The plan to destroy America – via the dollar(Hal Lindsey)

[Veillifted]

Older article but applicable to our current siuation concerning the dollar.

The plan to destroy America – via the dollar

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Posted: December 8, 2006
1:00 a.m. Eastern



The value of the U.S. dollar on the international market is continuing to plummet, despite record growth in the US economy.

Since October, the dollar has fallen 4 percent against both the euro and the Japanese yen. And this week, the dollar hit the lowest it has been against the euro since March 2005.

With the Dow setting records every week and America creating more jobs than it can fill, why is the dollar falling? There are several reasons.

Approximately 70 percent of all foreign-exchange currency is currently held in U.S. dollars. The U.S. then sells Treasury debt into that foreign exchange market.

(Column continues below)


This is a bit complicated, but here's what that means. Each U.S. bill is a receipt for Treasury debt. Once accepted as "money" it has value to its bearer. But, it is debt to its issuer. The system relies on the global flow of U.S. dollars in and out of foreign currency reserves. A smaller foreign exchange holding in U.S. dollars means a smaller pool out of which to sell U.S. debt.

This sets up a financial peril that is little understood by most Americans. It sets up a double threat to the dollar. It not only shrinks the dollar's value, but also raises both the trade deficit and the budget deficit. Now stay with me, here. This may be some of the most important information you will need to try and force Congress to do something – and also to take action to defend your own personal financial future...

More Click (http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53285)...


This captures it all.. very precarious situation The US is in.

[dpetty]

Makes sense, I see the storm clouds building rapidly........next President is going to have a real mess to deal with....

[babylonrising]

I agree with the fact that the dollar will be useless in the future, but keep something in mind..... Hal has been predicting the fall of the dollar since the mid 90's that I know of and probably longer. Eventually the dollar will fall, but when you've been telling people the sky is falling for well over a decade, people quit listening.

[Old 33]

The 2005 arrests of major Asian crime figures in several U.S. cities led investigators straight to Pyongyang – and from there to Beijing. Experts now believe that a significant percentage of U.S. $100 bills now in circulation are counterfeit.

The strategy is to flood the market with counterfeit dollars to deflate its value. Then to convert U.S. holdings to euros, thus pushing the dollar into a deflationary freefall.
That's giving the North Koreans too much credit. They're not producing "supernotes" as part of some master plan to destroy the U.S. economy. They're producing supernotes in order to buy things that North Korea desperately needs (i.e., food, water, fuel).

[Old 33]

All these factors cannot be coincidence. They reveal a concerted, well-coordinated strategy to destroy America through economics.
:tinfoil

It's not that. The shift from dollars to euros, for the most part, is underway because of international concern for the long-term stability of the U.S. economy. The rest of the world is observing (and acting upon) the looming financial crisis brought on by reckless deficit spending and an astronomical entitlement crisis on the horizon as the Baby Boomers retire. They're betting that the U.S. dollar will fall sharply in value as America's debts pile up, and they want to hedge their own holdings with another currency.

The only reason this hasn't happened sooner is that the world markets weren't quite sure how the euro was going to pan out. But as it has shown its strength vs. the dollar over the last decade, more and more financial institutions and national banks around the world feel comfortable holding euros as investment.

[babylonrising]

Old 33, I wholeheartedly agree with you. The rest of the world sees the debt we have run up and they are waiting for the other shoe to fall. With the rise of the Euro, foreign leaders need not worry as much about the crash of the dollar. 20 years ago, a crashing dollar had a global effect. In another few years, it may have no effect at all.

Not ALL of the USA's problems have been created by someone else. Has the political correctness in this country made people not want to take any blame? I'm not sure what it is, but the fact is that nearly everyone sees this economic fall coming, yet little is being done.

[Eternally]

I heard that Saudi Arabia held about 40% of our stock market funds, and that if they pulled their investments, we would go down. :pray

[Old 33]

The rest of the world has an interest in keeping the dollar afloat...so much of their economies are tied to the dollar.

[Jack Ryan]

I wouldn't say for certain that it is a "plan" by any specific country (except maybe for Iran) to de-value the dollar but more of a result of the current state of economic affairs in this country. Nobody (or country) wants to put money in an investment that is not secure. I believe that the ever expanding national debt has many questioning if it will ever be repaid. Additionally, in the past the dollar was basically the only viable option, now with the Euro as an alterantive we are seeing a shift to the Euro due to an aversion to risk. I guess you could say that "we have seen the enemy and it is us". :doh I can only pray that the politicians in Washington will do something about the deficit before it is too late.

[babylonrising]

I heard that Saudi Arabia held about 40% of our stock market funds, and that if they pulled their investments, we would go down. :pray

I don't think this is possible, or plausible. They may own a percentage of many things in America, but their is no one person or one group that owns 40% of our stock market funds. If one person owned 40% of the stock market funds, we would be under a dictator and Democracy would be a thing of the past.