Gulf states preparing to crash the dollar

[Apocrypha]

http://www.independent.co.uk/news/bu...r-1798175.html

[Digging4Truth]

Yep... simple supply and demand.

The dollar has been the trading medium for oil and several countries have threatened to or have gone ahead and stopped using the dollar. We have gone to war with some and threatened to go to war with others.

But we can't go to war with everybody so the rest of the block has gotten together and decided to take us down.

It is simple supply and demand.

The dollar stays higher because there is a great demand for it.(although it is worth less than 4 cents compared to when the NOT Federal NOT a Reserve took over)

This is largely because the dollar is used to buy oil around the world. People have to convert their currencies to dollars to buy oil.

When they stop buying oil with the dollar then the global demand for the American dollar will plummet through the basement and the value of the dollar (which is already a horror story) will crash to little more than the paper it is printed on.

It is hard to show up at a grocery store with enough paper to trade for a bag of groceries.

Ron Paul.

All the 3rd party nay sayers remember. You had a chance to stop this but the major media outlets didn't give the proper permission. The 2 party circus kept everybody arguing between which party they wanted to drive us into destruction rather than choosing someone who would really change things.

And... yes... I remember. Ron Paul ran as a Republican (largely because what he stood for is what the Republican party used to stand for) but he was too "3rd party" in his ideas. He is the only politician who has the insight to have made an attempt to turn this thing around. All other politicians would have continued down the same road to destruction.

[Apocrypha]

Ron Paul!

http://www.youtube.com/watch?v=ji_G0MqAqq8

[*AQuietPlace*]

What does this mean in plain English? What will it mean to your average American?

[Digging4Truth]

Originally Posted by *AQuietPlace*

What does this mean in plain English? What will it mean to your average American?

A crash in the value of their dollar...

[coadie]

Originally Posted by *AQuietPlace*

What does this mean in plain English? What will it mean to your average American?

It means we will have inflation.
We will pay higher prices at walmart for goods from china
There will be pressure to develop more domestic oil.
Geithner (tax cheat) created havoc in asian currencies before he stepped his domestic career.
To people on fixed incomes, inflation will cause pain.
Social security has an inflation adjustment in it. Social security is adjusted for inflation in the consumer price index.

Guess what. They leave out food, energy.and other basics from the index.
Groceries, electric and gas will rise higher and incomes will not raise as much.

Facts
US is 25% of global domestic production
Walmart sales are greater worldwide than the gross revenues of saudi arabia
Every one wants us to spend dollars with them.

[Digging4Truth]

Originally Posted by coadie

It means we will have inflation.
We will pay higher prices at walmart for goods from china
There will be pressure to develop more domestic oil.
Geithner (tax cheat) created havoc in asian currencies before he stepped his domestic career.
To people on fixed incomes, inflation will cause pain.
Social security has an inflation adjustment in it. Social security is adjusted for inflation in the consumer price index.

Guess what. They leave out food, energy.and other basics from the index.
Groceries, electric and gas will rise higher and incomes will not raise as much.

Facts
US is 25% of global domestic production
Walmart sales are greater worldwide than the gross revenues of saudi arabia
Every one wants us to spend dollars with them.

From the wording of your post it appears that you foresee that this will bring nominal inflation which most will be able to absorb.

Is that a fair assessment?

[Dedicated Mind]

scary indeed, thanks for posting!

[coadie]

Originally Posted by Digging4Truth

From the wording of your post it appears that you foresee that this will bring nominal inflation which most will be able to absorb.

Is that a fair assessment?

If you write a macro economic equation, it would take 4 blackboards arouund the room to post all the variables in a classroom. Today a simple variable is gold. By as much as gold is going up, the dollar is falling that much. Inflation will exceed nominal since commodities are going up. Min wage and labor rates will go up. Prices will go up to reflect increased healthcare costs and if employment starts rising, the demand for consumer products will add inflation.
I suspect some speculators are trying to drive the dollar down and make hedging profits.