noworldsystem.com


EU President: 2009 is the “first year of global governance”

New EU President: 2009 is the “first year of global governance”
Sees Copenhagen as step towards global management

Old-Thinker News
November 20, 2009

The new EU President, Herman Van Rompuy, has proclaimed 2009 as the “first year of global governance.” During Rompuy’s intervention as President on November 19th, he stated,

“2009 is also the first year of global governance, with the establishment of the G20 in the middle of the financial crisis. The climate conference in Copenhagen is another step towards the global management of our planet.”

http://www.youtube.com/watch?v=hXWeOa-FuyM

Rompuy attended a Bilderberg dinner at Hertoginnendal, Brussels on November 15th, during which he announced a plan to implement EU wide taxes that will be paid directly to Brussels. Recently Mario Borghezio (Italy), member of the European Parliament, spoke openly against the influence of globalist organizations such as the Bilderberg Group and the Trilateral Commission. “Is it possible that no one has noticed that all 3 (EU Presidential candidates) frequently attend Bilderberg or Trilateral meetings?,” asked Borghezio. Rompuy will undoubtedly serve globalist interests during his reign of the European Union.

http://www.youtube.com/watch?v=0gZ7gDBs5WY

 

The Road to Copenhagen part III: A “Planetary Regime” in the Making

Jurriaan Maessen
Infowars
November 22, 2009

“It is the sacred principles enshrined in the United Nations charter to which the American people will henceforth pledge their allegiance.” George H.W. Bush addressing the General Assembly of the U.N, February 1, 1992

The machine of mass media is working overdrive now that the Copenhagen summit is approaching. All major media outlets have by now obviously received their talking-points which have an strangely similar ring about them all across the board. Even a superficial comparative study in the overall reporting reveals not only a stunning disregard for national sovereignty, but a willingness to support carbon-taxes imposed by a- as John P. Holdren puts it- “planetary regime”.

Last month experts told the Second Committee Panel Discussion of the UN General Assembly that “a new regime of governance was under way in the global financial system.” The same is being said about global climate measures, global resource management and global development.

The mass media is not only setting the agenda themselves, they more often than not simply parrot the globalists that are being shoved in our face on a daily basis. Many of whom have a Ph.D. behind their name. Under the header ‘Carbon Tax’ is sensible, and perhaps inevitable, advocate says‘, the Los Angeles Times quotes Oxford professor Dieter Helm stating:

“(..) I’m in favor of quite a low carbon tax to start with – for political economy reasons, to get it in place, (…). Across Europe, my guess is within five years everybody will have a carbon tax…”

This, according to Helm, will make sure that the United States will eventually be forced into the global carbon tax policy as well:

“(…) is everybody else doing it? That’s a very good protection for politicians. The answer is yes, they are.”

Back in December of 2001, the Africa division of the UN Development Programme apparently already seriously considered such a tax:

“The main energy sources that would be affected by a carbon tax include coal, petroleum, kerosene and natural gas. The tax would be reflected in an increase in their price, at a level based on the capacity of each type of fuel to emit carbon dioxide.”

Answering the question who would collect the taxes and enforce such a global tax policy, the UN panel was quite clear:

“The panel said a new international tax organization should be created to assume all functions performed by existing institutions. It would serve as a global intergovernmental forum for international cooperation on all tax issues. It would also help resolve conflicts between countries and help them to increase tax revenue by fostering information exchanges and measures that could reduce tax evasion on investment and personal income earned at home and abroad.”

This sounds a lot like John P. Holdren doesn’t it, exclaiming in Ecoscience that “a Planetary Regime- sort of an international superagency for population, resources, and environment” could impose global policy and enforce it. “Such a comprehensive Planetary Regime”, said Holdren, “could control the development, administration, conservation, and distribution of all natural resources, renewable or nonrenewable, at least insofar as international implications exist.”

Furthermore, the UN panel advocated in 2001:

“We thus endorse the Commission’s proposal to create a global council at the highest political level to provide leadership on issues of global governance. The proposed council would be more broadly based than the G7 or the Bretton Woods institutions.”

In 2007, Reuters quoted Mr. Global Warming Himself, Al Gore as saying that a global carbon trading scheme could be “quite efficient if the world’s top polluters, the United States and China, fully joined.” Gore also stated that a direct tax on carbon would certainly be “an even simpler and more direct measure.”

It was the Bilderberg-appointed Herman Van Rompuy- the new EU-president- who stated recently that “The Climate Conference in Copenhagen is another step towards the global management of our planet.” He also announced that 2009 would be the “first year of global governance.” And he’s not the first to call for such global management. All people who occupy a position of power in the infrastructure of the New World Order have called for it since its very conception shortly after World War II.

As a preface to the coming Copenhagen summit in December, the United Nations Population Fund in a recently published ‘ State of the Population 2009‘ is pushing for global reproductive health services. This means not only universal access to ‘family planning’ but also better access to abortion facilities. Humans, after all, are supposed to be the prime driver of climate change and therefore: less humans means honouring Mother Earth.

In the foreword, the executive director of the UNFPA, Thoraya Obaid addresses the fake global warming hype, saying that “floods, storms and rising seas” will soon envelope the planet if not for quick, decisive and global efforts to combat these calamities.

“A Copenhagen agreement that helps people to reduce greenhouse-gas emissions and adapt to climate change by harnessing the insight and creativity of women and men would launch a genuinely effective long-term global strategy to deal with climate change.”

Global strategy. That’s the talking point we hear over and over again from all agencies, UN or otherwise, who have an interest in profiting from the deal they are proposing. Never mind that all nation-states who sign on to the Copenhagen treaty will effectively forfeit their representative systems to this global authority, deciding which taxes will be paid by which nation-state. In the end, all roads seem to lead to a “planetary regime” envisioned by the elite long before “global warming” was even heard of.

The Road to Copenhagen Part II: Rise of the Social Engineers

 



U.S. Dollar Will No Longer Be World Reserve Currency

U.S. Dollar Will No Longer Be World Reserve Currency

NoWorldSystem.com
October 10, 2009

The collapse of the U.S. dollar as the world’s leading reserve currency has been confirmed by Robert Fisk who wrote a revealing article about how China and other G20 nations wish to collapse the dominance of the U.S. by replacing the dollar with a basket of alternative currencies (including gold) in the form of SDR bonds created by the IMF.

“It’s interesting that China has not come out with any huge denials, Russia of course has up to a point and the Gulf arabs. But it’s in the interest of the arabs and all of the nations involved to deny this is happening at the moment. But we’re talking about a project that would not actually have its fulfillment; de-dollarization, for another 9 years.”

Both Fisk and Max Keiser agree that when the U.S. dollar is replaced it will be a devastating hit to the country’s political influence around the world, Keiser agrees saying; “The mid-east doesn’t want to finance America’s wars anymore, because the U.S. dollar’s world reserve status gives America an incredible leverage in financing wars that they really don’t have to pay for. China, Russia, and Iran are paying for America’s wars in Afghanistan, Iraq and in possibly in Iran.”

Keiser believes world de-dollarization will occur a lot sooner than what Fisk predicts will happen in 2018. Since the dollar is still being de-valued by the Federal Reserve’s continual plans to increase interest rates that will only expedite the collapse of the dollar making G20 nations switch to SDR bonds much faster than expected.

Gerald Celente weighs-in; “You can’t print phantom money out of thin-air, backed by nothing and producing practically nothing without destroying the dollar. They’ve been doing it for decades, it accelerated in 2008 under George Bush and is building trade deficits” “the tarp program that cost an access of $700 billion dollars to bailout the failing banks and financial institutions and then it was re-instituted to an even greater number by President Barack Obama printing another several hundred billion dollars worth of valueless money, and the whole world knows it!”

Jim Rogers calls Fisk’s story a rumor, however agrees with the other analysts who say that Washington D.C. is purposefully de-basing the dollar. Rogers says countries like China are waking up to the dangers of currencies that are backed by nothing and inching towards real commodities like Gold, Silver, Nickle, Zinc, Copper, Sugar, Coal and Oil just to name a few.

 



World Bank and IMF Join Global Attack on U.S. Dollar

World Bank and IMF Join Global Attack on U.S. Dollar

Larry Edelson
Money and Markets
October 4, 2009

In my emails to you over the past couple of weeks, I’ve shown you why Washington has no choice but to devalue the dollar — and how global leaders and even the United Nations have joined the attack on the greenback by demanding it be replaced as the world’s reserve currency.

Now, just this week, the International Monetary Fund and the World Bank have begun adding their voices to the international choir calling for a new global reserve currency:

* Last week, World Bank President Robert Zoellick warned that the dollar’s status will be challenged and shouldn’t be taken for granted.

* According to Turkish Deputy Prime Minister Ali Babacan, it’s likely that the role of special drawing rights (SDRs) based on a basket of currencies will be discussed as an alternative to the dollar during meetings of the World Bank and IMF in Istanbul next week.

* Meanwhile, global governments, central banks, companies and investors continue to slash their dollar holdings. According to the IMF, in April through June of this year, the greenback’s share of global currency reserves fell to the lowest level in a decade. Holdings of euros, in contrast, rose to a new all-time record high.

All this adds weight and momentum to the devaluation of the dollar. It is DEFINITELY ON THE TABLE. Indeed, for the first time I can remember, the G-7 finance officials, meeting this weekend, are rumored to be breaking with tradition and choosing not to release a statement on the global economy and currencies.

I feel this is an extremely significant development: At last week’s G-20 meeting, the group officially anointed itself as being in charge of global economic affairs.

Plus, we now have the G-7 refusing to discuss the dollar, which is highly unusual. Many will say that, if the G-7 does indeed refuse to comment on the dollar at this weekend’s meeting, it’s merely a sign they’re beginning to turn the reigns over to the G-20 for currency matters.

Baloney! The G-7 WILL discuss the huge “global economic imbalances” in the world. And to me, that’s code talk for a currency devaluation on the agenda. Members of the G-7 ARE discussing it. They’re just NOT doing it in public.

It reminds me of the 1985 Plaza Accord, where James Baker committed the U.S. to a depreciating dollar, bulldozing over our creditors, and ultimately precipitating the ‘87 crash.

The difference: Back then the U.S. was in a position to lead the devaluation. Today, it’s not. Today, our creditors are going to bulldoze over us.

 

IMF Catapults From Shunned Agency to Global Central Bank Issuing Debt to the World While U.S. Dollar Plummets

Huffington Post
October 2, 2009

“A year ago,” said law professor Ross Buckley on Australia’s ABC News last week, “nobody wanted to know the International Monetary Fund. Now it’s the organiser for the international stimulus package which has been sold as a stimulus package for poor countries.”

The IMF may have catapulted to a more exalted status than that. According to Jim Rickards, director of market intelligence for scientific consulting firm Omnis, the unannounced purpose of last week’s G20 Summit in Pittsburgh was that “the IMF is being anointed as the global central bank.” Rickards said in a CNBC interview on September 25 that the plan is for the IMF to issue a global reserve currency that can replace the dollar.

“They’ve issued debt for the first time in history,” said Rickards. “They’re issuing SDRs. The last SDRs came out around 1980 or ’81, $30 billion. Now they’re issuing $300 billion. When I say issuing, it’s printing money; there’s nothing behind these SDRs.

SDRs, or Special Drawing Rights, are a synthetic currency originally created by the IMF to replace gold and silver in large international transactions. But they have been little used until now. Why does the world suddenly need a new global fiat currency and global central bank? Rickards says it because of “Triffin’s Dilemma,” a problem first noted by economist Robert Triffin in the 1960s. When the world went off the gold standard, a reserve currency had to be provided by some large-currency country to service global trade. But leaving its currency out there for international purposes meant that the country would have to continually buy more than it sold, running large deficits; and that meant it would eventually go broke. The U.S. has fueled the world economy for the last 50 years, but now it is going broke. The U.S. can settle its debts and get its own house in order, but that would cause world trade to contract. A substitute global reserve currency is needed to fuel the global economy while the U.S. solves its debt problems, and that new currency is to be the IMF’s SDRs.

That’s the solution to Triffin’s dilemma, says Rickards, but it leaves the U.S. in a vulnerable position. If we face a war or other global catastrophe, we no longer have the privilege of printing money. We will have to borrow the global reserve currency like everyone else, putting us at the mercy of the global lenders.

To avoid that, the Federal Reserve has hinted that it is prepared to raise interest rates, even though that would mean further squeezing the real estate market and the real economy. Rickards pointed to an oped piece by Fed governor Kevin Warsh, published in The Wall Street Journal on the same day the G20 met. Warsh said that the Fed would need to raise interest rates if asset prices rose – which Rickards interpreted to mean gold, the traditional go-to investment of investors fleeing the dollar. “Central banks hate gold because it limits their ability to print money,” said Rickards. If gold were to suddenly go to $1,500 an ounce, it would mean the dollar was collapsing. Warsh was giving the market a heads up that the Fed wasn’t going to let that happen. The Fed would raise interest rates to attract dollars back into the country. As Rickards put it, “Warsh is saying, ‘We sort of have to trash the dollar, but we’re going to do it gradually.’ . . . Warsh is trying to preempt an unstable decline in the dollar. What they want, of course, is a stable, steady decline.”

What about the Fed’s traditional role of maintaining price stability? It’s nonsense, said Rickards. “What they do is inflate the dollar to prop up the banks.” The dollar has to be inflated because there is more debt outstanding than money to pay it with. The government currently has contingent liabilities of $60 trillion. “There’s no feasible combination of growth and taxes that can fund that liability,” Rickards said. The government could fund about half that in the next 14 years, which means the dollar needs to be devalued by half in that time.

The Dollar Needs to be Devalued by Half?

Reducing the value of the dollar by half means that our hard-earned dollars are going to go only half as far, something that does not sound like a good thing for Main Street. Indeed, when we look more closely, we see that the move is not designed to serve us but to serve the banks. Why does the dollar need to be devalued? It is to compensate for a dilemma in the current monetary scheme that is even more intractable than Triffin’s, one that might be called a fraud. There is never enough money to cover the outstanding debt, because all money today except coins is created by banks in the form of loans, and more money is always owed back to the banks than they advance when they create their loans. Banks create the principal but not the interest necessary to pay their loans back.

The Fed, which is owned by a consortium of banks and was set up to serve their interests, is tasked with seeing that the banks are paid back; and the only way to do that is to inflate the money supply to create the dollars to cover the missing interest. But that means diluting the value of the dollar, which imposes a stealth tax on the citizenry; and the money supply is inflated by making more loans, which adds to the debt and interest burden that the inflated money supply was supposed to relieve. The banking system is basically a pyramid scheme, which can be kept going only by continually creating more debt.

The IMF’s $500 Billion Stimulus Package:
Designed to Help Developing Countries or the Banks?

And that brings us back to the IMF’s stimulus package discussed last week by Professor Buckley. The package was billed as helping emerging nations hard hit by the global credit crisis, but Buckley doubts that that is what is really going on. Rather, he says, the $500 billion pledged by the G20 nations is “a stimulus package for the rich countries’ banks.”

Why does he think that? Because stimulus packages are usually grants. The money coming from the IMF will be extended in the form of loans.

These are loans that are made by the G20 countries through the IMF to poor countries. They have to be repaid and what they’re going to be used for is to repay the international banks now. . . . [T]he money won’t really touch down in the poor countries. It will go straight through them to repay their creditors. . . . But the poor countries will spend the next 30 years repaying the IMF.

Basically, said Professor Buckley, the loans extended by the IMF represent an increase in seniority of the debt. That means developing nations will be even more firmly locked in debt than they are now.

At the moment the debt is owed by poor countries to banks, and if the poor countries had to, they could default on that. The bank debt is going to be replaced by debt that’s owed to the IMF, which for very good strategic reasons the poor countries will always service. . . . The rich countries have made this $500 billion available to stimulate their own banks, and the IMF is a wonderful party to put in between the countries and the debtors and the banks.

Not long ago, the IMF was being called obsolete. Now it is back in business with a vengeance; but it’s the old unseemly business of serving as the collection agency for the international banking industry. As long as third world debtors can service their loans by paying the interest on them, the banks can count the loans as “assets” on their books, allowing them to keep their pyramid scheme going by inflating the global money supply with yet more loans. It is all for the greater good of the banks and their affiliated multinational corporations; but the $500 billion in funding is coming from the taxpayers of the G20 nations, and the foreseeable outcome will be that the United States will join the ranks of debtor nations subservient to a global empire of central bankers.

 

Man Throws Shoe at IMF Chief

 

 



Potential Bailout Cost is $5 Trillion or $43K Per Household

Potential Cost For Bailout is $5 Trillion or $43K Per Household

Steve Watson
Infowars.net
October 15, 2008

The total potential cost of the financial bailout to the U.S. taxpayer is already rapidly approaching $5 trillion, over seven times as much as the meaningless $700 billion bailout bill figure.

Analysts have previously marked out the $5 trillion figure as the actual cost, now those predictions are becoming demonstratively accurate.

Meanwhile, Hank Paulson has defended government intervention, stating “There’s no doubt that the way to get the maximum bang for the taxpayers here was to invest in banks.”

Based on this Reuters summary and the sources linked within the table, here is a breakdown of the bailout’s cost to taxpayers so far.

Bailout Type
Cost To Taxpayers
$300 billion
$250billion
$25 billion
$150 billion
$700 billion+
$29 billion
$200 billion
$85 billion (+ extra request of $35 billion)
$300 billion
$4 billion
$87 billion
$200 billion+
$50 billion
$144 billion
POSSIBLE TOTAL $2.56 trillion+
NUMBER OF HOUSEHOLDS PER
U.S. CENSUS
105,480,101
POSSIBLE COST PER HOUSEHOLD
$24,26

In addition, the U.S. government has said it will temporarily guarantee $1.5 trillion (£856 billion) in new senior debt issued by banks, as well as insure $500 billion (£285 billion) in deposits in non-interest accounts, mainly used by businesses.

These figures take the potential cost to $4.559 trillion+ – or $43, 221 per household.

Furthermore, when you account for the fact that the credit default swap market is around $62 trillion, and that derivatives worldwide are worth between between $1 and $2 quadrillion, the numbers start to become meaningless.

 

Fed To Offer Unlimited Dollars
Bloomberg
October 13, 2008

The U.S. Federal Reserve led an unprecedented push by central banks to flood financial markets with dollars, backing up government efforts to restore confidence in the banking system.

The ECB, the Bank of England and the Swiss central bank will offer unlimited dollar funds in auctions with maturities of seven days, 28 days and 84 days at a fixed interest rate, the Washington-based Fed said today. The Bank of Japan may introduce “similar measures.’’ The dollar declined and some money-market rates fell.

Policy makers from the Group of Seven nations pledged at the weekend to take “all necessary steps’’ to stem a market panic after the MSCI World stock index plunged 20 percent last week. Central banks last week cut interest rates in tandem for the first time since 2001, the U.S. plans to buy $700 billion in distressed assets from banks and in Europe, the U.K. is leading a push to keep lenders afloat with taxpayers’ money.

“By providing unlimited dollar funds they are acting on the back of the G-7 plan to ensure the system is fully liquidized,’’ said Lena Komileva, an economist at Tullet Prebon Plc in London. “We’re going to see even more liquidity provided and more aggressive rate cuts are coming.’’

Read Full Article Here

Banks borrow record $437.5 billion per day from Fed
http://www.reuters.com/article/newsOne/idUSTRE49F97920081017

Millionaire Hedge Fund Trader Thanks Idiot Traders
http://www.guardian.co.uk/business/2008/oct/18/banking-useconomy

Treasury Black Out Key Parts Of Bailout Contracts
http://www.huffingtonpost.com/..136030.html

Wall Street banks in $70bn staff payout
http://www.guardian.co.uk/business/2008/oct/17/executivesalaries-banking

Homeless Numbers Alarming
http://www.usatoday.com/news/nation/2008-10-21-homeless_N.htm

House prices ‘to plummet by 35%’ – the biggest ever fall in Britain
http://www.dailymail.co.uk/news/..–biggest-fall-Britain.html

Royal Bank Of Scotland Nationalized
http://business.timesonline.co…g_and_finance/article4932250.ece

Switzerland Pumps Billions Into Bank System
http://biz.yahoo.com/ap/081016/eu_switzerland_banks.html?printer=1

UBS Gets Bailout From Swiss National Bank
http://www.chicagotribune.com..7,0,4057853.story

Dow Jones Bloodbath Mirroring 1929 Rout
http://www.prisonplanet.com/dow-jones-bloodbath-mirroring-1929-rout.html

Two More Banks Closed By Regulators
http://money…00397x1211373371x1200675175

U.S. Stocks Plunge Most Since Crash of `87 on Recession Concern
http://www.bloomberg.com/apps/news?pid..er=home

Roubini Sees Worst Recession in 40 Years, Rally’s End
http://www.bloomberg.com/apps/news?..efer=home

JPMorgan Responsible for the Destruction of U.S. Financial System
http://www.marketoracle.co.uk/Article6826.html

World May Be Lucky to Get Worst Recession Since 1983
http://www.bloomberg.com..OAeSWBCY&refer=home

Stocks On Track For Worst Year Since 1937
http://www.chron.com/disp/story.mpl/nation/6050283.html

Former Fed chief says U.S. now in recession
http://www.reuters.com/article/newsOne/idUSTRE49D2QB20081014

 



Bloomberg: Global Warming “As Lethal” As Terrorism

Bloomberg: Global Warming “As Lethal” As Terrorism

Gothamist
February 12, 2008

Fbiiraqisbein_mn

Explaining why global warming needs to be stopped in an urgent way, Mayor Bloomberg said, “Terrorists kill people. Weapons of mass destruction have the potential to kill an enormous amount of people. [But] global warming in the long term has the potential to kill everybody…This really is just as lethal. It’s just the results are something we will face long term.”

The Mayor was addressing reporters after speaking at the United Nation’s conference on climate change. He mentioned the city’s plan to reduce the use of tropical hardwoods because the deforestation accounts for 20% of greenhouse gas emissions. NYC is one of the world’s biggest consumers of tropical hardwoods, as they are used in park benches, promenades, docks, etc. Bloomberg also emphasized that the U.S. should have a carbon emission tax.

Last summer, Mayor Bloomberg and mayors from around the world convened to discuss environmental issues at the NYC Climate Summit; Bloomberg said another would be held this June. And for fun, during his speech, he said, “Of course, being the Mayor of New York – the world’s most international city – is a bit like presiding over the United Nations every single day of the year.”


Washington May Charge Greenhouse Gas Tax

KXLY
February 11, 2008

Vehicle licensing fees in Washington State could spike dramatically, all in the name of global warming. Six Seattle Democrats in the state Senate are trying to push through a bill that would require the Department of Licensing to collect a greenhouse gas tax. Sponsors say the tax in Senate Bill 6923 is an effective way to fight global warming by giving the state more money to fund transportation alternatives. If it passes, there will be an extra tax on your yearly license tab fees, based on EPA estimated miles per gallon your vehicle gets. The bill states vehicles getting below 15 miles per gallon will be charged between $200 and $240 extra every year. Vehicles that get between 15 and 25 miles per gallon, will pay $100 to $180 dollars extra every year. Vehicles getting over 26 miles per gallon, will pay between $40 and $100 extra every year. Vehicles that don’t have an estimated fuel economy rating will be charged a fee based on engine size.

Recent News:

UN Chief Calls For Climate Change Action
http://news.yahoo.com/s/ap..E4zumG0bVyV7zmKn0ppxieAA

Shutting Off Lamps To Fight Climate Change
http://www.dailymail.co.uk..in_page_id=1770&ct=5

G7 Calls For Investment To Fight Climate Change
http://news.yahoo.com/s..gPOCGP2SGePtdcM3cwG4_QOrgF

UN calls water top priority for global agenda
http://news.yahoo.co..h5RpXeqlxvNN824vSPaais0NUE

SUV Tax To Fight Global Warming
http://politics.guardian.co.uk/g..html?gusrc=rss&feed=environment

Bill Clinton: Pauperize the Populace to Cure Global Warming
http://prisonplanet.com/articles/january2008/310108_cure.htm

European Union set to ban patio heaters
EU global warming crackdown will cost every family £730 a year
Lord Save Us from Useful Green Idiots
Bono Confesses Eco-Sins To Father Gore
Gore: Climate Change Worse Than Feared
Lawyers Embrace Climate Change Practice
The Carbon Disclosure Project
Russian Scientist: Earth Facing Ice Age
Abu Dhabi To Build Zero Carbon City
Brussels urged to fight climate change with tax
Sarkozy Pushes Carbon Tax On Trade
Marshall Plan For Climate Change
Global Warming Engineered By Chemtrails?

Global Warming Hoax News Archive

 



Dollar Slides To Record Low Against Euro

Dollar Slides To Record Low Against Euro

Financial Times
October 22, 2007

The dollar hit a record low against the euro on Monday after the weekend G7 summit failed to explicitly address dollar weakness.

In their post-meeting communique G7 finance ministers urged China to let its renminbi appreciate more rapidly, but did not mention dollar weakness, which provided the catalyst for traders to dump the currency.

“The communique did not make any references to the levels of the dollar, euro or yen,” said Sue Trinh at RBC Capital Markets. She added: “This is, in effect, a green light to sell the dollar.”

After hitting a record $1.4348 against the euro, the dollar later clawed back to trade up 0.2 per cent on the session at $1.4280. Sterling climbed as high as $2.0537 against the dollar.

Japan’s yen hit a six week high of Y113.27 against the dollar, helped by rising aversion to risk after tumbling US equity markets drove the Nikkei 225 more than 2 per cent lower.

The unwinding of risky carry trades, where the low-yielding yen is sold to fund high-yielding purchases, led to hefty losses for the New Zealand and Australian dollars – which are among the highest yielding currencies.

Lee Hardman, currency economist at the Bank of Tokyo-Mitsubishi UFJ said the sharp fall in equity markets “reinforced risk aversion and encouraged the liquidation of yen carry positions”.

The Aussie fell 1.1 per cent to Y100.81 against the yen, while the Kiwi dollar shed 1.4 per cent to Y84.37.

The euro fell 0.8 per cent to Y162.40 against the yen and remained 0.4 per cent lower at Y163.

Sterling was 1.1 per cent lower at Y233.45 against the yen, lost 0.4 per cent against the dollar to $2.0435 and dropped 0.3 per cent to £0.6987 against the euro.

Elsewhere, the Turkish lira tumbled 2.1 per cent to TL1.2334 against the dollar as the country’s stock market took a dive after a rebel attack on Turkish soldiers was seen as increasing pressure on the government to launch an incursion into northern Iraq.

Related News:

America vetoes G7’s dollar alert
http://www.telegraph.co.uk/m…/2007/10/21/cng7121.xml

IMF chief warns dollar may suffer ‘abrupt fall’
http://afp.google.com/artic….T8lLzz9sw

The Dollar: How Low Can It Go?
http://www.resourceinvestor.com/pebble.asp?relid=36971

IMF Warns Of Inflation Risks
http://www.newsday.com/business/…,0,3495766,print.story

Weapons of mass financial destruction: The credit shock
http://news.google.ca/news/url?sa=t&ct….7_pg5_22&cid=0

Gold: Relentless march towards $800/oz-mark seen
http://www.thehindubusinessline.co…./2007102250290700.htm

US loan default problems widen
http://www.ft.com/cms/s/0/7c453….d2ac.html

Global stocks see sharp declines
http://news.bbc.co.uk/1/hi/business/7055161.stm

China Bank To Buy $1B Stake In Bear Stearns
http://www.nytimes.com/2007/10/22/bu…22cnd-bear.html

The Basis for Markets Optimism
http://commonsenseforecaster.blogspot.com/2007/10….ism-article.html

Bad Loans
http://www.nytimes.com/2007/10/22….1&hp&oref=slogin

Living paycheck to paycheck gets harder
http://www.idahostatesman.com/a….tory/188251.html

Who Expects 4-Digit Gold and Why!
http://www.swissamerica.com/a…00604240205f.txt

Oil jumps over $90 a barrel, dollar sinks to new low against the euro
Dollar dives as US slump spreads
Stocks Sink on Black Monday Anniversary
‘Black Monday’ redux? Global rally makes some sweat
Gold to go higher, says Newmont boss
UK house market is ‘heading for crash’
Dow Loses 367 Points
Markets see U.S. policy of “ignore the dollar”
IMF Badmouths The Dollar In Open Attack On American Middle Class
Dollar stays near record euro low
Video: The inevitable collapse of the dollar
Dollar Falls To New Low Against Euro
A Weak Dollar Is Bad For America
Dangers Of The Diving Dollar
Global inflation: Policymakers fear return of a banished beast
Inflation 7982% In Zimbabwe
Oil Surge To $89 May Provoke OPEC Meeting
Oil Reverses Course, Hits New Record
Gold price hits highest level since 1980
Friction over weak dollar expected at G-7 meeting
Japan and China lead flight from the dollar
2011 – The U.S. Dollar: R.I.P.
Paulson warns of damage to come
Greenspan would not be surprised to see a double-digit fall in US house prices nationally from their peak
Wall’s Street’s Rescue Plan: Be Very Afraid
GMAC Expected to Cut 25 Percent of Mortgage Workforce
Southern CA Home Sales Plunge 30%
German bank hit by subprime crisis slashes results, directors leave
The IMF States The US Dollar Still Has Some Downside
Sub-Prime Blow Up In Canada?
It’s Time For The Banks To Face The Hangman
US home foreclosures double
U.S. home starts fall to 14-year low
Experts Fear Repeat Of 1929 Economic Crash
Oil surges near $88 a barrel
Oil Futures Hit New Record Above $86
After a 200-Year Resource Bear Market, Gold Price Could Pass US$2,271
Wall Street Falls Amid Unease Over Bad Debt; Oil Settles Above $86
Gold & Oil Surges Dollar Falls
Treasury Sales May Rise 50% as Deficit Suddenly Grows
Plan to Save Banks Depends On Cooperation of Investors
Big Banks Trying to Avoid Global Economic Crash
Treasury claims power to seize gold and silver — and everything else
Income inequality worst since 1920s, according to IRS data
Man who correctly predicted Black Tuesday makes another prediction in NY Times: ‘Country is facing… a depression’
Oil Futures Hit New Record Above $85
Oil hits record $84
Bill Moyers: Are we heading for another 1929?
London, Not U.S., Controls U.S. Mortgage Crisis
Gold price rockets to 27-year high, platinum nears record
U.S. Foreclosure Filings Nearly Double in September Over Same Month a Year Ago
Strong silence from U.S. on dollar’s weakness
Central Banks Sell 475 Tons Of Gold
Credit card debt is ready to blow
Americans charge it as Bank of Subprime closes
‘The Roof Is Caving In On the Housing Market’; ‘Think Housing’s Bad? You Ain’t Seen Nothing Yet’

U.S. Economic Collapse News Archive

 



Oil Jumps Over $90 a Barrel

Oil jumps over $90 a barrel, dollar sinks to new low against the euro

FT
October 19, 2007

Crude oil prices on Friday rose to a fresh all-time high above $90 a barrel as the US dollar sunk to a new low against the euro.

Persistent worries about tight supplies ahead of the winter peak season and fresh geopolitical tensions also helped to push prices higher.

Nymex November West Texas Intermediate hit $90.02 a barrel in overnight trading. It later was 10 cents higher at $89.57 a barrel, extending Thursday’s $2.07 price jump. It is the sixth straight trading day that oil set a record high.

Edward Morse, chief energy economist at Lehman Brothers in New York, said that financial flows betting on further US dollar weakness ahead of the Group of Seven meeting and the US Federal Reserve meeting were propping up the oil price.

The dollar traded on Friday to $1.4303 against the euro, after touching earlier a record low of $1.4311 per euro. Investors are betting on a further interest rate cut when the Federal Reserve meets on October 31.

A lower dollar cuts the purchasing power of the barrel, suggesting that producing countries, such as Saudi Arabia, would try to keep the oil price higher to compensate for it. The strength of the euro, the sterling pound and other currencies also mean that some countries, particularly in Europe, are partially insulated from the oil price rally.

David Moore, a commodity strategist at the Commonwealth Bank of Australia in Sydney, said: “The dollar fell to new lows overnight. That fact has been a boost to all commodity prices.”

The Nymex December West Texas Intermediate contract which will become the oil market benchmark early next week traded at $88.01 a barrel, after hitting $88.49 a barrel.

Nauman Barakat, senior vice president at Macquaire Futures in New York, warned that traders have built massive December options calls -rights to buy oil at a certain price- at $90 and $100 a barrel, providing the backdrop for “additional upward impetus.”

Kevin Norrish of Barclays Capital said that the issue no longer seems to be whether oil will reach $100 a barrel, but when.

“Until there is a clear prospect of the [supply-demand] gap being filled, then the course is set for the market to take out $90, $100 and $110 in fairly quick succession,” Mr Norrish said.

Low inventories crude oil inventories ahead of the winter season are also supporting prices, traders said.

OECD crude oil and products stocks have fallen below their 5-year average, after the inventories suffered a counter-seasonal drop in the third quarter.

The IEA estimates that between July and September inventories fell at a rate of 360,000 barrels a day, sharply diverging from a 10-year average of increases in that period of about 260,000 b/d.

Inventories at Cushing, Oklahoma, the delivery point for the New York Mercantile Exchange crude oil contract are running 19 per cent below last year.

The Organisation of the Petroleum Exporting Countries, which controls 40 per cent of the world’s crude oil output, denies that the market is tight, instead blaming speculation, the weakening of the dollar and Middle East tensions for the 13 per cent jump in prices in the past week.

The price jump could force Opec to call for an emergency meeting ahead of its head of state summit in Riyahd, Saudi Arabia, in late November, and its ministerial meeting in Abu Dhabi, United Arab Emirates, in early December.

Saudi Arabia, the cartel’s leader, has remained silent on whether to increase production further, but at the last Opec meeting it pushed for a production boost in spite of strong opposition from other countries, suggesting the kingdom is concerned about the impact of high oil prices on the global economy.

Opec officials said the cartel’s ministers were just returning from holidays after the end of the Ramadan, implying it may take extra time for the group to discuss a new production increse.

 

Dollar dives as US slump spreads

Telegraph
October 20, 2007

The dollar has plummeted to all-time lows against both the euro and a basket of global currencies amid growing fears of a disorderly rout as the US property slump spreads to the broader economy.

Ambrose Evans-Pritchard: Is there really a sea of limitless liquidity?

The greenback dived after the US ‘Philly’ business index dropped 10.9 to 6.8 in October, with a shock fall in new orders and inventory, raising the chances of further rate cuts by the Federal Reserve this month.

The dollar crossed the barrier of $1.43 against the euro; the broader dollar index fell to 77.478, the lowest since the series began in 1973.

The plunge follows data released this week by the US Treasury showing a record $163bn (£80bn) exodus from all forms of US assets, led by unprecedented levels of US bonds sales by Japan, China and Taiwan.

Bundesbank chief Axel Weber gave the euro an extra lift by hinting strongly at more rate rises in Europe to head off inflation, expected to reach 2.6pc in Germany.

The growing belief the European Central Bank may keep tightening despite the credit crunch has caused traders to shift gear, renewing bets on the euro. But the surging currency has hit confidence in Europe, where industries in France, Italy and some German firms are warning of serious knock-on effects.

Airbus says each one cent move costs the group $100m in profits.

Ernest-Antoine Seilliere, head of the EU-wide lobby BusinessEurope, called for “political intervention” by the G7 club of economic powers at today’s meeting in Washington.

Rodrigo Rato, head of the International Monetary Fund, offered little hope of relief. “Our view regarding the euro is that the euro stays in line with medium-term fundamentals on a multilateral basis. It is true the euro is close to historic highs in real terms, but it is also true the euro-area current account is in broad balance,” he said.

French president Nicolas Sarkozy has called for EU action to force a shift in exchange rate policy, if necessary by strong-arming the ECB to halt its campaign of rate rises.

Germany has a huge trade surplus, but France faces the biggest deficits in its history. Spain’s current account deficit is 9pc of GDP.

The US has adopted a policy of benign neglect towards the dollar slide, seeing it as a way to correct a huge current account deficit, but there are now concerns the process may be getting out of hand.

The Manufacturers Alliance/MAPI said in its quarterly outlook the soft dollar was complicating life for America’s key trading partners and risked triggering a global slowdown. “Global sentiment against the dollar is gaining traction, generating daunting challenges for the short-term economic outlooks of major US trading partners.”

Mitul Kotecha, an economist with Calyon, said: “The United States will do no more than repeat that markets determine exchange rates and will oppose any sort of intervention. There is every chance the aftermath of the G7 meeting will see the dollar resume its weakness.”

Paul Robinson, an analyst at Barclays Capital, said the prospect of Fed rate cuts had knocked away a key prop for the dollar, warning it could slide to $1.50 against the euro.

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Video: The inevitable collapse of the dollar
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Dollar Falls To New Low Against Euro
A Weak Dollar Is Bad For America
Dangers Of The Diving Dollar
Global inflation: Policymakers fear return of a banished beast
Inflation 7982% In Zimbabwe
Oil Surge To $89 May Provoke OPEC Meeting
Oil Reverses Course, Hits New Record
Gold price hits highest level since 1980
Friction over weak dollar expected at G-7 meeting
Japan and China lead flight from the dollar
2011 – The U.S. Dollar: R.I.P.
Paulson warns of damage to come
Greenspan would not be surprised to see a double-digit fall in US house prices nationally from their peak
Wall’s Street’s Rescue Plan: Be Very Afraid
GMAC Expected to Cut 25 Percent of Mortgage Workforce
Southern CA Home Sales Plunge 30%
German bank hit by subprime crisis slashes results, directors leave
The IMF States The US Dollar Still Has Some Downside
Sub-Prime Blow Up In Canada?
It’s Time For The Banks To Face The Hangman
US home foreclosures double
U.S. home starts fall to 14-year low
Experts Fear Repeat Of 1929 Economic Crash
Oil surges near $88 a barrel
Oil Futures Hit New Record Above $86
After a 200-Year Resource Bear Market, Gold Price Could Pass US$2,271
Wall Street Falls Amid Unease Over Bad Debt; Oil Settles Above $86
Gold & Oil Surges Dollar Falls
Treasury Sales May Rise 50% as Deficit Suddenly Grows
Plan to Save Banks Depends On Cooperation of Investors
Big Banks Trying to Avoid Global Economic Crash
Treasury claims power to seize gold and silver — and everything else
Income inequality worst since 1920s, according to IRS data
Man who correctly predicted Black Tuesday makes another prediction in NY Times: ‘Country is facing… a depression’
Oil Futures Hit New Record Above $85
Oil hits record $84
Bill Moyers: Are we heading for another 1929?
London, Not U.S., Controls U.S. Mortgage Crisis
Gold price rockets to 27-year high, platinum nears record
U.S. Foreclosure Filings Nearly Double in September Over Same Month a Year Ago
Strong silence from U.S. on dollar’s weakness
Central Banks Sell 475 Tons Of Gold
Credit card debt is ready to blow
Americans charge it as Bank of Subprime closes
‘The Roof Is Caving In On the Housing Market’; ‘Think Housing’s Bad? You Ain’t Seen Nothing Yet’

U.S. Economic Collapse News Archive