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John Kerry Warns "Dollar Will Cease To Be Reserve Currency Of The World" If Iran Deal Rejected
Scaremongery... or maybe the whole point, as Obama's former chief economist noted, is to lose reserve status. Take That China!!
As Jared Bernstein previously explained...
There are few truisms about the world economy, but for decades, one has been the role of the United States dollar as the world’s reserve currency. It’s a core principle of American economic policy. After all, who wouldn’t want their currency to be the one that foreign banks and governments want to hold in reserve?
But new research reveals that what was once a privilege is now a burden, undermining job growth, pumping up budget and trade deficits and inflating financial bubbles. To get the American economy on track, the government needs to drop its commitment to maintaining the dollar’s reserve-currency status.
The reasons are best articulated by Kenneth Austin, a Treasury Department economist, in the latest issue of The Journal of Post Keynesian Economics (needless to say, it’s his opinion, not necessarily the department’s). On the assumption that you don’t have the journal on your coffee table, allow me to summarize.
It is widely recognized that various countries, including China, Singapore and South Korea, suppress the value of their currency relative to the dollar to boost their exports to the United States and reduce its exports to them. They buy lots of dollars, which increases the dollar’s value relative to their own currencies, thus making their exports to us cheaper and our exports to them more expensive.
In 2013, America’s trade deficit was about $475 billion. Its deficit with China alone was $318 billion.
Though Mr. Austin doesn’t say it explicitly, his work shows that, far from being a victim of managed trade, the United States is a willing participant through its efforts to keep the dollar as the world’s most prominent reserve currency.
When a country wants to boost its exports by making them cheaper using the aforementioned process, its central bank accumulates currency from countries that issue reserves. To support this process, these countries suppress their consumption and boost their national savings. Since global accounts must balance, when “currency accumulators” save more and consume less than they produce, other countries — “currency issuers,” like the United States — must save less and consume more than they produce (i.e., run trade deficits).
This means that Americans alone do not determine their rates of savings and consumption. Think of an open, global economy as having one huge, aggregated amount of income that must all be consumed, saved or invested. That means individual countries must adjust to one another. If trade-surplus countries suppress their own consumption and use their excess savings to accumulate dollars, trade-deficit countries must absorb those excess savings to finance their excess consumption or investment.
Note that as long as the dollar is the reserve currency, America’s trade deficit can worsen even when we’re not directly in on the trade. Suppose South Korea runs a surplus with Brazil. By storing its surplus export revenues in Treasury bonds, South Korea nudges up the relative value of the dollar against our competitors’ currencies, and our trade deficit increases, even though the original transaction had nothing to do with the United States.
This isn’t just a matter of one academic writing one article. Mr. Austin’s analysis builds off work by the economist Michael Pettis and, notably, by the former Federal Reserve chairman Ben S. Bernanke.
A result of this dance, as seen throughout the tepid recovery from the Great Recession, is insufficient domestic demand in America’s own labor market. Mr. Austin argues convincingly that the correct metric for estimating the cost in jobs is the dollar value of reserve sales to foreign buyers. By his estimation, that amounted to six million jobs in 2008, and these would tend to be the sort of high-wage manufacturing jobs that are most vulnerable to changes in exports.
Dethroning “king dollar” would be easier than people think. America could, for example, enforce rules to prevent other countries from accumulating too much of our currency. In fact, others do just that precisely to avoid exporting jobs. The most recent example is Japan’s intervention to hold down the value of the yen when central banks in Asia and Latin America started buying Japanese debt.
Of course, if fewer people demanded dollars, interest rates - i.e., what America would pay people to hold its debt - might rise, especially if stronger domestic manufacturers demanded more investment. But there’s no clear empirical, negative relationship between interest rates and trade deficits, and in the long run, as Mr. Pettis observes, “Countries with balanced trade or trade surpluses tend to enjoy lower interest rates on average than countries with large current account deficits, which are handicapped by slower growth and higher debt.”
Others worry that higher import prices would increase inflation. But consider the results when we “pay” to keep price growth so low through artificially cheap exports and large trade deficits: weakened manufacturing, wage stagnation (even with low inflation) and deficits and bubbles to offset the imbalanced trade.
But while more balanced trade might raise prices, there’s no reason it should persistently increase the inflation rate. We might settle into a norm of 2 to 3 percent inflation, versus the current 1 to 2 percent. But that’s a price worth paying for more and higher-quality jobs, more stable recoveries and a revitalized manufacturing sector. The privilege of having the world’s reserve currency is one America can no longer afford.
* * *
In the global race to debase, Reserve currency status is a curse!
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USA cannot compete anymore in the world, hence, like a cornered rat it threatens to strike.
You could say that again!
Stupid Kerry for $500. Alex.
Anyone else here that could give an outsider like me, the relevant information about this odd looking cunt, who just happens to be your secretary of something or other, and the qualifications this daft looking, and most certainly inbred twat has to hold such an important position in what is, in polite circles called, the most powerful nation ever seen on earth?
Because as far as I am aware, if this in-bred, imbecilic, over face abused, with far to much time on his hands wanking cunt, with the legs and hips of a 21 year old virile stallion, just how can you recover that quick when you are 71 years old, when it kills nearly all others your age.
Could you explain why he has the main job of making my American friends look like right fucking cunts, just like he is, to the rest of the world? Even Peter Beardsley was a damn sight better looking, and an infinitely superior bloke than this no-neck.
Just what does this abomination on the face of your once respected country do? What the fuck do you pay this ugly cunt for?
Just asking..
;-)
He is a fucking wanker just like most of your Brit politicians. USA/UK. both retarded fuckers.
>>After all, who wouldn’t want their currency to be the one that foreign banks and governments want to hold in reserve?
This is the point. Buy why is this the point? Well, being a reserve currency simply means that it is the currency that is the PREFERRED currency of debt holdings, i.e the currency whose associated debt is the most liquid and the least likely to loose value.
It is amazing how many articles that can be written about "reverve currency" without a single one of them explaning what being the reserve currency relly MEANS.
Here is the deal. German and other European companies are losing billions because of sanctions on Russia . Then they get a chance to have a huge deal with Iran and US Congress shuts them down again.
Anyone see anything going on here? You think those companies are going to appreciate some fucking neocon clowns in Washington fucking up this deal?
I predict big backlash against the USA.
Yeah....but the neocons aren't running things now and haven't for 7 years. And the next 4 don't look too good either...
Horseshit the neocons ARE running tings and have been since 2001.
Where you been?
Neocons are Repubs and Dems.
https://www.youtube.com/watch?v=Typ2d2yYGLY
Horseshit the neocons ARE running tings and have been since 2001.
Where you been?
Neocons are Repubs and Dems.
Horseshit the neocons ARE running tings and have been since 2001.
Where you been?
Neocons are Repubs and Dems.
The "con" in neo (which means new) con is conservative. Dems are socialists...
Wow, you really are clueless. Neoliberals and neoconservatives are both the same. They believe in USA exceptioalism and some fucking divine right to rule the world.
You morons and your goddam socialist bullshit. You don't have a fucking clue about the real world.
The most socialist country is the USA , big govt and handouts. Much more than here in Europe.
Grow a fucking brain and get informed or do some travelling and come here and I will show you more true capitalism and competittion than you will EVER see in the USA>
https://www.youtube.com/watch?v=Typ2d2yYGLY
You really should invest in a new mouse....
Wow, you really are clueless. Neoliberals and neoconservatives are both the same. They believe in USA exceptioalism and some fucking divine right to rule the world.
You morons and your goddam socialist bullshit. You don't have a fucking clue about the real world.
The most socialist country is the USA , big govt and handouts. Much more than here in Europe.
Grow a fucking brain and get informed or do some travelling and come here and I will show you more true capitalism and competittion than you will EVER see in the USA>
Wow, you really are clueless. Neoliberals and neoconservatives are both the same. They believe in USA exceptioalism and some fucking divine right to rule the world.
You morons and your goddam socialist bullshit. You don't have a fucking clue about the real world.
The most socialist country is the USA , big govt and handouts. Much more than here in Europe.
Grow a fucking brain and get informed or do some travelling and come here and I will show you more true capitalism and competittion than you will EVER see in the USA>
Wow, you really are clueless. Neoliberals and neoconservatives are both the same. They believe in USA exceptioalism and some fucking divine right to rule the world.
You morons and your goddam socialist bullshit. You don't have a fucking clue about the real world.
The most socialist country is the USA , big govt and handouts. Much more than here in Europe.
Grow a fucking brain and get informed or do some travelling and come here and I will show you more true capitalism and competittion than you will EVER see in the USA>
Wow, you really are clueless. Neoliberals and neoconservatives are both the same. They believe in USA exceptioalism and some fucking divine right to rule the world.
You morons and your goddam socialist bullshit. You don't have a fucking clue about the real world.
The most socialist country is the USA , big govt and handouts. Much more than here in Europe.
Grow a fucking brain and get informed or do some travelling and come here and I will show you more true capitalism and competittion than you will EVER see in the USA>
Wow, you really are clueless. Neoliberals and neoconservatives are both the same. They believe in USA exceptioalism and some fucking divine right to rule the world.
You morons and your goddam socialist bullshit. You don't have a fucking clue about the real world.
The most socialist country is the USA , big govt and handouts. Much more than here in Europe.
Grow a fucking brain and get informed or do some travelling and come here and I will show you more true capitalism and competittion than you will EVER see in the USA>
Wow, you really are clueless. Neoliberals and neoconservatives are both the same. They believe in USA exceptioalism and some fucking divine right to rule the world.
You morons and your goddam socialist bullshit. You don't have a fucking clue about the real world.
The most socialist country is the USA , big govt and handouts. Much more than here in Europe.
Grow a fucking brain and get informed or do some travelling and come here and I will show you more true capitalism and competittion than you will EVER see in the USA>
Wow, you really are clueless. Neoliberals and neoconservatives are both the same. They believe in USA exceptioalism and some fucking divine right to rule the world.
You morons and your goddam socialist bullshit. You don't have a fucking clue about the real world.
The most socialist country is the USA , big govt and handouts. Much more than here in Europe.
Grow a fucking brain and get informed or do some travelling and come here and I will show you more true capitalism and competittion than you will EVER see in the USA>
You can say that again.
Patience is not your virtue I presume?
Hitting SAVE once works ;)
The neo-cons are former red diaper doper babiez (not Horowitz, but others like his background) who have somehow "seen the light" and are bringing out the sabers to have others "fight the good fight".
The WaPo doesn't do neo-cons, but they do support others who are also assholes.
Here is the deal. German and other European companies are losing billions because of sanctions on Russia . Then they get a chance to have a huge deal with Iran and US Congress shuts them down again.
Anyone see anything going on here? You think those companies are going to appreciate some fucking neocon clowns in Washington fucking up this deal?
I predict big backlash against the USA.
that message is aimed directly at the zionazis who depend upon the reserve status of th dollar to make their money and have power. it was okay when the reserve currency moved from the pound sterling to the dollar because control was kept in house. if the brics establish a dollar substitute the zionazis are finished. there must be something in the deal to keep iran from joining the brics, perhaps as the the new petrodollar state replacing the increasingly difficult saudis.
Its all going to come down to the banksters vs the industrialists.
Kerry on not passing the TREATY:
"Fire and brimstone coming down from the skies! Rivers and seas boiling!
Forty years of darkness! Earthquakes, volcanoes...
The dead rising from the grave!
Human sacrifice, dogs and cats living together... mass hysteria!"
Grunk, is there a tune you want to put that to?
I ain't 'fraid of no ghosts.
+1 for the 'Ghostbusters' reference!
made me smile :))
ketchup man is out of the loop, there are already plans to do just that
Let the soviets run things for awhile. It's our turn to rest.
If there were Soviets. Its your turn to fuck off and clean up your own archaic crumbling shithole instead of destroying other people's countries .
There is NOT ONE country that the USA has ever helped rebuild into anything decent.
Look up "The Marshal Plan" dimwit...
I do agree though that America's biggest export is war and the machines that make it possible. But that used to be the job of you Brits before WWII....
and don't even try and say after WW2 because all the Europeans actually did the work rebuilding our countries. Not the Americans. The marshall plan just helped fund it but the real work was done by the peoples of those countries.
edit . I knew you would bring up the Marshall plan. Suggest you get educated. Americans didn't do Jack shit to rebuild Europe. We did. thats why we have hi tech autobahns instead of crappy roads you guys build.
Ever hear of the Delta project? Not built by Americans. IN fact NON of the big engineering projects were built by Americans.
and don't even try and say after WW2 because all the Europeans actually did the work rebuilding our countries. Not the Americans. The marshall plan just helped fund it but the real work was done by the peoples of those countries.
edit . I knew you would bring up the Marshall plan. Suggest you get educated. Americans didn't do Jack shit to rebuild Europe. We did. thats why we have hi tech autobahns instead of crappy roads you guys build.
Ever hear of the Delta project? Not built by Americans. IN fact NON of the big engineering projects were built by Americans.
You wanted free American labor too?! If it wasn't for the USA you would be speaking German right now....
perhaps this person does already and
naturally speak german right now?
and don't even try and say after WW2 because all the Europeans actually did the work rebuilding our countries. Not the Americans. The marshall plan just helped fund it but the real work was done by the peoples of those countries.
and don't even try and say after WW2 because all the Europeans actually did the work rebuilding our countries. Not the Americans. The marshall plan just helped fund it but the real work was done by the peoples of those countries.
and don't even try and say after WW2 because all the Europeans actually did the work rebuilding our countries. Not the Americans. The marshall plan just helped fund it but the real work was done by the peoples of those countries.
You can say that again. And again.
gave me 5 chances to down-vote it.
There were times before there was the chance to do both up and down vote comments on this site. Ol' Sac finally absorbed enough "commentary" to implement the "one signed-in user -- one vote" policy that we have today and we thank it for doing so.
But, well, with multiple dp going on (not that there's anything wrong with that!!) I just have to take full advantage of the situation.
- Ned
Oh yeah Ned!
I signed in to take advantage of the 'OCTO-POST' above ..... eight-bagger down-vote !
Blaming others, lol, he is the perfect horse puppet for the banksters.
Arrgh matey, we'll keel haul ye, if ye don't give us our cut. Arrgh
Stop spending four hundred billion a year on weapons and soldiers would be a good start.
^This. It is well known from the history that countries who waged wars frequently became stalemate economically.
The sanctions are a farce. Always have been. The Iranian economy is not hurting nearly as bad as the media news has claimed. So many exemptions had to be allowed to BRIC countries that the sanctions lost their teeth. The sanctions have back-fired on the US, and has hurt the US oil sector as it has been forced to contract due to Saudi production increases to off-set the loss of Iranian production that was once available to the sucker countries that have gone along with the US policy. Iran holds the trump cards as long as the BRIC nations back them, and so far, there has been no signs of this changing anytime soon. The Kenyan wonder boy and his collection of amateurs are truly out of their league, especially when dealing with the shrewd Iranians and Putin.
Now you have insulted my intelligence.
He also said the same thing would happen if anyone ever called him Horseface
I'm sorry. Once more: How much do they pay this guy?
First Hillary and now this clown...
Could be worse, Jack. Clinton/Kerry. Oh crap. Did I type that?
sanction yourself
sanction yourself
This is BS buddy. The way things work and they way they are explained to work are completely different and intentionally so. These banksters are crooks and they are smart crooks and there stinkin think tanks full of em. They are in business to take your money--everyone's money, and control the entire world now and in the future. If you want to know how something doesn't work listen to a bankster or an analyst of a bankster.
We don't need banksters and that is the truth. The world doesn't need banks.
Arrest them. Cuff em and throw them into prisons. Don't let them get away. At the very least the militaries of the world should do this because banksters are middlemen that are no longer needed because tech has made it possible to eliminate them.
Whaaattt???? No promise of a middle class trickle down if approved?????
What is with that tongue thing he does?
Some fucking retards like this ''Jackagain'' is trying to make it a dems vs repubs thing.
He is so ignorant and doesn't even know that the NEOCONS are in both parties. NeoLiberals are just like NeoCons.
Both warmongering sons of bitches that believe in American ''exceptionalism' and that the USA has some divine right to dictate to the rest of the world.
Both Dems and Repubs are the same.
Many Americans just do NOT get it.
Both parties controlled by ZioNazis that control America not only domestically but also foreign affairs.
So grow a Brain, Jackagain. Get up to speed, sonny,
The NeoCons have been in power at least since 2001 ......Obomber is no different than Bush in fact worse. More wars of aggression since Obomber than Neocon Bush,
Amen . . .
I've long known that since before you were born son....it's been that way since they killed JFK and long before that too.
But we don't call the Dems neocons around here since they are both nothing but puppets too.
I was born in 1946. How about you , sonny?
to translate the 1% language for the rest of us:
The reserve status is over, Iran will be the excuse
Frankly Secretary Kerry, that horse left the stable when Nixon took us off the gold standard in 1971. The dollar has been ruined ever since.
Cause for panick! One secret deal with a rogue terrorist state that wont keep its side of the deal anyway is all that stands between the dollare becoming worthless? Time to panick our days are numbered and short...
The job of government is to aggregate power and their primary method is fear. They never open their mouth without spewing fear of something, and in their second breath are explaining that only THEY can save us. Our panic should come from the realization that due to their constant fear mongering they have destroyed our ability to accurately assess risk, prioritize threat. We are faced with potential worldwide economic collapse, tensions potentially leading to a world war unlike anything we have ever seen and divisive politics that have fueled racial hatred unseen in many decades. Yet our number one crisis in the world is climate change. We are being driven to madness, to chaos,to a defenseless lump of sheeple.
Reading Kerry's statement I'm having visions of Colin Powell at the UN. Same shit different administration.
Don't lose that number: I never had the sense that Powell went to the UN and told anything other than what he knew to be true. Why? Because I was somewhere in the Green Machine for a lotta' years and never saw him (well, his trickled down directives when he was the Chairman) be other than rational.
Kerry's 142 days in the swift crowd, well, the Swiftiez had him characterized correctly in my observation.
So I give you a reddie b/c it Kerry is shit and Powell finally bowed to the PC crowd after doing what we knew was a professional job.
Kerry was always a coward, Powell just at the end of his career.
- Ned
So Iran can crash the dollar by not following this deal even if it is passed then right? Glad they dont say stuff like "kill America" ...We are doomed....
Mr. Austin argues convincingly that the correct metric for estimating the cost in jobs is the dollar value of reserve sales to foreign buyers. By his estimation, that amounted to six million jobs in 2008, and these would tend to be the sort of high-wage manufacturing jobs that are most vulnerable to changes in exports.
This is why much of the foreign debt is null and void. Exporting countries grab excess dollars in imbalanced trade, then recycle them back to the U.S. to buy debts. They are not spent buying American goods, and hence mainstreet gets screwed.
Awesome piece of psychological blackmailing by Kerry.
In a convoluted way Kery admits that the debt burden is unsustainable. Also Iran's continual ostracism will ensure that the US spend more in war effort to no effect.
Obama has gone public to say that neo-con Militarist policy in ME is ruinous and unsustainable.
Obama's strategy is to push TAFTA and Trans pacific partnership and use America's technological edge to push Oligarchy rule; not war in ME.
So for the Dems America's war in ME has to be toned down and more US military might be concentrated to Asian sphere. Whence the blackmail about reserve; aka Iran is now no more a vital sphere of influence. As America does not need Arab oil in future.
Very subtle way of telling the Bush cabal : "forget our pledge to Saud, its not worth it !"
As for the underlying economic argument it forgets ONE MAJOR PLANK of US Policy since BW revoke : A hegemon has only one argument : our money your problem; as long as the body count stays 300/1 in our favour in asymmetric wars WHERE our hegemony is challenged. It is by China, not by Iran or Saud.
Ol' horseface is just worried he'll look like a horse's ass.
Too late.
Not sure if this has been addressed, but if the U.S. no longer has the worlds reserve currency, then can the U.S. continue too not pay down it's debt obligations?
SH
hans: what was the last time that the "U.S. paid down" anything (in the big picture, and no quibbling about debt that was "rolled" to the future)
If u are not enthralled with ethanol or cannabis infusions, I'd bet that u could get your anal-cranial inversion corrected and figger this out.
I'm a'bettin' on u!!!!
- Ned
Jackagain says ''You wanted free American labor too?! If it wasn't for the USA you would be speaking German right now....''
>>>>>>>>>>>>>>>>>>>>>>
Hey Jackagain. I live 3 miles from a Bridge Too Far . and was born here in 1946. I live 15 minute from German border and we DO speak German here. Required starting in second grade along with English, French and Spanish.
Actually if it wasn't for Russia YOU might be speaking German.
You really don't know much about WW2 do you?
Except for what you learn watching the History Channel.
You give the Russians too much credit. One thing saved them from complete destruction in the Summer of '42 {not the romantic movie either}: DODGE TRUCKS. Before, Russian infantry had to march on foot every where they went, because Stukas had wiped out over 80% of Russian rail routes. There was no way for entire fronts to escape encirclement when German pincer movements would envelope them with mechanized infantry and fast light tanks. It was not until Lend-Lease Dodge trucks from the USA started arriving in large numbers in the Summer of 1942 that the Russian infantry began to be loaded onto trucks, and thus had mobility that they had totally lacked before that allowed them to both escape encirclement, and to do some blitzkrieg tacits of their own. Nikita Khrushchev said in his autobiography that two things saved the USSR: Lend-Lease and the ability of the Soviets to make good on enormous losses of both men and material that the Germans could not.
murmansk baby
and some poor assed murchies who didn't quite know what the were signin' up 4
someone is starting to see the writing on the wall.
I hope Iran still exists...there is news of a meteor strike in the northern part of the country. You won't see this item on the Today show or on TMZ because the oligarchs have decided to keep a lid on it. But TalkToLind thinks you are worthy enough to know.
Was that Hermen Munster?.
Herman.
I think the canary in the coal mine has already started to drop dead...change is coming...and their will be winners and losers...watch CNBC for further developments...
The "Dollar Will Cease To Be Reserve Currency Of The World" Regardless of "The Deal". It is just a matter of Time.
Ever seen a SACK OF SHIT?
Just look at Kerry...
Dear John
You and your boss and beyond clueless. Get out of Ukraine. GREAT IDEA! The U.S. had historically been a non interventionist country until World War I, when the American people got duped into sending troops into Europe for a stupid war that had nothing to do with us (or them for that matter; just a bunch of ego maniacs vying to see whose dick was bigger). After WWII, which was just the logical conclusion of WW I, we became overcome with power and decided we needed to rule the world. It's been global hegemony ever since. We would be infinitely better off if the dollar was not the global reserve currency. If we brought home all our occupying troops, stopped underwriting every two bit country with money we don't have, constantly supporting the military-industrial complex that Eisenhower warned us about in the 50's, and concentrate on releasing our incredible economic power AT HOME, we'd be safer, more scure and economically powerful. Our defense budget should be spent on.....wait for it... DEFENSE. Continuing what we're doing now is bankrupting us, lowering our standard of living (except for 1 per centers like you John) and "fundamentally transforming" our great nation into permanent depression. Please... go home and count your wife's money. Leave the rest of the world alone.
John Boy
The US Dollar is going to Krao regardless of the Iran deal is accepted or rejected
Well well well, sounds like Iran, Russia, and China made a deal...USD still tops. Now we see what the 'US' (FED-ZOG) received in exchange for protecting the Ayatollah's nuclear program. Weren't the Iranians completing petro orders w/ payments in gold during the sanctions regime? ZOG ZOG ZOG!
So are NeoCons running the show or not? Are the NeoCons Joooos, but just not this time? Or one band of Zios ditching another band of Zios?
I seem to remember either an article or a commenters link about Triffin's Dilemma, regarding world reserve currency.
Hey horse skull and bones, that will be true soon enough with or without the deal...
scaremongery? sounds like financial terrorism.
Bullshit
The US will do whatever it deems necessary to keep the dollar as the global reserve currency.
Otherwise it becomes necessary to do more than print money to pay bills
Ergo, the fix w/ Iran (Actually Russia and China) is in and it means these powers will support USD transactions in return for the Iranian nuclear program. Kerry's announcement/pronouncement is the most illuminating statement to date about this years long process. You can bet that Iranian oil transactions will return to using the dollar versus their foray into accepting gold during the sanctions regime.
ALL OF YOU....JUST SHUT IT!
And we have here ~California Pecans~
Starting at 1.00 a handful.
Who will give me 1.00? America! America gives 1.00 for California Pecans
:: Voice From back of room ::
"200.00 dwollars"
China bids 200.00 dwollars
201.00 dollars for California Pecans.
Anyone? 201.00?
Going once. Going Twice.
Handful of California Pecans goes to China for 200.00 dwollars.
Head of Lettuce
30 cents for this head of lettuce. who will give me 30 cents
"30 Cents" There's USA for 30 cents
31 cents anyone?
::voice from back of room"
300 dwollars!
China - Head of lettuce for 300 dwollars
301 dollars anyone?
Going once. Going twice.
Head of lettuce to China for 300 dwollars.
USA goes home with no food.
I live in NYC and my profession is a Forex trader.. Basically sell the dollar vs the major currencies and not be in the U.S.S.A when the shit hits the fan.. If its not the Dollar then what other currency can replace it as the World Reserve? Who knows it might be digital= SDR= special drawing rights ?
For how long has SDR's existed? Do you think PRC's currency will be added to the SDR basket while Obama is in office?
I am not an insider/or fan of George Soros but he threaten China not too long ago... His solution to his problem with China play ball with the IMF and will consider putting you in the basket of currencies... Look it up Falconfight don't take my word it for it!! SDR don't know exactly when it was introduced as an option? George Soros on September of 1992 broke the Bank of England! He is also not allowed to enter Singapore for financial terrorism....
You know very little as a supposed FX trader. You know little of the SDR or of even using SDRs as a substitute for any currency , not just USD. Soros is not banned from Singapore.
Methinks you are a troll.
Me think you are Clown on ACID!! you moron your attack proves to me you got raped in the Forex market!! Pick a Bone with your broker or mother! I am Absolutely 100% no government puppet!!!!! Who knows the truth really about the SDR??? You Clown could be wrong and point blame, if I am wrong it cost me $$$$!!!!! Fuck off you goon!! I was born in NYC too from immigrant parents from Greece and had to fail before I had to be successful.. You just quit because you are a fagot!!
I think the PRC is doing a head fake with their 2%. This means the PBOC is not buying dollars!? That is what it is all about. Kerry just confirmed Chinese oil purchases from Iran. They are probably doing a huge oil deal priced in reminbi!
Must be your 1st year trading. How was the back office for those 5 years ?
Only the IMF has a clean balance sheet and will ultimately be the debt buyer of last resort, so probably yes - SDRs. The global plan is working as designed me thinks.
Yep....he knows something and just admitted it!!
I'm not convinced. Being the reserve currency allows home buyers to experience abnormally low interest rates, of course though this increases home prices so maybe it nets out
This NY Times article makes it seem that it's impossible to have a strong currency, yet have a more vibrant economy. Yes currency devaluations do increase export competiveness by making exports cheaper to importers, but a real economy exports to import, same reason why everyday people sell goods and services so they can buy goods and services. Problem with the US economy is Americans don't save enough money. Why? Because monetary policy makes it attractive to prefer instant gratification (using consumer credit to buy everything) over saving money. Savings allows investments of all kinds.
On tax policy, US does not have any tax incentives to save money over consumption, but do we want a federal income tax on top of every other tax? No. Also the US government is too big. Too many people working for government instead of doing productive jobs. Government jobs are not productive in a sense they give greatesrt impact on standard of living. While some believe they are important, nevertheless they are not productive. When I say government I mean all levels of government in total. Then there is regulations. The combination of monetary policy incentives, and government means with strong currency, other countries that devalue their currencies have a straight up comparative advantage.
Devaluing currency is not really that necessary. There was a time when the US had a much more vibrant economy. Was a export economy, yet didn't have devaluation as a policy to drive those exports. What happened is that government grew and monetary system was cut loose of restraints which the gold standard had. Even without the gold standard, it's possible to have that back, but real reform needs to occur. I think too much blame is on a strong dollar and other nations currency devaluations.
As far as John Kerry saying about the Iran deal, I think he is trying use hyberbole to make the case for Iran deal if anything.
John Kerry is such a douche!
He epitomizes the word.
Like there is an alternative right now?
Kerry just keeps pulling stuff out of his ass.
Upvoted your comment, but naaahhh: he's just reading from a script that the people behind the curtain gave him.
Hey John - you horse faced, lying piece of shiite. Is this " USD to lose World Currency Reserve status if Treaty is not signed"...the part that we would have known before if we were allowed to read the feckin Treaty before you and your fairy dust snorting Kenyan signed it?
So what - it might stop the printing and endless debt
if the Iran deal is rejected, the sun will go out.
And aaaal the toilets will back up all over the world. Simultaneously!! And the sports channels will all stop working. And Budweiser will stop selling beer.
Are we approaching the point where the President does not need congress to delare war, but does need congress's premission NOT to go to war?
Suffering is the real truth
& only after knowing what pain is (his broken leg)
He might have realized the worth of life and of truth
Fine , thats the truth, leave Iran , Iran goes to BRICS & starts selling in Yuan only
Sun sets on $
$ = History
Got it?
Regardless of whether his projections make sense (some of them do actually, although that reserve currency thing is bizarre), the deal with Iran is pretty much the only good thing this administration has ever produced.
For those of you who are not interested in JUST navel gazing here is what is happening in the Syrian-Saud-Iran stand-off.
The Russian-Saud talks have progressed in the light of Iranian deal with US and Russia. Putin has indicated that there may be a post Assad solution for PEACE in SYria. But it requires that Iran also buy into it. Saud is INTERESTED.
The Iranian foreign minister, mainstay of Syrian regime of Assad, heads for Damascus today to iron out this deal so that the Russian cum Saud preliminary deal in Moscow ALSO has the backing of Iran.
Once this is hammered out Iran will present it to the UN for debate by all parties. Here is the low down on that in French.
http://www.lemonde.fr/proche-orient/article/2015/08/11/l-epineux-plan-de...
I can't believe he said any of that.
Why the fuss about "reserve status", like its a good thing. It's NOT. It means that the USA has a very large trade deficit, and its central bank had to print like wildfire to keep that trade deficit up, which causes HUUUGE amounts of USD to pile up in central banks of countries that hate the USA. USD "Reserve" is a very bad thing.
What a dipshit.
History is the best teacher anybody can ask for. It was not by accident the phrased was coined. "Those who don't learn from history are destined to repeat it" I knew the U.S Dollar was dead as a reserve currency because all reserve currencies die. As a Brit, I knew all about the British Pound Sterling as the worlds reserve currency, until the Yanks took it over, but it was a chart in 2006 that really caught my attention. Historic world reserve currency chart..... http://z822j1x8tde3wuovlgo7ue15.wpengine.netdna-cdn.com/wp-content/uploa.... World reserve status only lasts around 100 years, as every country that has this ability abuses it, especially their ability to export inflation to everybody, due to the fact every other country needs to hold that currency as a reserve.
It was a video I saw on Youtube in 2007, which was a speech by Charles DeGaulle..... https://www.youtube.com/watch?v=Q9r1NLMFixo ....that finally made the "penny drop" It was my "Eureka" moment. All that I was taught regarding financial matters and the banks, was at best deliberately obscured, but in most cases outright propaganda and lies and the biggest monetary lie told to the American people, is the reason you came off the gold standard. America has been bust since 1971. She came off the gold standard, because she couldn't meet her fucking debt obligations and blamed it on speculators. This was 44 years ago. The Petro-Dollar and non-gold pegged fiat dollar has only extended the game until now and as we all can see the wheels are fucking coming off. The question is, who made Nixon come off the gold standard? THE FEDERAL RESERVE! Why? THEY HAVE NO GOLD!
The reserve currency is not just an economic lever within the financial system. The US also uses it as a weapon to hit other nations with. It prevents the reserve dollar from being traded where sanctions are in place and prevents other nations from being paid where US dollars are being used for payment of trade goods, specifically oil. This is enough without any further concerns to make the World's nations receptive to other currencies being given reserve status, The US has destroyed its own soft power by overplaying its hand on too many occasions.