India Joins Russia, China in Questioning U.S. Dollar Dominance

Frreedoms Phoenix ^ | 7/3/09

[FromLori]

The major part of Indian reserves are in dollars -- that is something that’s a problem for us,” Tendulkar, chairman of the Prime Minister’s Economic Advisory Council, said in an interview today...

[EagleUSA]

Nice Job Obama. Your agenda is working.

[freebilly]

It’s Bush’s fault....

[Diogenesis]

The Democrats and their October surprise have
wrought utter havoc.

[musicman]

"India Joins Russia, China in Questioning U.S. Dollar Dominance"

[Cicero]

This is partly an economic reaction to Obama’s policies and, I suspect, partly a political reaction.

Obama has made it clear that he favors the Muslims, and that India can fend for itself. George Bush had a close working relationship with India that Obama has pretty well destroyed.

Basically, India is the other Israel, as far as Obama is concerned. Moreover, there is a history of bad feelings between Africans and Indians, a legacy of the British Empire, and I suspect that Obama may share those feelings. (For those unfamiliar with that history, see V. S. Naipaul’s novels, especially “A Bend in the River” and “A House for Mr. Biswas.”)

Naive Indians in America, like the Jews, supported Obama. I hope they are now reconsidering that support.

[oust the louse]

My gut feeling is the dollar will always be the world currency. Although what would be the reaction to conservatives and moderates if in the next year we go to the Euro or something else?...rage?...riots?...

[Nervous Tick]

>> The Democrats and their October surprise have
wrought utter havoc.

Not yet! What I’m seeing signs of is utter havoc being stopped in its tracks.

The LORD works in mysterious ways.

[politicket]

Brazil will be the next, if they haven’t already.

The BRIC countries (Brazil, Russia, India, and China) are just sabre rattling.

We are in a deep, deep deflationary process. The U.S. dollar index will rise up to the mid 90’s. It’s not going to drop and devalue like so many pundits are prognosticating.

[brushcop]

Not yet! What I’m seeing signs of is utter havoc being stopped in its tracks. The LORD works in mysterious ways.

Wait! Just a w-e-e-e bit more of information! We're all leaning towards you with our best ear...

[bitterohiogunclinger]

“We are in a deep, deep deflationary process. The U.S. dollar index will rise up to the mid 90’s. It’s not going to drop and devalue like so many pundits are prognosticating.”
Based on what? The government has quadrupled our debt in a mere 6 months. The manufacturing base in this country is dead. The government is bankrupt and has no legitimate plans to change that fact. Kenseyian monetary policies fail every time they are tried. The government has been printing money based on no real value like it's going out of style. The only reason we don't see the beginnings of hyper inflation is because people are so frightened of the Kenyan dictators next boondoggle that they are holding onto their coins.

[taxtruth]

You know,FR has been around for a long time and I think there are people on FR who are pretending to be freepers that have an agenda who may not have America's interest at heart lately.Just an observation freepers.

[politicket]

The government has been printing money based on no real value like it's going out of style. The only reason we don't see the beginnings of hyper inflation is because people are so frightened of the Kenyan dictators next boondoggle that they are holding onto their coins.

I can really appreciate your views - and they are held by a majority of people. However, the facts are showing a different outcome.

The Federal government is powerless to stop this deflationary spiral, since it is not them who controls the supply of money actually ending up in circulation.

The Fed (big banks) has initiated a credit stranglehold. This is what will destroy people who still hold large amounts of debt. Existing debt becomes more expensive to pay back during deflationary times.

The Federal government loves inflation. It makes all of the debt that they've sold over the years less expensive to pay back. But they are now stuck - along with state, country, and local governments.

The Federal government brought this upon themselves, but it is the biggest banks (Goldman Sachs and JP Morgan/Chase) who control our country's entire economy.

If people truly believe that hyper-inflation is coming then they should max out every bit of credit that they can - since it will be much cheaper to pay off with devalued dollars.

If people believe that deflation is here then they should work diligently to get out of every bit of debt that they possibly can. Those that don't are going to be severely hurt.

Also, anyone believing in inflation should immediately get back into the stock market. Inflation always drives the market higher. Those believing in deflation would be well-served to exit the stock market, since deflation will always drive the market lower.

I personally believe that we will be seeing a Dow 4,000 before the end of this year.

[bitterohiogunclinger]

Interesting perspective. I see a world of hurt for the average person either way.

[Nervous Tick]

I have no inside information, just what I see, same as you see.

But I have noticed that:

a) Bambi is having trouble with the basics, like spending All That Money;
b) Many voices (economists, press, government) are starting to grumble about the inflationary effects of spending money you don’t have, essentially transferring the debt bubble from American consumers to American government;
c) Jobs are going NOWHERE. From jobs come recovery, plus the ability to pay for climate change and health care, and they AREN’T THERE. Bambi is quite worried about this.
d) Tax revenues are down! DUH. It’s all well and good to tout how taxes need to go up, and how you’ll balance the budget on higher taxed, but if you ain’t GOT income to tax it’s all moot, eh? And where are you going to get it if not income? Sales tax? Don’t think so, people have already cut spending themselves like Bambi ought to. Wealth tax? WHAT wealth? And so on.

Bambi is a squirrel on a cage. He’d like to run, but that squirrel’s wheel has a big old flywheel on it — plus the brakes are on.

Negative feedback. The LORD doesn’t strike evil down with lightning, always. He’s more clever than that. He orchestrates complex systems whereby evildoers who would like to move with all speed find themselves running in a swimming pool full of molasses.

Just my 2c worth, and that’s all I’m saying.

Trust in the LORD.

[Nervous Tick]

That’s spooky. Give us a hint?

[politicket]

I see a world of hurt for the average person either way.

I agree my FRiend.

The inflation perspective just doesn't make any sense. The Fed could unleash massive amounts of money into the money supply immediately if they wanted to, in order to stop the slide into a deflationary spiral.

Why don't they? It's because the world's biggest banks have been patiently allowing a huge wealth bubble to build over decades. They are now in the process of collapsing that bubble through a stranglehold on credit - thereby transferring that wealth over to themselves for the most part.

The Federal government enjoyed building its power base over those decades, but it is now powerless to stop the big banks from their agenda.

What can the Federal government do? Abolish the Fed, like so many have proposed? That would lead to immediate anarchy in the streets since there would be no means of operating our economy. The Fed controls everything.

The economic policy of the United States is set at meetings of the Federal Open Market Committee (FOMC). There is not even one elected official at these meetings.

All of the economic decisions that come out of the FOMC are implemented by the President of the New York branch of the Federal Reserve. This individual is arguably the most powerful person in the world.

The past President of the New York branch was Timothy Geithner. He is now our U.S. Treasury Secretary. He and our previous Treasury Secretary - Hank Paulson - both have direct ties to Goldman Sachs.

[TruthConquers]

I am afraid it will be a bit of both worlds. Deflation and Inflation.

Alot of people see a DOW crash this fall, but what I ponder is, who is going to buy all of those treasury bills that the FED are trying to sell? How long will the ruse of the change in indirect selling rules will keep the world happy that the FED aren’t buying the Treasuries. Why would the world want to buy our debt when won’t be enough tax revenue to pay for those bonds, ever mind the interest. Full faith and credit. Blah!

The dollar will be destroyed, unfortunately.

And that is when there will be inflation. Just ask Iceland.

[TexasAg]

Based on what? The government has quadrupled our debt in a mere 6 months. The manufacturing base in this country is dead. The government is bankrupt and has no legitimate plans to change that fact. Kenseyian monetary policies fail every time they are tried. The government has been printing money based on no real value like it's going out of style. The only reason we don't see the beginnings of hyper inflation is because people are so frightened of the Kenyan dictators next boondoggle that they are holding onto their coins.

In 2008, Americans lost something like $10 trillion in wealth. This came from falling home prices and stock market losses. That has continued into 2009. Plus, much of what the USG has done has not resulted in money being given to spenders (and therefore made its way into the general marketplace). In other words, the American people haven't suddenly been flooded with lots of extra dollars. We've seen just the opposite - rising unemployment, fewer working hours, etc.

From what I've read recently, we've already had massive inflation, first in tech stocks and then in housing prices. We're now suffering through massive deflation in housing prices. We're also seeing mounting losses in credit cards, commercial real estate, etc.