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Post by vulcanized crawler on May 31, 2014 8:27:38 GMT -5
we'd probably like putin a lot if he wouldn't do the invasion thing, copying hitler, in crimera and ukraine. protecting russian speaking ukrainians. sure ahuh ahuh, sure
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Post by Duc N Altum on May 31, 2014 8:29:12 GMT -5
rett
DIAMOND JEDI
Posts: 911
Special Report
The Only Unbiased Inflation Report
What is it about inflation that brings out only absolute black or white opinions? Depending on who you talk to, we're either about to suffer from rampant hyperinflation — or there's no reason to worry about it at all.
It is one extreme or the other, without real details. The conclusion is all you'll hear about.
The odds of hyperinflation are greater than before the Federal Reserve introduced its quantitative easing programs. With a stable and globally dominant economy, chances of the dollar becoming truly worthless are very low.
At the same time — with the unprecedented economic experiment that is QE pumping $85 billion into the market every month — we're adding a massive amount of dollars into an economy that is growing nowhere near as quickly as the monetary base.
There is a disconnect here that investors should be aware of. Anyone getting their information from the news or mainstream media is missing the real story.
If you could just get around the partisan opinions of biased talking heads and economists, you could make your own decisions about inflationary risk.
We think you're owed a no-nonsense look at why a fear of inflation is healthy and justified, so that's what we aim to do today...
To start, we need to ask: Which inflation rate are we even talking about here?
False Precision
The first step to understanding inflationary risks is to get a firm grasp of what inflation truly is.
It is not just rising prices, although that is certainly part of it. To have inflation, you must have an excess of money supply. The existence of excess money won't mean much on its own if it isn't doing anything; the currency must be circulating in the economy, chasing overall prices that are getting increasingly higher.
It is for this reason food and energy costs are often removed from inflation rate calculations: It is all too easy to have a seasonal shortage or disruption skew the numbers.
Instead, a wide basket of relatively stable goods and services are tracked over time. When weighted and averaged together using a formula, we can arrive at an inflation rate.
When you use a different list of products and services with different formulas, you get different types of inflation rates. The most commonly used measure is a weighted index of goods and services called the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. This is what Social Security uses to calculate benefit increases, even though there is a CPI-E for the elderly.
It is similar to polls where a thousand people will be robo-called, and the results of the survey are used to reflect the entire U.S. population. Except the polling isn't random at all. And by picking and choosing which goods and services are included — and then tweaking the inflation equation — it is incredibly easy to sculpt the results.
The equations used to calculate inflation are complex, but it is only an estimate.
The official version is just one of many methods that could be used.
Take a look at how previous changes to the government methodology dramatically changes the inflation rate for the U.S. dollar by using a method our government used in the past...
SGS alternate CPI is designed to provide a cumulative look at the difference between the old official inflation methodology and what Congress forces the Bureau of Labor Statistics to use now:
chart courtesy of Shadow Stats
We should hardly trust the official inflation rate as an accurate reflection of what is truly going on...
Simply swapping the current equation for one used by our government up until the last couple decades dramatically changes the picture.
There is talk about changing how the official inflation is measured yet again. Instead of a consumer price index (CPI) based on urban wage earners, we'd be using chained CPI.
The reason politicians want to switch between CPIs is to reduce Social Security payouts by reducing the cost-of-living payment increases tied to inflation. Chained CPI will consistently give lower rates of inflation. Add that up over years, and we're looking at a reduction of benefits in the billions.
If the government used the most accurate version of CPI for elderly Americans (CPI-E), it would have to pay quite a bit more to Social Security recipients than it does currently.
So there you have it: self-serving manipulation, regardless of intent. It shows how subjective official inflation statistics really are.
On The Ropes
While we have reason to be concerned over the inaccuracy of the official inflation rate, fear of inflation is primarily based on the potential for it to worsen...
The Fed has gotten itself in such a mess that tools and tricks to combat inflation are gone. It has no capacity to tighten the monetary supply, decrease the use of credit or increase the Fed funds rate in the next several years.
However, the Fed can reduce inflation simply by tightening the monetary base. The concept is simple: Reduce the number of dollars floating around, and they become more valuable. Rising prices are offset by a stronger U.S. dollar.
But the problem with our monetary base right now is that it is still expanding very quickly while we have yet to even see the inflationary effect from the Fed's QE programs.
We're in an uneasy and weak economic climate, while international banking rules are being rewritten through the Basel III meetings. This creates an environment where there is a lot of concern about low profits from riskier loans with low yields. A whole lot of money is staying out of circulation because of it.
If the recovery picks up steam, and banks are more confident in their ability to create profits, that will change far quicker than the Fed can react.
We'd need a massive reduction to stabilize the long-term effects from QE before tightening the monetary base would have any deflationary effect, and that won't be possible for years, if not decades...
On a related note, the Fed can reduce inflation by changing the reserve requirements from banks
Banks would have to soak up more money to meet higher capital requirements and pull money out of circulation.
However, banks are already chafing under new reserve requirements after the meltdown and following the recession. From what we see in this chart, required reserves are already going up as quickly as possible.
The Fed cannot increase reserve requirements any faster to curb inflation.
The Fed has a bit more leeway with the Fed funds rate, or the interest rate banks charge each other for loans to maintain their reserve requirements.
Banks use these short-term loans to shore up reserves as they loan money to businesses. Raising the funds rate discourages this by raising the cost to banks and eroding their profit potential. Thus, the circulation of money slows.
However, the Fed is already using the funds rate a different way: It is purposely keeping it as low as possible to spur economic activity. With a rate at nearly zero, the pedal is to the metal just to keep GDP numbers in the positive...
The Fed would have to start a recession to fight inflation, which it would never do.
Finally, we have the discount rate, the interest rate charged to borrow money for reserves directly from the Fed. This is like the funds rate in all regards — except the source of the capital: It has been pegged just above 0% to spur economic activity for the last several years. The choice is recession or fighting inflation once again.
The Fed has put us on the ropes. We're not down for the count yet, but we have no way to defend ourselves if the punches start flying again.
Be Reasonable, Think For Yourself
Back in 2007 Bernanke gave a speech in which he stated, “Undoubtedly, the state of inflation expectations greatly influences actual inflation and thus the central bank's ability to achieve price stability.”
Perhaps the Fed's greatest (and only remaining) tool to fight inflation has been masterfully wielded...
In spite of the evidence to the contrary and the risks the Fed has taken to date, headlines about inflation continue to follow Ben's lead. Ben's successor, Janet Yellen, is following his play book to the letter as well.
For your own sake, don't let the Fed, Yellen and her standard bearers sway you with their self-serving agenda.
In my opinion, a healthy dose of fear is a good thing in our situation. It will give investors pause and make them consider the long-term implications of our distorted economy on their investments, which should prompt them to keep contingencies in place to protect themselves.
Just about anything that isn't solely valued using a single currency, such as bonds or shares listed through U.S. exchanges, can be an integral part of that contingency plan.
Popular options are gold, silver, real estate and just about anything that isn't bought, sold, and exclusively derives its value from a single currency.
We certainly don't think you should completely shun the dollar and sell off stocks or bonds you own now. There is plenty of opportunity for gains and profits from innovative and dynamic American businesses right now.
Many of these companies either sell commodities, products or services on a global scale, thus limiting their exposure to the inflation rate of any single currency.
Ultimately, diversity is the key to limit the long-term vulnerability of your investments.
Nothing else can match gold's inflationary hedge and equity insurance properties. However, even less obvious choices — such as luxury goods that appreciate in value over time — have worked exceedingly well over the last ten years.
Funds designed to pool money to buy art and wine are increasingly popular choices. With markets in Europe and massive demand in Asia, they are uniquely positioned to maximize returns for luxury goods using virtually any major currency around in the world.
Until the Fed regains the ability to fight inflation, you should consider these alternatives — no matter what Yellen or economics ideologues proclaim...
The Outsider Club will continue to cut through the propaganda and biased perspectives to give you the highest quality financial research available today.
Thanks for subscribing to the Outsider Club. We'll continue to find ways to boost your portfolio with flexible and safe investments that will help you break free of the traditional trading advantages, traps, and pitfalls financial institutions use to siphon off your wealth...
The Outsider Club Research Team
Outsider Club, Copyright © 2014, Angel Publishing LLC & Outsider Club LLC, 111 Market Place #720, Baltimore, MD 2120[/quote]
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Post by Duc N Altum on May 31, 2014 8:30:49 GMT -5
Here is an old post that I found in an old Bluediamond post and it speaks the rumor of China getting some of our oil and uranium claims which speaks to the point of leverage I am making with this peaking order power that we would have if the Team chose to do so if you are said to own in example of the said $1.4 quadrillion as the Asian lady shareholder claimed her family that were the Chinese geologists on our land said to her. Anyway here is a separate post that claims that CMKM and China did a deal before---> "Just got back from races" (CMKX/China Deal)
Oct 27, 2005 at 4:19am
Re: Just got back from Vegas« Reply #6 on Today at 8:25pm » -------------------------------------------------------------------------------- Floyd, Friday after the races My wife and I were checking in at the New Frontier and she was wearing her red Got CMKX? shirt she got from the races that day. A older Gentleman turned around and said yes I do! I then asked him some quick Q@A to confirm. He goes by Cautious one on paltalk he really blew us away said he is from Canada and has known UC since 1962. Re: Just got back from Vegas« Reply #9 on Today at 8:40pm » -------------------------------------------------------------------------------- John, Hey my sister is from Long Island she also has CMKX. Anyway he said IMO that the deal is done and it is with China for the mineral rights only for the potash and oilsands. He said they are not even thinking about the diamonds. _____________________ So based on what this post says.... The second poster claims "Cautious" who many of us heard in Pal Talk years ago.... the person in the first post said Cautious claimed to of known Urban since 1962. And the second poster said "HE" said IMO that the deal is done and it is with China for the mineral rights only for the potash and oilsands." So with this example.... could we of thrown some more claims at China or whomever to act out what is currently going on in the coming post #4? Just a thought and is possible IF YOU REALLY NEEDED TO BYPASS CONGRESS WHO WOULD HAVE A HARD TIME TO GET AWAY FROM THEIR ATTACHMENTS TO THE FEDERAL RESERVE....so keep that thought in mind as you read the next post. Tramp is always talking about Rio Tinto......so here they're involved in potash with the Chinese. Chinese company buys potash properties near Regina CBC News Posted: Sep 30, 2011 4:28 PM CT| www.cbc.ca/news/canada/saskatchewan/chinese-company-buys-potash-properties-near-regina-1.1016417A Chinese firm has bought eight potash exploration sites near Regina for $110 million. China-based Yancoal Canada Resources Co. Ltd. bought the properties from North Atlantic Potash Inc., the latter revealed on Friday. North Atlantic is itself the Canadian subsidiary of Russian fertilizer company JSC Acron. North Atlantic CEO David Waugh said the sale allows the company "to substantially increase" its exploration of other sites in Saskatchewan. North American Potash began a partnership (http://www.cbc.ca/news/canada/saskatchewan/rio-tinto-north-atlantic-potash-sign-mining-deal-1.992883) with a major international mining company, Rio Tinto PLC, only a few days ago. "North Atlantic Potash has moved quickly to prioritize and maximize the potential of its potash permits in Saskatchewan," company president Arie Zuckerman said Friday in a release. "After a successful closure of an important JV with RioTinto, this deal positions North Atlantic as a central player in the emerging potash development arena," Zucherman said. ~~ Al's comments www.sec.gov/comments/4-590/4590-100.htmSubject: File No. 4-590 From: Mr. Mitchell Affiliation: ex-Cantor Fitzgerald employee - Goverment bonds. December 17, 2009 --if supportLists--g) During the period from November, 2004 through April, 2005, CMKM Diamonds, Inc. negotiated the sale of some of its Saskatchewan, Canada mineral claims to three Chinese domiciled corporations with the advice and consent, inter alia, of the Securities and Exchange Commission. Proceeds from the consummation of such sales were placed into a frozen trust for disbursal at a later time. Just reposting this Jay post that I posted over in the recent Shore Gold and Cree PR Thread.----> By: lilburrito0 27 Jun 2007, 10:16 AM EDT Msg. 566981 of 779307 (This msg. is a reply to 566980 by jay_adobe.) Jump to msg. # Jay Re: keep your eyes peeled for information from the mining assets to your north. What mining assets are you referring about? By: jay_adobe 27 Jun 2007, 10:20 AM EDT Msg. 566984 of 779307 (This msg. is a reply to 566981 by lilburrito0.) Jump to msg. # lilburrito,
Specifically for today Rio Tinto, Shore, Newmont, possibly BHP.
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Post by Duc N Altum on May 31, 2014 8:32:23 GMT -5
Obama had to introduce sanctions because of his position with other countries. Canada too introduced sanctions. Russia took over the oil refinery in the Ukraine, that says something. I think all countries were getting tired of being tied to the petro dollar, because they knew they didn't need it in the first place. Many countries have their own oil reserves and with rising costs everyone is starting to tighten their belts, so a country starts to look internally instead of externally. There is a link at the bottom and some of the report concerning Russia, China, India. Could you outline for me: how does the fall of the US economy, fall of the petro dollar, establishing an asset backed currency, guarantee that CMKX shareholders will get paid? The economy can take a dump, people will lose a lot, and yes it all needs to be restructured to an asset backed currency, but how does that play out to us getting paid? I'd think, with ecomonic failure and restructuring, there'd be less likely for us to receive the finances deserved because TPTB will with hold them for the countries needs. IMHO we're going based on Jay who's been very credible in foretelling the future. We're going on Al who's given us an outline of what's involved, but that only gives us a picture of a crumbling system that needs change. What I see happening around us has all been foretold and all I see is Gog and Magog arising. That's all I think that can be guaranteed..... that we're coming to specific time as spoken of long ago and if as foretold this is to happen, then TPTB will not want to distribute wealth to the people because it will interfere with their control of the people. ~ dollarcollapse.com/currency-war-2/welcome-to-the-currency-war-part-14-russia-china-india-bypass-the-petrodollar/But if Russia, China and India decide to start trading oil in their own currencies — or, as Zero Hedge speculates, in gold — then the petrodollar becomes just one of several major currencies. Central banks and trading firms that now hold 60% of their reserves in dollar-denominated bonds would have to rebalance by converting dollars to those other currencies. Trillions of dollars would be dumped on the global market in a very short time, which would lower the dollar’s foreign exchange value in a disruptive rather than advantageous way, raise domestic US interest rates and make it vastly harder for us to bully the rest of the world economically or militarily. For Russia, China and India this looks like a win/win. Their own currencies gain prestige, giving their governments more political and military muscle. The US, their nemesis in the Great Game, is diminished. And the gold and silver they’ve vacuumed up in recent years rise in value more than enough to offset their depreciating Treasury bonds. The West seems not to have grasped just how vulnerable it was when it got involved in this latest backyard squabble. But it may be about to find out. And that is the question as to what is highlighted in this post above......" HOW IN THE WORLD COULD THE FALL OF THE PETRO DOLLAR HELP AND EFFECT OUR CMKM SITUATION?" If "It'll end in the derivative finality" as Jay said.... And Al Hodges speaks of "RESET" they both relate completely. The derivatives is so massive that when the interest rates go up here they come "the derivatives"...crashing down. And obviously.... Al Hodges' "RESET" would seem to be the only life saver to the current financial system and bring it into a new and safe financial system compared to the old controllers of the this current financial system. So once again, the whole relevance of the fall of the Petro dollar I am looking at is if we lose our DEMAND of the petro dollar that still rules the whole globe right now.... then when we have another financial crisis or a big one.... the INTEREST RATES CAN NOT BE HELD DOWN ANY MORE TO WHICH THE DERIVATIVES WAKE UP AND COME ALIVE AND COME CRASHING DOWN ON OUR FINANCIAL SYSTEM...... as to what Jay said...... "It'll end in our derivative finality"...... which then shows the great message of Al Hodges who has been very specific on the "RESET" topic and spoke about currencies backed and so forth... which is the only way the financial system should of been maintained as. So if the Petro dollar control crashes.... that should cause a financial crisis here in the U.S to which .... good luck to the FED as can no longer hold down the interest rates and the derivatives crash out. And the most important word in this Jay Adobe post here is the word "TRIES" in my full understanding.... which to tells me .... they will not succeed no matter what they try and do----> By: jay_adobe 18 Sep 2007, 02:48 PM EDT Msg. 604157 of 778559 (This msg. is a reply to 604154 by klonopin2mg.) Jump to msg. # klon, Dollar will go down; inflation will go up; basic prices will go out of reach. Hang on for the ride while the FED tries to fix this problem with fiat currency. Countries will re-align.
------------------ So as the Fed may "TRY" to hold down the interest rates up to this point and hold down the interest rates to prevent the derivatives giant from crashing down..... if the Petro dollar crash effects strain our financial system.... the Federal Reserve can no longer "TRY" and hold down the interest rates anymore. So why the focus on the Petro dollar losing it's DEMAND? Because as Icecrush's post above points out too.... crash here to once again... "HELLO DERIVATIVES..... WHAT TOOK YOU SO LONG TO ARRIVE?" Derivative's response: " sorry folks.... the Federal Reserve kept DEFLATING ( the interest rates) OUR TIRES.... so we could not get here on time, TO CRASH THE PARTY. THE "PETRO POLICE" ARE TAKING CARE OF THEM, TO WHICH ALLOWED OUR LATE ARRIVAL. LOL
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Post by Duc N Altum on May 31, 2014 8:33:32 GMT -5
This post relates to the post#4 with the gas deal between Russia and China section---->
5)If the annual $1-trillion trade in Russia's energy is not transacted in US dollars, we will see the end of the petrodollar. Moreover, in May Russia and China will sign a major gas deal that will shake the world, as the transaction will also spurn the US dollar.
--------------------
So here is freshideas' post on the post and topic--->
freshideas
Diamond Finder and Miner
Posts: 1,619
Post by freshideas on 2 hours ago
China, Russia on verge of gas deal
Associated Press
By LOUISE WATT 7 hours ago
In this Monday, Nov. 15, 2010 photo, PetroChina workers perform their routine check on the Moxi Natural Gas Purification Plant in Suining in southwest China's Sichuan province. The presidents of China and Russia are expected to sign a natural gas deal years in the making next week that would come at a sensitive time as the West is trying to isolate Russia for its annexation of Crimea. (AP Photo) CHINA OUT
.
BEIJING (AP) — China plans to sign a multibillion-dollar deal to buy Russian gas during a visit by President Vladimir Putin next week despite U.S. pressure to avoid undermining sanctions on Moscow over the Ukraine crisis.
Washington has appealed to Beijing to avoid making business deals with Russia, though American officials acknowledge the pressing energy needs of China, the world's second-largest economy.
Negotiations that began more than a decade ago had stalled over price. But analysts say Moscow, isolated over its role in Ukraine, faces pressure to make concessions in exchange for an economic and political boost.
"We are still exchanging views with Moscow and we will try our best to ensure that this contract can be signed and witnessed by the two presidents during President Putin's visit to China," a deputy Chinese foreign minister, Cheng Guoping, told reporters on Thursday.
Putin's visit to China is also likely to highlight the diverging fortunes of the two powers. China is on track to overtake the U.S. as the world's biggest economy in the next decade and is increasingly assertive in political relations with its neighbors. Russia's economy is reeling from its dispute with the West over Ukraine's tilt toward the European Union, a shift that inflamed Moscow's insecurities about declining influence.
Putin is due to meet Chinese President Xi Jinping during a two-day conference on Asian security that starts Tuesday in Shanghai. Cheng noted they reached a preliminary agreement on gas sales when Xi attended the Winter Olympics in Sochi, Russia.
Companies from the two sides "have already reached an agreement on the majority of the contents of their cooperation," said Cheng. "The main difference between them still lingers on the price of natural gas."
Beijing has to weigh the economic benefits against possible strained ties with Washington and the European Union, but analysts say Chinese leaders are leaning toward a deal. China faces chronic gas shortages and talks on the proposed 30-year contract between Russia's government-controlled Gazprom and state-owned China National Petroleum Corp. began long before the Ukraine crisis. Chinese leaders are also eager to get Russian gas to help curb pollution by reducing reliance on coal.
A tentative agreement signed in March 2013 calls for Gazprom to deliver 38 billion cubic meters of gas per year beginning in 2018, with an option to increase that to 60 billion cubic meters. Plans call for building a pipeline to link China's northeast to a line that carries gas from western Siberia to the Pacific port of Vladivostok.
"It's not something that can be switched off because the U.S. is upset about a more recent development," said analyst Rachel Calvert of consultancy IHS.
Analysts Leslie Palti-Guzman and Emily Stromquist of Eurasia Group put the likelihood of a gas deal finally being concluded this month at 80 percent.
The deal would be an "important strategic gain" at a time when the Ukraine crisis is fraying Russia's political and economic tie with the West, they said in a report.
During a visit last week to Beijing, U.S. Treasury Secretary Jacob Lew told Chinese leaders that Washington doesn't want to see anyone undermine sanctions by making trade or investment deals with Russia...Sure Jacob!
"We discussed, as we do with many nations, the impact our sanctions are having and the importance that they are not offset by others coming in," Lew said in a statement sent to reporters by his office.
China rejects the sanctions imposed by the United States and European Union on Russia during the Ukraine crisis.
"The U.S. side overemphasizes the use of sanctions," a deputy Chinese finance minister, Zhu Guangyao, said after Lew's meetings.
Washington and the EU have imposed asset freezes and visa bans on 61 people and several companies linked to Putin's inner circle in connection with the unrest in Ukraine.
The sanctions add to economic problems for Russia, which faces slowing growth and capital flight as companies and individuals pull money out of the country.
The Russian finance ministry said $51 billion flowed out of the country in the first quarter of the year. The president of the European Central Bank, Mario Draghi, last week cited estimates that as much as 160 billion euros ($220 billion) had left the country since the Ukraine crisis began. Ratings agency Standard & Poor's has cut its rating on Russian government debt to one notch above junk status.
Russia may make a "big concession" on the price it charges China, said Li Xin, a foreign affairs specialist at the Shanghai Institute of Foreign Studies. He said Moscow has been looking east for new customers while the sanctions encourage Europe to reduce reliance on Russian gas.
"Energy cooperation is a long-term strategy for both China and Russia," he said, "and it's not related at all to the Ukraine situation.".Got my hammer an nails!
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Post by Duc N Altum on May 31, 2014 8:35:04 GMT -5
When I get time because I have spent too much time on these boards the past week.... there is one more point of focus o think about with completion of how it might turn out if the dollar goes into the toilet. Maybe tomorrow I will have those thoughts of a post done and posted.
I just wanted to finish off one last point in this "Tic Toc Petro Dollar thread" that I see a possible connection when this Petro dollar does crash. So I am going to re-hash some points again as to what is already posted here and there in this thread in this post to then bring to the final point of thought of what I see as a possible connection of possibility. Anyway, so whether people want to admit it, or allow themselves to see it.... despite being caught up in us not being paid yet and not allowing one's focus to see beyond that.... the point is the Petro dollar's days ... have the writing on the wall that it's dominant days are coming to an end. And as we know now.... when the DEMAND... or when countries that have been forced to use OUR petro dollar globally when they buy oil or gas.... they have to buy the U.S Petro dollar to complete their sale with whatever countries they are doing business with.... since this deal was done in the early 1970's .... to where the UNITED STATES.... FORCED A CREATED DEMAND GLOBALLY.... TO WHICH THE U.S HASBEEN ABLE TO PRINT UP AS MUCH MONEY AS IT WANTED TO WITH PRINTING UP AS MUCH MONEY THAT THE FEDERAL RESERVE WANTED TO PRINT UP BECAUSE OF THE "DEMAND" OF THE WHOLE WORLD BEING FORCED TO USE THE PETRO DOLLAR TO PURCHASE THEIR EXPENSIVE OIL AND GAS BUYS. So if enough countries start the stop using the petro dollar then the Federal Reserve is not going to be able to print up it's loads of never ending printing of the U.S dollar .... if the world decides not to use it anymore. And just in case anyone has missed to writing on the wall with countries showing the strong signs of kicking the DEMAND of the U.S Petro dollar to the side.... here are some refreshers of proof that state such.----> 1) From November 2013---> www.examiner.com/article/harbinger-23-countries-begin-setting-up-swap-lines-to-bypass-dollarsted 23 countries begin setting up swap lines to bypass dollar 2) www.globalresearch.ca/putin-flushes-the-us-dollar-russias-gold-ruble-payments-system-delinked-from-dollar/5375866 Russia “forced” by the sanctions to create a currency system which is independent from the US dollar 3) inserbia.info/today/2014/03/russia-could-crash-us-economy-by-collapsing-petrodollar-expert/ Russia could crash US economy by collapsing petrodollar.....by demanding Euros or Yuan for its oil.4) dollarcollapse.com/currency-war-2/welcome-to-the-currency-war-part-14-russia-china-india-bypass-the-petrodollar/ Welcome to the Currency War, Part 14: Russia, China, India Bypass the Petrodollar5) BRICS creating parallel Monetary Fund disillusioned with IMF and World Bank voiceofrussia.com/news/2014_05_01/BRICS-creating-parallel-Monetary-Fund-disillusioned-with-IMF-and-World-Bank-expert-0502/ ------------- Here are some points of that article--->point #1 Frustrated by the IMF and World Bank controversial policy, the BRICS nations go on creating the alternative financial supranational institutions for emerging economies. In recent years the IMF has discredited itself, becoming a completely politicized and "odd" structure, which supports interventionist "super state" ambitions of the EU and the US, stresses Patrick L Young, an expert in global financial markets, referring to the ongoing events in Ukraine.Point #2 It should be noted that the BRICS bloc of emerging economies is expecting all preparatory work for setting up its Development Bank to be done by July, 2014, according to Reuters. Political neutrality of the BRICS-Monetary Fund appears to become its unquestionable "competitive advantage." It will help the new structure to operate without fear or favor, deems the expert.
Point #3 "What the IMF really needs," he stresses, "are strong technocrats as opposed to the spineless politicians who generally operate with (at the very least!) one eye on their next political position."
--------------------- And on and on. But the main one I am focused on here above is the BRICS IMF said to be starting in July 2014. When countries leave the current controlled U.S IMF and head over to the BRICS IMF.... does anyone really think that these countries that head over to the BRICS IMF are still going to be using the PETRO DOLLAR TO BUY THEIR OIL AND GAS? I SERIOUSLY DOUBT IT. AND WHAT HAPPENS WHEN MANY COUNTRIES NO LONGER FEED THE DEMAND OF THE U.S PETRO DOLLAR? IT KILLS THE DEMAND AND TO WHICH THE PETRO DOLLAR WOULD NOT BE WORTH MORE THAN THE MONEY IN THE MONOPOLY BOARD GAME. BYE BYE U.S PETRO DOLLAR. There are endless amounts articles on these topics of countries moving in this direction of getting rid of the Petro dollar, but enough of examples have been said above here in this post and throughout this whole thread. ----------------- SO NOW FOR THE REASON I WANTED TO ADD ONE LAST POINT OF THOUGHT TO THIS THREAD.... AS A POSSIBILITY... AND NOTHING MORE... JUST KEEP IN MIND THE POSSIBILITY....EVEN THOUGH WE HAVE NO SAY WHAT DIRECTION THE END RESULT BRINGS WITH HOW THINGS WILL BE ALIGNED. So before I bring up the main point I wanted to bring up a key understanding of TaskforceViking's email with Jay Adobe from July 4th, 2009. The first line says it all. -----> "My thoughts are no longer needed. Just re-read my old posts.If nothing else, they are spoken too soon". -Jay Adobe So obviously he is admitting that some things have not happened yet of what he posted about "from the so called script," and if folks have been really paying attention a lot of his old posts have come true up to this point. And in relation to this petro dollar topic.... Jay sure does have some interesting posts that sure seem to fit this exact thinking of what this thread's topic is about----> By: jay_adobe 17 Feb 2008, 10:57 AM EST Msg. 665061 of 778290 (This msg. is a reply to 664953 by wow_cmkx_25.) Jump to msg. # wow, And we must continue to assist in keeping the lanes of flow of oil out of the ground to the refineries, and ultimately to the customer. To understand a "bourse", just exchange the word "exchange" for "bourse". It's about the same. Two big interrupters of 'potential flow from the ground to the port' are Iraq and Iran. All efforts at our disposal will and has been used to prevent the interuption of flow in Iraq. If Iran starts to play the international game with euros, then others will surely follow, thus realigning the countries into two distinct poles: those that support (or are supported) by the dollar, and those that don't. I do not believe we will see American boots on the territory of Iran any time in the not so distant future. imo ----------------- By: jay_adobe 21 Sep 2007, 09:33 AM EDT Msg. 604972 of 778556 (This msg. is a reply to 604840 by ravenpeach1.) Jump to msg. # ravenpeach, All part of the realignment of countries, I believe. This one will be to our benefit, and as the dollar slides, some realignments will be to our detriment. Today will be an interesting day internationally. ----------- And if this needs to end out with killing the petro dollar which is the life supply, the heart beat/ pulse, THE OXYGEN SUPPLY to the Federal Reserve and it's CONTROL OVER THE WHOLE GLOBAL ECONOMY WITH IT'S DEMAND OF THE PETRO DOLLAR..... it only makes sense that countries are now realigning and their separation from the petro dollar and killing the DEMAND of it... will help cut off the oxygen supply to Federal Reserves infinite control of the global economy. And with forcing the regulations on the derivatives and then leaving the banks holding the worthless 85% to 90% of the bad derivatives that are 25 times the size of the whole global economy.... 6 of the top main banks, that make up 6 of the 11 main pillars of the Federal Reserve.... hold over $291 trillion in derivatives that they can not pay for to which that too should be the nail in the coffin to the Federal Reserve from a whole other angle. And this post of September 3rd 2009, which was 1 year after the financial crisis of 2008 I like the wording of what I have in bold----> By: jay_adobe03 Sep 2009, 03:35 PM EDT Rating: Rate this post: Msg. 864467 of 869992 (Reply to 864465 by oldepro) oldepro, I think it was magnificently scripted and portrayed masterfully by some key players involved, wouldn't you say? You can 'bet your bippy' on every Cree sinew near and in the FALC that he Shore blew that whistle, long and loud, strategically putting into place all that has come to pass, much of which you'll never ever see. A lot of this whole thing is about to be exposed to the public in such a fashion as has never been witnessed before, especially when the derivative phantoms appear, and it will affect and strain relationships between countries globally. Friends and enemies will change sides. Countries will continue to re-align. Full exposure of the derivatives fiasco will hurt, and hurt badly. What a plan. What a marvelously intricate and perfect plan. All in my humble opinion. Enjoy your weekend. BTW, was he 'thrown' under the bus, or did he guide the bus to where we are today? It had to appear as it did. More to come real quickly. --------- By: jay_adobe 26 Apr 2007, 10:26 AM EDT Msg. 533556 of 779575 (This msg. is a reply to 533548 by mjl62.) Jump to msg. # mjl62, Because criminal charges are not in order at this phase of the plan, IMO. Right now we must complete actions in a certain order ,for it all to work accordingly. Just sit back, relax, and watch it unfold. I believe you will be astonished, ultimately. __________________________ SO HERE COMES THE WHOLE POINT OR DIRECTION OF THIS POST #10, WITH WHAT I WAS LEADING TO ONCE THE PETRO DOLLAR COLLAPSES AND THE DERIVATIVES WAKE UP WITH THE INTEREST RATES RISING AND THE WHOLE DERIVATIVE MESS COMES CRASHING DOWN ON OUR CURRENT FIAT AND DEBT BASED FINANCIAL SYSTEM...LEADING TO THIS POSSIBLE ENDING WHEN AL HODGES' RESET HAPPENS AND TO WHAT IS WAITING FOR US THEN.. I came across or took notice again of a particular post of Jay's that his wording caught a thought off guard and thought I would bring this point up as a completion to this Petro Dollar thread. Yeah ok... if the Petro dollar crashes and that then triggers the interest rates to start skyrocket because the Fed would not be able to hold down those interest rates any more... so once the derivatives then crash out the whole system and then Al Hodges' "RESET" has to be triggered to wipe out this infinite debt and create a new system in my belief.... why can't we then get paid now... at least something? Well with this post I am about to post I find thought in seeing why not yet, when paying attention to the simple wording.----> By: jay_adobe 07 Feb 2008, 11:13 AM EST Msg. 657819 of 778290 Jump to msg. # Point to ponder:
Just think if the dollar, or Amero, and the Euro were the same price. hmmmmmmm --------------- The point of thought, Jay knew how to pick out his wording well to deliver a point of thought. And in this particular post Jay said " DOLLAR... OR....AMERO....... one or the other. He did not say Dollar and Amero and Euro. He said the Dollar OR Amero and the Euro. So the "OR" is showing a relation to the dollar and Amero in this post. So the point of thought again as we all have been down this road of thought in the past about the "Amero".... but what if we are not waiting on the so called "Treasury Note" and we might be waiting on the CRASH AND RESET AND THE AMERO MIGHT BE THE CURRENCY THAT GETS ACTIVATED. And as the infinite hole that the U.S petro dollar has dug.... bringing in a whole new currency like a new Treasury note OR THE AMERO seems to be the proper avenue to completely shed and dump the debt attachments of the Fed's petro dollar completely. I know many have raised concern with the Amero being attached to Mexico and Canada and many think that if we lose our own currency that we would lose our constitutional rights and so on. I doubt that and if this were a Bob Maheu script to be acted out from start to finish with infinite leverage by Bob Maheu's Team... and Bob Maheu being the United States' number 1 patriot.... I seriously doubt that his script would sell out our country and our constitution with allowing a currency like the Amero to have Canada, United States, and Mexico linked to one currency. Look at the rest of the Globe. They seem to be all ready to completely dump the United States and leave us off to die on our own.... and if they all want to combine themselves and be their own separate powerhouse financial system.... and if the United States has no Gold or much to back our own currency against what the world's separation to us will be.... then we the United States are screwed. But if WE attach ourselves to Canada and this said Richest land in the world once this CRASH AND RESET HAPPENS and a new financial system is in play and Canada can finally activate and advertise their said richest land in the world... Canada would most likely have the goods to back THE SO CALLED AMERO currency and with the alliance of the Bob Maheu to Urban Casavant CMKM richest land in the world..... there obviously is a connection of strong possibility that this would be a welcomed alliance in sharing a currency. And also not forgetting CMKM's attachment to the Ecuador gold mine that it had in the past that I still believe is attached but here is an old post of the topic---->By: josie7562 16 Aug 2007, 12:16 PM EDT Msg. 590274 of 778607 Jump to msg. # what happen to the south american mining area THat uc was soooooooooooooooooooo happy with taking pictures-- i bet it was a moive studio
By: jay_adobe 16 Aug 2007, 12:18 PM EDT Msg. 590277 of 778607 (This msg. is a reply to 590274 by josie7562.) Jump to msg. # josie, It's still there. Still producing. Still pulling ore out of the ground.------------------------ So a far fetched thought.... maybe that Ecuador gold mine that Urban, Roger Glenn, Emerson Koch and all had with the shareholders back in 2005 with a few shareholders where Roger and Urban mainly were said to of only talked about derivatives.... maybe with CMKM having that mine and we knowing about it.... kind of brings up a relation of CMKM with that region and the United States and Canada.... and fits that Amero connection of thought.Anyway, one last point of thought though of a positive I would see if we did have this joint currency..... if our current corrupt government wanted to pull another sly deal situation like what happened during Christmas Break 1913 where 3 congressman came in to vote in the Federal Reserve and when the rest of the government came back from Christmas break to find out that we were sold out while everyone was on break...... in this situation if WE had a joint currency with Canada and South America.... there would most likely be NO CHANCE FOR OUR GOVERNMENT TO PULL A SHADEY DEAL LIKE THIS TO WHERE IF THEY DID....CANADA COULD STEP IN AND SAY...."NO YOU DON'T BECAUSE WE ARE THE MAIN SUPPLIERS OF THE BACKING OF THIS AMERO AND THIS IS A JOINT SITUATION WHERE YOU/ THE UNITED STATES.... ARE NOT GOING TO PULL ANOTHER 1913 AGAIN... NO MORE FED FAMILY CREATED BANKS GETTING CONTROL AGAIN.
Anyway, in closing.... whether we believe this thought of possibility or not.... it really does not matter what we believe because if we do not have control over this and if it is going to happen.... what we believe right now will not change a thing here. So I am bringing this point up again and how Jay worded it in that post and since he seemed to be the only main person who was right many many times ( if folks paid attention ) through this journey... so if this is right just consider this post as a reminder of possibility to where we can at least have it in the back of our brains... so if this does happen... we will not be shocked. And if we are to only be paid in the New Treasury Note.... or the New Amero currency... it would make sense on why we have not been paid yet and if the green light for payment is a new currency..... then the shareholders can do all the shareholder movements of getting attorneys or whatever or whomever shareholders want to hire..once again I seriously doubt that the Team would have all walls up with protecting this movement and have a weakness where the shareholders could break through? I doubt it, in my personal belief.
By: jay_adobe 27 Jun 2007, 03:40 PM EDT Msg. 567267 of 779307 (This msg. is a reply to 567263 by 07isback.) Jump to msg. # 07 Get your facts straight. The money cannot be moved. Period. It is safely locked away. imo |
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Post by imSINGLEruRICH on Jun 26, 2014 20:10:29 GMT -5
Thanks ....rett from the MM Board DIAMOND JEDI Post by rett on 59 minutes ago www.newleftproject.org/index.php/site/article_comments/iran_and_the_petrodollar_threat_to_u.s._empireIran and the Petrodollar Threat to U.S. Empire
by Christopher Doran Iran poses a far more serious threat to the U.S. than its disputed nuclear aspirations. Over the last few years, Iran has unleashed a weapon of mass destruction of a very different kind, one that directly challenges a key underpinning of American hegemony: the U.S. dollar as the exclusive global currency for all oil transactions. It began in 2005, when Iran announced it would form its own International Oil Bourse (IOB), the first phase of which opened in 2008. The IOB is an international exchange that allows international oil, gas, and petroleum products to be traded using a basket of currencies other than the U.S. dollar. Then in November 2007 at a major OPEC meeting, Iran's President Mahmoud Ahmadinejad called for a “credible and good currency to take over U.S. dollar’s role and to serve oil trades”. He also called the dollar “a worthless piece of paper.” The following month, Iran—consistently ranked as either the third or fourth biggest oil producer in the world—announced that it had requested all payments for its oil be made in currencies other than dollars. The latest round of U.S. sanctions targets countries that do business with Iran's Central Bank, which, combined with the U.S. and EU oil embargoes, should in theory shut down Iran's ability to export oil and thus force it to abandon its nuclear program by crippling its economy. But instead, Iran is successfully negotiating oil sales via accepting gold, individual national currencies like China's renmimbi, and direct bartering. China and India are by far the most significant players, with Russia playing a supporting role. China is Iran's number one oil export market, followed by India. Both have been paying for at least part of their Iranian oil imports with gold, and according to the Financial Times, have also been paying in their own currencies, the Chinese renmimbi and Indian rupee.[1] As neither currency is easily convertible as international currency, they will be used to pay for Chinese and Indian imports. And on 22 June, Russian media reported that China imported almost 524,000 barrels per day in May, a whopping 35% jump from the previous month.[2] There is only so much the U.S. can do if China continues to do business with Iran. China holds $1 trillion dollars of U.S. debt, and the U.S. is utterly dependent on cheap Chinese manufacturing. Significantly, just as the newest and toughest round of U.S. sanctions kicked in at the start of July, Iran's PressTV announced that China would be investing at least $20 billion to develop the north and south Azadegan and Yadavaran oil fields which will produce 700,000 barrels per day. Azadegan is estimated to contain 42 billion barrels, making it one of the world’s largest oil deposits.[3] America has more leverage with India, but with the “BRICs”—Brazil, Russia, India and China—showing increasing solidarity in dealing with the U.S. and Europe, U.S. options are still limited. In January Bloomberg reported that all Russian trade with Iran was being conducted in Russian rubles and Iranian rials, and not U.S. dollars.[4] Instead of shunning Iran as per U.S. dictate, many countries are simply finding ways around the sanctions. On 20 June, ten days before the tougher sanctions came into place, Turkey and Iran announced that they would trade in their local currencies and bypass dollar transactions.[5] Turkey is Iran's fifth largest oil market. Local currency that has little convertible value internationally is one thing. Gold is quite another, and on 9 July, the Financial Times reported that Turkey had paid $1.4 bn in gold for Iranian oil in May.[6] In January, Fars, Iran's state run media, reported that all Iranian trade with Japan, Iran's third biggest oil importer, was dollar free.[7] The Tehran Times reported in July that South Korea, Iran's fourth largest oil market, was considering bartering manufactured goods for Iranian oil,[8] and Reuters reported that Indonesia was considering doing the same for palm oil.[9] Sri Lanka and Vietnam were also considering dropping the dollar to guarantee ongoing access to Iranian oil.[10] How the Petrodollar System Works In a nutshell, any country that wants to purchase oil from an oil producing country has to do so in U.S. dollars. This is a long standing agreement within all oil exporting nations, aka OPEC, the Organization of Petroleum Exporting Countries. The UK for example, cannot simply buy oil from Saudi Arabia by exchanging British pounds. Instead, the UK must exchange its pounds for U.S. dollars. The major exception at present is, of course, Iran. This means that every country in the world that imports oil—which is the vast majority of the world's nations—has to have immense quantities of dollars in reserve. These dollars of course are not hidden under the proverbial national mattress. They are invested. And because they are U.S. dollars, they are invested in U.S. Treasury bills and other interest bearing securities that can be easily converted to purchase dollar-priced commodities like oil. This is what has allowed the U.S. to run up trillions of dollars of debt: the rest of the world simply buys up that debt in the form of U.S. interest bearing securities. The flip-side of this are the countries that produce and export oil, in particular Saudi Arabia and the other Arab producers. The only way the system can possibly work is if oil producers refuse to accept anything other than U.S. dollars as payment for their oil. This they have done since the Nixon Administration's manipulation of the OPEC oil crisis in the mid-1970's, which succeeded in getting Saudi Arabia, traditionally the world's dominant producer, to agree to accept only dollars for oil. The Saudis used their influence to get the rest of OPEC to agree as well. In return, the U.S. offered to militarily defend not so much Saudi Arabia, but the horrifically repressive monarchy that ruled it.[11] But there was a kicker: Nixon and his Secretary of State Henry Kissinger also got the Saudis to agree to invest their mega oil profits in the U.S. economy. In addition to buying interest bearing U.S. government securities, the Saudis also invested in New York banks. Because the OPEC oil embargo had quadrupled global oil prices, the Saudis and other Arab producers suddenly had a great deal of money to invest. The money parked in those New York banks then became available to be loaned to the rest of the world, which faced major financial crises due to—yes, you guessed it—the sudden quadrupling of oil prices. By the year 2000 and Iraq's dramatic switch to selling Iraq's oil in euros, Saudi Arabia had recycled as much as $1 trillion, primarily in the United States. Kuwait and the United Arab Emirates recycled $200–300 billion.[12] And because those loans were in U.S. dollars, they had to be paid back in U.S. dollars. When U.S. interest rates skyrocketed to 21 percent in the early 1980's, interest on the loans also skyrocketed. This in turn precipitated a third world debt crisis, which was mercilessly exploited by Wall Street and the U.S. In this case, the exploitation came in the form of requiring countries to “structurally adjust” their economies along neoliberal lines in return for World Bank and IMF bailout loans. By 2009, the total debt owed on these bailouts and other loans was an astounding $3.7 trillion. In 2008, they paid over $602 billion servicing these debts to rich countries, primarily the United States.[13] From 1980 to 2004, they paid an estimated $4.6 trillion.[14] The history of how this came about is fascinating, and I discuss it in detail in Making the World Safe for Capitalism. The short version is that from the 1944 Bretton Woods agreement which set up the International Monetary Fund and the precursors to the World Bank and World Trade Organisation, the dollar was accepted as the international currency for all trade. Crucially though, the dollar was backed up by gold, which was fixed at $35 an ounce. This meant the U.S. had to have enough gold on hand to back up any and all dollars it printed. Faced with escalating costs from the Vietnam War, in the early 1970s Nixon abandoned the gold standard and replaced it with the petrodollar system described above. Almost simultaneously, he abolished the IMF’s international capital constraints on American domestic banks, which in turn allowed Saudi Arabia and other Arab producers to recycle their petrodollars in New York banks. The petrodollar system, and U.S. ability to manipulate the dollar as the global reserve currency and hence global debt, has been the bedrock of American economic power. But since the global financial crisis, U.S. policy has been to keep interest rates extremely low to stimulate borrowing. This has meant that the rate of return on those interest bearing securities that the rest of the world has invested in to enable them to buy oil exclusively priced in dollars is also now extremely low. In other words, there is no longer any real financial incentive for the rest of the world to sell its oil in dollars. Nor, crucially, is there as much incentive for OPEC and staunch U.S. ally Saudi Arabia to continue to kowtow to the petrodollar recycling system. After all, the U.S. invaded Iraq and has now de facto control of enough oil production to render reliance on the Saudis potentially irrelevant. And thanks to decades of American military training and hardware procurement, the Saudi military certainly has the capacity to defend itself and even to project its power, as it exhibited last year by invading Bahrain to help suppress the uprising against the equally repressive Al Khalifa monarchy. In October 2009, veteran Middle East correspondent Robert Fisk of Britain’s Independent newspaper broke the story that Gulf oil-producing countries, along with China, Russia, Japan and France, were planning a new system to replace the dollar as the de facto currency for global oil sales by 2018. The dollar would be replaced by a basket of different currencies including a yet-to-be-released new currency for the Gulf Co-operation Council countries of Saudi Arabia, Kuwait, the United Arab Emirates, Oman, Qatar and Bahrain.[15] Other currencies would include the euro, the Chinese yuan [renmimbi] and Japanese yen. Gold would also be included in the mix. That long-term allies like Saudi Arabia and the other Arab Gulf states, along with Japan, were involved suggests that U.S. leadership is being seriously questioned, if not outright challenged. U.S. Protection of Dollar Dominance By accepting and encouraging countries to pay for its oil in currencies other than the U.S. dollar, Iran has deliberately taken the same action that, I argue in Making the World Safe for Capitalism, led directly to the U.S. invasion of Iraq. In September 2000, Saddam Hussein announced that Iraq would no longer accept the “currency of its enemy”, the U.S. dollar, and from that time onwards any country that wanted to purchase oil from Iraq would have to do so in euros. I further argue that the motivation for the United States’ invasion of Iraq was to eliminate the threats a post-U.N. sanctions Iraq posed to the key underpinnings of American economic hegemony, and to install a pro-U.S. client state and permanent American military presence in the region. The book examines how a post-U.N. sanctions Iraq either directly threatened the ongoing success of American economic power, or provided enormous opportunities to extend it. All the same considerations are in play with Iran, starting with Iran's direct threat to the dollar as the dominant global reserve currency. But that is just one aspect of the much larger issue: that Iran openly defies U.S. neoliberal hegemony. Like Iraq pre-invasion, Iran is not a member of the WTO, has not had any dealings with the IMF since 1984, and does not have any debt with it or the World Bank. Like Iraq before it, and evidenced by China's oil development contracts, the U.S. and its oil companies are cut out of any future oil development in Iran. Like a post-sanctions Iraq, Iran has the potential to be the dominant power in the region and to provide development assistance on a vastly different model to that imposed by the WTO, World Bank and IMF, against which so much of the Middle East is rebelling. The U.S. has shot itself in the foot. Far from isolating Iran, the sanctions are potentially speeding up the demise of the dollar's dominance by forcing Iran to explore alternative currencies. That so many other countries are so willing to support Iran in direct defiance of the sanctions is what the U.S. clearly bet against. It might end up as the biggest foreign policy blunder in American history. Either that, or yet another war.Christopher Doran is the author of 'Making the World Safe for Capitalism: How Iraq Threatened the US Economic Empire and had to be Destroyed'. A long-time activist and writer, he teaches in the department of labor studies at Indiana University, Bloomington, and the department of Political Sociology at Indiana University, Columbus. [1] Henny Sender, ‘Iran accepts renminbi for crude oil’, Financial Times, 7 May 2012. [2] ‘China's oil imports from Iran hit records despite sanctions’, RT.com, 22 June 2012. [3] ‘China to invest USD 20bn to develop two Iranian oil fields: Qasemi’, PressTV, 8 July 2012. [4] Nayla Razzouk, ‘Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says’, Bloomberg.com, 7 January 2012. [5] ‘Turkey, Iran to trade in local currencies to replace greenback’ Hürriyet Daily News, 20 June 2012. [6] Humay Guliyeva and Pan Kwan Yuk, ‘What’s Iran doing with Turkish gold?’, Financial Times, 9 July 2012 blogs.ft.com/beyond-brics/2012/07/09/whats-iran-doing-with-all-that-turkish-gold/ [7] ‘Iran, Russia Replace Dollar with National Currencies in Trade Exchanges’, Fars, 7 January 2012. [8] ‘Iran to sell oil for household appliances to S.Korea’, Tehran Times, 25 July 2012. [9] Yayat Supriatna and Niluski Koswanage, ‘Indonesia says it would study any barter approach from Iran’, Reuters, 11 February 2012. [10] Sri Lanka may drop dollar to keep importing oil from Iran, Tehran Times, 5 February 2012, and ‘Tehran, Hanoi set to remove dollar, euro in trade’, Tehran Times, 8 January 2012. [11] I go into this in considerable detail in Making the World Safe for Capitalism. I’d also recommend William Clark’s Petrodollar Warfare: Oil, Iraq and the Future of the Dollar, and The Hidden Hand of American Hegemony: Petrodollar Recycling and International Markets by David Spiro. [12] William Cleveland, A History of the Modern Middle East, Boulder, CO: Westview Press, 2000, p. 468. [13] Jubilee Debt Campaign, ‘How big is the debt of poor countries?’, 2011; available at <http://www.jubileedebtcampaign.org.uk>. [14] David Harvey, A Brief History of Neoliberalism, Oxford: Oxford University Press, 2005, p. 193. [15] Robert Fisk, ‘Arab States Launch Secret Moves to Stop Using the US Dollar for Oil Trading’, Independent, 6 October 2009. "Let me die in my sleep like my uncle; not screaming like his passengers". |
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Post by skoondog on Jun 27, 2014 8:55:23 GMT -5
An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a notional amount of money at a given interest rate. These structures are popular for investors with customized cashflow needs or specific views on the interest rate movements (such as volatility movements or simple directional movements) and are therefore usually traded OTC; see financial engineering.
The interest rate derivatives market is the largest derivatives market in the world. The Bank for International Settlements estimates that the notional amount outstanding in June 2012 [1] were US$494 trillion for OTC interest rate contracts, and US$342 trillion for OTC interest rate swaps. According to the International Swaps and Derivatives Association, 80% of the world's top 500 companies as of April 2003 used interest rate derivatives to control their cashflows. This compares with 75% for foreign exchange options, 25% for commodity options and 10% for stock options.
Modeling of interest rate derivatives is usually done on a time-dependent multi-dimensional Lattice ("tree") built for the underlying risk drivers, usually domestic or foreign short rates and foreign exchange market rates, and incorporating delivery- and day count conventions; see Short-rate model. Specialised simulation models are also often used.
skoondog
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Post by JoeRockss on Jun 30, 2014 7:16:31 GMT -5
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Published time: June 26, 2014 13:50
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BRICS, China, Government Spending, Infrastructure
China is moving forward with a plan to create its own version of the World Bank, which will rival institutions that are under the sway of the US and the West. The bank will start with $100 billion in capital.
The Asian Infrastructure Investment Bank (AIIB) will extend China’s financial reach and compete not only with the World Bank, but also with the Asian Development Bank, which is heavily dominated by Japan. The $100 billion in capital is double that originally proposed, the Financial Times (FT) reported.
A member of the World Bank, China has less voting power than countries like the US, Japan, and the UK. It is in the ‘Category II’ voting bloc, giving it less of a voice. In the Asian Development Bank, China only holds a 5.5 percent share, compared to America’s 15.7 percent share and Japan’s 15.6 share.
At the International Monetary Fund, China pays a 4 percent quota, whereas the US pays nearly 18 percent, and therefore has more influence within the organization and where loans go.
“China feels it can’t get anything done in the World Bank or the IMF so it wants to set up its own World Bank that it can control itself,” the FT quoted a source close to discussions as saying.
To date, 22 countries have expressed interest in the project, including oil-rich Middle Eastern nations, the US, India, Europe, and even Japan, the FT reported.
“There is a lot of interest from across Asia but China is going to go ahead with this even if nobody else joins it,” the FT source said.
Funding for the Asian Infrastructure Investment Bank will mostly be sourced from the People’s Republic of China and be used to pay for infrastructure projects.
The bank’s first project will be a reincarnation of the ancient Silk Road, the vast network of trade routes between China and its regional neighbors. Another proposed project is a railway from Beijing to Baghdad.
The idea for the bank was first floated in October 2013, when China unveiled plans to create the bank. Then it was initially to be funded with $50 billion in capital.
Separately, the BRICS nations plan to have a $100 billion development bankready by 2015.
Funds will be reserved for emerging market members who are often bypassed by institutions like the IMF and World Bank.
Bank preparations will likely be finalized at the 6th annual BRICS summit on July 14-16, when the five world leaders convene in Brazil.
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Post by imSINGLEruRICH on Jul 7, 2014 6:27:11 GMT -5
sweetredfl
DIAMOND JEDI MASTER
13 hours ago QuotelikePost Options Post by sweetredfl on 13 hours agoseekingalpha.com/article/2293025-could-china-and-russia-be-trying-to-kill-the-petrodollar-standardSummary One of the major reasons that the U.S. dollar is the reserve currency of the world is because all transactions for oil are denominated in U.S. dollars. The U.S. dollar's preferred status in trade has allowed the United States to borrow more money than it otherwise would be able to. This status in trade has also resulted in the U.S. dollar being valued higher relative to most currencies than it otherwise would. Russia has begun selling oil in currencies other than the dollar. China has been actively working to ensure that all its oil purchases are in renminbi. Considering the dominance that these two nations have in the oil trade, this could be a significant blow to the U.S. dollar's reserve dominance. One of the most significant sources of strength for the U.S. dollar since the end of the gold standard in the early 1970s has been the petrodollar standard. This standard came into being following the close of the gold window in 1971 when President Richard Nixon agreed to provide arms and protection to Saudi Arabia in exchange for the Kingdom denominating all sales of oil in U.S. dollars. As Saudi Arabia was and still is the largest producer of oil in OPEC and the largest exporter of oil in the world, other nations quickly followed suit and thus the petrodollar standard was born. The petrodollar standard ensures a strong demand for U.S. dollars by countries all over the world as well as a strong demand for U.S. Treasury securities. This is because countries that import oil require large quantities of U.S. dollars to purchase all the oil that they import (because all purchases of oil are ultimately done in U.S. dollars). These dollars must be purchased in the open market, which creates demand for dollars. Many of these countries may not want as many U.S. dollars if they did not need to buy these dollars in order to purchase the oil imports that they need. Thus, the petrodollar standard creates artificial demand for U.S. dollars by creating demand in excess of what the market would normally desire. Because the importing countries are paying in dollars for their oil, the countries that are exporting oil are thus receiving these dollars, which accumulate on the balance sheets of their respective central banks when the companies that are actually conducting the oil sales exchange these dollars for their local currencies. Historically, the most logical thing for these central banks to do with all these dollars was to lend them back to the United States Federal Government through the purchase of Treasury securities. This was due largely to their convenience, liquidity, and perceived safety. Ultimately, the U.S. dollar's dominance in the oil trade led to it becoming dominant in all forms of trade. This led to exporting manufacturing powerhouses such as China and Japan amassing large quantities of dollars on the balance sheets of their central banks, which they also recycled back into Treasury securities just as the oil exporting nations had done. The recycling of all of these trade and oil dollars back into Treasury securities has generated artificial demand for Treasuries that would not have been present in the absence of this standard. This thus allowed the United States' governments, companies, and citizens (since most interest rates on loans are tied to Treasury rates) to borrow more money at lower interest rates than they would ordinarily be able to. We can see evidence of this by looking at the size of the total credit market, which is the total amount of debt owed by all governments, corporations, and individuals in the United States. The Global Financial Tsunami End Game: The Petro-Dollar Regime is Finished? www.globalresearch.ca/the-global-financial-tsunami-end-game-the-petro-dollar-regime-is-finished/5376779
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141fe
Dr. Of Diamonds
Posts: 104
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Post by 141fe on Jul 7, 2014 18:26:05 GMT -5
sweetredfl
DIAMOND JEDI MASTER
13 hours ago QuotelikePost Options Post by sweetredfl on 13 hours agoseekingalpha.com/article/2293025-could-china-and-russia-be-trying-to-kill-the-petrodollar-standardSummary One of the major reasons that the U.S. dollar is the reserve currency of the world is because all transactions for oil are denominated in U.S. dollars. The U.S. dollar's preferred status in trade has allowed the United States to borrow more money than it otherwise would be able to. This status in trade has also resulted in the U.S. dollar being valued higher relative to most currencies than it otherwise would. Russia has begun selling oil in currencies other than the dollar. China has been actively working to ensure that all its oil purchases are in renminbi. Considering the dominance that these two nations have in the oil trade, this could be a significant blow to the U.S. dollar's reserve dominance. One of the most significant sources of strength for the U.S. dollar since the end of the gold standard in the early 1970s has been the petrodollar standard. This standard came into being following the close of the gold window in 1971 when President Richard Nixon agreed to provide arms and protection to Saudi Arabia in exchange for the Kingdom denominating all sales of oil in U.S. dollars. As Saudi Arabia was and still is the largest producer of oil in OPEC and the largest exporter of oil in the world, other nations quickly followed suit and thus the petrodollar standard was born. The petrodollar standard ensures a strong demand for U.S. dollars by countries all over the world as well as a strong demand for U.S. Treasury securities. This is because countries that import oil require large quantities of U.S. dollars to purchase all the oil that they import (because all purchases of oil are ultimately done in U.S. dollars). These dollars must be purchased in the open market, which creates demand for dollars. Many of these countries may not want as many U.S. dollars if they did not need to buy these dollars in order to purchase the oil imports that they need. Thus, the petrodollar standard creates artificial demand for U.S. dollars by creating demand in excess of what the market would normally desire. Because the importing countries are paying in dollars for their oil, the countries that are exporting oil are thus receiving these dollars, which accumulate on the balance sheets of their respective central banks when the companies that are actually conducting the oil sales exchange these dollars for their local currencies. Historically, the most logical thing for these central banks to do with all these dollars was to lend them back to the United States Federal Government through the purchase of Treasury securities. This was due largely to their convenience, liquidity, and perceived safety. Ultimately, the U.S. dollar's dominance in the oil trade led to it becoming dominant in all forms of trade. This led to exporting manufacturing powerhouses such as China and Japan amassing large quantities of dollars on the balance sheets of their central banks, which they also recycled back into Treasury securities just as the oil exporting nations had done. The recycling of all of these trade and oil dollars back into Treasury securities has generated artificial demand for Treasuries that would not have been present in the absence of this standard. This thus allowed the United States' governments, companies, and citizens (since most interest rates on loans are tied to Treasury rates) to borrow more money at lower interest rates than they would ordinarily be able to. We can see evidence of this by looking at the size of the total credit market, which is the total amount of debt owed by all governments, corporations, and individuals in the United States. The Global Financial Tsunami End Game: The Petro-Dollar Regime is Finished? www.globalresearch.ca/the-global-financial-tsunami-end-game-the-petro-dollar-regime-is-finished/5376779 Why is this disguised as a summary when it is a totally plagiarized copy of another post. We suddenly have new posters making posts as if it were their own work. If the relationship is anything bit spurious, please, someone say so. I would think those who are as professorial as ChuckWheat or Portrush would be commenting on this. 141fe |
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Post by 3bid on Jul 8, 2014 8:07:52 GMT -5
sweetredfl
DIAMOND JEDI MASTER
13 hours ago QuotelikePost Options Post by sweetredfl on 13 hours agoseekingalpha.com/article/2293025-could-china-and-russia-be-trying-to-kill-the-petrodollar-standardSummary One of the major reasons that the U.S. dollar is the reserve currency of the world is because all transactions for oil are denominated in U.S. dollars. The U.S. dollar's preferred status in trade has allowed the United States to borrow more money than it otherwise would be able to. This status in trade has also resulted in the U.S. dollar being valued higher relative to most currencies than it otherwise would. Russia has begun selling oil in currencies other than the dollar. China has been actively working to ensure that all its oil purchases are in renminbi. Considering the dominance that these two nations have in the oil trade, this could be a significant blow to the U.S. dollar's reserve dominance. One of the most significant sources of strength for the U.S. dollar since the end of the gold standard in the early 1970s has been the petrodollar standard. This standard came into being following the close of the gold window in 1971 when President Richard Nixon agreed to provide arms and protection to Saudi Arabia in exchange for the Kingdom denominating all sales of oil in U.S. dollars. As Saudi Arabia was and still is the largest producer of oil in OPEC and the largest exporter of oil in the world, other nations quickly followed suit and thus the petrodollar standard was born. The petrodollar standard ensures a strong demand for U.S. dollars by countries all over the world as well as a strong demand for U.S. Treasury securities. This is because countries that import oil require large quantities of U.S. dollars to purchase all the oil that they import (because all purchases of oil are ultimately done in U.S. dollars). These dollars must be purchased in the open market, which creates demand for dollars. Many of these countries may not want as many U.S. dollars if they did not need to buy these dollars in order to purchase the oil imports that they need. Thus, the petrodollar standard creates artificial demand for U.S. dollars by creating demand in excess of what the market would normally desire. Because the importing countries are paying in dollars for their oil, the countries that are exporting oil are thus receiving these dollars, which accumulate on the balance sheets of their respective central banks when the companies that are actually conducting the oil sales exchange these dollars for their local currencies. Historically, the most logical thing for these central banks to do with all these dollars was to lend them back to the United States Federal Government through the purchase of Treasury securities. This was due largely to their convenience, liquidity, and perceived safety. Ultimately, the U.S. dollar's dominance in the oil trade led to it becoming dominant in all forms of trade. This led to exporting manufacturing powerhouses such as China and Japan amassing large quantities of dollars on the balance sheets of their central banks, which they also recycled back into Treasury securities just as the oil exporting nations had done. The recycling of all of these trade and oil dollars back into Treasury securities has generated artificial demand for Treasuries that would not have been present in the absence of this standard. This thus allowed the United States' governments, companies, and citizens (since most interest rates on loans are tied to Treasury rates) to borrow more money at lower interest rates than they would ordinarily be able to. We can see evidence of this by looking at the size of the total credit market, which is the total amount of debt owed by all governments, corporations, and individuals in the United States. The Global Financial Tsunami End Game: The Petro-Dollar Regime is Finished? www.globalresearch.ca/the-global-financial-tsunami-end-game-the-petro-dollar-regime-is-finished/5376779 Why is this disguised as a summary when it is a totally plagiarized copy of another post. We suddenly have new posters making posts as if it were their own work. If the relationship is anything bit spurious, please, someone say so. I would think those who are as professorial as ChuckWheat or Portrush would be commenting on this. 141fe How is sweetredfl guilty of plagiarism? The 'summary' is clearly excerpted from an original article as found at the source he responsibly included. Or are you saying he merely copied a post from another poster who posted the original excerpt and source, without giving credit due? -3bid |
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Deleted
Deleted Member
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Post by Deleted on Jul 8, 2014 9:14:07 GMT -5
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Post by Duc N Altum on Jul 8, 2014 16:49:18 GMT -5
China says broad consensus reached on new BRICS bankReuters July 7, 2014 5:42 AM BEIJING (Reuters) - The five BRICS nations have reached a broad consensus on their $100 billion development bank though some differences remain, a senior Chinese diplomat said on Monday ahead of a summit in Brazil next week to be attended by President Xi Jinping. The new bank will symbolize the growing influence of emerging economies in the global financial architecture long dominated by the United States and Europe through the International Monetary Fund and the World Bank.
Leaders of Brazil, Russia, India, China and South Africa are expected to sign a treaty to launch the bank officially when they meet at a BRICS summit in the northern Brazilian city of Fortaleza on July 15. Negotiations to create the lender have dragged on for two years, with some members growing weary of China's desire to have a bigger stake in the bank by putting in more capital. A senior Brazilian government official said in May the five BRICS nations were likely to agree to fund the bank equally, giving them the same rights. Briefing reporters ahead of the summit, Chinese Vice Foreign Minister Li Baodong would not be drawn on the specifics of the share structure, but was optimistic. "On the BRICS development bank, all parties have extensive consensus on this issue. Of course there are a few differences and different viewpoints on technical issues," Li said. "We are fully confident that we can reach consensus and establish the BRICS development bank at this meeting," he added.
"On this type of technical issue, BRICS members must establish consensus through friendly consultation," Li said, referring to the bank shares issue. "There are all kinds of different considerations, but the goal is to establish the BRICS bank as soon as possible." The bank will have to be ratified by the countries' legislatures and could begin lending in two years, the Brazilian official told Reuters earlier. The new development bank would help cover growing demand for project financing that has not been entirely met by global multilaterals, which, for years, have been heavily criticized for meddling in the domestic policies of sovereign borrowers. The BRICS also need to decide if the bank will be based in New Delhi, Shanghai, Johannesburg or Moscow. Brazil will not offer headquarters because of upcoming presidential elections that could delay negotiations, the Brazilian official said. Xi will also visit Argentina, Venezuela and Cuba on his swing through the region, and at the BRICS summit will have his first meeting with new Indian Prime Minister Narendra Modi, Li said. But he will not attend the final of the World Cup, as Brazil had hoped. "Based on (his) schedule he will not be able to appear at the World Cup final held in Brazil. This is unfortunate," Li added. (Reporting by Michael Martina; Writing by Ben Blanchard; Editing by Clarence Fernandez) finance.yahoo.com/news/china-says-broad-consensus-reached-094206297.html
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Post by John Winston Lennon O'Boogie on Jul 8, 2014 17:16:27 GMT -5
I'm lost on this part... -----> The bank will have to be ratified by the countries' legislatures and could begin lending in two years, the Brazilian official told Reuters earlier.
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