Thread: Analysts: Dollar collapse would result in "amero"

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THE NEW WORLD DISORDER
Analysts: Dollar collapse
would result in 'amero'
Think deep recession likely
regardless of Fed's actions


By Jerome R. Corsi
© 2006 WorldNetDaily.com

Two analysts who have reconstructed money supply data after the Fed stopped publishing it argue a coming dollar collapse will set the stage for creating the amero as a North American currency to replace the dollar.

The reconstructed M3 data – the broadest measure of money – published on econometrician Gary Kuever's website, NowAndFutures.com, shows M3 increased at a rate of 11 percent in May, compared to 9 percent when the Federal Reserve quit publishing M3 data earlier this year.

Asked why the Fed decided to stop publishing M3 data, Kuever told WND, "The Fed probably wants to hide how much liquidity is being pumped into the market, and I expect the trend to keep pumping liquidity into the market will continue, especially since the economy is slowing down."

(Story continues below)


Why is this important?

"The trend line in my M3-plus-debt chart is staggering," Kuever said. "There has been a straight, long-term trend line of M3-plus-credit increasing since 2000. Long-term, we are creating inflation and the dollar has lost almost 98 percent of its value in the past 100 years."

Kuever, a retired investor, is concerned that with growing budget and trade deficits "the dollar could collapse."

"Especially if the Fed cannot increase rates, because we have already entered a recession," he said.
Analyst Gary Kuever's chart shows M3-plus-credit, short term, from May 2000 to September 2006


Bob Chapman, who issued a reconstructed M3 estimate to the 100,000 subscribers to his newsletter, "The International Forecaster", agrees.

"The world is awash in money and credit," Chapman told WND. "My numbers show M3 increasing at about a 10-percent rate right now."

Chapman believes the U.S. economy entered a recession in February. In his newsletter of Dec. 9 he predicted the Fed would hold interest rates at 5.25 percent.

"The Fed is in a very tough spot here," Chapman wrote, "If they raise rates, the real estate market will collapse, and if they lower rates, the dollar will collapse."

Meeting yesterday, the Federal Reserve Open Market Committee voted, as Chapman had predicted, to hold the overnight lending rates between banks steady at 5.25 percent. This was the fourth straight meeting the Fed had voted not to change rates. In its rate announcement, the Fed affirmed the economy had slowed.

Almost immediately after the announcement of the Fed's decision, the dollar weakened to a new 20-month low against the euro, with currency markets reportedly pricing in the expectation the Fed will be forced to lower rates next year to bolster the economy. Following the announcement by the Fed, the U.S. Dollar Index, or USDX, also dropped, with the dollar going below 83.

A dollar collapse is imminent, Chapman declared.

"Technicians studying the USDX think there is a support level for the dollar at 75, but I don't think so."

How low could the dollar go?

"If the dollar breaks through 78.33 on the USDX," Chapman answered, "my guess is the dollar will go through a 35-percent correction, which would put it at 55."

"The key in how low the dollar goes is the interest rates," Chapman told WND. "In January, the Fed is going to have to make a decision which way to go. If Fed rates go up, the dollar will hold in the 78.33 range, but the stock market and the economy will tank. If next year the Fed lowers rates to keep the economy from crashing, the bottom will fall out of the dollar, and I see it going as low as 55. Once the dollar hits bottom, it will take the stock market and the economy right with it anyway. The Fed is in a box they can't get out of."

As WND reported earlier this week, in an unusual move, the Bush administration is sending virtually the entire economic "A-team" to visit China for a "strategic economic dialogue" in Beijing Thursday and Friday. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke are leading the delegation, along with five other cabinet-level officials, including Secretary of Commerce Carlos Gutierrez. Also in the delegation will be Labor Secretary Elaine Chao, Health and Human Services Secretary Mike Leavitt, Energy Secretary Sam Bodman, and U.S. Trade Representative Susan Schwab.

But Chapman doubts the trip will help the Fed to engineer a slow dollar slide.

"The Chinese are going to do what the Chinese want to do, not what we want them to do," he said. "I believe the Chinese are going to send Treasury Secretary Paulson and Fed Chairman Bernanke home packing, with little or nothing to show for the trip."

How severe will the coming dollar collapse be?

"People in the U.S. are going to be hit hard," Chapman warned. "In the severe recession we are entering now, Bush will argue that we have to form a North American Union to compete with the Euro."

"Creating the amero," Chapman explained, "will be presented to the American public as the administration's solution for dollar recovery. In the process of creating the amero, the Bush administration just abandons the dollar."

http://www.worldnetdaily.com/news/artic ... E_ID=53350

This may be a dup., but we need to hear it again.

So many think that it's just conspiracy.

I just heard tonight on the news that they are predicting a recession (that we are already in). Gotta pave the way for the Amero.
If US dollar is strong then it would be impossible for the Amero.

The only way to stop all and I mean all of this stuff

The Amero
The SPP
NAFTA
North American Union

Get off of your butt's and push for Empeachment

Republicans are going to have to do it.....

The Democrats do not want Bush to be impeached... They are smart enough to see he does way more good for they're cause if he remains in office

WHY CAN'T THE CONSERVATIVE BASE SEE THIS... WHY ARE YOU BLIND. ARE YOU HOPING IT WILL GET BETTER.... THERE IS NO INDICATOR HE IS CHANGING HIS PATH

WE ARE PLAYING WITH FIRE ALLOWING HIM TO STAY IN OFFICE

We stand at least a little chance with Chaney ... he would not be strong enough to enact anything with the time he has left

Demand to your senators to enact impeachment proceedings NOW!

Let's connect some dots here

- The Economy (Bush) Greenspan and Bernanke goes by Bushes Guidance ...
- liquidity from Bush has the markets ready to collapse
- liquidity flooded the banks which fueled the housing collapse
- Sub Prime fiasco (Financed by the Fed)
- A US very, very bad recession is right around the corner IF NOT DEPRESSION
- Billions of US investor dollars lost within the last month alone in the stock market and is SCREAMING FOR A TAX PAYER BAILOUT
- Billions of foreign currency lost because of the liquidity of the Fed under Bush
- The cost of living is higher than the FED Chief wants us to believe (He has intentionally cooked the books) to make everything look rosy (How much are you paying for milk and the essentials)
- The Rich are getting Richer; the Poor and Getting Poorer and the Middle class is being eliminated
- Greedy lenders seen the Illegal Immigrants as dollar signs and now we are all paying for this mess

It all goes back to Bush

My senators are a JOKE:

Mel Martinez + Bil Nelson.....Do I need to say more ?

The unattractive spectacle of the leading central banks most specifically associated with and responsible for the illegal transactions in question, the Federal Reserve and the Bank of England, mouthing platitudes for public consumption, when it has been their very own operations using the unaccountable Federal Interbank Settlement Fund for illegal financial transactions and for private gain, that have materially contributed over time to the wholesale destabilisation of the international financial system generally. Now they are having to pump newly created liquidity into the system ‘on-balance sheet’, to prevent the collapse of the ‘on-the-books’ sector that their corrupt, hidden ‘off-balance sheet’ financial transactions have systematically undermined.

http://www.alipac.us/modules.php?name=F ... ht=#443498

My senators are a JOKE:

Mel Martinez + Bil Nelson.....Do I need to say more ?

They are my senators too..... dont worry, election time is coming up and they are getting the boot from office.

Martinez I think we have to wait until 2010.... but his cuban a_ _ is history

he can sell black beans and rice at construction sites to make a living

And Bill Nelson just got elected (not with my vote) is not different .