Thread: WARNING.... U.S. Dollar Exchange Article of Interest

Interesting,

Will you be prepared to converve your real estate assets? This is real, so as I have been saying, don't be going out and purchasing real estate when the dinar finally revalues, hold onto it and implement these strategies to increase your wealth ten fold.

WARNING! Brace yourself for the most shocking money implosion of the last 76 years, as a "Second Wave of Housing Hurt" crashes down...

Shocking Prediction:
Why Your House
Could be Worth
43% Less by 2011

Thought you were "done" with the property bust? Think again -- then get ready as a whole "second wave" of falling prices sparks the worst property-led recession of the last 76 years!
The following triple-edged "housing hedge" strategy could shelter both you and your money, IF you simply plan ahead.

A tidal wave of hurt is heading for your money.
Take a look at this chart...

Dr. Robert Schiller, the same bestselling author and Stanford economist who called the tech stock bust back in his 2001, recently created a chart very similar to this... based on 116 years of U.S. housing market data

What this data shows is that -- if today's imploding U.S. property market falls back to historical levels, the same way it has over and over again for more than a century -- we're looking at a plummet in housing values as deep as 43.5%!

Think it couldn't happen?

I'm about to show you it can. What's more, it's extremely likely. In fact, I'll show you three inevitable events that already prove an property implosion this deep... or deeper... is already under way.

Obviously, this means more than just "cheaper real estate."

Because there's much more at stake than just the equity you have in your house. I'll show you how, like it or not. Everything you have invested, saved, or otherwise set aside is deeply connected to the property market .

When it goes up in smoke, so does the rest of your wealth -- if you don't do something now to protect yourself. I know that sounds dire. But what goes up always comes down, and I'm really worried many will get caught if they don't take precautions.

Fortunately, there are steps you can take.

Three of them to start -- each a solid, simple layer of protection against the coming bust -- and then I'll urge you to take these steps.

• One of these protective steps offers you government-backed gains against what my team sees as the inevitable economy-wide U.S. recession ahead. The faster things come unraveled, the faster your "safe-haven" gains in this one opportunity -- a little-known fund -- go up.

• The second "hedge" is another simple, single move. And a sandbag for your financial fortress, specifically designed to protect you as the collapse of the credit market crushes U.S. bonds -- especially junk bonds.

• The third move gives you a clever way to leverage a whole basketful of falling housing and home improvement stocks with a single, money-multiplying trade. You'll find this very easy to do. And very lucrative, especially during the fallout ahead.

These are all included at no charge, along with something my team and I put together especially to help you and your loved ones pull through this kind of crisis. It's called the Emergency Financial Survival Toolkit: Triple-Protection Against the Coming Collapse.

I'll show you how to send for it in just a second. First though, let me show you how this new "Second Wave" bust cycle has already begun to unfold...</STRONG>

Deadly Domino #1:
Building Permit Applications
Plummet as Confidence Dries Up
In Torrey Pines -- near downtown Las Vegas -- you'll find one gorgeous four-bedroom house after another. All new. Each on generous 7,000 sq. foot lots. There's one problem.

Many of these houses -- up to 10 per block -- are empty.


"Those who think that
the worst may be over
for the housing market
should take another
look at the data... "

- The New York Times,
January 7, 2007

It's like driving through an upscale version of a shell-shocked urban neighborhood, only instead of boarded-up windows and graffiti, you've got stucco and central air conditioning. And new "ghost towns" like Torrey Pines have cropped up all over formerly "hot" US property markets.

Why? "It's economics 101," says Thomas L., one of the brokers who works the Vegas market, "Buyers aren't buying... supply exceeds the demand and we just have more inventory than we have buyers."
In the valley around Vegas, you'll find more than 22,000 homes on the market. Out of those, 9,800 are empty. Desperate sellers hope they can at least rent the spaces, even at cut rates. Meanwhile, 45% of all desperate developers say they're ready cut prices too.
But here's the real worry...
Proof That Builders See a
Mega-Bust on the Horizon
Even bigger than houses that won't sell now is the fact that huge numbers of U.S. builders don't see houses selling all too well down the road, either. Take Doug McGraw.
McGraw heads up a Florida construction company, near Fort Lauderdale. Just recently, he was ready to build a 205-unit condo near Fort Lauderdale. Now, he's not. Why?
"[Spending on houses] hasn't just slowed down a little bit," says McGraw, "it's slowed down a lot... anybody who did not already have a shovel in the dirt has chosen to wait until the market settles."
And it might be a long wait.

Take a look at this chart...

If you're a builder, about to sink millions into a new development, what's the first thing you do? You make sure you can get a permit to start developing the land. That's why experts consider the rate of housing permit applications such a good hidden indicator of the future economy.

When it's going up, the economy will likely go up. Because the property industry drives a huge chunk of the job market. But also because when applications are soaring, it means that a boom is exactly what builders -- who live and breath by predicting the future economy -- are betting on.

What does it say when building permit applications start to plummet?
It means builders see plunging home sales, a tight economy, and even a recession on the horizon. Pay attention. Because this is exactly the signal I'm showing you in the chart above. Early last year, the total new number of housing permit applications fell off a cliff.


"A little over a year ago, buyers couldn't wait to sign contracts to purchase homes. Now, many can't wait to get out of them... buyers are backing away from deals in droves."

- The Wall Street Journal

It's plunged ever since.

This is like looking at a crystal ball, telling you what the property developing pros foresee for the broad economy -- not just for 2007, but for 2008, 2009, and even further out. And what the current breaking point above tells us is, in a word, outright ugly.

Given that a mind-blowing 43.15% of all the new jobs in America since 2001 have come from the housing market... this should be terrifying news, even if you don't own a home.

Because, see, when nearly half the new jobs in the U.S. are in jeopardy... when major building companies, the banks that back them, and the other businesses that depend on a housing boom see income vaporize... that can't help but spell bad things for the broad economy, even well outside the housing market.

How ominous is the current signal? By the tail end of last year, overall applications for building permits were down 31.3% from the year prior... and at their lowest permit total since December 1997.

Says Tim Eller, the CEO of the third largest homebuilder in the U.S., Centex, ``We are navigating through one of the most challenging housing environments in the past 25 years,''

Buyers are even canceling sales contracts. Developers are dumping inventory. And still, builders are wracking up losses. Centex, for instance, just wrote off $510 million worth of value on property they both owned and had options to buy. And they're about to let another $450 million in land and options go up in smoke.

No wonder even Bill Gates is dumping shares...

Yep. During the boom, Gates got caught up in the mania and added seven different home building stocks to the portfolio of the famous multi-billion dollar charity trust he runs with his wife.

This past December, he dumped them. Stocks like Centex Corp., KB Home, Pulte Homes Inc., Lennar Corp., Beazer Homes USA Inc, Ryland Group Inc. and WCI Communities Inc. all got kicked out of his fund.

Bruce Karatz, head of KB Homes, says this is the worst he's ever seen... including the collapsing market of the early 1990s. And Gary Gordon, head of the mortgage investment firm Annaly Capital, says falling construction alone could shear 2% of the U.S. GDP.

That's more than $250 billion -- gone in a puff of smoke!

Bigger Than the Dotcom Bomb or S&L Bust...
And Twice as Devastating For Your Wealth

Most catastrophes have a ripple effect.

Maybe you remember, for instance, when the Savings & Loan crisis came to a head in 1989. Over 1,000 small banks made big, bad loans that nearly put them out of business forever.

Dubya's daddy, George Bush Sr., engineered a $125 billion bailout. Wall Street seized up like a Plymouth in January... the U.S. deficits soared... and the U.S. economy slipped into a two-year recession.
Or how about when the Dotcom Bomb finally fell out of the sky?

"For cash-strapped homeowners, it was a pitch they couldn't refuse: Refinance your mortgage at a bargain rate and cut your payments in half... but those who took the bait are in for a nasty surprise: payments are about to skyrocket."

- Business Week

Millions lost billions, so-called government "surpluses" vaporized, and again we got a recession. Even Wall Street didn't recover for another three years. Some stocks never recovered at all, disappearing from the ticker entirely.


Here's the thing...

In the 1989 crisis, fewer people owned real estate. In the 2000 Tech Bust, not everybody owned tech stocks. But in both cases, the impact was far reaching. What does that mean now, when most Americans own property AND a mortgage, alongside their stock portfolios? What does it mean when so many of the new jobs in America -- as much as 43%, remember -- came from the housing industry?

In the tidal wave of falling property prices ahead, it means tighter spending. Lost jobs. Troubles for retail, restaurants, car dealers, advertising companies, jewelers, remodeling contractors, furniture manufacturers, banks, electronic retailers, and more.
Foreign investors pull their cash out of the U.S. market too.
It's like a virus -- it can't help but spread. When it does, what are you supposed to do? HOLD ONTO YOUR DINARS!!!

You are on a roll, Mike, and right on. Thanks for the post.

Best regards,

Thelema

Great post Mike, Keep up the good work. I hope everyone is paying
attention. Thank you
Teshema/Virginia

Tuesday, July 31st, 2007

U.S. Dollar Under Threat As Premier Global Reserve Currency
By James West


America’s global financial supremacy hinges on two principal factors:

a) It is the world’s largest economy in terms of buying power; and
b) The U.S. Dollar is the reserve currency of choice for virtually all central banks around the world.

While the likelihood of the US ranking in size of economy is unlikely to be usurped at any point in the near future, the status of the U.S. Dollar as the premier reserve currency is seriously threatened. And that could have serious consequences for America’s lead position in terms of economic buying power.

There are a lot of factors undermining the attractiveness of the U.S. dollar as a currency holding, not the least of which is its stubborn inclination to lose value over time.

Central banks are interested in holding currencies in reserve that have a stable value unlikely to fluctuate excessively. Like any conservative investor, they get nervous when their ‘wealth preservation’ tactics fail.

There are an increasing number of indications that the U.S. Dollar is already being replaced in many historically U.S. dollar transactional processes.
In the Middle East in particular, where the rejection of all things American persists in varying degrees of intensity coincident with Islamic fundamentalism, strong moves away from the dollar are under way.

As Pierre Le Comte, a French financial analyst and supporter of the Campaign "Dette et dollar" (to reject the dollar as world currency) says, "While the rest of the world must toil hard to earn dollars which are needed to buy goods internationally, or to pay off foreign debt, the USA just needs to print dollars."

And as Frédéric Clairmont wrote in Le Monde Diplomatique (April 2003): "Living on credit is the credo of the foremost power in the world".
Ever since 1971, when US president Richard Nixon took the dollar off the gold standard (at $35 per ounce) that had been agreed to at the Bretton Woods Conference at the end of World War II, the dollar has been a global monetary instrument that the United States, and only the United States, can produce by fiat. The dollar, now a fiat currency, is at a 16-year trade-weighted high de****e record US current-account deficits and the status of the US as the leading debtor nation.

The Government of Qatar increased its gold holdings by a factor of fifteen between April 2006 and April 2007. The central Bank of Qatar is carrying out a reserve diversification policy and stated last year that the euro would be one of the alternative currencies into which it would diversify. Gold is clearly also another element of this program, with the holdings amassed to date amounting to 0.28 million ounces or 8.8 tonnes. At $650/ounce, these holdings comprise 3.4% of Qatar's gold + foreign exchange holdings combined.

Based on the latest figures from the International Monetary Fund, the world average level of gold holdings at the end of April, at $650/ounce, was 10.4%. Stripping out the holdings of the supra-national organizations, then the average holding among the central banks of IMF members was 13.6%.
Meanwhile in the rest of the Middle East, where it must be allowed that information is patchy as some member countries have not reported their gold holding levels for some time, the IMF reports that gold holdings amount to 956 tonnes, and have increased by just over eight tonnes over the twelve months to April, with reactions in holdings reported from "oil-exporting countries" and a small increase in Omani holdings. Middle Eastern holdings overall amount, on the basis of these figures, to seven per cent of the region's total foreign exchange holdings.

At the International Conference on Gold Dinar Economy 2007 held in Kuala Lumpur on July 24th, Former Malaysian prime minister Dr Mahathir Mohamad called on the Islamic world to embrace the use of the gold dinar for international trade and as an alternative to US dollar reserves in central banks.

“This is quite simple. It is nothing more than keeping gold bullions as savings.

They can be traded and they retain their value in terms of purchasing power quite well,” he told delegates at the conference held at the Putra World Trade Centre.

“With the usage of the gold dinar, some of the power of the Western banking system and the US dollar would be diminished. With this, the clout of these powerful countries would also diminish. On the other hand by refusing to use the gold dinar, Muslims could be impoverishing and weakening themselves,” he noted.

The euro is gracefully establishing itself as an international reserve currency second only to the US dollar. The more the US dollar falls, the more motivation international central banks will have to diversify their resources away from the US dollar, thus creating additional demand for the euro and additional supply of the USD as a direct result of such portfolio shifts rather than as a result of normal trade flows.

All that being said, OPEC producers still receive 100% of their oil revenues in U.S. dollars, and for mostly political reasons, that is unlikely to change anytime soon.

OPEC members Saudi Arabia, the UAE and Kuwait between them pump about 13.5 million barrels per day of oil, nearly 16pc of the world's supply.
OPEC's second largest producer Iran caused a stir in financial markets when it asked Japanese oil buyers to pay in yen rather than US dollars two weeks ago. That move was in part politically motivated as the row drags on with the US over Tehran's nuclear ambitions.

Libya and sometimes Syria also ask for payments in other currencies, an industry source said. But Gulf producers have shown little interest.
Analysts said it would make economic sense for producers to diversify payment denominations, as it would reduce the volatility associated with the close ties to one currency and better reflect the region's trade relationships.
Anything that weakens the dollar will also hurt the region's massive dollar-weighted investments.

All the major benchmarks that producers use for oil contracts are set in dollars, which also makes it difficult to use any other currencies.

“The potential political fallout from the impact on the dollar of any change would likely keep the region's oil sales in the US currency”, said Steve Brice, regional economist at Standard Chartered.

"The US would probably be concerned about major producers doing this," said Brice.

"The oil market is entrenched in dollars," said one industry source.
"People are buying oil years out in dollars and it is difficult to see any of those people unwinding their positions and buying oil in any other currency."

Thanks for these great posts and the advice to hold onto our Dinars. I enjoy reading them and greatly appreciate your knowledge of these issues. God bless and continue the good work please.

Interesting,

Everyone in Mexico, America and Canada should listen to this overview video. A real eye opener and the way in which the U.S. dollar is going to be saved in the eyes of the all and powerful when it collapses totally. Hang onto those dinars ROL buddies. (g)

YouTube - NORTH AMERICAN UNION & VCHIP TRUTH

Good luck and health to all, Mike

Thats scarry.

I hope the Amero never happens.

Interesting,

As time goes by, it looks worse and worse for the dollar as it continues to hit new lows. Fortunately, I loaded up on foreign currency, including the CAN dollar which is now on par with dollar, imagine that? (g)

Good luck and health to all, Mike

Interesting,

Dollar is in free fall now, so thank goodness for those in U.S. that you have dinar. I couldn't believe the CAN dollar was higher than U.S. dollar for the first time, and with China now sending the message they are going to shun dollar, that sent the stock market down 360 points, and this is just the beginning of troubles for U.S. economy.

Hang onto those dinar gang, Mike

Originally Posted by Offshore-Wealth.com

Interesting,

Dollar is in free fall now, so thank goodness for those in U.S. that you have dinar. I couldn't believe the CAN dollar was higher than U.S. dollar for the first time, and with China now sending the message they are going to shun dollar, that sent the stock market down 360 points, and this is just the beginning of troubles for U.S. economy.

Hang onto those dinar gang, Mike

Hi-ya

I have a little bit to add from personal experience.

I live near the CAN/AM border and we are pretty much 'invaded' during December by Canadians crossing the border to shop here at the malls for the holidays. (I'm not being nasty...it's the truth! lol! )

This past week there have been several local news specials about the holiday shopping dilemma. We're talking the FIRST WEEK of November. The holiday inventory in the department stores is GONE. They showed the empty shelves and racks and even went as far as to go into the storage rooms of Macy's, Lord & Taylor's etc. and they are EMPTY. Then the picture flashes to the 3 Canadian bridges where I live and how they are backed up for 3-4 HOURS because of the Canadians taking advantage of their dollar strength and scooping up everything in SIGHT! So everything that has been mentioned, Mike, is happening and is happening BIG TIME where I am!

Things have gotten pretty tight for me, but I wouldn't sell my dinars...and I am DARN happy that I've held onto them seeing what has happened! ....now let's see a big adjustment on them so that I can afford to shop somewhere else for the holidays!!!!


Tiff