Category Archives: death of the dollar

China to Diversify Foreign Currency Reserves, Dump Dollars, and Invest its $1 Trillion Elsewhere

China will soon begin to diversify its foreign currency reserves and dump dollars by the billions. As China invests its $1 trillion from trade surpluses elsewhere, other central and foreign banks will dump dollars. We holding dollars will lose much. 

China’s spectacular trade surplus and mighty strength as the lender of last resort to many nations including America, which owes $10 trillion in debt, are raising eyebrows as many investors are dumping dollars and buying China’s Yuan, a highly undervalued currency.

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[b]China’s plan to diversify foreign currency reserves is an unprecedented move away from the U.S. dollar.[/b]

The Chinese government announced the formation of a new agency to oversee investment of China’s $1 trillion in foreign currency reserves, representing a potent new force in international finance.

Finance Minister Jin Renqing offered no specifics about how much of the currency reserves would be made available to the investment agency. But analysts say the agency is expected to control one of the world’s biggest investment funds, and one that could singlehandedly alter the value of national currencies on a global scale. As China seeks more attractive investment earnings with its vast financial holdings and moves away from the devaluing dollar, expect the U.S. economy to take a nosedive. When it does (and already beforehand for savvy investors with sufficient foresight), watch for a run on the U.S. banks and widespread dumping of the dollar in favor of the Euro, Yuan, gold, and other safe havens.

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The Chinese government says one model for the agency was Temasek Holdings, the Singapore government’s successful investment agency, which manages an $84 billion global portfolio of investments.

China already has the world’s largest foreign exchange holdings, which is growing rapidly because of the country’s huge trade surpluses. According to the International Herald Tribune most of the reserves China now accumulates are conservatively invested in U.S. Treasury bonds and other government securities, which earn little return for China yet help to keep interest rates in the United States and other countries low.

The investment agency allows China to quickly diversify its foreign exchange holdings away from the dollar. Given the fact China and many Asian tigers loaning billions of dollars to the U.S. are disenchanted with America’s imperialistic foreign policy in Iraq, when disgust reaches its peak the dumping of dollars and non-renewing of loans to the U.S. could bankrupt the American economy.

China is ready to aggressively invest its huge trade surpluses as it seeks higher returns away from the dismal dollar. The impact of China’s emergence as a major global investor will be huge and a devastating blow to the U.S. economy as they progressively shift away from dollars in favor of more appreciating assets and higher yielding investments.

Rumor has it that China will soon begin dumping dollars by the billions. Before that happens, the American people would be wise to put their investments and protect their life savings in gold and other currencies such as the Euro and Chinese Yuan (which is greatly undervalued).

The biggest priority in these turbulent and troubling economic times is security, which the dollar no longer provides.

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The Chinese government announced the formation of a new agency to oversee investment of China’s $1 trillion in foreign currency reserves, representing a potent new force in international finance. China’s spectacular trade surplus and mighty strength as the lender of last resort to many nations including America, which owes $10 trillion in debt, are raising eyebrows as many investors are dumping dollars and buying China’s Yuan, a highly undervalued currency.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

Finance Minister Jin Renqing offered no specifics about how much of the currency reserves would be made available to the investment agency. But analysts say the agency is expected to control one of the world’s biggest investment funds, and one that could singlehandedly alter the value of national currencies on a global scale. As China seeks more attractive investment earnings with its vast financial holdings and moves away from the devaluing dollar, expect the U.S. economy to take a nosedive. When it does (and already beforehand for savvy investors with sufficient foresight), watch for a run on the U.S. banks and widespread dumping of the dollar in favor of the Euro, Yuan, gold, and other safe havens.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

The Chinese government says one model for the agency was Temasek Holdings, the Singapore government’s successful investment agency, which manages an $84 billion global portfolio of investments.

China already has the world’s largest foreign exchange holdings, which is growing rapidly because of the country’s huge trade surpluses. According to the International Herald Tribune most of the reserves China now accumulates are conservatively invested in U.S. Treasury bonds and other government securities, which earn little return for China yet help to keep interest rates in the United States and other countries low.

The investment agency allows China to quickly diversify its foreign exchange holdings away from the dollar. Given the fact China and many Asian tigers loaning billions of dollars to the U.S. are disenchanted with America’s imperialistic foreign policy in Iraq, when disgust reaches its peak the dumping of dollars and non-renewing of loans to the U.S. could bankrupt the American economy.

China is ready to aggressively invest its huge trade surpluses as it seeks higher returns away from the dismal dollar. The impact of China’s emergence as a major global investor will be huge and a devastating blow to the U.S. economy as they progressively shift away from dollars in favor of more appreciating assets and higher yielding investments.

Rumor has it that China will soon begin dumping dollars by the billions. Before that happens, the American people would be wise to put their investments and protect their life savings in gold and other currencies such as the Euro and Chinese Yuan (which is greatly undervalued).

The biggest priority in these turbulent and troubling economic times is security, which the dollar no longer provides.

http://www.bullionvault.com/#paulfdavis

http://ads.easy-forex.com/Gateway.aspx?gid=104994

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Protect Your Savings, Learn from Foreign Central Banks and the Super Rich

In uncertain economic times as these when U.S. banks, government institutions, and the FDIC itself is nearing bankruptcy… don’t be unwise and bet on big brother to take care of you. Let’s not forget the United States of America is the world’s largest debtor nation with $10 trillion and counting amassing billions in interest daily.

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Given America’s troubling foreign policy by which it irritates and alienates many of the nations holding its debt and Treasury bills, it won’t be long before the nations of the world and OPEC say no more and opt for other currencies over the dollar.

Be discerning and diligent to guard your hard earned assets and protect your life savings. Learn from the foreign central banks governing monetary policy of nations and the super rich, who diversify their currency reserves and are increasingly adding their holdings of gold, Euros, and Chinese yuan while dumping dollars.

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Foreign Currency Exchange Swap Lines – What Central Banks are Whispering?

In response to continued strains in short-term funding markets, Central Banks across the world have coordinated actions to significantly expand the capacity to provide U.S. dollar liquidity. Central banks publicly commit to continue to work together closely and say they are prepared to take appropriate steps as needed to address funding pressures.

This should serve to drive up the value of the dollar on the short-term (for a month or so) until fear and panic eventually take hold and Central Banks one by one begin dumping dollars.

That being said, there are some short-term possible gains for those who invest in the dollar and substantial long-term gains for those who sell dollars while they are high and opt to invest and protect their savings in strong currencies such as the Euro and Chinese yuan. Of course a safe haven for consumers and investors with less intestinal fortitude would be gold.

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The U.S. Federal Reserve announced several initiatives to support financial stability and to maintain a stable flow of credit to the economy during this period of significant strain in global markets.

The Fed commits to continue to adapt these liquidity facilities as necessary and will keep them in place as long as circumstances require.

Actions by the Federal Reserve include:  (1) an increase in the size of the 84-day maturity Term Auction Facility (TAF) auctions to $75 billion per auction from $25 billion beginning with the October 6 auction, (2) two forward TAF auctions totaling $150 billion that will be conducted in November to provide term funding over year-end, and (3) an increase in swap authorization limits with the Bank of Canada, Bank of England, Bank of Japan, Danmarks Nationalbank (National Bank of Denmark), European Central Bank (ECB), Norges Bank (Bank of Norway), Reserve Bank of Australia, Sveriges Riksbank (Bank of Sweden), and Swiss National Bank to a total of $620 billion, from $290 billion previously.

These steps are being undertaken in an attempt to mitigate pressures evident in the term funding markets both in the United States and abroad.  The Federal Reserve’s actions are desiring to reassure financial market participants that financing will be available against good collateral, which they hope will lessen concerns about funding and rollover risk.

84-Day Maturity TAF Auctions
The increase to $75 billion per auction will triple the supply of 84-day maturity credit to $225 billion from $75 billion.  TAF credit at the 28-day maturity will remain at $75 billion.  The total amount of TAF credit available in the 28-day and 84-day auction cycles will double to $300 billion from $150 billion.

Foreign Exchange Swap Lines
The Federal Open Market Committee (FOMC) has authorized a $330 billion expansion of its temporary reciprocal currency arrangements (swap lines).  This increased capacity will be available to provide funding for U.S. dollar liquidity operations by the other central banks.  The FOMC has authorized increases in all of the temporary swap facilities with other central banks.  These larger facilities will now support the provision of U.S. dollar liquidity in amounts of up to $30 billion by the Bank of Canada, $80 billion by the Bank of England, $120 billion by the Bank of Japan, $15 billion by Danmarks Nationalbank, $240 billion by the ECB, $15 billion by the Norges Bank, $30 billion by the Reserve Bank of Australia, $30 billion by the Sveriges Riksbank, and $60 billion by the Swiss National Bank.  As a result of these actions, the total size of outstanding swap lines is $620 billion.

All of the temporary reciprocal swap facilities have been authorized through April 30, 2009.

Dollar funding rates abroad have been elevated relative to dollar funding rates available in the United States, reflecting a structural dollar funding shortfall outside of the United States.  The increase in the amount of foreign exchange swap authorization limits will enable many central banks to increase the amount of dollar funding that they can provide in their home markets.  This should help to improve the distribution of dollar liquidity around the globe. Whether the value of the dollar holds on the long term against inflation and deflation however is highly unlikely.

That being said, there are some short-term possible gains for those who invest in the dollar and substantial long-term gains for those who sell dollars while they are high and opt to invest and protect their savings in strong currencies such as the Euro and Chinese yuan. A more cautious and safe route for consumers and investors is also found in the safe haven of gold.

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Emergency Economic Stabilization Act of 2008 (EESA) Dangers

The U.S. government is desperately struggling to stabilize the economy and keep Central and Foreign Banks confident in order to access hundreds of billions of dollars lest global currency reserve diversification occur. The Emergency Economic Stabilization Act of 2008 (EESA) dangers are many.

Global currency reserves typically have been in U.S. dollars to lower transaction costs, but with the Euro now being used in 37% of all international transactions, Central Banks in Asia, Russia, and the Middle East are diversifying their portfolios and moving away from the unstable and vulnerable U.S. dollar seeking more attractive and secure investments to secure their national economies.

Americans should therefore buy gold, Euros, or Chinese yuan to protect their hard earned savings and investments.

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The Emergency Economic Stabilization Act of 2008 (EESA) provides up to $700 billion to the Secretary of the Treasury to buy mortgages and other “toxic” assets that are clogging the balance sheets of financial institutions and making it difficult for Wall Street, working families, small businesses, and other companies to access credit.

Accessing credit is imperative to the U.S. economy which owes $10 trillion in debt to overseas Central and Foreign Banks. In order for the near bankrupt U.S. economy which is steadily sinking, foreign oil addicted, and heavily dependent upon global militarization to persuade OPEC to continue to sell oil worldwide in dollars, ongoing hundreds of billions of dollars from afar is desperately needed.

The EESA is a program committed to printing and borrowing more dollars (ironically from foreign nations abroad) to insure troubled assets related to unprecedented amounts of homeowner and real estate foreclosures. These unwanted defaulted loans, often referred to by the U.S. government as “assets” are nothing of the sort.

Hence the Troubled Asset Relief Program (TARP) is a governmental plan to remove illiquid assets (a.k.a. defaulted real estate loans) that are unwanted and weighing down our financial institutions and threatening our economy. These toxic assets will be purchased and most likely not repaid to we the American taxpayers bearing the burden.

Before the U.S. greenback has a heart attack and the dollar dies, Americans should buy gold, Euros, or Chinese yuan to protect their hard earned savings and investments.

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Asian Financial Markets Crumble with the U.S. Dollar

Asian markets crumble…..the Hong Kong stock market loses over 1,000 points in a single day and over 7%…..but the Euro rose.
 
Put your money in gold or Euros quick if you have a savings account.

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Paul F Davis – worldwide speaker, consultant, author, and prophet

www.PaulFDavis.com

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Declining Dollar and U.S. Economy – Greenback has a Heart Attack

As the U.S. economy tanks and the dollar declines many on Wall Street and throughout global financial markets are anticipating the ultimate death of the dollar when the greenback eventually has a heart attack.

Unfortunately as Washington D.C. has shown historically, corporate bankruptcies are commonplace in periods of economic decline as fat cat CEOs leave with the dough, and taxpayers are left picking up the slack for corporate greed and ill management.

When Fannie Mae, Freddie Mac, Lehmon Brothers, and Meryll Lynch all go bankrupt rest assured the U.S. economy is dead. With a 9 trillion dollar deficit as a nation currently spending hundreds of billions of dollars needlessly to fight a war in Iraq, the United States knows no economic restraint.

Corporate bailouts and corporate welfare will only serve to further weaken the dollar and drive OPEC toward the Euro, Yen, and other currencies.  That being said as an investor and savvy consumer, the best way you can protect your money is to learn about foreign currency exchange and be far ahead of the curve before banks in your neighborhood declare bankruptcy, freeze your savings, and diminish your dollar overnight.

Go to http://paulfdavis.bathbiz2.hop.clickbank.net/?tid=MQB1FY9N and make profits trading currency. Don’t be like millions of Americans losing their hard earned savings, investments, and income to a dying dollar.

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Awake to the reality that America is not indefeatable.  If you didn’t learn this lesson yet from the terrorist attacks of 9-11, you may have to repeat the pain of ignorance and arrogance when the dollar dies and your savings & investments dwindle overnight.

Paul F Davis – worldwide speaker, prophet, and prolific author of 14 books including United States of Arrogance

http://paulfdavis.com/booksvideos.htm

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