Clear evidence of the end of the USD$ as dominant International Trading currency

This caught my attention recently …. an interesting read

http://www.sovereignman.com/finance/another-kick-in-the-groin-more-european-allies-join-china-led-bank-despite-us-frustration-16618/

After the UK announced that it will join the new China-led Asian Infrastructure Investment Bank (AIIB) as a founding member late last week, Germany, France and Italy decided yesterday to follow Britain’s lead and join as well….

This is part of an important transition from the old domination of the USD$ in Internal Trade, particularly in commodities, where up to now, the USD$ has been dominant. Recently there has been an increasing trend to trade commodities in the buyers or sellers currency – for instance in the case of transactions in the Chinese Yuan and the Russian Ruble.

These changes may well be detrimental to the United States in how it pays for overseas debt, that isn’t held in US Dollars. In that case it can no longer just print the necessary currency, it would have to buy the overseas currency at the prevailing exchange rate …. and with the liquidity of the United States already in question, with a estimated net solvency of approximately minus USD$60 trillion – the long term view is not positive, especially when the financial speculators start selling the USD aggressively.

The USA has no way of paying out its current deficit of in excess of USD$18 trillion dollars, accumulated by putting wars on credit card so to speak.  The United States, financially speaking is like a dead man walking …. I am not a financial specialist, but I cannot see a way out for them, unless they seriously cut their spending and increase income currently avoided through taxation loopholes. Surely if corporations are people then like the normal citizens of the USA, they should be taxed on the world wide income, regardless of the tax evasion strategies which they have in place.

A personal strategy would be not to leave funds in USD$ … to ruthlessly minimize your debt, and to put what funds you do have into “safe” (if there is such a thing) currencies, but preferably into hard assets like real estate or gold / silver, the actual metal not the paper equivalent. My personal strategy will be primarily real estate and keeping a minimum amount in liquid assets – and in setting up a simpler life style, whatever that means for you.

One thing that has had a marked effect on the value of the USD$ has been the confidence, Yes confidence that the world has in the currency, everything changes, that perception has changed in no small way due to the war that the American Republican party has been waging against President Obama, holding the USD economy as hostage … this in my view has been a major reason for the loss of face which has led to the loss of faith in this currency.

Good Luck .. just know everything changes and we are always in transition from what was, to what will be.

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Greece and the Euro Zone

It hardly matters why Greece is in the mess they are in … they just are …

What is the future … whatever the way forward it is serious stuff … every which way you turn there are serious consequences.

What is sure is that the current situation cannot continue …

If Greece stays in the Union, the future for the people of Greece is dire … already there is severe unrest … and unless a political solution is found the only way that this will be resolved is on the streets. From the information I have been able to glean the average person, especially those who are on fixed income and pensions are in severe financial straits .. with no likely hood of a positive outcome in the foreseeable future …

Why is the Euro Zone trying so hard to keep Greece in the Union, aside from the obvious far from small crack it shows in the community, there is a benefit to the manufacturing countries within the Euro Zone because of the perceived financial problems of countries such a Greece, Portugal, Spain, Ireland and even Italy … on the world markets this keeps the overall value of the Euro$ itself depressed ….

This has benefits for countries such a Germany, Italy and France with significant manufacturing sectors … by the virtue of Greece being part of the Union, the lower exchange rate works for these manufacturing countries …. as it makes their products competitive on the world stage …

If Greece and others leave the Union, aside from the financial meltdown that will affect Greece … it will strengthen the Euro and make their products more expensive … and less competitive … how do you think that this will affect those manufacturing countries  .. it will take them into a financial slowdown …

Really the future financial health of those manufacturing countries within the Euro zone … is in the hands of the Greek people ..

This is the reason I think that the Euro Zone wants to keep Greece in the Union …

Why is it that countries are beholding to the banks … all the assets of Greece will be sold off in a fire sale to placate the numbers me … what did the people of Greece do to deserve this …

Frankly I do not see the Greek people voting to stay within the Union …