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

Interesting,

This is a well written overview on what I have been saying for sometime now, don't exchange all your dinar for dollars when time comes for restoration to normal value of dinar. Since we don't really know what normal is that they keep referring to, hold your dinar as long as you can if you are U.S. resident. This article lays it our very clearly of just what has been happening over the past few years regarding the weakness of dollar which we are all aware of if you have been watching the dinar from start.

The point is, be educated on what is happening to undermine the dollar, and then adjust your financial plans accordingly. I have followed the exhange markets for years, and have traded FOREX as well, and what we are seeing is that the dollar is under attack, and has been for many years. Once the dollar was no longer being backed by gold, it has been declining in actual value, but artificially held up by the magicians in our government, but they won't be able to pull a rabbit out their hats much longer, so read and learn, then think carefully about any exchanges for U.S. dollars.

WARNING:
( This info is giving us a Heads Up, do with it what you will. )

ROLLCLUB DINARHOLICS:

I have told you before and I tell you again: get your savings and investments away from the US dollar, for it will continue its inexorable nose-dive into oblivion. I shall feel no surprise when the US Government announces the Amero, a new North American currency, equally worthless, to replace it, within the next couple of years.

Lindsey Williams points out in his article below an echo of my warning (or is it vice versa?). Heed it.

The Condition of the Dollar
By Lindsey Williams

There is so much to touch on regarding the dollar this month, I hardly know where to start. Regardless of where I begin, the news is not good and affects all of us.

First on our list is China. They have now announced that they are refusing to accept American Corporations purchasing into their stock market any longer as they did in the past. China also said that they are no longer going to be purchasing our securities as they have in the past, including bonds and T-bills. China's decisions and subsequent announcements at the beginning of the week has sent a panic across the World's markets.

Additionally, OPEC met recently and they have also stated they will be diversifying into other currencies instead of just the American dollar. They will now begin accepting other currencies and limit the trade of oil via the American dollar.

March 21st 2007 will be one of the most significant dates this month. Iran has outlawed the American dollar and will put anyone in jail that uses it in their country after that date. They have the ominous notoriety of being the first nation in the world to do such a thing. The real issue in Iran is NOT nuclear, but rather the decision to not use the American dollar for trade and the sale of oil. On the heels of Iran's decision, North Korea has followed suit and also outlawed the use of the American dollar in their country. Finally, Malaysia the next day did the same thing.

Central banks around the world are increasingly diversifying their reserves, including cutting holdings of American dollars, according to a survey sponsored by Royal Bank of Scotland Group PLC, the U.K.'s second-largest bank. Italy, Russia, Sweden and Switzerland have made "major adjustments" in foreign-exchange holdings favoring the Euro and the British pound, according to the poll conducted by Central Banking Publications Ltd. between September and December. "Central banks are open to saying they've been diversifying to improve returns and reduce exposure to any single currency," said Sean Callow, senior currency strategist at Westpac Banking Corp. in Singapore. There's no doubt that when they say 'diversification' they mean selling dollars.

Last week a friend of mine told me they called their bank president in Vancouver, BC and he agreed with everything I have been saying about
the dollar. What amazed me the most was her comment that he told her his bank is currently making preparations for the crash of the American dollar!

My dear friends, I urge you to structure yourself and get out of the liquid dollar immediately. I suggest that you get out of stock markets and into international hard assets such as real estate, gold and other assets. Structure your family by setting up proper International Business Corporations and Foundations that will preserve your finances.


Remember this simple fact: Oil provides the US Dollar's only backing.

Why? In 1960 the formation of OPEC led the members to sell oil only for US Dollars. This forced all nations that did not use the US Dollar for currency to trade their currency for dollars in order to buy oil, and that caused a scarcity of dollars. As a result the price stayed artificially high, even though the US Congress has consistently spent more than it earned from taxes ever since. This scheme worked so well that in 1971 the US Government eliminate the gold standard.

Europeans, jealous over the oil-derived the artificially elevated value of the dollar, dreamed to unify and to create their own currency. That dream became a reality when the European Union released the Eurodollar (Euro) in January 1999. At initial trading, the Euro sold for 87 cents ($0.87).

Immediately Saddam Hussein of Iraq and Hugo Chavez of Venezuela, seeing this as the perfect opportunity to gouge America, started selling oil for Euros, partly to get even with the United States, the government of which they considered as an Evil Empire (and Hugo still does). The dollar then started its zig-zag slide into a 50% devaluation. You can see its value at http://xe.com: $1.31, its highest value ever. The Euro has risen to 150+% of its original value, in terms of the US Dollar, in just 8 years, and we must remember that the Euro has nothing of intrinsic value to back it either. Why has one fiat currency risen to 150% of a rival fiat currency in 8 years? Because of oil, and because of various Islamic countries outlawing the use of Dollars as currency.

As more countries outlaw the dollar, more banks and investors shun the dollar, and more oil producers sell oil for Euros, the dollar will decline in value, simply because people don't need or want it. As that happens, billions of circulating dollars will flood the treasury as they get traded for other currencies or US goods.

Do you see what will happen?

The purchasing power of the dollar will decline.

If you have savings, you will see them dwindle toward nothing as the months and years roll by.

What should you do?

Your smartest move in such a phase consists of putting your money into something from the earth (real estate, precious minerals) or something else that goes up as the dollar declines.

Don't take my investment advice. I am not a stock broker, real estate agent, attorney, or government agent. Seek counsel from a really qualified investments manager with international and precious minerals connections.


Richard J. Smithson Jr.


Good luck to all, Mike