Thread: Are Iran, Russia, China behind dollar's free-fall?

Are Iran, Russia, China behind dollar's free-fall?
Some see 'Currency Cold War' meant to bring U.S. to its knees

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Posted: October 2, 2007
1:00 a.m. Eastern



© 2007 WorldNetDaily.com





WASHINGTON – The hottest selling book in China right now is called "Currency Wars," which makes the case that the U.S. Federal Reserve is a puppet of the Rothschilds banking dynasty and it has persuaded some top officials Beijing should resist America's demands to appreciate its own undervalued currency, the yuan.

This might not be news of concern to most Americans if the U.S. dollar were not in precipitous free-fall, having reached record laws against the euro yesterday.

What would it mean if China ever threw its economic weight around by dumping dollars in a major way?

Suffice it to say it is referred to in some quarters as China's financial "nuclear option," because it would be the economic equivalent of detonating a thermonuclear weapon in the world's financial markets.

But the American dollar's fate is hardly in the hands of the Chinese alone. Other foreign parties suspected of participating in a new "Currency Cold War" are Iran, Russia and Venezuela.

Diane Francis, a financial reporter for the National Post in Canada, says it plainly and boldly: "There is a Currency Cold War being waged by Russia, Iran and various allies such as Venezuela."

The grand strategy being engineered by Vladimir Putin, she writes, is to force the use of euros as the international monetary standard as a transition to the Russian ruble.

"This is simply a monetary version of the old Cold War, minus the missiles," she writes.

Experts don't see any short-term reprieve for the falling value of the dollar. Kathy Lien, chief currency strategist with DailyFX.com in the US, told Bloomberg she expects the American dollar to slide even further, forcing more lending rates cuts in the U.S. to stave off recession.

"It seems like every single passing day we have a new record low in the dollar, and a new record high in the euro, and it's driven by the fact that U.S. data is continuing to deteriorate," she said.

If other nations do not follow the U.S. in cutting rates, the slide in the value of the dollar would most likely continue.

If the dollar trend continues spiraling downward, the risk is that nations like China – or Japan or Saudi Arabia – which have been buying U.S. Treasury bonds and thereby funding America's deficit, would stop that practice.

That would be the nuclear option.

China, with $1.3 trillion in foreign exchange reserves as a result of the massive and growing $260 billion U.S. trade deficit, has taken huge losses with the falling dollar, given that some 80 percent of China's $1.3 trillion in foreign reserves is held in U.S. dollar assets, largely in U.S. treasury securities.

Meanwhile, Song Hongbing, the author of China's runaway bestseller, "The Currency Wars," says he's pleasantly surprised at the 200,000 copies his book has sold. He is probably not eager to see the dollar punished as he lives in Washington, D.C.

"I never imagined it could be so hot and that top leaders would be reading it," he says during a book tour in Shanghai. "People in China are nervous about what's going on in financial markets, but they don't know how to handle the real dangers. This book gives them some ideas."

Among the research findings that shocked him most was that the Fed is a privately owned and run bank.

"I just never imagined a central bank could be a private body."

Some, meanwhile, are standing on the sidelines cheering the currency wars – seeing them as a way of reducing the power and influence of the "imperialistic" U.S.

Rohini Hensman, who describes himself as "independent scholar, writer and activist based in India and Sri Lanka," says it's about time the U.S. got its comeuppance.

"As the bombs started falling on Iraq in 2003, I wrote and circulated an appeal entitled 'Boycott the Dollar to Stop the War!,' arguing that although the military strength of the U.S. was enormous, its economy was in a mess; with a massive gross national debt, the only reason it could finance its foreign wars and occupations was because of the inflow of over a billion dollars a day from countries accumulating foreign exchange reserves in dollars because it was the world's sole reserve currency. The denomination of the oil trade in dollars made it additionally desirable. With the advent of the euro, however, there was the possibility of an alternative world currency; therefore individuals, institutions and countries opposed to the war on Iraq should refuse to accumulate dollars or use them outside the U.S., because these were activities that helped to finance U.S.-Israeli aggression against Palestinians, Iraqis and Afghanis. After the World Social Forum meeting in 2004, the Boycott Bush Campaign adopted the dollar boycott as part of its strategy."

In early trading today, the dollar advanced slightly, prompting gold prices back from 28-year highs set yesterday. The dollar's value against a basket of six major currencies rose slightly to 77.950 from a lifetime low of 77.657 a day earlier. The dollar traded at $1.4223 per euro, stronger than a record low on Monday of $1.4283.

WND has reported the Federal Reserve is in a dilemma.

The stock market has demanded rate cuts, wanting to return to the free credit policies of the Federal Reserve that fueled the liquidity bubble that has boosted home prices and pumped the Dow Jones Industrial Average since 9/11.

Yet, the Fed giving in to stock market demands and lowering rates threatens an international dollar sell-off that could lead to a dollar collapse.

Former Fed Reserve Chairman Alan Greenspan also sparked controversy by suggesting in his recently published book, "The Age of Turbulence," the euro is rivaling the dollar as the international foreign exchange reserve currency of choice.

The Wall Street Journal recently quoted a rule of thumb advanced by Harvard University economist Kenneth Rogoff, a former chief economist for the International Monetary Fund. According to Rogoff’s "back-of-the-envelope" calculation, a 20 percent drop in the dollar's exchange value reduces Americans' income by 3 percent, adjusted by inflation.

http://www.worldnetdaily.com/news/artic ... E_ID=57936

Oh yes, this was in the news a while back, I forget which middle eastern despot shouted that he would bring the US to it's knees by no longer accepting the US dollar as currency.

We need Ron Paul as he is the only candidate that wants to take the FED RES out.

PAULSON INVOKES THE ‘FULL FAITH AND CREDIT’ HE TRASHED
TREASURY SECRETARY 'COMMITTED' TO THIS 'NATIONAL ASSET'
Thursday 20 September 2007 03:45
CONGRESS ASKED TO RAISE STATUTORY DEBT LIMIT UNNECESSARILY

WANTA PLAN MAKES STATUTORY DEBT LIMIT INCREASES OBSOLETE

[size=24]PAULSON PREFERS DEFICIT FINANCING TO REFINANCING OF AMERICA[/size]


• EMBEZZLEMENT OF WANTA'S FUNDS BY NAMED U.S. OPERATIVES: Keep reviewing our report dated 17th September 2007 [see: Archive]. It proves forgery and fabrication of banking documents. This is an important development which is already having crucial repercussions.

HYPOCRITICAL STATEMENT TO GULLIBLE U.S. CONGRESS
Henry M. Paulson – the US Treasury Secretary responsible for the destruction of the ‘Full Faith and Credit of the United States’ by illegally stealing and diverting Ambassador Leo Wanta’s $4.5 trillion Settlement since June 2006 – yesterday invoked ‘the Full Faith and Credit of the United States’.

His latest hypocritical intervention was contained in a letter to the US Senate Majority Leader Harry Reid, of Nevada, in which he asked Congress to raise the Statutory Debt Ceiling, currently standing at $8,965 billion, ‘as soon as possible’.

Paulson’s letter to Congress contained the following breathtaking assertion:

‘The Full Faith and Credit of the United States, to which we all remain committed, is a national asset and a cornerstone of the global financial system’.

PAULSON WASN’T COMMITTED TO 'FULL FAITH' WHEN HE STOLE WANTA’S FUNDS
If that is the case, why did Hank Paulson systematically squander the ‘Full Faith and Credit of the United States’ from June 2006 onwards, by stealing, diverting, exploiting, leveraging and otherwise illegally abusing Ambassador Wanta’s $4.5 trillion – and in the course of these scandalous financial operations, which the owner of the funds, Ambassador Leo Wanta, never authorised – insulting and lying to the Chinese authorities, deceiving and double-crossing Heads of State and high officials of other Governments, and generally conducting himself in a manner inconsistent with the highest standards that should accompany occupation of the elevated post that he holds?

Was not such behaviour conducive to the accurate conclusion that no-one can have faith in a United States led by operatives like Paulson, let alone in its fraudulent credit and financing practices?

Why, if, as he claims, ‘we all remain committed’ to ‘the Full Faith and Credit of the United States’, has he demonstrated, by his irresponsible actions in presiding over the assault on Wanta’s funds since June 2006, his comprehensive lack of any commitment to financial integrity and to the ‘Full Faith and Credit of the United States’, as we pointed out repeatedly in earlier Wantagate reports?

STATEMENT SHOWS PAULSON KNOWS FULL WELL WHAT DAMAGE HE HAS DONE
And why did he consider it even necessary to make this statement affirming ‘our’ commitment to the 'Full Faith and Credit of the United States’?

Was it not clearly because, for all his arrogance, this man knows perfectly well that the ‘Full Faith and Credit of the United States’ has been irreparably damaged by his own reprobate financial misbehaviour? And yet he imagines that by invoking ‘the Full Faith and Credit of the United States’ after having systematically destroyed it, no-one will have noticed this ridiculous inconsistency?

If ‘the Full Faith and Credit of the United States’ is such a great ‘national asset’, why has this US financial barbarian effectively destroyed it?

Does he seriously imagine that the 50+ million readers of this report around the world, and the senior officials of other Governments and in the international financial institutions who will be reading it too, will already have forgotten how Mr Paulson has squandered the reputation of the United States generally, and how he has repeatedly stolen and diverted the Wanta funds since the disastrous moment that he replaced John Snow as Treasury Secretary?

Does he admire Dr Josef Goebbels SO MUCH that he thinks that occupying the post of US Treasury Secretary entitles him to lie through his teeth as a matter of routine?
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TREASURY WOULD HAVE RECEIVED $8.0 TRILLION BY NOW
For if Paulson had not committed treason by presiding over the hijacking of Wanta’s $4.5 trillion in June 2006, not only would Ambassador Leo Wanta have remitted $1.575 trillion (35% of $4.5 trillion) immediately by way of windfall tax paid straight to the Treasury, but the Treasury’s accruals arising from the implementation of agreed capital markets trading under the Wanta Plan would by now exceed $8.0 trillion. Treasury revenues from trades are expected to aggregate $200 billion a week.

Under the Wanta Plan, capital markets operations ON THE BOOKS between the Ambassador’s Commonwealth of Virginia corporation, AmeriTrust Groupe, Inc., and the investment banking firm headed by Michael C. Cottrell, M.S., one of the world’s most accomplished securities experts, with six or eight financial institutions, will take place using techniques that are legitimate if tax is paid on the accruals, but which cease to be legitimate in any sense when conducted off the books – as has typically been the case in the underworld for years, with the accruals earned by free-wheeling US operatives exploiting stolen assets, stashed untaxed in secret bank accounts offshore.
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BENEFITS WOULD BE FLOWING FOR ALL AMERICANS BY NOW
In other words, the US Treasury’s irresponsible, ongoing deficit-financing operations, which have continued for a century, would have been placed immediately into reverse by the final quarter of last year – and Congress would never again be required to raise the Statutory Debt Ceiling, which it has been doing ever since the Second World War. (The US Congress uses this residual power to impose its views upon the Executive Branch, but always raises the Statutory Debt Limit in the end, when the Treasury has exhausted various exotic internal financing mechanisms – including using the assets in and special powers of the Exchange Stabilization Fund and the Federal Financing Bank within the Treasury, which is permitted by Statute to have $15 billion of debt outstanding at any given time. Such operations can stave off a Government shutdown for perhaps six weeks).

BENEFITS THAT PAULSON’S CRIMINAL BEHAVIOUR HAS THWARTED
Even if, say, 25% of the Treasury’s windfall Wanta Plan accruals had been set aside for paying down the debt, Congress would of course never again need to be asked to raise the Statutory Debt Limit. And the US Treasury’s sales of securities – of which $73 billion in marketable debt will have been issued this quarter, with a further $74 billion to follow in October-December 2007 – would cease
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OKAY, mountains of contracts were ‘successfully’ destroyed on 9/11, when the contracts held by Cantor Fitzgerald went up in smoke along with that firm’s 658 sacrificed employees, while Enron-related documents were ‘successfully’ incinerated when Building Number 7 was blown up late that afternoon. That meant, of course, that the contracts in question were all ‘forgiven’.
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• Mountains of contracts were ‘successfully’ destroyed when the files of Deutsche Bank were burnt in the Iron Mountain fires in London and Ottawa that took place in July 2006, when certain parties realised what was ‘coming down’ – with the same outcome.

• And OKAY, these criminals have been able ‘successfully’, so far, to mask their criminality by inventing a fake, contrived ‘War on Terror’ – providing the pretext for unproductive, massively costly ‘Big Brother’ surveillance, the real purpose of which is to establish how much information about the criminal gangs’ fraudulent finance is ‘leaking’ into the public domain.

How unfortunate, then, that their endless, Goebbels-type lies – for instance, about Osama Bin Laden (the CIA’s ‘Tim Osman’) issuing updated fatwa-tapes as recently as a few weeks ago, when in fact he expired in the United States on 26th December 2001 – are unravelling almost as rapidly as intelligence about their endless financial frauds is surfacing.

The Bin Laden videos are every bit as crude as the careless forgeries of banking documents that we have been examining and exposing, especially given that this operative has been 100% dead for nearly six years now: really DEAD, not falsely dead, like Leo Wanta, whom the CIA claimed was dead and who ceased to be dead when the Editor paid his ransom money in July 2005.
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http://www.worldreports.org./news/81_pa ... vokes_the_

No, Bush and Congress are behind it with their out of control spending.

According to the reports, there are 100.000 people involved.Bush SR., Bush, Cheiney, chertoff,Clintons, etc many senators, representatives etc.... are not spending but filling thei own pockets...