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Showing posts with label U.S. Dollar. Show all posts
Showing posts with label U.S. Dollar. Show all posts

Thursday, October 15, 2009

What Soros Wanted, Obama Delivers

What Soros Wanted, Obama Delivered

In January 2004, George Soros proclaimed to the world, "I have made rejection of the Bush doctrine the central project of my life." To which he added, "America, under Bush, is a danger to the world. And I'm willing to put my money where my mouth is." Soros then waged a nearly one-wallet war against Bush, put more than $25 million of his own cash into Kerry's election bid and came out of the whole gambit with a tattered I-Voted-for-the-other-guy t-shirt.

In 2006, Soros declared in a depressive-mood pity party at the Council on Foreign Relations: "In the future, I'd very much like to get disengaged from politics. I'm interested in policy and not in politics."

If only he had stayed depressed and kept to his better intention.

But no such luck would come America's way.

Soros supported Barack Obama's candidacy, telling Judy Woodruff in May 2008, "...Obama has the charisma and the vision to radically reorient America in the world." When Woodruff queried Soros on whether it might be a concern that Obama lacked experience to lead in this dangerous time we live in, Soros responded, "...this emphasis on experience is way overdone..."

Experience was actually far underrated in that contest, but we'll have to save that subject for another day.

Now, it would seem that all Soros wanted, Barack Obama is delivering.

On "reorienting America in the world," President Obama started doing that before he even won election with his people-of-the-world speech in Berlin:

The walls between old allies on either side of the Atlantic cannot stand. The walls between the countries with the most and those with the least cannot stand. The walls between races and tribes; natives and immigrants; Christian and Muslim and Jew cannot stand. These now are the walls we must tear down.

These words were surely music to Soros' ears as he has been a lifelong Esperantist in the footsteps of his father. Soros is one of the world's few native Esperanto speakers and was wont to quell his youthful depression in London's famous speaker's corner, proclaiming the virtues of creating the Esperantist version of the tower of Babel in the modern world. For readers who might never have heard of Esperanto, it was the invention of a 19th century Jewish doctor, who dreamed of a world free of nationality. He invented a trans-European language to push the ideology and Soros' father, Tivadar was one of its leading proponents.

No American president thus far has professed more affinity for this absurd goal than Barack Obama. And he even has the preemptively awarded Nobel Peace Prize to prove it. Whether George Soros had anything to do with the award, we might never know, but it seems mighty darned fishy and definitely in keeping with both Soros' international influence and his aim of "reorienting America in the world."

We have gotten some idea what Soros means by "reorienting America" from his book, The Bubble of American Supremacy. According to Soros' written rants, America, under the leadership of George W. Bush, had gotten way too big for her britches. Soros saw our lone superpower status and stubborn fidelity to the principle of national sovereignty as painful thorns in his internationalist side.

Writing in The Bubble of American Supremacy, Soros expounded upon his belief that 9/11 was horribly mishandled by the Bush administration, should have been dealt with by criminal investigations not war, and that Bush's wars in Afghanistan and Iraq were merely the results of the President's faulty "supremacist ideology."

Soros took it upon himself in the same screed to define the Bush doctrine, saying it was "built on two pillars":

1) The United States will do everything in its power to maintain its unquestioned military supremacy.

2) The United States arrogates the right to pre-emptive action.

Never mind that Soros' definition of the Bush doctrine is both faulty and ideological at its core (see Krauthammer's essay defining the Bush doctrines). What's important to note here is that since his inaugural, President Barack Obama has defined his own foreign policy in nearly direct antithesis format to the pillars of the Bush doctrine as defined by Soros. What Soros wanted American foreign policy to be, Obama is delivering in spades.

The final word from Soros in The Bubble of American Supremacy is the unabashed statement of his own preference for American foreign policy. It boils down to a beneficent America giving lots and lots of carrots to every country in the world as a means of offering "preventive action of a constructive and affirmative nature." It's the liberal answer to every problem that has ever ailed mankind: throw money at every monster until it gets so fat and happy it no longer wants to cause difficulties or wage war.

And, lo and behold, that's precisely what President Obama has set out to do since day one. Obama, too, sees global poverty as the root cause of all evil in the world, including crime, war and terrorism. His single piece of signature legislation in the Senate was a bill that would authorize an additional $845 billion from American tax payers to eradicate global poverty, and legislate a demand on future presidents to bring America in line with UN mandates on percentage of national GDP given to fight global poverty.

In addition, Obama agreed at the G20 summit in April to give more money to the International Monetary Fund (of which Soros is a huge fan), and then slipped billions of cash and a $100 billion line of credit for the IMF into the emergency war-funding bill passed this spring.

While President Obama continues to dither, American troops die in Afghanistan. But there isn't anything that can be added here on that front. Only time will tell whether our President has as much stomach for protecting our interests in the Middle East as he has for beer summits and throwing our money at every comer.

But it hasn't been just America's military supremacy that put such a bee in Soros' bonnet. It's also been our economic superiority.

Now, George Soros is nearly universally regaled as a wizard at currency speculation and hedge-fund management, skills which one of his sons has said have far more to do with a certain pain he gets in his back telling him when to buy and sell, than with any sage economic formula. But since 1992, when he earned the title of the man who broke the Bank of England by becoming a major player in the downfall of that nation's currency, Soros has been more of a prophet reaping the returns on his self-fulfilled prophecies than he has even been a speculator.

It has taken Soros much longer than he perhaps anticipated to bring down the U.S. dollar. By 2003, Soros was already predicting the downfall of the dollar. In a CNBC interview, amid a slump in the dollar's value against the euro, Soros added fuel to that fire by stating that he was already selling dollars. His statement, in turn, caused a further decline in the international worth of the dollar.

In Davos last year, at the World Economic Forum, Soros even went so far as to say that the current housing "bust" would signal the end of the dollar as the world's default currency. "The current crisis is not only the bust that follows the housing boom," Soros said. "It's basically the end of a 60-year period of continuing credit expansion based on the dollar as the reserve currency," he stated to the press.

One would have to be living under a rock these days not to see that the American dollar has been walloped under the leadership of Barack Obama. Weeding out the truth of which nations are actively working (Some would say, "conspiring.") to ditch the dollar as the preeminent world currency is proving difficult. Reports surface only to be denied a day later.

But this much is certain. Soros has long thought America far too powerful, and has seen the dollar's supremacy as every bit as dangerous to his internationalist schemes as our military strength. So far, President Barack Obama has done nothing whatsoever which would seem at odds with those scheming Soros doctrines.

If all of this does not hint at a shadow presidency with a powerful oligarch pulling the strings on a neophyte president, I honestly don't know what would.

Now, if someone could only burst Soros' self-inflated bubble before he has a chance to burst ours, we just might pull out of this unfolding nightmare.

By: Kyle-Anne Shiver is a frequent contributor to American Thinker and a syndicated columnist for Creators. She blogs at kyleanneshiver.com.

Related Resources:

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Monday, October 12, 2009

Whodunit? Sneak attack on U.S. dollar

It’s the biggest mystery in global finance right now: Who conducted a sneak attack on the U.S. dollar this week?

It began with a thinly sourced but highly explosive report Monday in a British newspaper: Arab oil sheiks are conspiring with the Russians and Chinese to quit using the dollar to set the value of oil trades — a direct threat to the global supremacy of the greenback.

Is it true? Everyone from the head of the Saudi central bank to U.S. officials scrambled to undercut the story, but no matter.

With the U.S. economy on the ropes and America by far the world’s biggest debtor, investors aren’t feeling as secure about the dollar as they used to. And the notion of second-tier economies ganging up on Uncle Sam didn’t sound so far-fetched.

For American officials, the possibility of the dollar losing its long-term dominance in global commerce is a nightmare scenario because it would likely mean sharply higher interest rates at home and a declining ability to finance the U.S. debt. No one believes it could really happen right now, but stories like the British report this week make it seem incrementally more likely.

So the piece by Robert Fisk of the Independent shocked currency traders around the world and almost instantly sent the value of the U.S. dollar spiraling downward and the price of gold skyrocketing to an all-time high, as a hedge against a weakened dollar.

The website drudgereport.com quickly amplified the impact of the story with a headline atop the site: ARAB STATES LAUNCH SECRET MOVES WITH CHINA, RUSSIA, FRANCE TO STOP USING DOLLAR FOR OIL TRADING ...

“You read that story, and you do two things: You sell the hell out of dollars and you buy gold,” said Les Alperstein, president of the financial research firm Washington Analysis. “The story has a lot of credibility, with some caveats.”

So who wanted dollars diving and gold rising? In other words, who is Fisk’s source, and why did he or she want to tank the dollar? It’s the global currency version of the old Washington parlor game of speculating on the real identity of Deep Throat.
No one knows.

But one thing is for certain: With the price of gold jumping to $1,048.20 per ounce, traders who moved early enough stood to make millions.

So in government circles in Washington, speculation immediately centered on gold traders: With the skyrocketing price of gold, they’d be the biggest beneficiaries of the article.

Fisk’s story itself isn’t much help in solving the mystery — it is sourced vaguely to “Gulf Arab and Chinese banking sources in Hong Kong,” and it included one blind quote, attributed to “a prominent Hong Kong broker.” That doesn’t narrow down the pool very much.

The story doesn’t name any officials who had allegedly participated in the secret meetings involving the Arab states. It didn’t say where the meetings occurred or when. Other than saying the plan is to stop using the dollar by 2018, there was precious little detail to the account.

Around the world, traders turned to Wikipedia to find out more about Fisk himself. There, they learned that Fisk is a legendary British foreign correspondent who has been based in Beirut for more than 30 years and has won a slew of journalism awards. They also learned that he is one of only a few journalists to have interviewed Osama bin Laden (three times) and that he has expressed doubts that the United States has told the full story about the Sept. 11 attacks.

An analyst’s report from the Royal Bank of Scotland concluded, “Fisk is a veteran of the Middle East. ... he is also increasingly associated with more radical theories thus weakening the credibility of the story.”

Beyond the specifics of the story, the geopolitical implications of the report sent shudders from Riyadh to London to Washington: Has the long-dominant American economy been so humbled by the economic crisis that these nations would mount a frontal attack on the dollar, the underpinning of the world’s biggest economy?

That question is on the minds of global investors, who are keeping a skittish eye on the weakening dollar. And over the past several months there has been a steady drumbeat of Chinese, Russian and other officials who have talked openly about finding a replacement for the dollar as the global economy’s default currency. Any effort to do that would be fraught with difficulty. But however unlikely, the possibility represents a threat to the American economy, which has come to depend on the significant advantages it reaps from minting the currency most used around the world.

In another era, the dollar could shrug off such a vaguely sourced, thinly detailed story.

But not anymore.

The dollar is weak and vulnerable to rumor-mongering because many traders believe it will only get weaker. “The fundamental reason why this occurred is that after 9.8 percent unemployment on Friday, nobody can say with certainty that the recovery is sustainable,” said one analyst familiar with the situation.

“In years past, when the U.S. economic dominance was more pronounced and emerging markets were marginal players in the global economy,” noted an analyst’s report from HSBC, “the debate on pricing commodities in currencies other than the [U.S. dollar] typically came down to the lack of practicality. ... Today, emerging markets are clearly wielding much more influence in the global economy, and they want more, as will be borne out in this week’s IMF meetings.”

And that means U.S. officials whose job it is to defend the dollar may have their work cut out for them in the months to come.

© 2009 Capitol News Company, LLC

Posted: Knowledge Creates Power - Cross-posted: Daily Thought Pad

It is truly time for all Americans to read up on the Weimar Republic and the new book:

The Dollar Meltdown: Surviving the Impending Currency Crisis with Gold, Oil, and Other Unconventional Investments

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DeMint: U.S. Like Germany Right Before WWII - Saving Freedom

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Tuesday, May 12, 2009

Government Borrowing Fifty Cents for Every Dollar It Spends

Gov't Borrowing Fifty Cents for Every Dollar It Spends

  • Government Borrowing Fifty Cent for Every Dollar It Spends
  • Obama Administration Has Amassed More Debt Already Than The Bush Administration in Its First Seven Years Combined

Tuesday, March 31, 2009

Proposals on New World Currency

Russia and China are coordinating proposals on a new global currency that could replace the US dollar as a reserve currency to prevent a repeat of the global economic crisis, the Kremlin said on Monday.

"We have received proposals from our colleagues in China, detailed proposals," President Dmitry Medvedev's top economic adviser Arkady Dvorkovich said. "Our positions are very similar.

"We have similar positions on the development of the international financial architecture," he told reporters.

Ahead of the Group of 20 summit in London later this week, the Kremlin has published a raft of proposals to overhaul the global economic order, including plans for a supra-national currency that could replace the US dollar.

China has come forward with similar ideas.

US President Barack Obama has said he does not see why the dollar should be replaced and British Prime Minister Gordon Brown said the summit would have more immediate issues to discuss.

"So far, not everybody is ready for that," acknowledged Dvorkovich. "We will insist on that at all levels."

Medvedev has said the international community should have a say when the world's richest countries make decisions with global implications, as in the US financial crisis, sparked by the collapse of the market for subprime or higher risk mortgages.

Moscow also understood however, that many countries were not ready to undertake additional "political obligations," said Dvorkovich, expressing hope that major economies would at least be open to consultations on the subject.

Dvorkovich said he hoped Russia and other major developing economies would also get an equal say and the attention they deserve during the G20 meeting.

"We are hoping that our voice will be heard but I would like to stress that we do not have a desire to pit our voice against that of our partners," he said, referring to developing economies Brazil, India and China who join Russia in what is known collectively as 'BRIC.'

"There will be no separate joint (BRIC) communique, nor should there be," Dvorkovich said. "This is the summit of the leaders of the G20 countries."

Critics have suggested China and the United States, whose economies are closely intertwined, would likely steal the show by promoting their own agenda and turning the G20 forum into a 'G2' summit.

Dvorkovich said the US and China would have ample time to discuss bilateral issues on the summit's sidelines

Separately, Dvorkovich said Medvedev would meet Australian Prime Minister Kevin Rudd on April 1, just before the summit. Medvedev was also scheduled to meet US President Barack Obama, China's Hu Jintao and Britain's Brown that day.

Source:  AFP 2008

Posted:  Daily Thought Pad - Proposals on New World Currency