Author Topic: Dollar devaluation rumors  (Read 9124 times)

Offline LdMorgan

  • Dedicated Contributor
  • ******
  • Posts: 1400
  • Karma: 121
Dollar devaluation rumors
« on: October 12, 2010, 03:38:37 PM »
I've been reading on the internet that an economic summit will be taking place in South Korea from Oct 21-23.

The purpose of the summit will be to force the US to devalue the dollar by at least 50%.

The public announcements of the dollar devaluation (if one takes place) will reportedly be delayed until after the November mid-term elections.

Obama will then be taking a 12-day trip out of the US starting on the evening of Nov. 4th.

This may be a GooD maneuver: "Get out of Dodge". He may not want to be speaking to the Press--or to the citizenry--right about then.

IF there is a dollar devaluation of 50% or more, you will probably see prices rising like a rocket as businesses pass the losses on down to the consumer.

That will make a significant impact on food prices, to say the very least. It will also just about halve the value of cash savings, so now might be a good time to buy WAY ahead on foods and other necessities.


Offline littletea

  • Survivalist Mentor
  • *****
  • Posts: 334
  • Karma: 13
Dollar devaluation rumors
« Reply #1 on: October 12, 2010, 10:03:39 PM »
LdMorgan,

Do you have any links on the subject?

Offline chris

  • Survival Demonstrator
  • *******
  • Posts: 3138
  • Karma: 1034
Dollar devaluation rumors
« Reply #2 on: October 12, 2010, 10:38:39 PM »
If there was any truth to the devaluation story, the Republicans will be touting it before the election.

Offline Mr. Bill

  • Like a hot cocoa mojito
  • Administrator
  • Ultimate Survival Veteran
  • *******
  • Posts: 15295
  • Karma: 1878
  • Trained Attack Sheepdog/Troll hunter
    • Website Maintenance and Online Presence Management by Mr. Bill
Dollar devaluation rumors
« Reply #3 on: October 13, 2010, 09:40:20 AM »
I've been reading on the internet that an economic summit will be taking place in South Korea from Oct 21-23.

The purpose of the summit will be to force the US to devalue the dollar by at least 50%. ...

The source of these rumors is probably this article:

Obama Set To Flee America As US Dollar Faces 50% Devaluation
Quote
A grim report prepared for Prime Minister Putin by Russian Ministry of Finance experts warns today that the United States is expected to be ordered by its G-20 counterparts at its October 21-23 meeting in South Korea to devalue the US Dollar by no less than 50% in order to stave off what is widely believed to be an imminent collapse of the World’s economic system. ...

This is seriously tinfoily stuff IMHO, but the article does contain a whole lot of links, some of which look useful.  This article in particular is interesting:

Analysis: G20 proximity talks needed to avert FX war

If you read it, it basically says exactly the opposite of what the first article claims.  The problem is that developing countries are suffering because of the dollar's fall, and they want to pressure the US and other major economies to stop doing rapid competitive devaluation of their currencies.

Offline kiteflyer

  • Survival Demonstrator
  • *******
  • Posts: 2021
  • Karma: 48
  • The more corrupt the state, the more it legislates
Dollar devaluation rumors
« Reply #4 on: October 13, 2010, 10:23:16 AM »
 This post below belongs in another section. If the dollar falls everything is going to skyrocket.Sounds like a monetary post to me. Weather patterns,global warming,fires, population explosion etc... is more pertinent here then our stupid America government driving the sheep into a NWO and enslaving the people with electronic 24/7 surveillance to protect us from evil terrorist and religious fanatics. Of course the slaves must eat but will pay more and work longer to eat. And that great America dream is an Illusion that most have been buying for the last 50 years. Wake up !

                       kiteflyer






I've been reading on the internet that an economic summit will be taking place in South Korea from Oct 21-23.

The purpose of the summit will be to force the US to devalue the dollar by at least 50%.

The public announcements of the dollar devaluation (if one takes place) will reportedly be delayed until after the November mid-term elections.

Obama will then be taking a 12-day trip out of the US starting on the evening of Nov. 4th.

This may be a GooD maneuver: "Get out of Dodge". He may not want to be speaking to the Press--or to the citizenry--right about then.

IF there is a dollar devaluation of 50% or more, you will probably see prices rising like a rocket as businesses pass the losses on down to the consumer.

That will make a significant impact on food prices, to say the very least. It will also just about halve the value of cash savings, so now might be a good time to buy WAY ahead on foods and other necessities.



Offline Mr. Bill

  • Like a hot cocoa mojito
  • Administrator
  • Ultimate Survival Veteran
  • *******
  • Posts: 15295
  • Karma: 1878
  • Trained Attack Sheepdog/Troll hunter
    • Website Maintenance and Online Presence Management by Mr. Bill
Re: Dollar devaluation rumors
« Reply #5 on: October 13, 2010, 11:07:10 AM »
This post below belongs in another section.

Done. :)

Offline tamo42

  • Survivalist Mentor
  • *****
  • Posts: 527
  • Karma: 23
    • The Primal Prepper
Re: Dollar devaluation rumors
« Reply #6 on: October 13, 2010, 12:05:15 PM »
Dollar devaluation is an end game kind of maneuver.  Basically it would tell all the other governments that hold USD as reserves that they are SOL.  We're nowhere near the point where the gov will openly default.  Covertly default, yes.  That's what inflation is :).

Offline Mr. Bill

  • Like a hot cocoa mojito
  • Administrator
  • Ultimate Survival Veteran
  • *******
  • Posts: 15295
  • Karma: 1878
  • Trained Attack Sheepdog/Troll hunter
    • Website Maintenance and Online Presence Management by Mr. Bill
Re: Dollar devaluation rumors
« Reply #7 on: October 13, 2010, 03:17:26 PM »
What makes no sense to me is the idea that there could be an official overnight devaluation.  "Good morning, this is your government speaking.  The dollar is now worth 50 cents.  Thank you."

In an era of floating exchange rates and fiat currency, there is no mechanism for doing this.  China could do it, since their exchange rate is decreed by their government.  The US can't do it, the Euro can't do it, the UK and Japan can't do it -- all they can do is inflate their money supply.  Which they have already done, and on a massive scale.

The dollar (euro, pound, yen) have already had a 50% devaluation.  We're not seeing obvious results yet, largely because we're all plummeting at the same speed.

Offline fred.greek

  • Survivalist Mentor
  • *****
  • Posts: 790
  • Karma: 42
Re: Dollar devaluation rumors
« Reply #8 on: October 13, 2010, 08:48:30 PM »
Dollar 50% devaluation:

TODAY, the U.S. dollar exchanges for 6.67 Yuan.

If devalued 50%, the dollar would exchange for 13.34 Yuan.

What does it mean?

Does your house change in price in dollars? NO.

Does your salary change?  NO.

The cost of everything imported from China, or anywhere else, where currency is converted to make the transaction, doubles.  This includes of course incoming clothes, toys, food, oil, etc. 

BUT.

Say you house is “worth” $200,000.  TODAY, or the Chinese to buy it, they must put up 29,985 Yuan.

If the dollar gets devalued 50%, for the Chinese to buy it, they only need put up HALF as much, 14,992 Yuan.

Your ability to make purchases of strictly internal U.S. assets is, temporarily, not effected, but as far as foreigners are concerned, it puts the entire country on “fire sale”, anyone with currency from outside the U.S. sudden gets to buy us out at 50 cents on the dollar.

I supposed would could be “fair”, and acknowledge that 50% is NOT as bad as what FDR did to the U.S. citizens, (about 65% firesale)…

Offline LdMorgan

  • Dedicated Contributor
  • ******
  • Posts: 1400
  • Karma: 121
Re: Dollar devaluation rumors
« Reply #9 on: October 13, 2010, 10:17:37 PM »
The source I was referring to is indeed the one linked by Mr. Bill. The Sorcha Faal site.

How reliable and/or objective the site is I have no idea--I surfed into it for the first time two days ago.

I think that devaluing the dollar will make foreign imports more expensive, and I am aware that there is an undercutting war going on as various foreign countries race each other for the title of Weakest Currency In The World.

Almost every country that exports wants to maximize their export sales right now. They are fighting for the largest possible share of a rapidly dwindling market.

China is in the position of being a mandatory exporter. Without international customers China will crash even harder than we will.

I personally think that the G-20 are not so much about encouraging the US to devalue the dollar by 50% as to establish a timeline for devaluation and a limit beyond which the dollar will not be devalued, under any circumstances. Trying for a little economic security in other words.

And I think that is part of the rest of the world not wanting the US to monetize our unpayable national debt--or at least not too fast.

They want time to unload US Dollars on hard goods and resources--as in the case of China buying into the Smith oil fields. They bought about 1/3 of that operation, I believe. And a lot of other stuff, worldwide.

Devaluing the dollar would seem like an idiotic path for countries that are holding a lot of US dollars. However, opting for a 50% devaluation in lieu of an otherwise certain and unavoidable total worldwide currency collapse is not idiotic at all.

IF such a currency collapse is perceived as being inevitable.

Who can say what they perceive? Only the participants know for sure.

I do think the various foreign countries would much rather we suffer a deflationary depression than a hyper-inflationary one.

I think they will try to manipulate the world economy to achieve that. Exactly how I have no idea, except that putting the brakes on our printing presses would seem a good place to start.

All of the events to transpire in October/November will be just a small part of the overall unraveling of the present economic structure. How they affect the process will make little difference in the long run, but can make a huge difference in the short run.

Prices are already creeping up on a thousand fronts. If we get the word that the dollar is devalued 50%, we will wind up paying twice the price for all that we import. And we import everything we need that we don't manufacture.

And we don't manufacture much. Not anymore.

50% now is a hard hit, and a little advance planning can still minimize the impact a little.

Over the next five years, or ten, or twenty, if the devaluation is 50,000,000% that first 50%  won't hardly seem like it was worth a footnote.

The problem is that there won't be much minimizing for anybody after a certain point.

I guess it all just depends on how one takes one's Disaster Scenarios--straight up, or with a twist of lime.

I think I prefer mine on the rocks with a side of Rumor.

Since ordinary human beings are at the lowest point on the economic food chain, we will always be the last to know what, why, when, where and/or how.

But, as Zimbabwe and several other textbook cases prove, the Worst-Case Scenario can happen, but is by nature temporary. A new order arises from the chaos of the old.

The trick will be to maintain long enough to make the transition.

No matter how bad things get the ants will fare, on the average, better than grasshoppers.

Uhhhh...I hope.






Offline mxitman

  • Dedicated Contributor
  • ******
  • Posts: 1737
  • Karma: 125
  • Entrepreneur/HVAC Mechanic/Electrician
    • Heezy
Re: Dollar devaluation rumors
« Reply #10 on: October 14, 2010, 10:46:48 AM »
Maybe thats what helping drive the price up on Gold and silver? All the wealthy dumping their funds into Gold and Silver>

Offline Mr. Bill

  • Like a hot cocoa mojito
  • Administrator
  • Ultimate Survival Veteran
  • *******
  • Posts: 15295
  • Karma: 1878
  • Trained Attack Sheepdog/Troll hunter
    • Website Maintenance and Online Presence Management by Mr. Bill
Re: Dollar devaluation rumors
« Reply #11 on: October 14, 2010, 11:47:20 AM »
Maybe thats what helping drive the price up on Gold and silver? All the wealthy dumping their funds into Gold and Silver>

In this case, "all the wealthy" may include a number of central banks.  A newsletter from my stockbroker claims that "for the first time in two decades, central banks are projected to be net buyers of gold bullion".  (I don't know the source of this info.)

Offline JGreene

  • Survivalist Mentor
  • *****
  • Posts: 663
  • Karma: 13
Re: Dollar devaluation rumors
« Reply #12 on: October 14, 2010, 04:16:01 PM »
A devalued dollar is the only way we could possibly pay back the trillions we owe to other countries.  But then again, we don't have it to pay them in the first place unless we print it. And that's not a happy thought either.

The plan is to redistribute wealth throughout the globe.  I don't buy the one world government, but I'm starting to really believe a "one world federation" type of plan.  Oh we'll still be autonomous, but there will be global laws and taxes.  Perhaps part of this is a single world currency.  The cash might look different, but they'll be linked.   Geez... where did I put my hat ??

Offline NWBowhunter

  • Survivalist Mentor
  • *****
  • Posts: 832
  • Karma: 24
  • Got Elk!
Re: Dollar devaluation rumors
« Reply #13 on: October 14, 2010, 07:46:02 PM »
I think Gary North has captured the great default pretty well in his article http://www.lewrockwell.com/north/north893.html

Offline LdMorgan

  • Dedicated Contributor
  • ******
  • Posts: 1400
  • Karma: 121
Re: Dollar devaluation rumors
« Reply #14 on: October 14, 2010, 10:10:59 PM »
Gary North says it pretty much right, I think.

Because it will be physically impossible to pay off the national debt, it will have to be disposed of.

There are only two ways to do that. One is to "monetize" it--to hyperinflate it away. It's just a matter of adding zeros to the dollar bill until every debt can be convenienty paid in cash.

The other means is to repudiate it. To majestically proclaim that all previous debts are null and void, and let the lenders take the losses.

I've been expecting repudiation to be the solution of choice since 1972.

The redistribution of wealth is a separate but related issue. It springs directly from overpopulation and unsupportable practices in agriculture and industry.

Before we reach the inevitable point where there are not enough resources for anybody, we will reach the point that resources have to be redistributed so that there will be almost enough for everybody.

Unless we shuck about 6 billion people to reduce the world's population in the very near future, us homo sapiens types are going to over-consume ourselves into extinction and be replaced by a hominid about one-third our size that reproduces very slowly and can eat anything a goat can, plus the goat.

Alternatively, we might be able to clean up our act on Terra and move onto other planets. Perhaps technology will save us.

(Nah!)

Offline kiteflyer

  • Survival Demonstrator
  • *******
  • Posts: 2021
  • Karma: 48
  • The more corrupt the state, the more it legislates
Re: Dollar devaluation rumors
« Reply #15 on: October 15, 2010, 10:19:32 AM »
 Or some type of outside contact from Aliens with advance Technology is given but of course with strings attached to further our advancement  ;)

                kiteflyer



Alternatively, we might be able to clean up our act on Terra and move onto other planets. Perhaps technology will save us.

(Nah!)


Offline Eichenlaub

  • Survivor
  • ***
  • Posts: 187
  • Karma: 5
Re: Dollar devaluation rumors
« Reply #16 on: October 15, 2010, 11:38:19 AM »
there already is one world currency, it's gold and everyone is buying it.
we need to devalue our currency so we have a reason to employ people here.
currently there are few jobs done in america that have much real economic value.
I think a major devaluation of us currency would cure a lot of narcissism and consumerism.
but, I do not trust the banks... they'll just stock up on gold while they can and then flee.

also, everything sorcha faal writes is a hoax/lie/BS

Offline kiteflyer

  • Survival Demonstrator
  • *******
  • Posts: 2021
  • Karma: 48
  • The more corrupt the state, the more it legislates
Re: Dollar devaluation rumors
« Reply #17 on: October 15, 2010, 12:18:14 PM »

 Devalue the dollar and be able to get jobs? Duh, minimum wage is a joke already and with health,food,energy costs rising and inflation coming ,America will be a third world existence with the majority of people suffering like you never seen here.The young will be taxed to death while the old will be shoved into grinding poverty while Obama Care will nix any serious treatment for keeping them around to support their health needs. Oh did I say more religious wars being fought for oil and mineral and water rights with population explosion in Emerging market areas. The Global Corporate Village will lobby all the laws into existence with bought politicians and total awareness technology will watch us all unless A Nuclear bomb is is set off with an EMP bomb configuration to drive us back into the stone age. The NWO is in place as we live this moment in time but most don't see it with the all side shows media spewing out propaganda to the masses in there particular area where they live. The only hope is that your young healthy and smart and even then you will be sucked dry of any real peace and security.

            kiteflyer




there already is one world currency, it's gold and everyone is buying it.
we need to devalue our currency so we have a reason to employ people here.
currently there are few jobs done in america that have much real economic value.
I think a major devaluation of us currency would cure a lot of narcissism and consumerism.
but, I do not trust the banks... they'll just stock up on gold while they can and then flee.

also, everything sorcha faal writes is a hoax/lie/BS

Offline chrisdfw

  • Dedicated Contributor
  • ******
  • Posts: 1300
  • Karma: 63
Re: Dollar devaluation rumors
« Reply #18 on: October 17, 2010, 07:52:37 PM »
No other countries will allow thier currency to appreciate against the dollar that much, it would effectively end their exports to the us.

The US wants other currencies to go up versus the dollar to help with the balance of trade, but China is resisting. China has enough control
over their populace to effectively peg their currency to the dollar. They effectively control their exchange rate so they can export over their
competitors.

Offline kiteflyer

  • Survival Demonstrator
  • *******
  • Posts: 2021
  • Karma: 48
  • The more corrupt the state, the more it legislates
Re: Dollar devaluation rumors
« Reply #19 on: October 18, 2010, 09:41:13 AM »


 Revenge for The West selling opium to them in the 1800's and stealing all their wealth in human labor and hard currency.  ;D
 They have learned well as The West dies with debt and drug abuse runs rampant in our cities.
                kiteflyer







No other countries will allow thier currency to appreciate against the dollar that much, it would effectively end their exports to the us.

The US wants other currencies to go up versus the dollar to help with the balance of trade, but China is resisting. China has enough control
over their populace to effectively peg their currency to the dollar. They effectively control their exchange rate so they can export over their
competitors.