China sees dollar destruction coming and calls for new currency order (Ameros?) by participant

the 'Amero' is not real, ok stuff like NAFTA is real but the Amero is not. This currency is just another rumor the conspiracy nuts created to convince people about some big global government conspiracy

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Friday, October 10, 2008 6:50 AM

SIGNYM

I believe in solving problems, not sharing them.

Nonetheless, the Chinese hold a huge amount of American dollars. Those dollars have gone into their forex reserves, but also into a Sovereign Wealth Fund, and from there into T-bills, Fannie and Freddie bonds, Morgan Stanley and Blackstone Group. China was PART of the reason for the Fannie/ Freddie bailout (keep the Chinese happy so they don't dump dollars en masse).

But China is taking a bath on its dollars and dollar-denominated investments, and what I think they want is to replace their shrinking dollars with a "basket" of currencies.

---------------------------------
Let's party like its 1929.

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Monday, October 13, 2008 6:59 AM

Stocks bounce back

Quote:
U.S. markets zoom up Monday
http://www.upi.com/Business_News/2008/10/13/US_markets_zoom_up_Monday/
UPI-86731223908362/

but serious issue remain?

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Wednesday, October 15, 2008 3:39 AM

(AP) — Wall Street headed for a sharply lower opening Wednesday after economic data raised the possibility that the country is either in a recession or moving toward one. The government reported that retail sales plunged in September by 1.2 percent last month — almost double the 0.7 percent drop analysts had expected.

The Commerce Department report was sobering because consumer spending accounts for two-thirds of total U.S. economic activity. Wall Street has refocused its attention on the economy now that the government is working to ease the stagnant credit markets.

Investors were also reacting to third quarter earnings from two banks caught up in the mortgage mess. In another sign of how the financial crisis is slamming the economy, JPMorgan Chase & Co. reported an 84 percent decline in its third-quarter profit.

JPMorgan, which bought the assets of failed bank Washington Mutual Inc. late last month as a result of the mortgage bust, said the profit drop reflected losses on bad mortgage investments, leveraged loans and home loans.

Still, the results beat expectations. The company earned $527 million, or 11 cents per share, compared with $3.4 billion, or 97 cents per share, a year earlier. Analysts polled by Thomson Reuters expected a loss of 21 cents per share.

Also Wednesday, Wells Fargo & Co. reported that its third-quarter profits fell 23 percent after it took hits on investments in troubled finance companies and increased its credit reserves. The results also were better than analysts had expected.

For the July-to-September period, Wells Fargo earned $1.64 billion, or 49 cents per share, compared with $2.17 billion, or 64 cents per share, in the prior-year quarter.

On Tuesday, for the first time in nine sessions, the Dow Jones industrial average did not finish the day with a triple-digit loss or gain. Instead, after swinging erratically throughout the session, the blue-chip index closed the day down 76 points following Monday's record 936-point advance.

Ahead of the market's open Wednesday, Dow futures fell 205, or 2.19 percent, to 9,157. Standard & Poor's 500 index futures fell 26.00, or 2.59 percent, to 976.30, and Nasdaq 100 index futures fell 20.25, or 1.48 percent, to 1,345.75.

Late Tuesday, Intel Corp., the world's largest maker of PC microprocessors, beat analysts' estimates and posted a third-quarter profit increase of 12 percent.

The stock market has been catching its breath from a dismal week on Wall Street that erased about $2.4 trillion in shareholder wealth and brought the Dow to its lowest level since April 2003. The tumble occurred amid a seize-up in lending stemming from a lack of trust among institutions in response to the bankruptcy of investment bank Lehman Brothers Holdings Inc. and the failure of Washington Mutual.

The credit markets have been showing signs of recovery, but they are far from healthy, and demand for safe assets remains extremely high. The three-month Treasury bill on Wednesday was yielding 0.21 percent, down from 0.30 percent on Tuesday. When yields are low, it shows that demand is so high that investors are willing to earn meager returns as long as their principal is preserved.

In other economic data Wednesday, the Labor Department said the producer price index, which measures inflation pressures before they reach the consumer, fell 0.4 percent in September, driven by lower energy costs. That decline matched analysts' expectations.

In Asian trading, Hong Kong's Hang Seng Index lost nearly 5 percent after rising more than 13 percent the previous two days. Markets in Australia, South Korea, China, India and Singapore also sank. Japan's Nikkei 225 index, however, ended up 1.1 percent at 9,547.47 after soaring 14 percent in the previous session.

In morning trading in Europe, Britain's FTSE 100 fell 3.24 percent, Germany's DAX index fell 2.63 percent, and France's CAC-40 fell 2.59 percent.

Crude oil fell $2.59 to $76.04 a barrel in premarket electronic trading on the New York Mercantile Exchange. The dollar fell against other major currencies.

http://ap.google.com/article/ALeqM5gHs5OM3gFG_DytQQZFbWfgPT08MAD93QUNK
G3

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Friday, January 16, 2009 1:56 AM

China's US bond appetite to slow: economists
http://www.google.com/hostednews/afp/article/ALeqM5ilqLjiEVaczGYXKrybA
Z09pBAIXQ
4 hours ago

SHANGHAI (AFP) — China is expected to ease its spending on US debt as growth in its foreign exchange reserves slows and Beijing seeks to fund its own economic stimulus plan, analysts say.

US President-elect Barack Obama has proposed a stimulus bill expected to total at least 775 billion dollars that he has acknowledged would drive the US deficit significantly higher -- and require financing from overseas.

China overtook Japan as America's biggest foreign creditor in September and as of October held 652.9 billion dollars in US Treasury bonds, according to the latest US Treasury Department figures.

Beijing increased its Treasury bond holdings by 65.9 billion dollars in October.

It marked a continuation of the trend that began in the third quarter, when it dumped government affiliated agency bonds, such as Fannie Mae and Freddie Mac, and began ploughing money into safer Treasury bonds.

But such growth is not expected to last much longer.

"China's reserve growth is likely to slow, and over time so will its Treasury purchases -- even if they haven't yet," said Brad Setser, an economist with the Washington-based Council of Foreign Relations.

"China isn't going to add close to 70 billion to its short-term Treasury holdings forever," he wrote on the council's website this week.

Beijing also warned last month it would not keep lending money to the US economy indefinitely, in an editorial in the government-run China Daily -- an English-language newspaper aimed at a foreign audience.

"China's increased purchase of US Treasury securities should not be interpreted as an endorsement of the assumption that the US can borrow its way out of the current financial crisis," it said in an editorial.

But at the same time, the editorial added any halt in Treasury purchases could push US interest rates up and undermine Washington's efforts to bail out the economy. That, in turn, would hurt China's exports.

People's University of China economist Zhao Xijun agreed China's US bond buying rate was likely to slow.

China could also use its reserves to import equipment, technology and raw materials as part of its stimulus plan, he said.

"These imports will reduce the trade surplus and in turn further slow the growth of foreign exchange reserves," Zhao said.

For years, China has channeled its foreign reserves -- mostly generated by its trade surplus with the United States -- into American debt. By doing so, it helped make US borrowing cheaper and sustain the US economic boom.

But the financial crisis is reshaping the global economy.

Although China's reserves, the world's largest, still rose in 2008 to 1.95 trillion dollars by the year's end, last year marked the first time in a decade their growth had slowed.

They rose 27.3 percent in 2008 against 43.3 percent in 2007.

At the same time, Beijing has to fund a four-trillion-yuan (590-billion-dollar) stimulus package to revive its economy -- whose growth could slow to 7.5 percent this year, the World Bank estimates, a level not seen since 1990.

Chinese economists expect the government to be much more cautious with its reserves in 2009.

"There are chances that America may sink into a second round of the financial crisis... we have no idea when the US economy will bottom out," Bank of Communications economist Lian Ping said.

"If we increase the variety of China's overseas investments, we can better avert crises and risks," he said.

But China's options are limited as the largest owner of US Treasuries, said He Jun, an economist with the Beijing-based Anbound Consulting.

"We have bought too many bonds," He said. "So if globally investors' confidence in the US government shatters, we could suffer massive losses."

"There are political considerations too, the US and China have an unspoken agreement to maintain economic stability. The reality is we have little choice."

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Friday, January 16, 2009 3:32 AM

This too will pass.

What they've done is far more beautiful than what they intended. They've destroyed the world economy. They meant to rule it, but they accidentally killed it. I'm happy as a clam, atm.

Guanji.

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Friday, January 16, 2009 6:10 AM

Quote:
the 'Amero' is not real, ok stuff like NAFTA is real but the Amero is not.

Yanno, that's what they said about NAFTA, that it was pie in the sky, a conspiracy theory, all that and therefore didn't have a plan in place to block it or nothing - and got steamrollered.

*NEVER* underestimate the Gov't ability or will to institute a dumbass plan, that *will* bite you on the ass, repeatedly.

And I would not so quickly dismiss the conspiracy types neither - yes they're wacky, but sometimes outing the mere concept or plans existence (See Also: NORTHWOODS) reduces the chances of it ever happening by ensuring that those behind it will not get away with it so cleanly, there's been more than a few "grand plans" that *were* gonna happen, outed by 'conspiracy theorists' and thus foiled, read up on the Pike and Church Committe findings and also the "Family Jewels" report to see MUCH gnashing of teeth about exactly that problem.
http://en.wikipedia.org/wiki/Pike_Committee
http://en.wikipedia.org/wiki/Church_Committee
http://en.wikipedia.org/wiki/Family_Jewels_(Central_Intelligence_Agenc
y)

And so, nothing happens, and the 'conspiracy theorists' get laughed at it for, but never for a moment forget that without those wacky nutjobs, some of that crap they planned might HAVE happened.

Some of it still can.

Sure, they're nutters, but they're nutters who serve a useful purpose.

-Frem

It cannot be said enough, those who do not learn from history, are doomed to endlessly repeat it

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Friday, January 16, 2009 6:55 AM

They intend to keep inventing currencies, the amero is just one in a series of steps, like the euro. There's a flaw in the design though

weiji

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Friday, January 16, 2009 8:42 AM

Addendum to the above thoughts...

Think of the conspiracy types like coal mine canaries - long as you can hear em bitchin and fussin, things haven't gone *too* far downhill just yet.

It's when they suddenly go silent, that you need to be concerned.

-Frem

It cannot be said enough, those who do not learn from history, are doomed to endlessly repeat it

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Friday, January 16, 2009 9:37 AM

Frem

John made the point a while back that as long as he brings the crazy, he can post whatever he wants. If he posts a solid cogent argument and a rock solid case, he gets booted in no time. You should see his stuff on the corruption of defense subcontracting, it's pretty solid.

So, I decided to test his theory, and he's right. I designed a site detailing all the public information about the attack plans on Iran, and about the reality of the targets, showing the towns and people to be nuked, and making the argument that the attack plan being mulled was a classic cold war nuclear first strike to take out major industrial centers to disable their defense, and not an effect plan against the Iranian nuclear program, and I got a couple letters from congressmen about it, and a couple other people, and then *poof* it was gone. And just as John said would happen, I was just informed that my account had been closed, and there were no further details.

IOW, the canary is feeling a little uncomfortable.

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Friday, January 16, 2009 9:43 AM

RUE

I have a vote and I'm not afraid to use it!

DT

Do you think this might be a good site to provide titles and links for said info ?

They WOULDN'T kill this site - would they ? It seems like if they tried, it would be rather obvious.

***************************************************************

Silence is consent.

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Friday, January 16, 2009 10:51 AM

He's essentially correct, yes.

You either "bring the crazy" and hide the useful bits in there where the folk you're handing them to will look or you go vague, obfuscatory and never quite let on to which side you're gonna take.

But go head to head and it's like standing in the path of a locomotive, sure.

That's why your point about not going strength to strength makes so much sense, you come at em sideways, sidle and up smile...

And then slam a shank in their spine while they ain't lookin, a technique about as old as politics itself, but still useful for all that.

I favor the Jack Sparrow method myself.
"yes, but who's side is HE on ?"
"you mean like, at the moment ?"
But crazy works too - it's all about looking harmless till they give you an opportunity, and even then having someone or something else for them to blame, setting them in a position where their ego will not let them believe it was you.

As for having a site mowed down - you'd be pretty stunned to know this place wouldn't last 12 HOURS if someone did that and the powers that be thought it would be taken seriously, I've been with quite a few sites that were wiped in exactly that fashion, Luther made a *big* mistake when he went to 20/20 trying to expose a certain media companys involvement with predators, and it cost him site, home, relationship, job, etc...
In fact rumor has it he changed sides cause it was the only way he could survive at that point, and of the rest, two suicides, one MIA in hiding, and the one person smart enough to have done everything by proxy and cutout is right here.

And the later WSJ article, even though toned down to minimize the boat rocking, raised a bit of hell since it happened to appear in the same edition as said media companies half-page advertisement (oops!) and sorely pissed them off, so further reporting on that topic was a no-no as nobody wanted to cut off the freeflow tap of what seemed limitless money - and set the standard for dubious accounting practices which would one day lead to the Enron and Tyco scandals.

And all the while said media company, *knowingly* aiding and abetting predators, was pushing their service harder and harder at potential victims, I have still in evidence baggie one of their disks which was obtained from a childrens cereal box DURING events which proved that complicity beyond a doubt, three lawsuits + criminal charges and a congressional hearing... all to no effect.

In the end, nobody really cared about those subhumans aka kids to matter unless they happened to own the one victimized, it was only when Time-Warner took a multimillion dollar bath right after aquiring said media company (and all the original profiteers had fled the country) that the true depth of the awfulness came out and TW's been trying to clean it up, patch it over and get rid of it ever since.

I learned quite a bit about how NOT to do things by watching other advocacies become corrupted or have their asses handed to them, and going head to head simply does not work - it comes out like Hamas popping a couple of unguided rockets and recieving a carpet bombing, trust me, you don't wanna bring that on Haken's head, nor do I.

-Frem

It cannot be said enough, those who do not learn from history, are doomed to endlessly repeat it

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Friday, January 16, 2009 11:37 AM

Frem,

You're spot on.

Quote:
That's why your point about not going strength to strength makes so much sense, you come at em sideways, sidle and up smile...

I saved many a mouse this way. Never look at the cat. If you do, he'll suspect something.

Quote:
I favor the Jack Sparrow method myself.
"yes, but who's side is HE on ?"
"you mean like, at the moment ?"

If this works as a website angle, please elaborate

Quote:
As for having a site mowed down - you'd be pretty stunned to know this place wouldn't last 12 HOURS if someone did that and the powers that be thought it would be taken seriously

Here's the point, and there's another coming down..

SO, Kathy, in answer to your question: No, it would not be a good idea to post that here.

Quote:
it comes out like Hamas popping a couple of unguided rockets and recieving a carpet bombing, trust me, you don't wanna bring that on Haken's head, nor do I.

And, Rue, this would be the why.

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Friday, January 16, 2009 1:32 PM

Quote:
If this works as a website angle, please elaborate

One of the folks who uses it (and smoke & mirrors) to good effect is the War Nerd, aka Gary Brecher.

He's done a pretty good job over the years of completely obfuscating not only what side he's on, but who he is and what his intentions are - although the book idea is dimwitted and a serious risk to his cutouts cause it leaves an actual hardcopy backtrail, as in someone has to cash the checks.

That's one reason I don't deal in money, but in owed favors and barter of info or trade goods to other parties that my hands never touch, cause if no money changes hands, it's hell to prove a transaction even happened, much less what it was.

-Frem

It cannot be said enough, those who do not learn from history, are doomed to endlessly repeat it

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Friday, January 16, 2009 2:13 PM

Frem

Quote:
War Nerd

I'll check it out.

Jon Stewart just really annoyed me. I thought for a long time he was neutral, 'cause he kicked a lot of democrats, gave some decent airtime to some decent republicans. And sure, he hates Bush, but who doesn't? I mean, there was some sort of liberal bias there, but a) he's in the media, b) he's from new york, so that's leaving out the whole jewish comedian thing (name a right wing jewish comedian without looking it up, anyone?)

Okay. So, sure, I expected some bias. But in the election cycle he was so jonesing for an Obama win I was like WTF? I mean John McCain is his own personal off-show friend. Like, hell, I'd vote for Auraptor for president if it came to that, because, yeah, okay, we disagree, but if the president is someone you know, that's got to be good. like, screw my own ideology. I'd like to be able to just phone it in, like "Hey, W, that Pakistan thing, not cool, why'd you have to go with the drones?" So, yeah, then I knew for sure, he was glued to the blue lever. But in '09 he's so far been just kicking republicans who are already down. That's not even funny. It's like the guy who kicks your ass at tennis and then instead of saying "good game" say "man, you suck."

So, I just got through watching those, and Stewart is a man who tried to be the neutral party, stay in the middle, and he just totally blew his cover.

Avoiding the trackback, here's an easier move: Set someone up. Create someone else as the pundit and you be the puppetmaster. I think I'll go with some hot chick who sleeps in the nude. :)

Quote:
That's one reason I don't deal in money, but in owed favors and barter of info or trade goods to other parties that my hands never touch, cause if no money changes hands, it's hell to prove a transaction even happened, much less what it was.

I believe I just said this in an earlier thread, cause I didn't want to say it, so I just said "guanji" instead. I know my chinese sucks, if it gets good I'll just post characters. Hell, that's something I should work on. But it's such an awesome language, who concepts just shrunk into random words.

dude, you have to get an anonymous email with proxy server, or screw it, I'll set up my own secure communication channel.

I'll probably see you at the Slavica some day and we'll plot the destruction of the NWO, in the light of day, no one will even notice, it'll just be scrawled on the back of a napkin. In chinese.

革命

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Friday, January 16, 2009 3:21 PM

http://www.torproject.org/

That and a throwaway box on some freebie service using an encrypt (NOT PGP, as all commercial software has "backdoors" for the prowlies, and PGP is no exception) preferably an old, outdated or obscure one, is pretty secure against most pryin eyes.

And since your using linux you don't even have to configure Windows to send phony data streams through the built-in leaks.

Still doesn't mean I'll talk to anyone here about stuff though, this here is my playtime, where I hang out and chatter or yank the chains of the next best thing to friends someone like me can have, and I'd really rather not mix business with that, to be honest.

Quote:
Set someone up.

Yep, always better to be the one behind the throne pulling levers than the dumb jackass sitting on it - Cheney knew it, Biden damn sure knows it, and it's no secret to me neither.

As far as plots and plans go, this whole shebang was known to me as far back as 1982 and since 1985 an apparatus has been in place, mostly attempting to cut off the supply of disposable trigger pullers by limiting the supply lines and social engineering that creates them.

That's always been the key weakpoint of their system, but trying to exploit it when our whole society seems a pre-built funnel channeling folks into the very behavior patterns we're trying to make personally and morally repulsive is a bitch.

-Frem
It cannot be said enough, those who do not learn from history, are doomed to endlessly repeat it

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Friday, January 16, 2009 3:48 PM

Quote:
Yep, always better to be the one behind the throne pulling levers than the dumb jackass sitting on it - Cheney knew it, Biden damn sure knows it, and it's no secret to me neither.

Ah, this explains why you were RiverLove

Quote:
As far as plots and plans go, this whole shebang was known to me as far back as 1982 and since 1985 an apparatus has been in place, mostly attempting to cut off the supply of disposable trigger pullers by limiting the supply lines and social engineering that creates them.

Lost the thread on this one.

Quote:
That's always been the key weakpoint of their system, but trying to exploit it when our whole society seems a pre-built funnel channeling folks into the very behavior patterns we're trying to make personally and morally repulsive is a bitch.

run this one by me again, I'm not quite getting it. I mean, I'm getting 1/2 the picture here,
the whole vagueness thing is like the "they" in conspiracy. I think we're driving at the same thing.

As for plans, understood, i'm not about to detail my plans to a random person on the internet either, but given that we're driving towards the same basic goal, share some ideological points of view a common enemy, and background, "no one is ever safe" sure, take that for granted. But sometimes like right now I want to say "the best tactic for that is ____" and then I'm mute because I'm certainly not going to say that on a public forum.

It's just the sort of thing, communication is good for. exchanging tactics, ideas, the identification of pitfalls, foes, etc. Yah, maybe in the end neither of us is to be trusted, or we're on opposite sides of the chess game, but in that case, let it come down to that, because at the moment, "we all know who" is totally organized and running in full gear. I don't need to know your master plan, etc. But exchanging ideas is good. Exchanging some ideas in a public forum is probably not such a good idea.

I figure nothing we've said so far crosses that line, but it's been a dozen times that I've had to stop myself from saying something, which might be useful information, but just have to watch my step.

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Friday, January 16, 2009 10:31 PM

Indeed.

I think we should let the topic cool a while though, and get back to it later.

In passing, all I will say for the moment is that my hardon for the boot camps and behavior-mod facilities is directly related to my desire to cut short their supply of high-end triggermen.

-F

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Saturday, January 17, 2009 7:06 AM

OUT2THEBLACK

Ignore at your own risk :

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

The U.S. Economy is being Marched to the Gallows

Predictions of hyperinflation, dollar decline and civil unrest

by Andrew Hughes

"...The upcoming Financial Stimulus package courtesy of the new Economic dream team has left numerous economists and analysts quaking in their boots.

We are seeing predictions of hyperinflation, the destruction of the dollar, the flight of U.S. creditors, the prospect of widespread civil unrest and a descent in to a Greater Depression. "

© Copyright Andrew Hughes, Global Research, 2009

There's much more :

http://www.globalresearch.ca/index.php?context=va&aid=11818

The CRG grants permission to cross-post original Global Research articles on community internet sites as long as the text & title are not modified. The source and the author's copyright must be displayed.

www.globalresearch.ca contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the copyright owner.

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Saturday, January 17, 2009 10:51 AM

Before anyone panics over the condition, I might point out that the patient is dead. I don't know if this will effect any executive decisions, but the numbers are in, and it's fait complet. And sure, it's conceivable that a radical change in policy a la Ron Paul would save it from davy jones, but no one in a position of power is going to support that power, because they owe their positions to the fed.

So, set the flower arrangements, order the wine, and don't tick off the caterers. If anyone is still holding dollars at this late date, they have my condolences.

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Sunday, January 25, 2009 10:10 AM

Behind Geithner's China-Currency Charge
http://www.time.com/time/business/article/0,8599,1873604,00.html

Quote:
On Capitol Hill on Thursday, Tim Geithner sent a little thrill up the leg of all the American trade unions that worked so hard to get Barack Obama elected. The Treasury Secretary–designate — whose appointment, despite his embarrassing tax travails, was waved through to the full Senate yesterday by the Finance Committee — declared in a written statement to the committee that China was guilty of "manipulating" its currency for trade advantage. ..

China hits back over Geithner's renminbi claim
http://www.ft.com/cms/s/0/911ce684-e9b9-11dd-9535-0000779fd2ac.html

Quote:
The US and China have embarked on a public row over foreign exchange policy only three days after Barack Obama's inauguration, with China denying last night it was "manipulating" its currency and saying the allegation would only fan protectionist sentiment in the US.

The Chinese government was responding to claims by Tim Geithner, President Obama's choice for Treasury secretary, who told a Senate nomination hearing on Thursday that China was "manipulating" the renminbi. Mr Geithner's blunt tone appeared to indicate

a more confrontational approach towards China on economic issues.

In a statement last night, China's commerce ministry said Beijing "has never used so-called currency manipulation to gain benefits in its international trade", AFP, the news agency, reported. "Directing unsubstantiated criticism at China on the exchange rate issue will only help US protectionism and will not help towards a real solution to the issue."

The pointed comments will exacerbate concerns of a surge in trade and currency disputes as a result of the slump in the global economy.

Mr Geithner's comments were also criticised in unusually strong terms by prominent academics in China.

"This is a sign of his immaturity and his inability to do such an important job," said Shen Dingli, professor of American studies at Fudan university. "He is digging a trap for himself because after a few months he will have to recognise that he has made a mistake."

Bai Qinxian, an economist at Liaoning university, said: "Our government should reconsider its policy towards US and take a stronger approach. We should be in an equal position talking about common interests, instead of only issues concerning the US," he said. "We should be concerned about their rising trade protectionism. We should be careful if they are going to play hardball." A commerce ministry official quoted by Xinhua, the state news agency, said Mr Geithner's accusation was a manoeuvre to ensure his nomination was approved by the Senate...

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Sunday, January 25, 2009 1:00 PM

I know some people who have working in chinese finance for a long time. They say that China has a long term goal to introduce a gold-backed currency in the middle of the economic collapse. They've been stockpiling gold for years to that end.

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Monday, January 26, 2009 9:45 AM

Brown sees 'new world order' after crisis
http://www.google.com/hostednews/afp/article/ALeqM5i401zq4gx4DHyS97JTN
bQmF_Hqbg
19 hours ago

LONDON (AFP) — Prime Minister Gordon Brown said Monday the financial crisis must not be an excuse to retreat into protectionism and instead be viewed as the "difficult birth-pangs of a new global order".

In a speech, he will urge countries to avoid "muddling through as pessimists" and "make the necessary adjustment to a better future and setting the new rules for this new global order", according to his office.

Official data confirmed Friday that Britain is in recession. Days earlier, the government unveiled a new package of measures to help the flow of credit in the economy, but Brown has argued global action is needed for a quick recovery.

He will warn Monday that the crisis has given the world a choice: "We could allow this crisis to start a retreat from globalisation.

"As some want, we could close our markets -- for capital, financial services, trade and for labour -- and therefore reduce the risks of globalisation.

"But that would reduce global growth, deny us the benefits of global trade and confine millions to global poverty.

"Or we could view the threats and challenges we face today as the difficult birth-pangs of a new global order -- and our task now as nothing less than making the transition through a new internationalism to the benefits of an expanding global society."

Britain is hosting a summit of the Group of 20 (G20) advanced and developing nations in London on April 2, and Brown has held preparatory talks with the French and German leaders, as well as new US President Barack Obama.

He will meet with Chinese Prime Minister Wen Jiabao, South Korean Prime Minister Han Seung-Soo and Japanese premier Taro Aso, as well as World Bank chief Robert Zoellick at the World Economic Forum (WEF) in Davos this week.

Brown's Downing Street office said he would discuss with them "how we can best work internationally on financial reform, economic expansion and the creation of jobs in new sectors such as the environment."

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Sunday, February 15, 2009 5:19 PM

China is right to have doubts about who will buy all America's debt
Chinese doubts about the value of US Treasury bonds highlight a crucial question: who will buy the estimated $2.7 trillion (£1.9 trillion) to $4.2 trillion of debt expected to be issued over the next two years?

Quote:

By Martin Hutchinson
Last Updated: 12:14PM GMT 13 Feb 2009

With annual foreign purchases accounting for less than a tenth of the low end of that range, and domestic investors unable to bridge the gap, the Chinese are right to worry.

Yu Yongding, former adviser to the People’s Bank of China, recently demanded guarantees for the value of China’s $682bn of Treasury securities. Then Luo Ping, director of the China Banking Regulatory Commission, said that China had misgivings about the US economy, but despite this it would continue to buy Treasuries. The two statements appear designed to raise the issue non-confrontationally before new chief US diplomat Hillary Clinton’s visit to Beijing on February 20.

China worries about the dollar’s value against other currencies, particularly the yuan. With US interest rates so low, the dollar’s value may slide. However, President Barack Obama has repeatedly said he wants a strong dollar, and indeed its trade-weighted value rose 13.9pc between April and December 2008.

The other area of concern for China is the value of its Treasuries. Given the US borrowing requirement and its lax monetary policy, Treasury bond yields could well rise sharply, causing a corresponding price decline. If China’s holdings match Treasuries’ average 48-month duration, then a 5pc rise in yields, from 1.72pc on the 5-year note to 6.72pc, would lose China 17.5pc of its holdings’ value, or $119bn.

Foreign buyers have absorbed a little over $200bn of Treasuries annually, a useful contribution to financing the $459bn 2008 deficit, but only a modest help towards the $1.35 trillion minimum average deficit forecast for 2009 and 2010.

Unless that changes substantially, there will be $1trillion annually to be raised by the Treasury from domestic sources, more than double the previous record from domestic and foreign sources together, plus whatever is needed to bail out the banks.

Even if the US savings rate were to rise from zero to its long-term average of 8pc of disposable personal income, that would create only an additional $830bn of savings -- not enough to fund the domestic share of the deficit. Interest rates would probably have to rise substantially to pull in more foreign investors.

Yu is right to worry.
http://www.telegraph.co.uk/finance

Officially “Out Of Control”
Posted: Feb 15 2009 By: Jim Sinclair Post Edited: February 15, 2009 at 9:18 pm

Filed under: General Editorial

Quote:

Dear Extended Family,

I sent you a certain few emails that I consider to be the most important communications issued in my career that started in 1958.

I am the son of what I know to have been the greatest Lone Wolf trader in Wall Street history ever, Bertram J. Seligman. He was a past master at his business and believed to be a market sensitive. I apprenticed to him, learned from him and inherited some of his ability, not all however.

From this background of experience understanding and sensitivity the following flows.

The emails of note:

1. Said, "This is it."
2. Said, "It is now."

This communication is to inform you as of 2/13/09, "It is totally out of control." There is no longer any means of reversal of the beginning of the final phase of the downward spiral now solidly set in motion.

For your sake, protect yourselves immediately.

Be prepared for disruptions in distribution common to hyperinflation.

1. You should have already distanced yourself from your financial agents. If you haven’t you are headed for significant displeasure and strain.
2. Make sure you stay three months ahead on necessary items that could experience distribution delays such as prescribed medicine and preferred foods.
3. Even though real estate is far from a buy, if you can afford a second home outside of major cities it would serve a good purpose.
4. Own gold.
5. Consider that good gold shares of non-US companies incorporated in a non-US country operating in third country, traded on multiple exchanges are a means of money expatriation legally and in broad daylight if required.
6. For currencies, all you can do is own a spread held by a true custodial ship wherever that might be.

Simply said, as of Friday February 13th, 2009 the situation is in confirmed "Out of Control" mode as this well engineered downward spiral enters into a terminal phase.

The motive was profit and degree of the disintegration caused in the pursuit of this goal was not anticipated.

The key event was when Lehman was flushed - all hell broke loose. The hell cannot be contained in any practical manner.

I seek nothing of you, but the protection of yourselves.

Respectfully yours,
Jim

http://jsmineset.com/index.php/2009/02/15/officially-out-of-control/

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Wednesday, March 25, 2009 6:12 AM