ere we go again. Bush and his....

**AlfredJPruffock** · 13 January 2006, 17:33

Originally posted by MrsGoof

accorging to Auntie, BREAKING NEWS

So that will be with his puppet Tony and several thoushad troops and eerrr an few Lies thrown in as well.

The crises is not with the nuclear issue but rather the fact that Iran is launching a euro petrol dollar exchange in March, Iraq tried this before and looked what happned there.

I mentioned yesterday that there will be a spike in the Oil prices prior to the millitary action and today I note that the Oil price hikes have started today.

Britain is not likely to join in the attack, it will be a joint Israel and US operation.

**AtW** · 13 January 2006, 17:36

Originally posted by AlfredJPruffock

The crises is not with the nuclear issue but rather the fact that Iran is launching a euro petrol dollar exchange in March, Iraq tried this and looked what happned there.

Alf - this is bullsh1t reason, Iran or Iraq could have launched 10 euro exchanges or decide to sell everything they sell for euros only, but this won't change fact that if you want to invest or pay in the USA you will have to use dollars.

**AlfredJPruffock** · 13 January 2006, 17:39

Originally posted by AtW

Alf - this is bullsh1t reason, Iran or Iraq could have launched 10 euro exchanges or decide to sell everything they sell for euros only, but this won't change fact that if you want to invest or pay in the USA you will have to use dollars.

Not if the Dollar is surpassed by the Euro Petro currency,the threat to the Dollars supremacy is a threat to the Americas Global hegemony.

You think its just conincidence that the milliary action will unseat Irans Petro Euro bourse a month prior to its trading day, think again ATW !

And look what happned to Iraqs Euro Petro Bourse ... Iraq Oil is now traded in US Dollars...of course !

Now as Im now using GW Bush as a reference Im not saying that the mighty Dollar Domination is a bad thing !

Today, some 67% of all central bank reserves are in dollars, with only about 15% in Euros. Until the creation of the Euro, there had not even been a theoretical rival to the dollar reserve currency role.

Dollar domination is based on : you either use dollars or your economy goes into the toilet and you're branded a terrorist nation.

With nothing to control U.S. dollars, it prints more bills than the American economy justifies.

It buys foreign goods and services with dollars that cost almost nothing to print.

When the US was still on the Bretton Woods gold standard, between 1945 and 1965, total supply of dollars increased only some 55%. The world experienced low inflation and stable growth. After Nixon's break with gold, dollars expanded by more than 2,000% between 1970 and 2001!

Since most commodoties are tied to dollars, this means that if you want to buy a barrel of Saudi oil, a German auto, or an American computer, you must have dollars.

As nations throughout the world began to use the U.S. dollar as reserves for their own currencies, two large pools of dollars in foreign hands were created: Eurodollars and Petrodollars.

It works like this: a German company, say BMW, sells its cars in the U.S. for dollars. BMW exchanges those dollars for Marks or Euros through currency transfer with the Bundesbank or European Central Bank (ECB). The ECB thus builds up its dollar currency reserves: Eurodollars. Those nations that supply or purchase energy commodities amass the same kind of dollar pool and the result is the Petrodollar.

Since the oil shocks of the 1970's, when the price of oil increased by 400%, nations have felt the need to have large reserves of dollars to pay for oil. Since that energy scare, creating a large U.S. dollar reserve has become a national security policy for many countries.

Boosting export sales denominated in dollars is a national priority. But the Bundesbank or the ECB can no longer receive gold for their dollars, so they have to decide what to do with the mountain of dollars their trade is earning. Most nations have decided to at least earn interest on their dollars by buying supposedly safe, secure U.S. Treasury bonds. .

The difference between what a nation sells to the U.S. and what the U.S. sells to that nation is called the trade deficit. The country today with the largest trade deficit with the U.S. is China. The Chinese Yuan is fixed to the dollar. The U.S. is being flooded with cheap Chinese goods, often outsourced by U.S. multinational corporations such as Wal-Mart. As of 2003, China's trade surplus with the U.S. was more than $100 billion a year, Japan $70 billion, Canada $48 billion, Mexico $37 billion, and Germany $36 billion; a total deficit of almost $300 billion of the colossal $480 deficit in 2002.

The total U.S. debt--public and private--has more than doubled since 1995. It is now officially over $34 trillion. It was just over $16 trillion in 1995, and "only" $7 trillion in 1985. Most alarmingly, it has grown faster than income to service it, as indicated by U.S. gross domestic product (GDP).

The U.S. economy-- now requires a daily fix of $2.5 billion to stay afloat.

All this huge trade surplus with foreign nations benefits only the wealthy upper 1% in the U.S

American workers are losing jobs and retirement funds, their income is decreasing rapidly, and their standard of living is deteriorating alarmingly.

Globalization is just a euphemism for dollar domination.

God Bless the GreenBack

**Skeptical** · 13 January 2006, 22:47

Well you are exaggerating slightly aren't you. The income of American workers isn't "decreasing rapidly" (althought it isn't really increasing either indeed), and the trade deficit in itself isn't much of a problem, at least not to the Americans. If european and other banks decide to re-invest them back, then cool, they're supporting the economy. If they don't reinvest, even better, they supplied value worth billions to the USA in exchange for a heap of paper notes.

**Churchill** · 13 January 2006, 23:14

Alfie, love, you've fallen into the trap of thinking that AtW knows what he's talking about.

A word in your shell-like.... He doesn't. Just humour him and he'll go away.

ere we go again. Bush and his....