Protecting the petrodollar: America gears up for a long war

[BATHIK]

According to this they've already dumped nearly a billion in the sand there, which is peanuts comparing to how much "wealth" they can simply print out (topped at 85 bil per month, afaik):

http://www.csbaonline.org/publications/2014/09/estimating-the-cost-of-operations-against-isil/

And they say it all makes perfect economic sense and karma will never become a b*tch.

[Asiantravel]

I was actually talking about all BRICS countries together but as you mention it Russia's external debt is down 1% to $720.9 billion in H1 2014 .........compared to USA's almost $18 trillion debt.

And as for your comment even or lazy poor that prefer no work and government handouts have it better than most middle class Russians that's the problem. USAs so-called economic model is now nothing that more than an illusion

For the first time in history, the number of people in the United States receiving assistance from the federal government to pay for food has exceeded the number of full-time, private sector workers

http://www.breitbart.com/InstaBlog/2013/07/08/Citizens-Receiving-Food-Aid-from-Federal-Gov-t-Now-Outnumber-Full-Time-Private-Sector-Workers

I covered US debt ad naseum in another thread, what it means, how it is overstated for political games and how it is good and necessary for world economy. Citing debt as you did reveals ignorance about macroeconomist and world markets.

Lol, Russia would love some debt about now, but no one wants anything Russia offers as a result of prior default in 98 and unstable economy.

Russia is now trying to auction bonds or launch debt sale, but the rate they have to pay and risk associated wont result in the number of takers Russia needs or ability to general sales Russia needs.

Haha, carry in with your doom and gloom and reading zerohedge and breitbart if it makes you feel better about YOUR situation. Jeez, our food stamp folks are driving around in BMWs living in 2,000 sq foot properties talking on their new iPhones watching HD cable TV. And they have free health care!

Live is great here!!!

The Statistics Do Not Lie! Welfare Is the Best Paying Entry Level Job In 35 States!

The numbers here suggest that we’d be better off staying home and living off of the labors of what’s left of the middle class.

In short, for most industrious Americans, it no longer pays to go to work. This system is catapulting our country towards an economic Armageddon. Welfare pays and pays well, until the government turns off the faucet. Then we will have a revolution inspired by the 146 million Americans who can longer support themselves.

http://www.dcclothesline.com/2014/08/05/statistics-lie-welfare-best-paying-entry-level-job-35-states/

Edited September 30, 2014 by Asiantravel

[Loptr]

Yes, the beat does go on, contrary to many member's prognostications:

http://money.cnn.com/2014/09/29/investing/us-dollar-strong-four-year-high/index.html

The U.S. dollar is on top of the worldInvestors are pledging allegiance to the dollar.

The U.S. Dollar Index, which measures the value of the greenback against a basket of foreign currencies, has climbed to its highest level in over four years.

"The momentum of the dollar's advance is unprecedented," said analysts at Société Générale in a note Monday morning.

The dollar has long been the world's top business currency and viewed as a "safe bet" among investors. But the recent run up is partly because traders believe the American economy is improving, especially relative to other parts of the world. This will compel the Federal Reserve to raise interest rates, which is generally seen as a good thing for a country's currency.

A better question is do you know why the USD index ramping?

[cloudhopper]

A better question is do you know why the USD index ramping?

As debt is defaulted on around the world there will be an increasing demand for cash. Global debt is denominated predominately in USD so there will be a net demand for it.

[Loptr]

It appears the US sanctions against Russian and France have had some unintended consequences... How many "allies" does the US really have when long-time friends are now seeking trade / expansion denominated in anything but USD? Ever heard of "death by 1000 cuts"...

http://online.wsj.com/articles/total-cuts-production-outlook-1411375794

WSJ: TOTAL LOOKS TO CHINA TO FINANCE RUSSIAN GAS PROJECT AMID SANCTIONS Total SA said it was seeking non-dollar financing for a gas project in Russia, becoming the second energy company in several days to indicate that Western sanctions on the Kremlin are affecting expansion plans. Exxon Mobil Corp. on Friday said it would stop drilling in the Russian Arctic. Major oil companies...

Total Chief Financial Officer Patrick de la Chevardière said Monday that the company was looking to finance its share in the $27 billion Yamal liquefied-natural-gas project in euros, Chinese yuan and Russian rubles. "The effect of U.S. sanctions was that Yamal LNG will be prevented from raising any dollar financing," Mr. de la Chevardière said at a London news briefing.

[F430murci]

I was actually talking about all BRICS countries together but as you mention it Russia's external debt is down 1% to $720.9 billion in H1 2014 .........compared to USA's almost $18 trillion debt.

And as for your comment even or lazy poor that prefer no work and government handouts have it better than most middle class Russians that's the problem. USAs so-called economic model is now nothing that more than an illusion

For the first time in history, the number of people in the United States receiving assistance from the federal government to pay for food has exceeded the number of full-time, private sector workers

http://www.breitbart.com/InstaBlog/2013/07/08/Citizens-Receiving-Food-Aid-from-Federal-Gov-t-Now-Outnumber-Full-Time-Private-Sector-Workers

I covered US debt ad naseum in another thread, what it means, how it is overstated for political games and how it is good and necessary for world economy. Citing debt as you did reveals ignorance about macroeconomist and world markets.

Lol, Russia would love some debt about now, but no one wants anything Russia offers as a result of prior default in 98 and unstable economy.

Russia is now trying to auction bonds or launch debt sale, but the rate they have to pay and risk associated wont result in the number of takers Russia needs or ability to general sales Russia needs.

Haha, carry in with your doom and gloom and reading zerohedge and breitbart if it makes you feel better about YOUR situation. Jeez, our food stamp folks are driving around in BMWs living in 2,000 sq foot properties talking on their new iPhones watching HD cable TV. And they have free health care!

Live is great here!!!

The Statistics Do Not Lie! Welfare Is the Best Paying Entry Level Job In 35 States!

The numbers here suggest that wed be better off staying home and living off of the labors of whats left of the middle class.

In short, for most industrious Americans, it no longer pays to go to work. This system is catapulting our country towards an economic Armageddon. Welfare pays and pays well, until the government turns off the faucet. Then we will have a revolution inspired by the 146 million Americans who can longer support themselves.

http://www.dcclothesline.com/2014/08/05/statistics-lie-welfare-best-paying-entry-level-job-35-states/

Jeez, why is it so important to you to convince yourself the US is bad and the US is failing? There has to be some internal struggle here. No matter the topic, you throw out the nutty, conspiracy doom and gloom world is ending stuff that comes from the deep anals of the web written by other desparate souls that are failing in life and looking to cast the blame for their failures anywhere but within themselves.

What does this article from DC Clotheslines Auring out Dirty Laundry really say? Welfare rates exceed minimum wage in 35 states. That does not mean every job available in these 35 states offers or pays minimum wage.

RE: Welfare stats

About 5 % of Americans receive true "welfare," i.e., being paid not to work (don't include soc. sec., Medicaid or Foodstamps here because that is completely different than wage issue you raised).

One can earn up to $ 1,000 per month and still receive "welfare."

Politicians and anti-Obama base right now like to include food stamps, social security and Medicaid in their wefare numbers to rally the base.

RE: Food stamps

Average food stamp benefit is about $ 125 per month for single and $250 per month for family so it not like people are getting rich off food stamps.

A family of 3 can make about $26,000 and still receive food stamps. Larger families can make more per month.

Food stamps, unfortunately, are also given to multiple classes of people regardless of income or assets including people on strike, undocumented immigrants and certain legal immigrants.

[F430murci]

It appears the US sanctions against Russian and France have had some unintended consequences... How many "allies" does the US really have when long-time friends are now seeking trade / expansion denominated in anything but USD? Ever heard of "death by 1000 cuts"...

http://online.wsj.com/articles/total-cuts-production-outlook-1411375794

WSJ: TOTAL LOOKS TO CHINA TO FINANCE RUSSIAN GAS PROJECT AMID SANCTIONS

Total SA said it was seeking non-dollar financing for a gas project in Russia, becoming the second energy company in several days to indicate that Western sanctions on the Kremlin are affecting expansion plans. Exxon Mobil Corp. on Friday said it would stop drilling in the Russian Arctic. Major oil companies...

Total Chief Financial Officer Patrick de la Chevardière said Monday that the company was looking to finance its share in the $27 billion Yamal liquefied-natural-gas project in euros, Chinese yuan and Russian rubles. "The effect of U.S. sanctions was that Yamal LNG will be prevented from raising any dollar financing," Mr. de la Chevardière said at a London news briefing.

Actually, the intended consequence was to stop US backed cooperation to assist Russia in expanding oil operations to new sources be because its reservoirs are in serious decline. Obviously, oil companies don't like as they saw big $$$ in Russia. Candidly, if they have to raise financing outside US or Europe because of current sanctions, so be it. That is between them and Obama. As much as you hope, it won't hurt US long term.

Lol at you guys! You have been hanging on toevery doom and gloom forecast and scenario for years. When one doesn't pan out, you move on to the next impending collapse de jour posted up on some nutty website.

You remind me of Randy Quad in Independence Day, "I've been telling you for years . . . , every since those aliens stuck that probe up my butt."

One can keeping hoping for collapse if it gives you warm and fuzzies, lol.

[BATHIK]

Existence of conspiracy theories and doom and gloom scenarios has never stopped real crises from happening, and those always strike out of the blue.

There are certain fundamental imbalances in western economies that are bound to manifest one way or another, just like crazy loans did in 2008 or crazy loans here did in 1997.

There's a serious disconnect between recovery on the Wall street and that of population in general, for example. Or the unpredictable effects of the QE, or the fact that since 2008 all over the world the economies lived on a series of jump starts that never quite started the engines. There's also the Chinese bubble getting ready to blow. There's also a strive to diversify countries' egg baskets away from total dollar dependencies and a real demand for dollar alternatives. There's also a lack of faith in liberal democracy and US leadership, and a lack of leadership itself.

The world is primed for some kind of revolution.

[Publicus]

The real reason for most of everything at threads like this is that the howlers howl because they sleep in the moonlight. Each new day the moon beamers around here awaken with a new raw energy and numerous wild schemes.

Nice rebuttal from the guy that feels it's appropriate to denigrate anyone with an opposing opinion... Reminds me of the current crop of Alinsky progressive liberals in power in the US these days...

I remember who Saul Alinsky was from my many daze (nights and years) in the streets gagging on police gas while successfully protesting the Vietnam Conflict.

You guys need to explain why you are trying to impose on the world the monopoly game national currency of a censoring and punishing dictatorship in Beijing over the currency of the United States.

You need to explain why you are in full throat for China, Russia, Brazil, India, South Africa over the USA, the European Union, the G-7, Nato, the Eurozone experiment, South Korea, Australia, and a number of other free market countries predicated in democracy, human rights, the free market and a long list of other positive and proven attributes, characteristics, policies, priorities.

[Publicus]

Existence of conspiracy theories and doom and gloom scenarios has never stopped real crises from happening, and those always strike out of the blue.

There are certain fundamental imbalances in western economies that are bound to manifest one way or another, just like crazy loans did in 2008 or crazy loans here did in 1997.

There's a serious disconnect between recovery on the Wall street and that of population in general, for example. Or the unpredictable effects of the QE, or the fact that since 2008 all over the world the economies lived on a series of jump starts that never quite started the engines. There's also the Chinese bubble getting ready to blow. There's also a strive to diversify countries' egg baskets away from total dollar dependencies and a real demand for dollar alternatives. There's also a lack of faith in liberal democracy and US leadership, and a lack of leadership itself.

The world is primed for some kind of revolution.

Existence of conspiracy theories and doom and gloom scenarios has never stopped real crises from happening, and those always strike out of the blue.

My god.

That's a strange and convoluted way to try to justify moonbeam theories and crackpot pursuits.

The statement pretty much self serves to relieve you guys from having to be connected to reality. It is a neat trick to assert, i.e., that inexorable disaster will strike and that the crackpot theories we get around here can't stop it either. Which means the news for you guys is good regardless. You really need to know however that your statement is also intellectually vapid and specious.

As to your equally laughable looming revolution, I'd indicated in a prior post that McKinsey Global has identified another socio-economic revolution currently occurring that it likens to the Second Industrial Revolution and to the U.S. reconstruction of Europe after World War II.

It is the $5 trillion annually being invested in new housing in emerging markets and the $4 trillion annually emerging markets are investing in their respective infrastructure.

So it is clear that all other talk of a revolution of some kind or another comes from sleeping in the moonlight while wearing a tin foil hat.

The capital markets of the U.S. are providing significant amounts of these trillions of massive investments and they will continue to do so. The Brics Development Bank is initially capitalized at $100 billion, has stated it will conduct its business in USD$ but won't come online for another five years, if ever.

[F430murci]

Existence of conspiracy theories and doom and gloom scenarios has never stopped real crises from happening, and those always strike out of the blue.

There are certain fundamental imbalances in western economies that are bound to manifest one way or another, just like crazy loans did in 2008 or crazy loans here did in 1997.

There's a serious disconnect between recovery on the Wall street and that of population in general, for example. Or the unpredictable effects of the QE, or the fact that since 2008 all over the world the economies lived on a series of jump starts that never quite started the engines. There's also the Chinese bubble getting ready to blow. There's also a strive to diversify countries' egg baskets away from total dollar dependencies and a real demand for dollar alternatives. There's also a lack of faith in liberal democracy and US leadership, and a lack of leadership itself.

The world is primed for some kind of revolution.

Haha, revolution! That why I love it here.

[F430murci]

Existence of conspiracy theories and doom and gloom scenarios has never stopped real crises from happening, and those always strike out of the blue.

There are certain fundamental imbalances in western economies that are bound to manifest one way or another, just like crazy loans did in 2008 or crazy loans here did in 1997.

There's a serious disconnect between recovery on the Wall street and that of population in general, for example. Or the unpredictable effects of the QE, or the fact that since 2008 all over the world the economies lived on a series of jump starts that never quite started the engines. There's also the Chinese bubble getting ready to blow. There's also a strive to diversify countries' egg baskets away from total dollar dependencies and a real demand for dollar alternatives. There's also a lack of faith in liberal democracy and US leadership, and a lack of leadership itself.

The world is primed for some kind of revolution.

Do you live in the States? If so, what State. I think most States are doing reasonably well except for certain communities that never do reasonably well.

I reside in both Destin, Florida, and in Nashville, Tennessee. I see nothing but recovery. Tourism is at the highest levels of ANYTIME in both places. Tourism is an excellent indicator of the economy. Housing market is back on track in most regions. Houses in my neighborhood sit less than 30 days, involve bidding wars and sell for above list price. Businesses are doing well. New construction, both residential and commercial, is everywhere.

Candidly, the bellyaching comes from the GOP who distort numbers such including number of people on SS, Medicaid and Food stamps when using the term welfare to lead people to believe a high percentage of the population is on "welfare." They do this to rally their base, recapture control and keep their seats. Nothing more, nothing less. They pander to the uneducated and easily manipulated who buys into their rhetoric without actually bothering to look behind the numbers. Their base, the Christian right, is also lead more by emotions and individual norms than logic and rational thinking so they buy into the doom and gloom rhetoric.

RE: 2008 and QE

I don't meander through life thinking nothing bad will happen. In the fall of 2007, I knew, and everyone around me knew, what was going to happen in 2008. I had clients and banker friends tell me, in late 2007, the precise year and quarter everything would spiral. I was 80% cash in late fall 2007. I am less than 10% cash at the present.

I actually thought 2008 would be worse. In 2007/2008, I argued that the only out was to let the banks and AIG fail and start over rather than throwing good money after bad. Luckily, people much smarter than I were calling the shots, because TARP worked, QEs worked and the holes that needed to be plugged have been plugged.

I handled well in excess of 100 arbitrations related to CMOs and firms investing their clients in CMOs, CDOs and etc. I was active in TARP issues with clients in restructuring, rerating, revaluing or pricing troubled assets and working with the Fed. No one in the banking industry or government wants to go through 2008 again and I have seen nothing but positives since mid 2011ish. Sure their are bumps in the road, but overall things are just fine from a financial or banking perspective.

By all means, keep your money under your mattress or bury it in tin cans in your backyard if it makes you fell better. Just realize, you look mighty stupid digging up your front yard looking for a $ 20 during a rain storm. ATMS are much easier.

[Loptr]

A direct result of US foreign policy, or lack thereof...

http://rt.com/business/191804-russia-ditch-dollar-2-years/

Russia could ditch US dollar in 2-3 years – head of Russia's #2 bank

Published time: September 30, 2014 14:19

​Two to three years would be enough time for Russia to switch to international settlements to the ruble, Andrey Kostin, head of Russia’s second-biggest bank VTB, said.

“Two to three years is enough, not only to launch [settlements in rubles], but also to complete these mechanisms. But much will depend on how banks will cope with the task,” Kostin said in an interview with Izvestia newspaper.

[craigt3365]

A few off topic replies have been removed from view. Please stay on topic and be civil to each other.

[mania]

As NeverSure said above. This is tinfoil hat stuff. America never seems to end up with much oil out of these deals and loses money instead.

I try to not pay too much attention to all this stuff but

read it once in awhile.

I think many automatically assume these things are about oil or

having the oil but... In my opinion it was never about the actual oil

itself as explained by many the US has oil.

But it is important to the US that oil is always traded or bought by all in US Dollars.."Petrocurrency"

Since the agreements of 1971 and 1973, OPEC oil is exclusively quoted in US dollars.

This created a permanent demand for dollars on the international exchange markets

That is another complicated subject & one I do not pretend to fully understand

But folks can look up words like "seigniorage revenue"

Counter point to some degree would be this...The Relative Unimportance of Seigniorage

But ultimately if I had to guess I would place my bet on the need to keep the USD as the worlds reserve currency

or more so the petrocurrency driving many actions & reactions we see.

Which usually brings out the next argument that if not the USD who? Who can step up & who can be trusted?

Folks assume China etc could never fill the role & of course I agree

But if or when any single country being the worlds reserve currency comes to its inevitable end

I think the only real solution would be a World Reserve title given to a basket of currencies that

are re-evaluated yearly etc.

Again I am just musing here & not making any conclusive statements

Here is one older article

http://www.mckinsey.com/insights/economic_studies/an_exorbitant_privilege

Edited October 1, 2014 by mania

[Pakboong]

As NeverSure said above. This is tinfoil hat stuff. America never seems to end up with much oil out of these deals and loses money instead.

I try to not pay too much attention to all this stuff but

read it once in awhile.

I think many automatically assume these things are about oil or

having the oil but... In my opinion it was never about the actual oil

itself as explained by many the US has oil.

But it is important to the US that oil is always traded or bought by all in US Dollars.."Petrocurrency"

Since the agreements of 1971 and 1973, OPEC oil is exclusively quoted in US dollars.

This created a permanent demand for dollars on the international exchange markets

That is another complicated subject & one I do not pretend to fully understand

But folks can look up words like "seigniorage revenue"

Counter point to some degree would be this...The Relative Unimportance of Seigniorage

But ultimately if I had to guess I would place my bet on the need to keep the USD as the worlds reserve currency

or more so the petrocurrency driving many actions & reactions we see.

Which usually brings out the next argument that if not the USD who? Who can step up & who can be trusted?

Folks assume China etc could never fill the role & of course I agree

But if or when any single country being the worlds reserve currency comes to its inevitable end

I think the only real solution would be a World Reserve title given to a basket of currencies that

are re-evaluated yearly etc.

Again I am just musing here & not making any conclusive statements

Here is one older article

http://www.mckinsey.com/insights/economic_studies/an_exorbitant_privilege

Interesting.

All of the BRICS countries are buying all of the gold they can find. The numbers are staggering. The IMF keeps track by country but they cannot keep track of China. Soon, the IMF may not have the 3rd largest gold reserves in our world. When the BRICS countries actually are up and running, I believe it is their plan to create a gold backed currency and trade amongst themselves and the 80 or so countries who have agreed to work with BRICS. The BRICS operation is several years away. The main reason IMO, Putin cannot be forced into a fight at this time. He has to be patient and not fall for the Western tactics to get him into a fight before he is ready.

It will not matter what currency is the world reserve as the BRICS currency will replace it because it is gold backed. No need for anyone to do anything for this to happen. The west is urgently trying to stop this. It is hard to believe for most people that there actually is a level of being above sovereign governments. Those are the ones who stand to lose the most if BRICS happens. Imagine taking away the annual profit of the IMF share holders and using those trillions of dollars for defense and infrastructure.

It is hard for many to believe that the IMF, which came into existence in 1944 actually makes that much money. It is supposed to be banker for the central banks. Somehow, it has managed to gather and hold the 3rd largest gold reserve on our planet. That is a lot of money. Just a small percentage of their over all holdings. Go to their web site and you will see a different picture entirely they show very modest holdings and of course, all holdings are tax free.

Ukraine, Syria, and Hong Kong are connected to BRICS growth. Notice the common denominator to these 3 countries is BRICS. Perhaps Bangladesh or a similar country can give the West a stepping stone to India and its development as a prime BRICS country.

Consider this as you would competition for the Mafia. The Mafia does not stand still when their profits are attacked from outside the family.

[farangabroad]

So you're telling me that GOLD -- a material dug out of a meteor hole in Africa and then reburried in a hole somewhere else and sourrounded by armed men -- is going to beget world dominance upon whomever is in control of it?

[Pakboong]

So you're telling me that GOLD -- a material dug out of a meteor hole in Africa and then reburried in a hole somewhere else and sourrounded by armed men -- is going to beget world dominance upon whomever is in control of it?

You are aware that until 1971 the world reserve currency, the US dollar, was gold backed. France wanted their gold back and apparently we didn't have it so we paid them off in paper dollars at $35 per ounce and Nixon removed the dollar from its gold backing.

[lovetotravel]

Interesting.

All of the BRICS countries are buying all of the gold they can find. The numbers are staggering. The IMF keeps track by country but they cannot keep track of China. Soon, the IMF may not have the 3rd largest gold reserves in our world. When the BRICS countries actually are up and running, I believe it is their plan to create a gold backed currency and trade amongst themselves and the 80 or so countries who have agreed to work with BRICS. The BRICS operation is several years away. The main reason IMO, Putin cannot be forced into a fight at this time. He has to be patient and not fall for the Western tactics to get him into a fight before he is ready.

It will not matter what currency is the world reserve as the BRICS currency will replace it because it is gold backed. No need for anyone to do anything for this to happen. The west is urgently trying to stop this. It is hard to believe for most people that there actually is a level of being above sovereign governments. Those are the ones who stand to lose the most if BRICS happens. Imagine taking away the annual profit of the IMF share holders and using those trillions of dollars for defense and infrastructure.

It is hard for many to believe that the IMF, which came into existence in 1944 actually makes that much money. It is supposed to be banker for the central banks. Somehow, it has managed to gather and hold the 3rd largest gold reserve on our planet. That is a lot of money. Just a small percentage of their over all holdings. Go to their web site and you will see a different picture entirely they show very modest holdings and of course, all holdings are tax free.

Ukraine, Syria, and Hong Kong are connected to BRICS growth. Notice the common denominator to these 3 countries is BRICS. Perhaps Bangladesh or a similar country can give the West a stepping stone to India and its development as a prime BRICS country.

Consider this as you would competition for the Mafia. The Mafia does not stand still when their profits are attacked from outside the family.

I don't think this scenario will pan out:

http://www.futuresmag.com/2011/08/31/top-10-largest-gold-reserves-by-country?t=commodities&page=12

#1: United States

Far and away the United States has more gold in its reserves than any other country. In fact, the United States holds nearly 30% of the 27,372.6 tonnes of gold in all sovereign reserves. Although Fort Knox is the iconic location of U.S. gold, more gold actually is stored in the Federal Reserve Bank of New York's underground vault, although not all of it belongs to the U.S. government. At $1,700 an ounce, the U.S. gold reserve is worth approximately $487 billion.

http://en.wikipedia.org/wiki/Gold_reserve#Officially_reported_gold_holdings

And if you look at where a majority of the gold is, it's in jewelry. And I think I read India is getting the most with regards to this.

[Asiantravel]

Interesting.

All of the BRICS countries are buying all of the gold they can find. The numbers are staggering. The IMF keeps track by country but they cannot keep track of China. Soon, the IMF may not have the 3rd largest gold reserves in our world. When the BRICS countries actually are up and running, I believe it is their plan to create a gold backed currency and trade amongst themselves and the 80 or so countries who have agreed to work with BRICS. The BRICS operation is several years away. The main reason IMO, Putin cannot be forced into a fight at this time. He has to be patient and not fall for the Western tactics to get him into a fight before he is ready.

It will not matter what currency is the world reserve as the BRICS currency will replace it because it is gold backed. No need for anyone to do anything for this to happen. The west is urgently trying to stop this. It is hard to believe for most people that there actually is a level of being above sovereign governments. Those are the ones who stand to lose the most if BRICS happens. Imagine taking away the annual profit of the IMF share holders and using those trillions of dollars for defense and infrastructure.

It is hard for many to believe that the IMF, which came into existence in 1944 actually makes that much money. It is supposed to be banker for the central banks. Somehow, it has managed to gather and hold the 3rd largest gold reserve on our planet. That is a lot of money. Just a small percentage of their over all holdings. Go to their web site and you will see a different picture entirely they show very modest holdings and of course, all holdings are tax free.

Ukraine, Syria, and Hong Kong are connected to BRICS growth. Notice the common denominator to these 3 countries is BRICS. Perhaps Bangladesh or a similar country can give the West a stepping stone to India and its development as a prime BRICS country.

Consider this as you would competition for the Mafia. The Mafia does not stand still when their profits are attacked from outside the family.

I don't think this scenario will pan out:

http://www.futuresmag.com/2011/08/31/top-10-largest-gold-reserves-by-country?t=commodities&page=12

#1: United States

Far and away the United States has more gold in its reserves than any other country. In fact, the United States holds nearly 30% of the 27,372.6 tonnes of gold in all sovereign reserves. Although Fort Knox is the iconic location of U.S. gold, more gold actually is stored in the Federal Reserve Bank of New York's underground vault, although not all of it belongs to the U.S. government. At $1,700 an ounce, the U.S. gold reserve is worth approximately $487 billion.

http://en.wikipedia.org/wiki/Gold_reserve#Officially_reported_gold_holdings

And if you look at where a majority of the gold is, it's in jewelry. And I think I read India is getting the most with regards to this.

" Far and away the United States has more gold in its reserves than any other country. "

That is too funny. Do you still believe in Father Christmas as well?

Nobody has seen the Federal reserve gold for decades. Even Ron Paul (R-TX) and the Fed’s attorney Scott Alvarez believe without a shadow of a doubt, that The Federal Reserve has no gold backing the US dollar.

But the best evidence of all there has been some serious hanky panky is that the German government has been storing about half of its gold supply with the US FED and then decided to bring home all its gold.

But the FED has said that isn’t possible to do, and it would need until 2020 to be able to accomplish the transfer. The German government then asked to just visit the FED vaults to inventory the gold and determine its actual existence, but the FED refused to permit Germany to examine its own gold.

http://nsnbc.me/2013/04/18/federal-reserve-refuses-to-submit-to-an-audit-of-germanys-gold-held-in-u-s-vaults-2/

Edited October 1, 2014 by Asiantravel

[lovetotravel]

I'll get my tin foil hat...hold on. Love this comment from a fan of that website you linked to:

Hello Chris,

Thank You for showing honest assessment in humanism

I always believed today’s issues are caused primarily by all Politicians with agenda, all Militaries with expensive toys, dimwits Religious leaders stuck in fairylands and most Journalists thru manipulation in art of writing that exists in most publications – except a handful & nsnbc.com is one of them

Kind Regards, Bhupinder
SAR Hong Kong

I bet this person reads Zero Hedge and RT!

[Publicus]

I try to not pay too much attention to all this stuff but

read it once in awhile.

I think many automatically assume these things are about oil or

having the oil but... In my opinion it was never about the actual oil

itself as explained by many the US has oil.

But it is important to the US that oil is always traded or bought by all in US Dollars.."Petrocurrency"

Since the agreements of 1971 and 1973, OPEC oil is exclusively quoted in US dollars.

This created a permanent demand for dollars on the international exchange markets

That is another complicated subject & one I do not pretend to fully understand

But folks can look up words like "seigniorage revenue"

Counter point to some degree would be this...The Relative Unimportance of Seigniorage

But ultimately if I had to guess I would place my bet on the need to keep the USD as the worlds reserve currency

or more so the petrocurrency driving many actions & reactions we see.

Which usually brings out the next argument that if not the USD who? Who can step up & who can be trusted?

Folks assume China etc could never fill the role & of course I agree

But if or when any single country being the worlds reserve currency comes to its inevitable end

I think the only real solution would be a World Reserve title given to a basket of currencies that

are re-evaluated yearly etc.

Again I am just musing here & not making any conclusive statements

Here is one older article

http://www.mckinsey.com/insights/economic_studies/an_exorbitant_privilege

Interesting.

All of the BRICS countries are buying all of the gold they can find. The numbers are staggering. The IMF keeps track by country but they cannot keep track of China. Soon, the IMF may not have the 3rd largest gold reserves in our world. When the BRICS countries actually are up and running, I believe it is their plan to create a gold backed currency and trade amongst themselves and the 80 or so countries who have agreed to work with BRICS. The BRICS operation is several years away. The main reason IMO, Putin cannot be forced into a fight at this time. He has to be patient and not fall for the Western tactics to get him into a fight before he is ready.

It will not matter what currency is the world reserve as the BRICS currency will replace it because it is gold backed. No need for anyone to do anything for this to happen. The west is urgently trying to stop this. It is hard to believe for most people that there actually is a level of being above sovereign governments. Those are the ones who stand to lose the most if BRICS happens. Imagine taking away the annual profit of the IMF share holders and using those trillions of dollars for defense and infrastructure.

It is hard for many to believe that the IMF, which came into existence in 1944 actually makes that much money. It is supposed to be banker for the central banks. Somehow, it has managed to gather and hold the 3rd largest gold reserve on our planet. That is a lot of money. Just a small percentage of their over all holdings. Go to their web site and you will see a different picture entirely they show very modest holdings and of course, all holdings are tax free.

Ukraine, Syria, and Hong Kong are connected to BRICS growth. Notice the common denominator to these 3 countries is BRICS. Perhaps Bangladesh or a similar country can give the West a stepping stone to India and its development as a prime BRICS country.

Consider this as you would competition for the Mafia. The Mafia does not stand still when their profits are attacked from outside the family.

You touched on almost everything in your remarkable and wide ranging incoherent post.

You have Bangladesh, the Mafia, Ukraine, Hong Kong, gold....

....Syria, the IMF, Brics, IMO, Putin....

....80 countries, our planet ..India....the West.....

I simply say again for the edification of the understandably curious reader....the gold standard for national currencies does not and cannot support current or future economic development. Not globally, not regionally for any global region.

McKinsey Global points out the emerging economies are spending $5 trillion on new housing and $4 trillion on infrastructure. A return to the gold standard globally, or regionally as by the Brics for instance, would reduce those amounts to considerably less than a trillion dollars for each. That's the formula for social unrest, resentments, the exclusion of masses of people from further economic and social development.

You refer to a "gold backed currency for the Brics countries." The Brics don't have a common currency, have no plans to create a common currency, know they can't possibly create a common currency among them. The world knows the RMB is monopoly game money and the Ruble is a Rubble. So, what, the South Africa Rand will be their new common currency?

Don't Get Hit by a Falling BRIC

After years of growth, the BRICs are slowing down, and despite the fact that the global economy is picking up, their economies do not show strong signs of growth. Investors are realizing that its better to either invest at home or in safer economies, and because of this, it is unlikely that the BRICs will ever become the powers that economists predicted a decade ago.

http://www.theconsul.org/?p=2421

The four biggest and most advanced economies of the world are the United States, Japan, Germany and the United Kingdom The Four Amigos Brics countries are Brazil, Russia, India, China plus the tag-along fifth wheel South Africa. Which do you prefer to invest in and which model of political economy do you trust and have greater confidence in.

BRIC Economies Hitting a Brick Wall

Until recently, investors viewed China, Brazil and India as a sure thing. Lately, though, their economies have shown signs of weakness and money has begun flowing back to the West. Worries are mounting the BRICS dream is fading.

The Economist Intelligence Unit predicts that BRIC’s US $98 billion growth lead over the G-4 consisting of the United States, Japan, Germany, Britain, in 2013 will reverse to fall by US $44 billion behind the G-4 this year. That’s a massive year-over-year reversal of US $142 billion in favor of the G-4. The United States is expected to add more to global economic growth than China in 2014 and Japan will add more than India.

So is this, as an Economist report stated, “The West’s Turn”? There’s little doubt that 2014 will mark a hiatus in the economic rise of the four countries that dominated global economic growth for the past 12 years, and that Western developed countries are shaking off some of the self-inflicted wounds holding them back.

But lest we lapse into self-congratulatory schadenfreude, let’s remember that world economic growth is not a zero sum game. In a globalized world, prosperity in any single country contributes to the prosperity of all others.

http://www.spiegel.de/international/world/economy-slows-in-brics-countries-as-worries-mount-a-951453.html

[Asiantravel]

I'll get my tin foil hat...hold on. Love this comment from a fan of that website you linked to:

Hello Chris,

Thank You for showing honest assessment in humanism

I always believed today’s issues are caused primarily by all Politicians with agenda, all Militaries with expensive toys, dimwits Religious leaders stuck in fairylands and most Journalists thru manipulation in art of writing that exists in most publications – except a handful & nsnbc.com is one of them

Kind Regards, Bhupinder

SAR Hong Kong

I bet this person reads Zero Hedge and RT!

How about CNN?

And nobody can argue with Ron Paul because he sat on the House Banking Committee that monitored that criminal enterprise called the Federal reserve. But even the Congress and Senate didn't have the power to force the Fed to allow just an inspection of the gold

Paul called a congressional hearing Thursday to grill federal officials about his bill to audit and inventory all of the gold reserves at Fort Knox, Ky., West Point, N.Y., and Denver, even though Treasury officials insist that the gold is audited annually and is all there.Paul said that his questions were partly in response to the numerous Internet conspiracy theories, including those that accuse the government of secretly selling all of the gold in Fort Knox.

http://money.cnn.com/2011/06/24/news/economy/ron_paul_gold_audit/index.htm

Edited October 1, 2014 by Asiantravel

[lovetotravel]

I think an audit should be mandatory. Crazy that it hasn't happened in so many years. But, as mentioned above, it just doesn't matter. The BRICs amassing as much gold as they can to back a new currency is a pipe dream. You think China, Russia and India will agree on anything? Never happen. China is the powerhouse in that group. And as mentioned above, their currency is hidden behind a black curtain.

For now, there's no other option than the USD. And that's the reality for probably the rest of our lives. Unless you are under 20! LOL

[Publicus]

Interesting.

All of the BRICS countries are buying all of the gold they can find. The numbers are staggering. The IMF keeps track by country but they cannot keep track of China. Soon, the IMF may not have the 3rd largest gold reserves in our world. When the BRICS countries actually are up and running, I believe it is their plan to create a gold backed currency and trade amongst themselves and the 80 or so countries who have agreed to work with BRICS. The BRICS operation is several years away. The main reason IMO, Putin cannot be forced into a fight at this time. He has to be patient and not fall for the Western tactics to get him into a fight before he is ready.

It will not matter what currency is the world reserve as the BRICS currency will replace it because it is gold backed. No need for anyone to do anything for this to happen. The west is urgently trying to stop this. It is hard to believe for most people that there actually is a level of being above sovereign governments. Those are the ones who stand to lose the most if BRICS happens. Imagine taking away the annual profit of the IMF share holders and using those trillions of dollars for defense and infrastructure.

It is hard for many to believe that the IMF, which came into existence in 1944 actually makes that much money. It is supposed to be banker for the central banks. Somehow, it has managed to gather and hold the 3rd largest gold reserve on our planet. That is a lot of money. Just a small percentage of their over all holdings. Go to their web site and you will see a different picture entirely they show very modest holdings and of course, all holdings are tax free.

Ukraine, Syria, and Hong Kong are connected to BRICS growth. Notice the common denominator to these 3 countries is BRICS. Perhaps Bangladesh or a similar country can give the West a stepping stone to India and its development as a prime BRICS country.

Consider this as you would competition for the Mafia. The Mafia does not stand still when their profits are attacked from outside the family.

I don't think this scenario will pan out:

http://www.futuresmag.com/2011/08/31/top-10-largest-gold-reserves-by-country?t=commodities&page=12

#1: United States

Far and away the United States has more gold in its reserves than any other country. In fact, the United States holds nearly 30% of the 27,372.6 tonnes of gold in all sovereign reserves. Although Fort Knox is the iconic location of U.S. gold, more gold actually is stored in the Federal Reserve Bank of New York's underground vault, although not all of it belongs to the U.S. government. At $1,700 an ounce, the U.S. gold reserve is worth approximately $487 billion.

http://en.wikipedia.org/wiki/Gold_reserve#Officially_reported_gold_holdings

And if you look at where a majority of the gold is, it's in jewelry. And I think I read India is getting the most with regards to this.

" Far and away the United States has more gold in its reserves than any other country. "

That is too funny. Do you still believe in Father Christmas as well?

Nobody has seen the Federal reserve gold for decades. Even Ron Paul (R-TX) and the Fed’s attorney Scott Alvarez believe without a shadow of a doubt, that The Federal Reserve has no gold backing the US dollar.

But the best evidence of all there has been some serious hanky panky is that the German government has been storing about half of its gold supply with the US FED and then decided to bring home all its gold.

But the FED has said that isn’t possible to do, and it would need until 2020 to be able to accomplish the transfer. The German government then asked to just visit the FED vaults to inventory the gold and determine its actual existence, but the FED refused to permit Germany to examine its own gold.

http://nsnbc.me/2013/04/18/federal-reserve-refuses-to-submit-to-an-audit-of-germanys-gold-held-in-u-s-vaults-2/

More whack a mole.

A German parliamentarian who is the equivalent of former Congressman Ron Paul was informed by the German Finance Ministry that under German law he is not authorized to travel to New York, Paris, London as he wanted to do to view gold in government vaults. Perhaps I can try that because it sounds like a premier trip and the taxpayer foots the bill besides.

The German government has reduced its decision to cater to the German far right by recalling some of its gold from the custody of the U.S. Federal Reserve. The German government has received some of the gold it initially requested and has decided not to immediately pursue reclaiming the rest.

The moonbeam extremists who claim the United States does not possess any gold can make their claims to the high heavens because it's always been the law that only U.S. Treasury officials and an extremely limited number of other government officials can physically view the government's gold reserves.

The nutcase case that the U.S. does not possess any gold was refuted by a U.S. Treasury audit of the gold held at the New York Federal Reserve (recall the Bruce Willis movie Die Hard with a Vengeance with Jeremy Irons). This is an old hash by the far out moonbeam right wing extremists not only of the United States, but of Germany and other European countries as well.

No foreign government that has its gold reserves in the custody of the United States has made any claim, assertion, accusation, that its gold in U.S. custody does not exist or that the U.S. gold reserves are non existent. That's is instead the exclusive realm of the right wing extremist nut cases everywhere.

Gold at N.Y. Fed is intact, some purer than thought, audit finds

The U.S. government’s gold in New York is safe in a vault underneath Manhattan, and some of the precious metal there is purer than previously thought.

That’s according to a first-ever audit conducted last year by the Treasury Department of U.S. gold on deposit at Federal Reserve banks in New York and elsewhere.

As part of the audit, the Treasury tested a sample of the government’s 34,021 gold bars in the New York Fed’s vault five stories below Manhattan’s financial district, according to the inspector general’s office. Auditors drilled tiny holes into the bars to remove samples that were tested for fineness in a process called assaying.

http://articles.latimes.com/2013/feb/18/business/la-fi-mo-gold-new-york-fed-audit-pure-20130218

The bulk of the U.S. gold reserve at the U.S. military reservation Fort Knox, Kentucky (Goldfinger) continues to be surrounded by one U.S. Army Infantry mechanized division and one U.S. Army armored tank division. If you insist, you can try to barge in to view it yourself, which I would highly recommend you and your moonbeam pals do try to do.

[Asiantravel]

I think an audit should be mandatory. Crazy that it hasn't happened in so many years. But, as mentioned above, it just doesn't matter. The BRICs amassing as much gold as they can to back a new currency is a pipe dream. You think China, Russia and India will agree on anything? Never happen. China is the powerhouse in that group. And as mentioned above, their currency is hidden behind a black curtain.

For now, there's no other option than the USD. And that's the reality for probably the rest of our lives. Unless you are under 20! LOL

But surely the most compelling fact of all is when a sovereign nation (Germany), is denied the right to simply inspect its own gold plus is told it has to wait seven years for it to be repatriated?

Good grief even Chief Inspector Clouseau would be highly suspicious of these facts.

And if you can't believe or trust the Federal reserve on this issue why should anyone have faith regarding so many other issues concerning the USA's financial matters?

[craigt3365]

OK, enough with the conspiracy theories. Back to the OP, please.

[Matej]

When I read comments in this thread I feel ... I don't know, there was a reprint of Pravda and Iskra again, somewhere

Many people were waiting for this kind of revolution, the same revolution as you - the end of Capitalism, their whole life, among them were Karl Marx, Friedrich Engels, Vladimir Ilyich Ulyanov ...

End of democracy, lack of faith in liberalism ... drivel, nothing else.

[Asiantravel]

Russia could ditch US dollar in 2-3 years – head of Russia's #2 bank

Two to three years would be enough time for Russia to switch to international settlements to the ruble, Andrey Kostin, head of Russia’s second-biggest bank VTB, said.

“Two to three years is enough, not only to launch [settlements in rubles], but also to complete these mechanisms. But much will depend on how banks will cope with the task,” Kostin said in an interview with Izvestia newspaper.

http://rt.com/business/191804-russia-ditch-dollar-2-years/

Edited October 1, 2014 by Asiantravel

[Publicus]

Russia could ditch US dollar in 2-3 years – head of Russia's #2 bank

Two to three years would be enough time for Russia to switch to international settlements to the ruble, Andrey Kostin, head of Russia’s second-biggest bank VTB, said.

“Two to three years is enough, not only to launch [settlements in rubles], but also to complete these mechanisms. But much will depend on how banks will cope with the task,” Kostin said in an interview with Izvestia newspaper.

http://rt.com/business/191804-russia-ditch-dollar-2-years/

And here I'd thought I was reading a news story from 2008.

My god, the Russians did say the exact thing in 2008.

I'm still waiting for the people here who want to see China, Russia, Brazil, India and South Africa overturn the existing international order so they could rule the world to explain how and why dictatorship and contempt of democracy, market economics, liberalism, human rights, rule of law is so appealing.

Asiantravel, that means you.

Not only you Asiantravel, but you too.

You.

Edited October 1, 2014 by Publicus