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Collapse of Western Economy

-Read The Signs

 

TELEGRAPH
June 19, 2008.

The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.

"A very nasty period is soon to be upon us - be prepared," said Bob Janjuah, the bank's credit strategist.

A report by the bank's research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as "all the chickens come home to roost" from the excesses of the global boom, with contagion spreading across Europe and emerging markets.

Such a slide on world bourses would amount to one of the worst bear markets over the last century.

Source:
Telegraph.uk

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TELEGRAPH
September 12, 2008.

Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East.

"This is a very dangerous situation for the dollar," said Hans Redeker, currency chief at BNP Paribas.

"Saudi Arabia has $800bn (£400bn) in their future generation fund, and the entire region has $3,500bn under management. They face an inflationary threat and do not want to import an interest rate policy set for the recessionary conditions in the United States," he said.

The Saudi central bank said today that it would take "appropriate measures" to halt huge capital inflows into the country, but analysts say this policy is unsustainable and will inevitably lead to the collapse of the dollar peg.

As a close ally of the US, Riyadh has so far tried to stick to the peg, but the link is now destabilising its own economy.

Source:
Telegraph.uk


Part 1
 

Part 2
 

The American National Debt has continued to increase an average of
$1.93 billion per day since September 28, 2007.

The national dept will exceed 10 trillion dollars within 2008.

In the 1990s $2.8 trillion of new debt was created; more than created in the nation's entire history prior to 1990

In the 4 years 1997-2001 total federal debt increased $438 billion,
a period when politicians bragged about a $557 billion surplus.
That's a $1 Trillion creditability gap.
(Some might suggest Enron and others learned reporting gimmickry from government practices)

An additional $2.8 trillion of debt was added in 2002-2007.

Source:
Grandfather Economic Report



Part 3
 


Part 4
 


Part 5
 
 

TIME
Nov. 13, 2000.

Europe's dream of promoting the euro as a competitor to the U.S. dollar may get a boost from SADDAM HUSSEIN. Iraq says that from now on, it wants payments for its oil in euros, despite the fact that the battered European currency unit, which used to be worth quite a bit more than $1, has dropped to about 82[cents]. Iraq says it will no longer accept dollars for oil because it does not want to deal "in the currency of the enemy."

The switch to euros would cost the U.N. a small fortune in accounting-paperwork changes. It would also reduce the interest earnings and reparations payments that Iraq is making for damage it caused during the Gulf War, a shortfall the Iraqis would have to make up.

The move hurts Iraq, the U.N. and the countries receiving reparations. So why is Saddam doing it? Diplomatic sources say switching to the euro will favor European suppliers over U.S. ones in competing for Iraqi contracts, and the p.r. boost that Baghdad would probably get in Europe would be another plus.


Source:
Time.com




Part 6
 
 

Bloomberg News
Oct. 25, 2007.

Jim Rogers, the chairman of Beeland Interests, said he is shifting all his assets out of the dollar and buying Chinese yuan because the U.S. Federal Reserve Board has eroded the value of the U.S. currency.

"I'm in the process of - I hope in the next few months - getting all of my assets out of U.S. dollars," said Rogers, 65, who correctly predicted the commodities rally in 1999. "I'm that pessimistic about what's happening in the U.S."

Rogers, delivering a presentation Tuesday at an investors' meeting organized by ABN Amro Markets in Amsterdam, said he expects the yuan to quadruple in the next decade and that he is holding on to commodities like platinum, gold, silver and palladium.

The dollar has dropped against all the 16 most actively traded currencies except the Mexican peso this year as slowing growth and the first interest-rate reduction since 2003 last month dimmed the allure of dollar-denominated assets.

Since the Fed lowered U.S. interest rates Sept. 18, the first cut in four years, the dollar has fallen 2.8 percent against the euro and touched a record low Tuesday. Gold rose to a 27-year high and platinum jumped to a record.

Source:
Bloomberg News