Did I call this or what? Worse than just Iran (in the mail), we’ve got “allies” (rich scumbags in charge of countries full of oil and uneducated, jobless, mosque-folk) now shifting cash reserves from dollars to euros. Don’t expect this to get a moment of domestic air-time…I’ll keep my eyes peeled for more developments.
As of right now, Southeast Asia continues to fund the cost of runing our government and a parasitic military industrial complex (over 40% of all federal $ spent), but as others sell off their reserves for euros, the value of what these countries currently hold diminishes. We can raise interest rates, but whatever it takes to satisfy buyers following a sell-off of dollars will certainly not benefit the United States.
Consider the ‘mangos for nuclear technology’ trade our President made with India with all this in mind. It appeared to most people that we gave up something for nothing, but unfortunately at this moment, we’re in no position to dictate terms to anyone. So put on your seatbelt and start hoping that these guys get a clue in short time, because you can bet a dollar to a doughnut that the global economy recognizes a mark when they see one!
Credibility used to be America’s calling card…THIS is what happens when a nation gets collectively stupid over time…(thanks to everyone who voted for these guys, btw)…we’re getting what we deserve. Ask anyone you know who works in finance and they’ll tell you that domestic investment is down, with more Americans investing their money each year in foreign markets. I’ll take the ‘blame-America-first’ jab, block for the millions of portfolio owners who’re doing it silently.
But by all means, let’s get Terri Shiavo into physical therapy, outlaw abortion, mess with the gays and invade Iran…deal with all this finance-hooey-jibooey some other time.
The United Arab Emirates said it was considering moving one-tenth of its dollar reserves to the euro, while the governor of the Saudi Arabian central bank condemned the decision by the United States to force Dubai Ports World to transfer its ownership to a ‘US entity,’ the UK Independent reported.
“Is it protectionism or discrimination? Is it okay for US companies to buy everywhere but it is not okay for other companies to buy the US?” said Hamad Saud Al Sayyari, the governor of the Saudi Arabian monetary authority.
The head of the United Arab Emirates central bank, Sultan Nasser Al Suweidi, said the bank was considering converting 10 per cent of its reserves from dollars to euros.
“They are contravening their own principles,” said Al Suweidi. “Investors are going to take this into consideration (and) will look at investment opportunities through new binoculars.”
The Commercial Bank of Syria has already switched the state’s foreign currency transactions from dollars to euros, Duraid Durgham head of the state-owned bank said. The decision by the bank of Syria follows the announcement by the White House calling on all US financial institutions to end correspondent accounts with Syria due to money-laundering concerns.
Syria’s Finance Minister Mohammad Al Hussein said: “Syria affirms that this decision and its timing are fundamentally political.”-Khaleej Times Online
Word?
I’m all for a strong military, but at 100s and 100s of billions of dollars, I often think of what we could do with even half that amount. Kind of like having a $4,000/month mortgage payment and then wondering why you can’t afford to buy food.
Let’s hear it for success in Afghanistan!!!
Afghanistan man could be executed for converting from Islam to Christianity
Great, our success in Afghanistan has lead to a democratic nation state where citizens can be executed for picking the wrong religion. “I’ll take Buddhism for $100 Alex.”
Washington – – – we’re definitely not getting the bang for our buck. Take the robotic pack-mule for instance (yes, this does actually exist)…I mean, the right bemoans every single dollar NOT spent on defense as evidence of a ‘welfare state’, but what do they think about $1000 for a bag of laundry washed by Halliburton?
I know it doesn’t make sense…neither does Afghanistan killing people for converting from one fable to another. Is it really THAT important?!?! What the hell is wrong with people?
Halliburton is making money and gives a lot of people work say what you will Chris and you can’t touch them rant though you may. The same with WalMart. 🙂
Halliburton is fleecing you and I Paul. They’re not fulfilling their contractual obligations. Compared with WalMart, Halliburton is about as effecient as teenager high on pot.
WalMart is perhaps the most effecient American corporation we’ve got, and that fact isn’t lost on me. My criticism of WalMart has focused on the fact that the costs of insuring their workers falls on the shoulders of individual states.
Paul, do you care at all about the fact that Halliburton charges you and I $1000 for each bag of laundry it washes in Iraq? Think about it. Because if Cheney wasn’t vice president, they wouldn’t get away with it.