The future demise of the US Dollar

A Harbinger of Trouble for New York and London
click the link

kids,

Some early Sunday morning thoughts.

In your lifetime there will be perhaps one dozen major, significant, economic-landscape changing, events to occur that will alter you and your families financial destiny. The above link discusses one such event and it really hasn't been discussed in the major media, because they really don't have a clue of what the effect of this will be if successful.

So you can look back one or five or ten years from now and see that your pop saw this coming, this one action by Iran to dump the dollar as the medium of exchange for buying crude oil will be one of those "future shocks". . . . . .

Since President Nixon dumped the gold standard in 1973, the US$ has been the pre-imminent world currency. For one reason. We MADE Saudi Arabia (OPEC) agree to only sell crude oil for US$ in exchange for us agreeing to militarily (if necessary) support their illegitimate claim to a royal (and minority) dynsasty. It has also meant that every country on earth had to have US Dollars on hand to purchase crude oil in the international marketplace. This little Persian Island exchange is about to change all that and allow foreign countries (China already started) to buy Persian Gulf oil for currencies other than US$. This is global-landscape-changing. For the US$ it is perhaps not an ELE. But to use my own analogy . . .if the US$ is Mt. St. Helens before it's eruption, the US$ will become (globally) it's equivalent after blowing its top off? Get the point?

(from the article) China's Ambassador to Tehran Yu Hung Yang, addressing the Iran-China trade conference in Tehran on Monday, said that the value of the two countries' trade exchanges surged 55 percent during the first four months of 2011 over the same period a year ago to $13.28 billion and further predicted that the figure would surpass $40 billion by the end of the year.

Translated. In 2010 China bought 8.57 billion (US$ equivalent) from Iran. In 2011 they bought 13.28 billion (US$ equivalent) from them. In 2012 they will buy 40 billion (US$ equivalent) . And they "used" to have to give them US$. Now they can buy with the Yuan. Translated: China used to have to sell us $40 Billion dollars worth of stuff (at a price we'd pay) to get the 40 billion US$ so they could buy oil. Now they don't have to have our dollars because they can pay for their purchases with Yuan. Translated: China can charge more for their stuff. Translated: The US$ will be worth less. Translated: Exports will cost more. Translated: Will take more US$ to buy the same amount of stuff as year(s) before.

(Sidebar:) China has taken the step. India is next. Iran is holding out open-arms. Together China and India represent 37% of the world population.

Also, so you can know . . . .if you don't already . . . is that you CANNOT trust Washington bureaucrats to tell you the truth about much of anything. The big saber-rattling going on with Iran about their nuclear enrichment program and the embargo we have placed on them, and the threat of military action IS NOT about nuclear enrichment. Israel is the one that is most scared of them getting bomb grade plutonium. All this hoopla right now going on in Washington to try and bully-brow-beat Iran into submission is because of our attempt to mess up their steps to make this Bourse a reality.

In my lifetime, (probably in the next 3 years), the US$ will no longer be the reserve currency of the world.

There are a 3 kinds of people who make money from events.

1. Those who are smarter than others

2. Those who cheat

3. Those who are first

I'm not the brightest apple that fell from the tree. I'm not going to cheat. But I can be sure to always seat myself closest to the exit door?

There will be many, especially the middle-class, who will lose millions and years of savings from this change. There will also be some that will alter course and protect what they have and also profit from the change. If any of you have perhaps read this far, you may be saying "this doesn't affect me". I assure you it does. If you'd ever like to sit down and have a chat about it and what to do for your 5/10/20/30 year future I'd be happy to discuss with you and offer ideas. Or Not? This may not affect your life's happiness. It will affect your pocketbook and life's economic future.

Either way . . . life will go on. Families will have children. People will love each other. Some people will hate each other.  People will still sit around camp fires, roast Smores and sing Kumbyjah and It Only Takes a Spark!    God is God. And Jesus is Lord of all. Trust in Him and His faithfulness and your life will be well. But even in His daily walk, it still rains on the just and the unjust.   Some rainy days are coming.  Save up for them.

My old clothes. My old friends. I still make them feel needed.

I have a closet full of clothes that I seldom wear anymore.  Pants, shirts, jeans, suits and sport coats.  Many of the items that are out of fashion I hold on to just in case they return to style.  And I refuse to get rid of the pieces that are still in fashion and keep them thinking that one day I’ll have more occasions to get dressed up and wear them again.  I dream that someday I’ll even need them so much that I wear them all, day by day, a new outfit each day.  But the day never seems to come, and they go on hanging.  Not being used.

I always enjoyed the Far Side cartoons by Gary Larsen and I think it’s because I too have a tendency to personify too many things in life.  Often times giving animation to fruit and furniture and even doors that open and would be greeters . . if someone came in . . .or other doors that I imagine are the type that never seem to open. They have, to me, the personality of people who shut others out, and say . .”stay away”, and “you are not welcome within”. 

So it’s easy for me to think of the clothes in my closet as having personalities of their own. I imagine sometimes in my own loneliness that they sit in the closet and talk to each other rather than to just be left there hanging in silence.  I wouldn’t want to be left hanging.  But in the mornings when I’m in the closet dressing, I try to convince them all that it is better to be left hanging there unused and even unappreciated, than to be not needed and discarded.  I tell the wardrobe that at least I am thinking they are still attractive and of value, and will be lovely to wear.  But I suppose they think that my words are meaningless, if I don’t ever actually get around to showing them I still want them.

I know that when I’m finished dressing and leave the closet, that they must go on and on back and forth, about their own qualities of fabric and color and style.  If  I’m not going to show them off in public, then I think they must have a need of their own to convince themselves of their own value.  I wonder if my one Armani tries to bully them and I wonder if each, in their own way feels a bit of inferior to be hanging on the same rod as he does.  I want to tell him that he’s really no better than the others because his value is still the same regardless of the price tag he once carried.  He is still only useful as something to wear and dress up in, and in that way each piece has its equal value.  I’m sure though that because of the Armani’s upbringing that he would be certain that he’d be the last item to ever be discarded.

I.M. Citizen:

Before you look to do harm to Chief Justice Roberts or his family, it’s important that you think carefully about the meaning – the true nature — of his ruling on Obama-care. The Left will shout that they won, that Obama-care was upheld and all the rest. But it will be a short-lived celebration.

Here’s what really occurred — payback. Yes, payback for Obama’s numerous, ill-advised and childish insults directed toward SCOTUS.

Chief Justice Roberts actually ruled the mandate, relative to the commerce clause, was unconstitutional. That’s how the Democrats got Obama-care going in the first place. This is critical. His ruling means Congress can’t compel American citizens to purchase anything. Ever. The notion is now officially and forever, unconstitutional. As it should be.

Next, he stated that, because Congress doesn’t have the ability to mandate, it must, to fund Obama-care, rely on its power to tax. Therefore, the mechanism that funds Obama-care is a tax. This is also critical. Recall back during the initial Obama-care battles, the Democrats called it a penalty, Republicans called it a tax. Democrats consistently soft sold it as a penalty. It went to vote as a penalty. Obama declared endlessly, that it was not a tax, it was a penalty. But when the Democrats argued in front of the Supreme Court, they said ‘hey, a penalty or a tax, either way’. So, Roberts gave them a tax. It is now the official law of the land — beyond word-play and silly shenanigans. Obama-care is funded by tax dollars. Democrats now must defend a tax increase to justify the Obama-care law.

Finally, he struck down as unconstitutional, the idea that the federal government can bully states into complying by yanking their existing medicaid funding. Liberals, through Obama-care, basically said to the states — ‘comply with Obama-care or we will stop existing funding.’ Roberts ruled that is a no-no. If a state takes the money, fine, the Feds can tell the state how to run a program, but if the state refuses money, the federal government can’t penalize the state by yanking other funding. Therefore, a state can decline to participate in Obama-care without penalty. This is obviously a serious problem. Are we going to have 10, 12, 25 states not participating in “national” health-care? Suddenly, it’s not national, is it?

Ultimately, Roberts supported state’s rights by limiting the federal government’s coercive abilities. He ruled that the government cannot force the people to purchase products or services under the commerce clause and he forced liberals to have to come clean and admit that Obama-care is funded by tax increases.

Although he didn’t guarantee Romney a win, he certainly did more than his part and should be applauded.

And he did this without creating a civil war or having bricks thrown threw his windshield. Oh, and he’ll be home in time for dinner. Brilliant.

Russian Tunnel......

The 3,150m long Lefortovo tunnel in Russia is the longest in-city tunnel in the entire world. It is nicknamed 'The Tunnel of Death'.
See for yourself why.

There is a river running over the tunnel, and water leaks through in some areas. When the temperature reaches 0°C (as it does during the Winter in Russia) the road freezes and becomes very slippery. The result is the attached video which was taken during a single day with the tunnel surveillance camera.   Congratulations to the dual-carriage bus driver - imagine the passengers in the back!   What a ride!
The next time you complain about traffic, remember this video.....Russian Engineering!

Paraprosdokians   are figures of speech in which the latter part of a sentence or phrase is surprising or unexpected; frequently humorous.

1. Where there's a will, I want to be in it.

2. The last thing I want to do is hurt you. But it's still on my list.

3. Since light travels faster than sound, some people appear bright until you hear them speak.

4. If I agreed with you, we'd both be wrong.

5. We never really grow up, we only learn how to act in public.

6. War does not determine who is right - only who is left...

7. Knowledge is knowing a tomato is a fruit. Wisdom is not putting it in a fruit salad.

8. They begin the evening news with 'Good Evening,' then proceed to tell you why it isn't.

9. To steal ideas from one person is plagiarism. To steal from many is research.

10. Buses stop in bus stations. Trains stop in train stations. On my desk is a work station.

11. I thought I wanted a career. Turns out I just wanted paychecks.

12. In filling out an application, where it says, 'In case of emergency, notify:' I put 'DOCTOR.'

13. I didn't say it was your fault, I said I was blaming you.

14. Women will never be equal to men until they can walk down the street with a bald head and a beer gut, and still think they are sexy.

15. Behind every successful man is his woman. Behind the fall of a successful man is usually another woman.

16. A clear conscience is the sign of a fuzzy memory.

17. You do not need a parachute to skydive. You only need a parachute to skydive twice.

18. Money can't buy happiness, but it sure makes misery easier to live with.

19. There's a fine line between cuddling and holding someone down so they can't get away.

20. I used to be indecisive. Now I'm not so sure.

21. You're never too old to learn something stupid.

22. To be sure of hitting the target, shoot first and call whatever you hit the target.

23. Nostalgia isn't what it used to be.

24. Change is inevitable, except from a vending machine.

25. Going to church doesn't make you a Christian any more than standing in a garage makes you a car.

This one makes sense........  

26.   I'm supposed to respect my elders, but its getting harder and harder for me to find one now.