While the world economy collapses the American dollar continues to strengthen its position in the world, to little wonder – it’s getting back to its basics as the backup currency on every continent except Antarctica.
Yet since the U.S. has debts two times exceeding the world’s GDP one cannot help but ask oneself – what’s next?
The web is flooded with lots of theories and rumours about what would happen to the American currency whether, when and where it would fall – or what else. Some of them look like senseless fantasies, others resemble futurologist’s predictions, but the conspiracy theories of all kinds and colours are firmly on top of all.
“Dollar will crash soon”, “U.S. will change currency”, “Dollars will be sold by weight” – as some smart Russian blogger put it – who creates such buzz and is there a rational reason for the slightest of anxieties?
Well, there is a fact that poses a question, with a big Q. Dollar monetary stock worldwide has grown two-fold over the last half-year and this printing press does not seem to be slowing down.
Would this financial pyramid eventually collapse (since these lots of green paper are not based neither on gold or something equally solid nor collateralized to be collateral)? No one from the U.S. Federal Reserve System so far has intelligibly explained what they are planning to do with the paper, and this mystery probably holds the key answer to the question posed above.
The unimaginable trillions of dollars of national debt make the currently realised $US 700 billion bailout plan look pale in comparison – as well as the $US 850 billion next one currently being discussed.
The truth is that all this money just does not exist. You can print banknotes but you cannot necessarily call them “money”. Imagine this money distributed equally among every living person and fancy what would happen if they all decided to buy goods simultaneously – there’d not be enough goods on this planet. What’s next? Guess for yourself.
So, the devaluation of the dollar is probably not far away but what could happen before this event? Here are just some of the most fabulous yet entirely possible worst-case scenarios.
Option 1. Have you heard about Amero? Not yet?! Well, that’s how most probably will be called the currency of the united economic zone of the U.S., Canada and Mexico. Unimaginable? You’d better imagine what to do with the green paper stockpiled throughout the world if the exchange rate is 1:10 or even 1:100.
Option 2. This world is infested with forgers and false dollars (most of them not in the U.S.) When the hour comes and the new (let’s say red) dollar is produced, all the rest of the world would face the problem of how to use the green ones. Beware! The print is toxic and you’d die anyway when trying to burn them in your fireplace once you survive the heart attack of hearing the news itself.
Option 3. Everyone knows that the U.S. is a cheap country. Americans do not hellishly spend popular $US 100 banknotes as often as the rest of us. No use – no need. Why don’t they call them off altogether? They are nearly all false, anyway.
Option 4. The U.S. declares itself technically bankrupt. Impossible? There are RULES, you’d say? Everything’s possible for the country that has changed the rules of the game countless times to become the biggest consumer sponging on the rest of the world.
Option 5. Uncontrollable printing of the dollar banknotes alone would collapse the dollar system that would make the debt returning for the U.S. Federal Reserve System a task somehow much easier than it is nowadays.
There are economists that do hope that a number of regional unified currencies would emerge within the near future in Asia, Latin America, and Arab world, and even among post-Soviet countries. The euro is a spectacular example, but you do not need to be an economist to understand that such processes expand for decades (consider again the euro example) while the crisis has already stepped in and mushroomed as straight and tall as an atomic cloud.
That is why the more probable seems an Option 6, which is a good old receipt when some countries are busy exterminating each other’s population while the other countries are just accepting arms contracts from both warring parties. Just keep in mind we live in a nuclear age. Again unthinkable? Than take a closer look at the Islamist-torn Pakistan and India and their relations after the Mumbai massacre. Nuclear weapons? They have them both.
If they wage war against each other, they’d be no such thing as Asian, Arab or even European financial markets at all and nobody would care what the hell happened to the dollar.
Komentar:
Nampak pemimpin utama dunia Islam masih tidur nyenyak, leka dengan habuan dan kekayaan minyak/gas, percaya 100% pada sistem kewangan kafir, kapitalis, IMF, Bank Dunia, WTO etc. Saat kehancuran sistim RIBAWI wang kertas, bon, kredit, saham, derivatifs amat hampir. Hanya wang dinar mas, perak merupakan jalan keluar...titik permulaan yang sukar difahami, diyakini oleh akal insan....kerana meninggalkan amar wahyu. Hamba suka berjuang dibalik tabir dan gunung Miyazaki dengan air sungai sejuk dan angin hutan segar. Kalau turun ke kota pasti ada sasaran perang gerila matrix.
BAB 4 - MENDEKATI ORANG BUKAN ISLAM
3 years ago
Komentar ini ditulis 3 tahun lalu tapi masih relevan. Krisis duniawi adalah amaran Tuhan kepada mereka yang berfikir. Alam nafsu, alam ekonomi riba,alam sekitar, alam ghaib, alam malakut, alam akhirat dan alam hijab....afala tubsirun !
ReplyDelete' The Muslims must bear in mind that the enemies of the Deen cannot succeed, since they are acting contrary to the very laws on which all existence has been set up. The laws of the creation are not hidden. Indeed, they are well-known and recognised, not only by scientists, but by all thinking people.
The financial system of the kuffar devours the earth’s natural energy with such a ferocity of greed that the very harmony of the natural world, which is set up on that perfect balance of Allah’s Rububiyya, is shattered. The kufr of the kuffar is, that knowing the exploitation of the world’s mineral resources means the destruction of the eco-system, they cover up this reality and so bring about their own and everyone’s destruction.
Mass suicide is the social project of kufr, but since their nature is to cover up, they will call it a one-world system of peace and harmony governed by the freely elected representatives of a universal franchise.'
Kini giliran Singapura kerugian kira-kira USD58.0 bilion (x3.4=RM=RM197.2 b):Source Business Asia 17.2.09
ReplyDeleteSINGAPORE - Government of Singapore Investment Corp, which has helped bail out troubled global financial institutions, suffered an investment loss of about 50 billion Singapore dollars (33 billion US) last year, sources told Dow Jones Newswires on Tuesday.
In late 2007 and early last year GIC injected billions of dollars into Swiss bank UBS as well as US banking giant Citigroup, both of which suffered massive losses from US subprime, or higher-risk, mortgage investments.
Subprime troubles later evolved into the worldwide financial slowdown.
"The loss on the investment portfolio last year is estimated at around 45 billion to 50 billion," one of two people familiar with the GIC situation told Dow Jones.
"But, GIC has no thoughts to sell down any of its major investments. They'll wait until they recover."
UBS this month posted an annual loss of 17 billion US dollars, the largest in Swiss corporate history, and announced 2,000 new job cuts.
A second person said GIC's investment loss last year was "recently estimated to be similar to Temasek's."
The portfolio of Singapore sovereign wealth fund Temasek Holdings, which helped bail out Wall Street icon Merrill Lynch, fell about 31 percent over eight months last year, Senior Minister of State for Finance Lim Hwee Hua told parliament last week.
She said Temasek's portfolio of investments fell to 127 billion dollars at the end of November, down 58 billion from 185 billion dollars on March 31 last year.