Dollar being spurned in favor of Euro-- scary articles

[Muddy Waters Guitar]

http://www.atimes.com/atimes/Global_Economy/GA27Dj01.html
http://www.energybulletin.net/4032.html

Has anyone else been seeing articles popping up on this topic before? It's very scary stuff. About the only thing staving off an economic collapse these days is the largesse of the Chinese and Japanese central banks, buying up our T-bills. But now, apparently, both of them are getting sick and tired of our government's profligacy and are starting to buy up more Euros-- and to exchange their dollars for oil reserves (thus transferring the "Greenback problem" largely to the Saudis). As one of the authors notes, this could crash our economy in an instant b/c of our vulnerability from this massive debt.

People in the USA before Black Tuesday in 1929 had little warning, after all-- they were all still reveling in the Roaring Twenties before everything came crashing down so suddenly, and I remember from my history classes that many economists attributed the Great Depression in part to unsustainable levels of borrowing (personal and governmental). I'm always skeptical of Chicken Little alarmism and I'd hope we'd have enough cushions to soften a fall, but-- are we really this vulnerable? Could China and Japan send us crashing down by pulling out the rug (and minimize their own hurt with closer ties to the Euro market)?

[kineneb]

1. Asia Times online

This has been one of their topics for the last several months. China is "broadening" their portfolio into more Euros. The collapse of our economy is lurking out there. With luck, it will be a slow slide. Because of the interlinked economies if we go down hard, most of the world would go with us.

[tuvor]

2. It's been suggested that bush's war is actually over oil being traded

in euros instead of dollars.

Here are a couple of links, the accuracy of which I cannot vouch for, but should be interesting reads, nonetheless

http://www.feasta.org/documents/papers/oil1.htm
http://www.pubtheo.com/page.asp?PID=1181

[kineneb]

3. one of the reasons they will go after Iran

Iran has plans to open a trading bourse with the unit of currency to be Euros. BushCo can't let that happen...might cut into the oil co.s profits.

[JohnnyRingo]

4. And the war creates MORE debt that makes the oil more important.

I think the war is also a way to move more dollars offshore, to help stem runaway domestic inflation.

[flyarm]

5. i read a coupke weeks ago..that russia

was going to convert from dollars to euros...we are in deep doo doo!

[JoMama49]

6. We might want to start purchasing euros now! Or, at least

investing in some European stocks!

[JohnnyRingo]

7. pssst.....gold

[whistle]

8. Gold bars, chains or bullion?

[JohnnyRingo]

16. I'm not a member of the "investor class" and obviously not qualified

to give advice, but I know that bullion is hoarded by citizens that live in countries that anticipate monetary change or revolution.

It seems that the second most accumulated household commodity in war torn Iraq, behind automatic weapons, was gold.

When they tell them their money is no longer valid, they trade some gold for the new currency.

[htuttle]

11. I'm investing in canned goods

Like soup, corn, peaches, etc...

I got a feeling my investment in canned peaches is going to pay off someday.

[KayLaw]

13. Same here

Even if you can only spare five or ten dollars a week, shop for the shelf-stable foods. Ramen, pasta, sugar, flour...

[ProgressiveConn]

9. George W Bush.

The man who killed the Dollar and brought about America's economic downfall.

That will be his legacy.

[lonestarnot]

10. real property investments? That is also going to crash when

China and Japan pull the rug... Gold..? Don't know...You are right this some queezy stuff.

[susu369]

12. Seymour Hersh warned us

This (written in January) will sober anyone up:

"........the economy. It's going to go very bad, folks. You know, if you have not sold your stocks and bought property in Italy, you better do it quick. And the third thing is Europe -- Europe is not going to tolerate us much longer. The rage there is enormous. I'm talking about our old-fashioned allies. We could see something there, collective action against us. Certainly, nobody -- it's going to be an awful lot of dancing on our graves as the dollar goes bad and everybody stops buying our bonds, our credit -- our -- we're spending $2 billion a day to float the debt, and one of these days, the Japanese and the Russians, everybody is going to start buying oil in Euros instead of dollars. We're going to see enormous panic here. But he could get through that. That will be another year, and the damage he’s going to do between then and now is enormous. We’re going to have some very bad months ahead."

http://64.233.187.104/search?q=cache:0BnywnsjPH8J:www.counterpunch.com/hersh01272005.html+%22Seymour+Hersh%22+%2B%22we%27ve+been+taken+over+by+a+cult%22&hl=en

[Muddy Waters Guitar]

17. Whoa! Thanks for that article.

Seymour Hersh is one of those no-BS, tell it like is types of folks, and I trust him more than just about anybody else on the public journalistic scene. He reminds me of those tough Jewish teachers and mentors I had back in school days-- disciplined, smart and unrelentingly dogged in their pursuit of truth, with no patience for incompetence or dissembling. You've certainly sobered me up, among I'm sure many others, with this reference.

[Commie Pinko Dirtbag]

14. I liked to read that!

...starting to buy up more Euros-- and to exchange their dollars for oil reserves (thus transferring the "Greenback problem" largely to the Saudis).

Couldn't happen to a bunch of nicer people IMHO.

[Roland99]

15. Remember this DU thread? The Real Reasons Why Iran is the Next Target

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=114&topic_id=11662