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Saudi Central Banker Confirms that US Dollar is on its Deathbed
In Hong Kong, Mohammed al-Jasser, the head of the Saudi Arabian Monetary Authority affirmed that the US dollar’s role as the world’s reserve currency is coming to an end when he stated, “The dollar is still preeminent in its role as a reserve currency.” We should recall former US Federal Reserve Chairman Alan Blinder’s statement, “The last duty of a central banker is to tell the public the truth” (PBS’s Nightly Business Report, 1994) and thus be astute enough to realize that the often hollow words of Central Bankers serve as a contrary indicator of the truth.
When listening to a Central Banker speak, one should recall the infamous balcony scene from the classic Woody Allen film, Annie Hall (1977), as a case study for how to interpret “Central Banker speak”. In that infamous scene, though both Annie Hall (Diane Keaton) and Alvy Singer (Woody Allen) converse in English, subtitles appear in the film as they speak that reveal the true thoughts behind their hollow words. The subtitles comically reveal that Annie is insecure about her conversational skills while Woody is thinking about sex throughout the whole conversation, thoughts that betray the very words they speak. As history very frequently reveals Central Bankers’ words to be the exact opposite of their thoughts, all Central Banker’s public declarations should be accompanied with subtitles as well.
So here's my subtitled version of Mohammed al-Jasser's words:
Saudi Central Banker Mohammed al-Jasser: “The dollar is still preeminent in its role as a reserve currency.”
Subtitle: “Since we still predominantly accept US dollars for the sale of our oil and we know the US dollar is doomed, I will publicly tell the world that we support the dollar. Perhaps my words as an authoritative Central Banker can fool people into believing the dollar is a safe haven and perpetuate this already faltering US dollar bear market rally to provide us with adequate time to execute an exit strategy to dump our remaining petrodollars before the US dollar implodes.”
Those that are looking towards this latest US dollar bear rally as confirmation of a year-long uptrend for the US dollar in 2010 are likely to be hugely disappointed.
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From mid 2009 onwards I warned of an impending USD rally and it's got a long way to go.
http://www.zerohedge.com/forum/market-outlook-0
More people should use technical analysis as it's a leading indicator and tells us where the economy is headed.
My proprietary indicators can identify trend changes before they occur.
In early 2007 I warned of an impending stockmarket crash.
I confirmed an equity bottom by early April 2009.
The uptrend since March 2009 is a bear market rally contained within a much larger bear cycle that started in 2000.
I think what he meant to say was;
"The Jewish warmongers and Parisian plutocrats tried to flee with their gold and jewels"
Blinder was Fed Vice Chairman.
most of these arab fat oil geez are pure retards...and fully dependent of US (and UK).."doo bye" is a mirage...usd is here and forever (maybe merge with cad and mxn some day...).
USD is not going anywhere. The only real fiat competition it has is the Euro and because the EU let every country who wanted to adopt it regardless of their credit worthiness use the Euro it is becoming irrelevant.
Not all the Europeans have the work ethic or organizational skills of the Germans, and that is a fact. I lived in the hot southern part of Europe for five years, hell who wants to work in that heat!
In case you are wondering, I am NOT of German origin.
more likely a second rate high school .. weaned on keynesian economics ..
and wondering who won last night on amercan idol
http://tinyurl.com/ye4soxq
Thanks for the fun ZH!
And for those 'top callers' on ZH,
please don't let the door hit you on the ass when you go.
Olympics. Gold, Silver, Copper. Paper? too bad!
Who honestly cares about gold when a $1 rifle cartridge can secure you enough food for months?
Or better yet, a $30 fishing pole or crab net if you live near the ocean.
Gold, gold, gold... get over it already. You all sound like the real estate junkies of the 90's in California. "X can't possibly go down, buy now!".
Tools for living > physical assets.
sure a 1 bullet in the middle of chicago will get you enough food for a day.. if you shoot the local taco guy.
sound like you are dead broke with out any asset to save
http://tinyurl.com/ye4soxq
yeah, nobody else will figure out to shoot animals.
And, nobody will just come across you trying to drag the carcass out and shoot you. Not like this sort of thing happens in the animal kingdom.
Yeah, most of history was just subsistence living in a madmax society. Until we had the FRN which saved us all and brought about the steam engine and electricity
If you dont want thousands of dollars in change for your gold at the grocery store, buy silver. Right now one ounce coins are 20 bucks, and its got more upside than gold anyway
Hilary says there's a big change of power in Iran. I guess the CIA is getting kicked out government there.
hahhah no doubt.
A perfect example of the Populist sham....
Venezuela
Has some of the largest deposits of oil on earth....
And is still broke....
............................
Govts. need better political economics....
http://articles.moneycentral.msn.com/Banking/BetterBanking/struggling-to...
Here we go now. The writing is on the wall.
The Chinese bought billions of US debt with fake money themselves.
Sorry, I rather hold USD than fiat from a country that has a central planning committee which controls all media, all monetary expansion and basically makes up whatever they please.
The promise of a Chinese RNM is a promise based on propaganda.
China will crash and burn long before the US. With it the US debt will evaporate. The Chinese will get so desperate to raise cash to control the masses, they will sell the US debt for pennies back to the Fed.
Chinese are better of to get paid in nickles than dollars. I dont think they need anything from us. Even with their bubble they are in a stronger position than we are.
They have been buying hard assets
We gave our trillions to a black hole
They have been encouraging their people to buy silver and gold
We have adds on tv saying ..come bring your scrap gold and we will give you real dollars (some favor)
They have a manufacturing base
We sent ours away.
They can and do produce things
We , not so much (understatement)
An economy is based on producing is it not?
There are only so many ways to say we are screwed.
what are you saying.. we have no manufacturing base.
The US still manufactures things and can manufacture again more if the need arises. We gave the Chicoms our technology but not the ongoing ability to innovate.
As quick as the US setup shop in China, as quickly it can close shops and move elsewhere or back home. Not a big deal.
If American government would stipulate to buy American and only made in America, I mean when the Sino-American love affair ends one day.. it is not a problem.
Everyone is being told that China China China is the next best thing since sliced bread. I call bluff. It's a joke.
The next bubble is not gold as some suggest, the next bubble is "made in China". That country is already on the verge. They cannot survive 25% less export (that's official probably more unofficial).
China.. the dream that never was. Just like the camel jockeys playing with oil money and building their Babylon in the desert, the Chinese are going to face the same fate when things unravel.
US and Europe rule long term.
Which is exactly why we are screwed. People like you actually wake up in the morning and believe what you see on TV. Our educational system is a frail junkie. Innovation? I hate to be a realist, but which Americans graduating as engineers from our elite universities are you talking about? You must be referring to all the underpaid PhD, H1-B visas that can skip on to other foreign opportunities as soon as they realize all their native neighbors are dragging down local real estate values with all the discarded pony kegs in the front yard. All the bachelor degrees in Art History and Psychology are already working at Starbucks or thinking about going down to the license plate factory to apply for a job that evaporated 10+ years ago.
Pull your head out.
a) what rock have you been hiding under; almost everything I own comes from China - I learned that in high school - if I had kids they'd be sucking down melamine or chewing on "leaded" toys.
b) duh
Look, if you're new around here we'd like you to keep playing. In fact we love bold posters. I post boldly. I want people to tell me I'm full of shit because I try to post the highest capacity and experience of my brain around here. Do the same. See you around, Anon.
Here it is....
Everybody must get accustomed to living in a CCC world....
For a while everything CCC....
This simply means living in a "junk" rated world....that was made possible by populist politics....
And per haps the biggest sham of all....failure to reduce the size of govt.....and having tax revenues go way way down because of it....
The Obama Administraion has totally missed this basic equation....
Income + Debt = Valuation
Every single move from the Obama Admin secures a lower valuation for every single small business.....whereby the majority of jobs are provided.... and all corresponding business are thus valued as well....
A Populist government is the cause of economic rot....
Time to hit the reset button....
"Saudi Central Banker Confirms that US Dollar is on its Deathbed"
This article is a joke. One question about the demise of the USD: What other currency is capable of replacing the USD that is also backed by the agricultural output, the huge reserves of energy (coal and natural gas) and a world class military? In a world where the risk of WWIII breaking out increases almost daily, these are some of the key resources that will keep the USD from going to zero compared to other reserve currency candidates. The dollar is strengthened by the threat of global war or global economic collpase. In the land of the blind, the one-eyed man is king.
No, no joke. There isn't going to be a global reserve currency. No one dares audit the Fed because discovery would collapse US and world economy within hours....which is going to happen by mid-2012 anyway. And then, again, all transactions will be local and in-kind. The people who write (and comment) at ZH are mostly on-target, but how about getting the hard truth from a long-term Wall Street and DC insider: Katherine Austin Fitts at [[solari.com]]. In particular, click on the Dillon-Read material at left on her homepage. What she knows about the Washington-NY syndicate (aka, ZOG) will have you heading for the nearest gun store ASAP.
I have some silver and gold but don't believe I'll ever be able to actually buy things with it. If the dollar fails, it'll be 1932 all over again. The only way the U.S. will be able to regain global confidence will be to back the currency in silver and gold. All nations will have to follow suit so this time there will be no safe haven to send illegal gold to as they did in 1932. Crazy? Maybe, but if you think the U.S. Government will just go out of existence, that's crazier. This will be their only choice. Of course, this happens after our default and world war three.
well i have had some gold since 300... sold some at 1000 bought stuff with it,
the gold is a hedge against many things ,, store of value,
who for heaven sakes would every believe he must take a physical siver or gold coin down to some stupid store ,, they have not a clue like the many here . but take it to some one who deals in gold and silver .. look in your yellow pages find coin shop,,,
be more than stump go down and sell an oz. lol
http://tinyurl.com/ye4soxq
Prior to the adoption and widespread use of US currency, there were a number of "local" currencies and script, issued by banks, which passed for exchange medium in transactions. The key here is that both sides recognized and accepted such as payment of goods or services beyound the barter system.
In the west, where money was gold or silver, prospectors and others often bought on credit, terms which were settled each month or the person lost their credit privledges. A man's word was worth a fortune in some cases, less in others, but the man who paid his bills, could get just about anything, anywhere, anytime. People didn't carry more than a few pennies, and even as late as the 1930's, to have a nickle was to be "in the money". Economy was local and the money that circulated was as likely to be personal credit as actual coins. Thus the "put it on my tab".
Should people stop accepting the dollar, due to massive inflation or just open revolution, the population will find itself once more dealing more with a person's reputation for everyday purchases. Those who cannot deal with others, or deals with lies, will soon find themselves shunned in favor of those who are trustworty.
Shame it may take a major change in living standards to revive interest in that word "trustworthy".
truth, honor and trust! One lie is all it takes to destroy that. Better to fess up, take the licks but own yourself.
One thing the US Dollar has going for it is that the US is strong enough to force its citizens to pay taxes. Greece was not. The IRS is vigorously cracking down on secret bank accounts and buying up shotguns for its enforcers. I'm not happy with it, but the dollar is backed by a lot of force. Until there's a military counterbalance, maybe it's premature to call an end to dollar hegemony. Any thoughts?
Saudi Central Banker Confirms that US Dollar is on its Deathbed
This article is a joke. One question about the demise of the USD: What other currency is capable of replacing the USD that is also backed by the agricultural output, the huge reserves of energy (coal and natural gas) and a world class military? In a world where the risk of WWIII breaking out increases almost daily, these are some of the key resources that will keep the USD from going to zero compared to other reserve currency candidates. The dollar is strengthened by the threat of global war or global economic collpase. In the land of the blind, the one-eyed man is king.
The answer for all Gold Bugs:
http://en.wikipedia.org/wiki/Executive_Order_6102
Seriously? Is this ZH or The Onion? Guys, you have got to produce more valuable content than this to keep people coming back to your website. Sorry, but I'm calling the top in ZH. You're in decline.
Obviously you do not understand the concept of a contributor post.
This message brought to you by Alan Greenspan , Rahm Emmanuel, Hank Paulson, and the entire Goldman Sachs team.
The Romans thinned the silver in their coinage; thinned their army across "the world;" and thinned the intellect of the masses with the Coliseum. Ring a bell? The import/export, corruption, class-warfare, etc. dynamics are virtually identical, and eventually pulled the country apart. This isn't conjecture; it's the physics of civilized "humanity."
Just finished reading Blood Red Snow, a book written by Gunther K. Koschorrek, a German soldier that fought on the Eastern Front, excellent book, wanted to share the 2nd to last paragraph of the book
"But when will people realize that it is possible for any of us to be manipulated by domineering and power-crazed individuals who know how to motivate the masses in order to misuse them for their own ends? While they keep well out of the way, in safety, they have no hesitation in brutally sacrificing their people in the name of patriotism. Will mankind ever stand together against them? Or are those who died in the fighting dead forever, and will the reasons they gave their lives be forgotten?"
The natural state of mankind is War. Very sad indeed, yet true....
Well son of a gun. Koschorreck. Geez, thats my last name. I am a german immigrant (1963)Reckon i got relatives i did not know about. Thanks, but a heck of a surprise to me!
What strikes me as an obvious, nobody mentions here. The US is the preeminent military superpower. As long as they have the military edge, the greenback will remain the world's reserve curency. The US provides "aid" to other nations, and expects them to purchase military hardware from the US, effectively recycling the money and providing a natural link to make sure the USD remains the world's reserve currency. Gold will not replace this link and the US knows, as long as the USD remains the word's reserve currency, the US banksters can't keep raping the world. It's all about the banks stupid!
Your last sentence is lying to it self.
ie BECAUSE we have the reserve currency we ARE raping the world.
Leo, when you gonna get that seeing eye dog?
No its not all about the banks, fuck them.
Its about millions starving due to bankers.
Its about the insecurity we all have now.
Its about survival.
Its about our kids surviving.
Its about regaining our freedom in the usa.
Its too bad we often dont see what we have lost , until its gone!
Leo, see my comment above.
USD 'reserve currency' status is slipping. The rest of the world is sick and tired of financing endless and pointless wars. Essentially, nations such as China and Saudi Arabia are voting with their money, and they are buying less and less US Treasuries. When the day comes they buy ZERO Treasuries, the game will be up, and the USD will be worthless.
What does that tell you? That the days of American Hegemony will soon be over. Maybe not this year, maybe not for another ten years, but it will end soon (enough).
if we're so uber awesome, how come we haven't caught Bin Laden, secured Afghanistan, secured Iraq, secured Lebanon, lost Vietnam, stalemate in Korea, the Russians bore the brunt of the Wehrmacht in WWII, we however did beat the Japs. We do have the best equipment, however the Nintendo-generation of combat troops may be somewhat lacking compared to prior generations...
bin laden helped us like he did before... his boys were from saudi, the same saudi that partnered with us to pin dollar to oil in the 70's... so 9/11 came nicely after saddam sold oil in euros... and iraq threw dollar reserves away for euro..
and you think germany and france didn't help because of what?? why would they help set back the euro gains in favor of the dollar?
wake the fuck up (it's obvious your are blind using Nintendo for discussing combat games anyway...)
Well, there were many reasons they did not want to help. But I don't think Euro gains were one. Germany (and France, to a lesser extent) are exporting countries, a cheap Euro suits them just fine. Just like China loves a cheap renminbi.
On an slightly related note, compare and contrast the relatively small Greek economy with the 900-pound gorilla that is the economy of California. Both are either broke, or pretty close to being broke. But only one is the subject of intense speculation and political manoeuvers. Interesting.
Interesting indeed. And Calif. is only one of many U.S. states that are wallowing in debt and on a downward economic spiral. And they can't (aren't yet?) printing their own money, tho recent IOUs come close. Which brings up another way the broad national economy will come unglued: from below, as bankrupt states refuse to send revenue up the line and, effectively, secede.
Nintendo allows them to build a skill set to become traders or become killers using unmaned drones. Once you take the personal aspect of killing out of the equation, it becomes much easier.
KING DOLLAR say "I think I'll go for a walk!"
"I feel happy!"
thew rag head should buy all the gold he can then say they'll also accept gold for payment of oil, would suit me ;)
blah blah blah US dollar is dead, but we need them to buy our oil in dollars... blah blah blah I'm just angry I'm owned by the yanks...
Remember BlackBeard, us "yanks" are owned too
i am thinking those 1oz silver bars are the way to go since they would be very useful in day to day exchange than gold. Gold would be great to buy livestock, heavy equipment but if you are already set and ready you just need daily/weekly provisions and that would be traded in silver
and if you have a bunch of gold and nothing else you are going to get squashed quick.. you better have land and SOMETHING going on for your local economy where people won't think you are just some old greedy banker mistakenly? ;)