Big Changes Just Ahead???

[Issachar]

NEW YORK (AP) -- U.S. stocks moved toward a sharply lower open and bonds jumped Wednesday after the dollar sank further amid speculation that China will seek to diversify some of its foreign currency stockpiles beyond the greenback.

more: http://biz.yahoo.com/ap/071107/wall_street.html

IF China does this folks, it will be extremely significant to all of us. There has never been a better time than this to make sure that our trust is only in our Lord.

Issachar

[CelticMist]

Its all falling in place! For many years our country was a Super Power with a few others; then the others fell; why? Would it be due to the others countries wanting that country to fall? Why then would it not come around to our country? Its not just within our own country that is causing her to fall; but, the main ones we read about have ahold of the strings and when they are ready they will pull it like the rope is pulled to sound the time for the gathering at church.

Someone on here mentioned something about the euro coming to America in another thread. Does anyone have a link to confirm this? Would be interesting to read it along with these articles about Saudi and China possibly dumping the American dollar.

[PrincessofHeaven]

i have been watching china, wondering when they might diversify...

[PrincessofHeaven]

Its all falling in place! For many years our country was a Super Power with a few others; then the others fell; why? Would it be due to the others countries wanting that country to fall? Why then would it not come around to our country? Its not just within our own country that is causing her to fall; but, the main ones we read about have ahold of the strings and when they are ready they will pull it like the rope is pulled to sound the time for the gathering at church.

Someone on here mentioned something about the euro coming to America in another thread. Does anyone have a link to confirm this? Would be interesting to read it along with these articles about Saudi and China possibly dumping the American dollar.

its called the amero, Canada, AMerica, Mexico, combined
http://www.amerocurrency.com/amero.html
http://www.humanevents.com/article.php?id=15017

there is so many so site google amero

[jds6958]

i have been watching china, wondering when they might diversify...

imo they started a while ago, the fact that they are making it public is intentional. They likely purchased stronger currencies (euro) and gold that would benifit if the dollar plumeted more. This means that they have diversified their portfollio enough that the USD represents less than 50%. Of course they will continue to dump the dollar, but what is happing now is they are trying to create a stampede for the exits buy causing panic in the market place. There is no way China would announce this if they were not ready...

this is the begining of the really messy stuff now imho. Each day this gets worse the harder it will for the US to pull out of this with out some huge changes...

[Issachar]

There is no way China would announce this if they were not ready... hmmm ... very interesting. You might have a point there.

this is the begining of the really messy stuff now imho. Each day this gets worse the harder it will for the US to pull out of this with out some huge changes... Me thinks that no matter what happens now, that the US cannot pull out of this. The US did it to themselves. The China factor is just speeding it up.

Issachar

[4JesusLove]

What in your opinion will happen?

[CelticMist]

its called the amero, Canada, AMerica, Mexico, combined
http://www.amerocurrency.com/amero.html
http://www.humanevents.com/article.php?id=15017

there is so many so site google amero
Yes I know about the Amero... but I did read on another thread that the government was thinkg EURO....

The NAU is not in place yet... and most Canadians don't want it.

[Issachar]

One way to think of this "too many dollars" issue ...

What's more valuable? An ounce of gold or an ounce of sand? Well, the gold of course. Why? Many reasons, not the least of which, gold is not just lying around, common like sand. So in a sense, the more there is of something compared to demand for it, the less value it has.

Same with dollars (or any currency) ... the more of them there are compared to demand, the less value they have. If they are needed for purchasing goods and services, and they lose value, then more of them are needed to purchase the goods and services. Some call this increase in prices, inflation. But as you can see from the above, inflation is actually an increase in the money supply which devalues the money which makes things purchased with that money, cost more.

So, when a large holder of US dollars such as Japan, China, Saudi Arabia, etc. start to unload them, the economy becomes flooded with excess dollars and voila; increased prices due to a devalued dollar.

A side note that is related. Many folks in wealthy nations such as the US, confuse the cost of something with value. For example, when the price of houses was going up at unprecedented rates in the past 10 years or so, many people talked of "the value of their house going up". Price and value are not the same thing. The same building; maintained, sitting on the same piece of ground, year after year after year, is NOT increasing in value; only price. Now if someone added a fireplace, built in pool, a second floor, added on a room or turned a damp, dingy basement into a warm, dry livable room, then they increased the value. Then a higher price is warranted. But when pricing goes up and up but not value, that is merely price inflation.

hope this helps some ....
Issachar

[jds6958]

One way to think of this "too many dollars" issue ...

What's more valuable? An ounce of gold or an ounce of sand? Well, the gold of course. Why? Many reasons, not the least of which, gold is not just lying around, common like sand. So in a sense, the more there is of something compared to demand for it, the less value it has.

Same with dollars (or any currency) ... the more of them there are compared to demand, the less value they have. If they are needed for purchasing goods and services, and they lose value, then more of them are needed to purchase the goods and services. Some call this increase in prices, inflation. But as you can see from the above, inflation is actually an increase in the money supply which devalues the money which makes things purchased with that money, cost more.

So, when a large holder of US dollars such as Japan, China, Saudi Arabia, etc. start to unload them, the economy becomes flooded with excess dollars and voila; increased prices due to a devalued dollar.

A side note that is related. Many folks in wealthy nations such as the US, confuse the cost of something with value. For example, when the price of houses was going up at unprecedented rates in the past 10 years or so, many people talked of "the value of their house going up". Price and value are not the same thing. The same building; maintained, sitting on the same piece of ground, year after year after year, is NOT increasing in value; only price. Now if someone added a fireplace, built in pool, a second floor, added on a room or turned a damp, dingy basement into a warm, dry livable room, then they increased the value. Then a higher price is warranted. But when pricing goes up and up but not value, that is merely price inflation.

hope this helps some ....
Issachar

excellent explanation