US dolllar drops, Iranian Oil Bourse, US Currency crash? and a solution..

[FogerRox]

The US dollar is falling. But the fall of the dollar has been preceded by the Neo Conservative economic policies & regressive tax policies. Lets call it supply side economics, of the wrong kind.

What very well could be the trigger event for a US currency crash, is the Iranian Oil Bourse, where oil will be traded in euros instead of dollars.

The solution is shock therapy.

1)Immediate withdrawal of US troops from Iraq.
2)A balanced budget for the next fiscal year. This will reduce the need for the US to sell Bonds & should stem inflation.
3)A breakup of the US Oil cartels.
4)Special attention must be paid to US automakers, a universal single payer healthcare system must be put into place that removes the Big 3 from the healthcare business. Special grants or tax deals for the Big 3 that specifically target the immediate production of a 3 cylinder, 55+ mpg car.
5)Special grants or tax deals that facilitate increased production of roof top solar panels, coupled with a CCC style program to get these panels installed ASAP. As well as a CCC program to improve the Public transportation infrastructure.
6)The Federal tax system must be progressive. 50 years ago corporations paid 40%, while the top personal tax rate was 92%. This will not only produce a balanced budget, but lead to tax relief for States, and local governments, as well as property tax relief for the working class and the middle class.

Of course I have only outlined the basics in the crudest of terms. We must regain control of our Government, before it is too late.


Global stock markets tumble as U.S. dollar shatters

Equity markets around the world plummeted Friday as the U.S. dollar went into freefall.
The American currency's near collapse followed several weeks of declines, which has seen the dollar lose 7% of its value against the euro, yen, and the pound, in the last month alone. Here: http://story.northkoreatimes.com/p.x/ct/9/cid/3a8a80d6f705f8cc/id/9b6a1c22154c3bcf/
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Relentless U.S. dollar selling turns into rout

The U.S. dollar has been pounded on foreign exchange markets Friday, following on from several weeks of declines. Here:

http://story.malaysiasun.com/p.x/ct/9/cid/3a8a80d6f705f8cc/id/0de61f94e27d3c53/


Global stock markets tumble as U.S. dollar shatters
The American currency's near collapse followed several weeks of declines, which has seen the dollar lose 7% of its value against the euro, yen, and the pound, in the last month alone. >snip<
Here:

http://feeds.bignewsnetwork.com/?sid=9b6a1c22154c3bcf

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Consumer mood buckles as high gas prices bite

"If sentiment stays at this level -- it might even decline further -- you should expect a serious slowing in second quarter and third quarter consumption," said Ian Shepherdson, chief U.S. economist with High Frequency Economics.

Here:

http://today.reuters.com/business/newsArticle.aspx?type=ousiv&storyID=2006-05-12T212507Z_01_N12360888_RTRIDST_0_BUSINESSPRO-ECONOMY-DC.XML

Dollar Index Continues To Slide


The US Dollar Index extended its losses, with the Dollar falling heavily against the Swiss Franc, Euro and Yen. The Dollar hit a new one-year low versus the Euro and eight-month low versus the Yen.

http://www.tradingmarkets.com/.site/daytrading/commentary/day_trading/Dollar-Index-Continues-To-Slide-51634.cfm
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Western analysts have speculated that the bourse could undermine the dollar by valuing Iran's oil exports, the 4th largest in the world, in euros. Here:
http://www.ameinfo.com/85102.html

Iran sees oil bourse in two months
Web posted at: 5/6/2006 1:15:2
Source ::: REUTERS
BAKU: Iran plans to launch an oil bourse on the Gulf island of Kish within the next two months, Iranian President Mahmoud Ahmadinejad said yesterday.
“Our specialists are currently working on the plan and the bourse will start working within the next two months,” he told a regional conference in the Azeri capital of Baku.
Iranian officials have previously said the bourse would be a small pilot operation trading only two or three petrochemical products and it would start before March 2007, a delay from previous plans.
Western media and think-tanks have speculated that Iran’s oil bourse could undermine the importance of the dollar by pricing the world’s fourth biggest exports of crude in euros. Here:
http://www.thepeninsulaqatar.com/Display_news.asp?section=Business_News&subsection=share+market&month=May2006&file=Business_News200605061152.xml


The Last Gasp of the Dollar; Iran bourse opens next week, Here:

[Dunvegan]

1. Here's an interesting thread from yesterday discussing the currency market

Action is irratic presently...interesting.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2281481

[G2099]

2. The economy going bust may be the only thing that wake up America

As long as American's get a pay check they don't care about anything.

[FogerRox]

5. good point, unfortunatly. YUP: $6.00 a gallon for gas might raise some ire

[FogerRox]

3. yes, I read that one, which prompted me to go a bit further.....

[0007]

4. Where can I buy euros without leaving the country?

[FogerRox]

11. currently the Hedge is buying gold & metals

[redacted]

37. OK Foger, but isn't it easier to buy Euros than gold?

I don't want to turn my house into Fort Knox. Besides, if the dollar collapses, what difference does it make? Isn't one better off with either Euros or gold than dollars?

[malaise]

25. Don't know but

our pension funds are with an English firm and a few years ago we were given the right to decide what percentage we wanted in Euros or dollars. I spoke with my economist friends and switched every penny to Euros. I took the risk and am very happy today.

[FogerRox]

27. HE HE HE HE you made out good......

[malaise]

30. So far so good

but the way this planet is going I may opt for early retirement before the US and Britain come crashing down with my hard earned savings.

[autorank]

6. I love your solutions. K&R. Out now and universal health care.

What a statement, stop the killing start the healing. You nailed it.

I'm not sure where the dollar is headed but you outlined where we should be.

Leaving Iraq is easy. Have an independent authority come in and do a serious poll (election is too hard) with two quesitons: 1) Do you want the USA to leave Iraq and 2) When?

Actually, there have been a number of polls with majorities favoring this. The current
government can 't get it together to make the request. So what, we know the will of the people
there and we should respect it by leaving.

We have many people suffering, dying becasue we don't have a real health care system. It's time.

[FogerRox]

8. Yes, its time. Take our Government back, before its too late

America could be the leading manufacture of Solar panels and other Alternative energy ideas.

That would mean independance from Persian Gulf Oil and lots of jobs.

[Dr. Jones]

22. That's very astute - Would-Be Entrepeneurs Listen Up!

I personally believe the alternative energy sector is going to boom. Who knows, maybe it will even lead to a second economic boom akin to the tech boom. It makes sense to me! I guess we just have to hash out this dollar thing...

We must educate people and get them interested in alternative energy, particularly our youth. We're competing gloablly nowadays, and we MUST get our youth interested in the sciences in order for our country to compete and for America to be great. And yes, as you say - this would mean lots of jobs for Americans, IN AMERICA.

[FogerRox]

23. Dr Jones, you are100% right. After Peak oil there should be a boom

in Alt. Energy. We can take a seat on the sidelines or get in the game.

[rumpel]

28. On solar

I personally believe solar should be utilized by all residential buildings. If it is possible in Japan and England, with all those many bad weather days, it should be feasible here, too.
The government can give a special loan to owners for installation. Low income households should be allowed an option to pay back with the surplus energy that is generated and sold back to the grid. It may take some years to pay it off, but it is tax dollars better spent than giving subsidies to oil and gas exploration among other such idiocies.
Meanwhile, this will immediately lessen the current hardship on especially the low and middle income families, no more high energy bills.
This is something that can be done now.

I agree R&D, manufacturing, installation and maintenance of renewables' systems will create tons of new jobs.

:)

[FogerRox]

32. NJ has a tax rebate.......for solar panels... the best in the nation..

You spend 30k on putting solar panels on your roof and you get 20k back. Pays for itself in ......max 13 years.... if oil goes up to $100 ... could be much sooner.

[Amaryllis]

33. Nice thought but if we coulda we woulda by now. what's your game plan

for taking it back?

[FogerRox]

43. ahhhhhhhhhh fight like hell...............

[Kire]

7. This is not how I want to win in November.

God damn it.

[FogerRox]

10. me neither..... I am so with you on that, the probelms of a collapsing ec

economy will mean vast hardship in the US and abroad. But if we dont get control of our Government the excrement is going to hit the rotary impellar.

[mom cat]

9. Of course you are right, but I fear that none of your suggestions will be

taken until after the next crash. Post this again in about a week!

[Spider Jerusalem]

12. The dollar's decline is inevitable and, probably, irreversible.

The US is waning in global power and influence; it's becoming increasingly obvious to anyone who cares to look that our country is but a shell of what it was 20 or 30 years ago. Massive foreign debt, the near-total collapse of our manufacturing base, an overstretched military, the dollar on the brink of losing its status as the world's reserve currency...the American empire is in decline. The collapse of the dollar is just one of the consequences. The same thing happened to Britain after WWII; the pound went from a 1939 value of about $4.40 US to being devalued to $2.80 in 1949 and then to $2.40 in 1967. It looks as though the collapse of the dollar is going to be much quicker (thanks in part to our present system of floating exchange rates, as opposed to currencies having fixed values relative to gold at $35 US/oz before the dismantling of the Bretton Woods system in the early 1970's).

[FogerRox]

13. excellent points Spider Jerusalem. But we need to get control of our

Government. WE cant allow the worst case scenario to be implementted.

[samplegirl]

14. I posted about this in and earlier post.

Bush w Bankers discussion meeting...
Iran is currently in the process of doing what's called an oil bourse. This is where Iran is ready to convert all of its oil trades with the Euro and no longer with the US dollar. Once the Bourse kicks in this will immediately begin to devalue the dollar greatly. As central banks will shift over from the US dollar and into the Euro beginning with over a trillion dollars. And it is this very reason why the US will go in to take out Iran. It is not just the supposed
sites where uranium is being processed for nuclear enrichment but the capital of Tehran is going to get hit as well taking out the Iranian government. Currently as we speak there as already been covert missions going on. As
several targets have all ready been taken out including anti aircraft batteries.
This was brought up at a banker's conference basically is to warn them about the devastating effect its going to have on the US dollar and what best to do as far as the banks are concerned
and where to shift their money, investments, and assets now as it is about to occur.

BUSH will take us straight into Iran no passing go.

[Dr. Jones]

15. But, but it's all for spreading FREEDOM...and they have WMD...and bad man.

:sarcasm:

But there really are alot of people who are that naive. ALOT.

Thanks to the author of this thread - excellent suggestions! Excellent. Very well thought out.

[FogerRox]

17. Thanks---Dr. Jones, Is the OP worthy of a KNR?

[Dr. Jones]

21. But of course! K&R

:)
:kick:

[Nikki Stone 1]

16. You know what the shock therapy of the Bush administration will be....

http://www.globalresearch.ca/index.php?context=viewArticle&code=20060222&articleId=2032

[FogerRox]

19. Nikki Stone 1, yeah I know, shock & awe. Take back our Government NOW

[Nikki Stone 1]

18. K & R, BTW

:kick:

[FogerRox]

20. Thanks very much Nikki Stone 1 . & Dont forget:

[KAT119]

24. Excellent synopsis of truth FR- well thought out, also. K&R for sure!!

[FogerRox]

26. Thanks KAT119

[rumpel]

29. Didn't Hussein announce he was switching to Euros, before * invaded?

As I recall, some people thought that that was one of the main reasons for * to be so hell bent on going into Iraq.


on edit:

but is it not that it is also a reflection of the global economic community hedging on a more sane and forward looking policy elsewhere than in the US?
We are now being marginalized.

[FogerRox]

31. Right on Rumple........... you got that right. the US has no

economic power to stop an oil bourse from trading in Euros, except by invasion.

[Klukie]

34. Thank you ...

for this very important post. I don't understand much about economics but from what I have been reading things are very bad and about to get much worse. I am truly fearful for my family and our country. K&R.

[FogerRox]

35. I fear for our/your families too. WE must get control of our Government.

[Usrename]

36. Isn't repudiation of the Bush Doctrine also an important step?

I mean through impeachment or something. Where do we go to get our reputation back?

[FogerRox]

40. Absolutely-- repair the REP. COmplete and utter rejection of the

Bush Doctrine.

[Usrename]

41. I forgot to say that I agree with the OP

More people should be discussing solutions NOW. We are well into what is no longer a looming crisis. The media will be the last to know.

[Wilms]

38. I'd like to add Media Reform

And a look at the WTO and NAFTA agreements would be in order.

[Buttercup McToots]

39. Should I sell off?

I have been reading this thread and others on the economy...
I have been thinking that I should sell off my stocks?
My husbands 401 is tied to them, and we buy small amounts of
them...just playing really, but I don't want to lose my money.
Soooo what's going to happen tomorrow?
I could put in a sell order and have it go 1st thing tomorrow
am, hopefully before any shyte hits the fan...
??
Thanks for any help/advice
Buttercup

[FogerRox]

42. talk to an expert.