwise promote growth.
In contrast, the president last week stated that the war in Iraq has had no bearing on the economic slump.
Stiglitz is no stranger to speaking out against the establishment on the economy. In October 2001 he caused controversy when he exposed rampant corruption within the IMF and blew the whistle on their nefarious methods of inducing countries to fall under their debt before stripping them of sovereignty and hollowing out their economies.
Sixteen months ago, on the nationally syndicated Alex Jones radio show, Stiglitz predicted a global economic crash would occur within 2 years.
Filed under: 9/11, Australia, Bank of America, Bear Stearns, bernanke, Big Banks, bilderberg, black monday, bonds, Britain, central bank, CFR, Credit Crisis, DEBT, Dow, Economic Collapse, economic depression, Economy, engineered recession, Europe, european union, Federal Reserve, foreign buyout, FTSE, gas prices, George Bush, global economy, gold, Great Depression, Greenback, hong kong, housing market, Inflation, interest rate cut, interest rate cuts, Merrill Lynch, Northern Rock, Oil, Oppenheimer, Petrol, rate cut, Russia, S&P, Stock Market, tax rebates, US Economy, Wall Street
Fed Cuts Interest Rates 75 Basis Points
AP
January 22, 2008
The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, slashed a key interest rate by three-quarters of a percentage point on Tuesday and indicated further rate cuts were likely.
The surprise reduction in the federal funds rate from 4.25 down to 3.5 percent marked the biggest funds rate cut on records going back to 1990.
Federal Reserve Chairman Ben Bernanke and his colleagues took the action after an emergency video conference on Monday night, a day when global markets had been pounded by rising concerns that weakness in the world’s largest economy was spreading worldwide.
Despite the Fed’s bold move, Wall Street plunged at the opening. The Dow Jones industrial average was down 311.99 points in the first hour of trading.
In a brief statement explaining its move, the Fed said that “appreciable downside risks to growth remain” and officials pledged to “act in a timely manner” to deal with the risks facing the economy. The action was approved on an 8-1 vote.
Analysts said the fact that the Fed did not wait until its meeting next week to cut rates underscored the seriousness of the situation.
“The world’s stock markets are in meltdown so the Fed came in with an inter-meeting move to try to stop the panic,” Christopher Rupkey, senior economist at Bank of Tokyo-Mitsubishi.
The Bush administration, which had announced on Friday that President Bush supported a $150 billion economic stimulus package, said Tuesday that it was not ruling out doing more than the $150 billion proposal if necessary.
Many analysts said if the carnage continues in stock markets, the Fed will move to cut rates again at its Jan. 29-30 meeting.
“This move is not an instant fix,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics. “The economy is still staring recession in the face, but at least the Fed now gets it.”
‘Fed may keep cutting interest rates’
Western Mail
January 23, 2008
There could be more interest rate cuts to come as the US Federal Reserve tries to head off recession.
Howard Archer of Global Insight said the prospect of a US recession suggests the Fed may keep cutting rates.
Yesterday’s surprise decision to cut US rates by 0.75% helped rally London’s FTSE-100 index, after £76bn had been wiped off its value on Monday. The index of leading shares closed 161.9 up at 5740.1, a gain of 2.9% after Monday’s 5.5% fall.
The Fed’s cut to 3.50% was its first emergency move since 2001 and the largest single reduction since 1984.
Mr Archer of Global Insight said “The Fed did not directly reference Monday’s global stock-market meltdown in its announcement, merely noting that ‘broader financial market conditions have continued to deteriorate’. It focused upon the weakening outlook for growth.”
US rates ‘heading for 2.5% by the spring’
The Scotsman
January 23, 2008
American interest rates are set to tumble as low as 2.5 per cent by early spring as US policymakers battle to restore stability to a faltering economy.
Economists said they expected the Federal Reserve to have shaved another full point off borrowing costs by its scheduled April meeting.
The prediction came after yesterday’s surprise three-quarter-point cut to 3.5 per cent – a move that appeared to have only limited success in restoring investor confidence.
Bonds jumped sharply, with two-year notes falling to their lowest in nearly four years, as investors prepared for still more rate- cutting.
In London, the benchmark FTSE 100 index of Britain’s biggest companies closed 161.9 points or nearly 3 per cent higher at 5,740.1 following a rollercoaster session and the previous day’s 323-point battering.
Nigel Gault, chief US economist at forecasting body Global Insight, said the prospect of “at least a mild US recession” suggested the Fed was “far from done cutting rates”.
He added: “We now expect the Fed to cut another cumulative 100 basis points off interest rates. The next instalment will probably come at the formal meeting on 30 January – another 25 or 50 basis points. We would expect to hit 2.5 per cent by the April meeting.”
Yesterday’s decision to slash interest rates came a week before the US central bank’s regularly scheduled meeting, a sign that it acknowledges that the global financial situation is serious.
David Jones, chief economist at DMJ Advisors, said the Fed could move again between meetings, should conditions deteriorate further, and predicted the Fed would lower interest rates to 3 per cent by the end of March.
Earlier this month, leading investment bank Merrill Lynch said the US economy was already in recession.
Some analysts pointed to a panic move by the Fed, which is headed by chairman Ben Bernanke. Michael Metz, chief investment strategist at Oppenheimer in New York, said: “Unfortunately the Fed] have no power to reverse what in my opinion is the worst post-war recession.”
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The Coming Global Depression
Bear Stearns: The Fed Will Cut Rates AGAIN Next Week
World stock markets fall
Hopes of global rate cut sparks FTSE revival after early morning slump
Black Monday: recession fears spark global share crash
Biggest fall in shares since September 11
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Surprise rate cut sparks dollar sell-off
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Wall Street set to open lower
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Emergency: Global Financial Markets Collapsing
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Filed under: bonds, central bank, Credit Crisis, DEBT, Economic Collapse, economic depression, Economy, gold, Great Depression, Greenback, Inflation, Patriot Act, Stock Market, US Economy, us mint, US Treasury
America’s Trade Debts Lead to a Likely Gold Confiscation
Goldseek
December 2, 2007
Federal agencies have indicated that the accumulated trade debts of the United States have reached $9 trillion. This can be explained once one realizes that outsourcing of production jobs and manufacturing has gathered speed over the last twenty years to a point where we don’t make more than a nominal percentage of our own necessities. These debts result in accumulated “TRADE DEFICITS” which are discussed in the daily papers. What is not discussed, however, is how these “trade debts” will ever be paid. Well, common sense would tell most of us that — they will be paid in some form.
Recently posted in the Federal Register on the internet were regulations listed under the caption of The Patriot Act . . . . At the end of 17 pages you will find legal definitions for “bullion coins” and “rare numismatic coins.” Strange how the definition of these forms of gold would show up under 17 pages of regulations pursuant to the Patriot Act having to do with identification of persons boarding and de-boarding aircraft and a multitude of other topics. Once you analyze the situation, it becomes obvious that these regulations were published in this manner, so as to keep the information from the general public and avoid suspicions of confiscation and the resulting objections.
WE BELIEVE THE REGULATIONS WERE PUBLISHED IN THE EXPECTATION OF A SECOND CONFISCATION OF AMERICAN PRIVATELY OWNED GOLD
The purpose of the confiscation is clearly to settle America’s trade debts in an acceptable form. Keep in mind that Central Banks end up with all of the trade debts via bank deposits in dollars, or, Treasury Bonds, dollar denominated, with no guarantees against loss due to deterioration of the value of the dollar. Since the dollar has been in a constant downtrend as most Americans realize, Central Banks should not be expected to take all the losses on these transactions without complaint. Indeed, there are complaints and we believe the complaints have reached fever pitch. Central Banks no longer wish to accept dollar-denominated assets in payment of trade debts and are demanding American gold.
There is really no other logical mechanism for them to accept payment. Today, silver is not a monetary asset and neither are any of the other metals such as platinum or palladium. Only gold can be used for settlement of debts between Central Banks.
“No,” you say! . . . . Such a conclusion is unjustified. If so, then we ask, how is it that 30,000 retail jewelry stores have been forced to become registered with the Treasury Department over the last two years, since January ’06, as indicated at their website at http://www.jvclegal.org. The Jewelry Trade Association required their members to purchase a “Patriot Act Compliance Kit,” all of which relates to registration — a form of licensing, obviously connected to one of their main lines of business: gold jewelry.
Why is it also that bullion dealers and gold coin dealers who do $50,000 or more in business a year have also been required to become registered with the Treasury Department as indicated in their printout of April 24, 2007, from their website. This particular, April 24th printout may or may not still be on the website, but we have copies from that date on file.
There is significant other evidence as well, including the recent confiscation of gold of an organization in Evansville, Indiana, The Liberty Dollar Group, which stirred up some concern about the use of paper money in the United States, and thus, the gentleman who proposed an alternative form of money was put out of business.
In addition, the U.S. Mint, the seller of extremely popular American Eagle series of coins has, as of October 15, at least, terminated all sales of American Eagle gold coins. By the time you read this, they may have changed their minds again, which, of course, can be reversed after a brief period. Their mint dealer network may or may not still have the American Eagle series coins in stock, but sooner or later, their stocks will run out and there will be no more gold available in this form.
It is our view that the definition of the antique numismatic coins, given in the Federal Register, indicate the one way to avoid the loss of all physical gold in your hands. The interpretation of the wording of the regulations can be taken differently by different people. Our interpretation is that coins that have rarity value at least equal to the bullion value at the time of purchase would logically be deemed legal under these rules. Since it is not likely that any further explanation of these regulations will be published, this is all we have to go on. Of course — they are not going to announce the confiscation date ahead of time.
We are frequently asked what our opinion is of the timing, and that is obviously difficult to say, but it would not be amazing to see the confiscation gold within the next twelve months of the extremely unpopular Presidency of George W. Bush. That means there’s only twelve months to go, if we believe that this evil act will be consummated during his term. For more information, contact us at Criminal Politics Magazine at 1-800-543-0486 or visit our website at www.criminalpolitics.com
Filed under: bonds, central bank, Credit Crisis, DEBT, Economic Collapse, economic depression, Economy, Euro, Federal Reserve, food prices, foreclosure, George Bush, global economy, Goldman Sachs, Great Depression, Greenback, housing market, Inflation, interest rate cuts, liquidation, Merrill Lynch, Paulson, pound, rate cut, Stock Market, subprime, subprime lending, United Kingdom, US Economy, Wall Street, WW2
THE DOLLAR NOSEDIVE: Why America’s Currency Is the World’s Problem
Spiegel Online
December 3, 2007
The ailing US economy seems to be driving the exchange rate of the dollar inexorably downward, with serious consequences for the global economy. Politicians and central bankers are looking on helplessly as the economic outlook worsens by the day and European companies rack up huge losses.
It costs about four cents to produce a one-dollar bill — a pittance, compared to the greenback’s influence on the world’s economy.
The exchange rate of the dollar can boost the fortunes of companies and entire economies — or plunge them into crisis. Its rate against the euro fluctuates by a few hundredths of a cent each day. But in the past five years that fluctuation has more often than not taken the US currency on a downward trajectory, causing consternation — and now despair — among people around the world.
Last Thursday, Thomas Enders, the CEO of Airbus, gave a speech to employees in building 261 at the consortium’s production complex in Hamburg. He was there to tell them that a pain threshold had reached. The graph he had projected on the wall revealed the horrifying progression of the dollar over time. The US currency has lost 13 percent of its value against the euro since the beginning of the year. Conversely, the euro has risen in value, and for a short time last Friday it even approached the symbolic $1.50 threshold.
According to Enders, the rate at which the US currency is falling makes “reasonable processes of adjustment” a virtual impossibility. Every cent the dollar drops against the euro costs Airbus €100 million. This has even the normally optimistic Enders alarmed. “It’s life-threatening,” he told his audience.
Merrill Lynch Predicts Recession
Silicon Alley Insider
December 5, 2007
Two major Wall Street firms have finally thrown in the towel and are now calling for a recession. For a variety of reasons, Wall Street is usually late to call downturns, so this probably means that 1) we’re already beginning to come out of the recession, or 2) this recession is going to be a doozy (the more likely explanation, in our opinion).
The pessimism of Jan Hatzius at Goldman prompted Ben Stein to call him a lightweight, conflicted shill who was just “selling fear” to help Goldman’s proprietary trading desk. We therefore look forward to Stein’s explanation for the pessimism of Merrill Lynch economist David Rosenberg:
“The US consumer is on the precipice of experiencing its first recessionary phase since 1991 – the last time we had the combination of high, punishing energy prices; weakening employment conditions; real estate deflation and tightening credit conditions…
We reiterate that real estate deflations are unique and have never ended well for the consumer, the credit market or the economy. We can identify only five periods post WWII when the real value of housing assets turned negative on a year-on-year basis. All of these time periods inevitably included a consumer downturn. Maybe it will be different this time, but we fail to see why.”
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