AS WE LOOK AT THE ECONOMIC EVENTS THAT ARE NOW BEING THRUST TO CENTER STAGE REGARDING THE AMERICA DOLLAR DECLINE(AND THE BRITISH POUND) ONE SHOULS LOOK DEEP INTO THIS LITTLE MAN CALLED ELIJAH MUHAMMAD.HE SAID THESE THINGS DECADES AGO WITH PRECISION.LONG BEFORE YOU PETER SCHIFFS.LONG BEFORE YOUR GERALD CELENTES.LONG BEFOR YOUR JIM ROGERS ECT…I ADVISE YOU ALL TO LOOKJ AT HIM IN TRUTH REGARDLESS TO YOUR RELIGIOUS AFFILIATION.
LET US LOOK AT THE BOOK ,”THE FALL OF AMERICA” COMPILE IN THE EARLY 1970’S.THE CHAPTER ENTITLED…”DECLINE OF THE DOLLAR”….;”1 The strong-hold of the American government is falling to pieces. She has lost her prestige among the nations of the earth. One of the greatest powers of America was her dollar. The loss of such power will bring any nation to weakness, for this is the media of exchange between nations. The English pound and the American dollar have been the power and beckoning light of these two great powers. But when the world went off the gold and silver standard, the financial doom of England and America was sealed.
2 The pound has lost 50 percent of its value. America’s dollar has lost everything now as power backing for her currency, which was backed by gold for every $5 note and up. All of her currency was backed by silver, from a $1 note up.
3 But today, the currency of America is not backed by any sound value – silver or gold. The note today is something that the government declares they will give you the value in return, but does not name what the value is. But they definitely are not backing their currency with silver or gold.
4 This is the number – one fall, and it is very clear that the loss of the power of the American dollar means the loss of the financial power of America. What will happen since there is no sound backing for her notes we do not know.
5 What should we expect even in the next twelve months under the fall of the power of America’s dollar? This means that we have 100 percent inflation. What could happen under 100 percent inflation? Your guess is as good as mine. The power of gold and silver was once abundant in America. But the touch of the finger of God against the power of so mighty a nation has now caused the crumbling and fall of America.
6 We can easily and truthfully liken the fall of America to the prophetic symbolical picture given in the (Bible) Revelation of John 18:2. The name Babylon used there does not really say whether it is ancient Babylon or a picture of some future Babylon.
7 The description it gives is as follows:
“And he (angel) cried mightily with a strong voice (with authority) saying, Babylon the great is fallen, is fallen and is become the habitation of devils, (Allah has declared the people to be a race of devils) and the hole of every foul spirit and a cage of every unclean and hateful bird.” The description here give to the Babylon by the prophets compares with the present history and people of America and their fall.
8 The picture shows the cause of her fall. Number one, she had become the habitation of devils, and being the habitation of devils makes her a haven for every people that love the works and doings of the devil. Here the prophet refers to them, symbolically, as being a hole of every foul spirit, and a cage of every unclean and hateful bird.
9 People are referred to as birds, snakes, beasts, fish and other animals to tell or represent the characteristics of that person. It is universally known that the very beginning of the American people was from the lower class of European people. And their first ruler (President Washington) was a fugitive from England. And the common, dissatisfied and lower grade of European people followed and boosted his authority. This filled and inhabited America with a very low class and low-based people.
10 And then this type of people went into Africa and purchased slaves from among our people who were also uneducated, most of them; but there were a few who were highly educated. All of these began to mix with the low-based, evil-minded, real citizens of the Western Hemisphere (whites). And when America began to get strong in power, she opened her doors to the underprivileged (laborers) in overpopulated countries such as China, Japan, and in Europe to seek citizenship in America.
11 This brought into America one of the most mixed people, who were granted the freedom to live any kind of life they chose. They were not forced to serve the God of the universe who made heaven and earth nor any religion. They had freedom of worship. This made America a haven for any people who wished to be free of the compellers of religion and just rule and authority. This people for the past five hundred years have put into practice every evil that is imaginable.
12 The freedom of uncleanliness is granted and is worshiped. The percentage of sexual worship of the same sex is greater than any government on the face of the earth. Little children are bing taught sex almost from the cradle, making the whole nation, as one man put it, “nearly 90 percent freaks of nature.”
13 It is common to see on the streets of any metropolitan city of America men sweethearting with men and women sweethearting with women. Little boys with boys and little girls with girls.
14 It is common that a decent family is puzzled as to where to send their children for schooling. There are no all girl schools as there once were. They are all girls schools of sweethearts; the same sex falling upon their own. Boys’ colleges are breeding such filthy practice; the jail houses, prisons, and the federal penitentiaries are all breeding dens of homosexuals.
15 As the Prophet says in the 18th chapter; “She is a cage of every unclean and hateful bird.” There are types of hateful birds. This is why a symbolical name is given. It means human beings. There are birds of prey and birds that are unclean such as crows, owls, buzzards and ravens who live and thrive off the carcass of others. And there are unclean people living and thriving off the unclean.
16 It is time that God intervenes to bring about an end of such people as the wicked of America. She offers the same filth to all of the civilized of the earth, and she hates you if you are against her way of life and will threaten you with death as the Sodomites did Lot and his followers. But I say to you as the 4th verse of Revelations, Chapter 18 says: You that want to be a better people than this, “come out of her.”
17 The so-called American Negroes are referred to here in the 4th verse as being God’s people (“My people”) Come out of her…that ye be not partakers of her sins and that ye receive not of her plagues.”
18 This is a call to the American so-called Negroes to give up a doomed, wicked people that has destroyed them from being a people worthy of recognition, and who have now become lovers of their enemies and destroyers.
19 The 5th verse tells us that “Her sins have reached into heaven and God has remembered her iniquities and is ready to destroy her.” Her destruction cometh quickly, according to the 8th verse, that plagues of death, mourning and famines which cometh in one day (one year) then after that she shall be destroyed by fire, utterly burned.”
20 This is backed up by the words: “Strong is the Lord God who judge her.” Here it gives us a knowledge that He who judges is well able with power, with wisdom, and with deliberate and careful maneuvering to make judgement against her. ”http://www.youtube.com/watch?v=4tty9-owMWo
“Is the Dollar Heading Up Or Down? Arguments for a Long-Term Devaluation of the Dollar
Published on 10-06-2009 Email To Friend Print Version
Source: Washington’s Blog
Arguments for a Long-Term Devaluation of the Dollar
Unless you’ve been living in a cave, you know that the dollar is losing its status as world reserve currency.
Many governments and international organizations are feverishly working to get away from the dollar into another reserve currency, or basket of reserve currencies.
Indeed, today’s rumor is that the Middle Eastern oil producers, plus China, Japan and France have all agreed to start trading oil using a basket of currencies – instead of the dollar – starting in 9 years.
Many investors plan on staying in the dollar as long as China is buying U.S. treasuries. No one wants to get out early, but no one wants to be left holding worthless monopoly money if and when China pulls the plug.
Many people – including me – try to read the tea leaves by monitoring the volumes of T-bonds, T-bills and T-notes China is buying. For example, see this and this. But that is a tough game to master, partly because China’s economic leaders aren’t dumb enough to telegraph their punch too early..
And remember, China isn’t the only player. For example, Abu Dhabi, Saudi Arabia, Kuwait and Qatar together hold an estimated $2.1 trillion in dollar reserves by themselves. If those 4 countries dumped the dollar, so would the rest of the world.
The private sector has already been moving away from the dollar. As the Globe and Mail noted in early 2008, :
A UBS Investment Research report says that while it would be wrong to write off the U.S. dollar as the global reserve currency, its roughly 90-year iron grip on that position is loosening. “The use of the U.S. dollar as an international reserve currency is in decline,” said UBS economist Paul Donovan.
“The market share of the dollar in international transactions is likely to decline over the coming months and years, but only persistent policy error – or considerable fiscal strain – is likely to cause the dollar to lose reserve currency status entirely.”
The UBS report maintains that the gradual slide of the U.S. dollar is being driven not by the world’s central banks, but by the private sector, as individual companies increasingly abandon the greenback as their international currency of choice.
“The private sector’s use of reserves is more important than official, central bank reserves – anything up to 20 times the significance, depending on interpretation,” Mr. Donovan said. “There is evidence that the move away from the dollar as a private-sector reserve currency has been accelerating since 2000.”
Because there is a premium to the value of whatever currency is the world’s reserve currency, the value of the dollar will decline in the years ahead.
In addition, Bernanke and the boys are running the printing presses 24/7, the banks have been given trillions to gamble with, the U.S. is running massive deficits with a massive debt overhang, the Fed is buying U.S. treasuries and the boys are engaging in various forms of quantitative easing, and the government is doing just about everything in the text book to lead to dollar devaluation.
Finally, investors are buying dollars at zero percent interest and – in a carry trade – using the dollars to invest abroad. This also devalues the dollar.
Arguments for a Short-Term Dollar Rally
So we should all be long other currencies (or gold) and short the dollar, right?
Maybe. But let’s look at the other side of the argument.
First, there are strong arguments for deflation for the short, and perhaps medium or even long-term. In deflation, every dollar buys more goods, and so the value of the dollar may rise in the short to medium-term.
Second, Marc Faber thinks the U.S. dollar is no longer overvalued at present levels, and that there might be a snapback rally for the dollar resulting from oversold levels.
Third, the inverse relationship between the dollar and stocks is well documented. And many commentators see a stock market decline ahead.
For example Roubini thinks stocks are overbought and will decline.Moreover, most Elliot Waver timers – such as Prechter, McHugh, Daneric and Mish – think we’re probably in for a huge “wave c down” stock market crash in the near future. Indeed, quite a few e-wave theorists are convinced that we’re about to experience the end of a “grand supercycle”, which means that stock values will crater.
Finally, very few predicted that the dollar would rally last year. But it did. And not only because people considered dollars or U.S. treasuries a safe haven. But also because of the huge margin calls, need to liquidate assets fast, and the urgent necessity of raising dollars to settle dollar-denominated contracts. In other words, another severe financial crisis could lead to another short-term dollar rally.
The bottom line is that the dollar will get creamed in the long-run, but will probably rally whenever the next major stock market crash or next severe leg of the financial crisis occurs.
Whether you think that will happen quickly or sometime in the future is your call.
Note: There are obviously many other factors affecting the dollar as well. For example, if other countries cut their interest rates to zero and print as much money as the U.S., then the dollar will look a little better in the currency beauty show. If other countries raise interest rates and soak up excesses in the monetary supply, then the dollar will get somewhat uglier. The British pound sterling is hideous, and may be even worse than the dollar.
A default by another major economy may also make the U.S. look better.
The currencies of commodity-centric countries such as Brazil and Australia tend to rise when commodity prices rise, and fall when commodity prices decline.
There are other important factors as well.
I am not an investment advisor and this should not be taken as investment advice.Click here for reuse options!