More developments on the decline of the Dollar and what it means.

I got this off of the Hot Air blog. This article states how foreign banks are dumping the dollar. Bloomberg dot com has an article that presents more information on the decline of the dollar and what it means. I won't go into great detail on this since one can read it and I really can't make any intelligent observations on this, I am still trying to understand this.

It seems like the devaluing of the dollar is hurting other countries that rely on exports.

Yukitoshi Funo, executive vice president of Toyota City, Japan-based Toyota Motor Corp., the nation’s biggest automaker, called the yen’s strength 'painful.' Fabrice Bregier, chief operating officer of Toulouse, France-based Airbus SAS, the world’s largest commercial planemaker, said on Oct. 8 the euro’s 11 percent rise since April was 'challenging.'

It is in the best interest of the world economy that barriers to trade be eliminated and that every country does well. A global currency was seem to help solve this problem as I will discuss below.

An undeniable result from the decline of the dollar is stated by Fiorini, "'The diversification out of the dollar will accelerate,' said Fabrizio Fiorini, a money manager who helps oversee $12 billion at Aletti Gestielle SGR SpA in Milan. 'People are buying the euro not because they want that currency, but because they want to get rid of the dollar. [In the long run, the U.S. will not be the same powerful country that it once was].'" I don't think this is really news to any of us. The world economy and the world power structure are in the process of being rebalanced. I don't think this is necessarily a bad thing.

Maybe the trend of dumping the dollar is temporary, "Central banks’ moves away from the dollar are a temporary trend that will reverse once the Fed starts raising interest rates from near zero, according to Christoph Kind, who helps manage $20 billion as head of asset allocation at Frankfurt Trust in Germany." There seems to be other signs that things are not all that bad.

The article goes on to state that the US economy is expected to grow by a larger percent that other economies of the world in 2010, "America’s economy will grow 2.4 percent in 2010, compared with 0.95 percent in the euro-zone, and 1 percent in Japan, median predictions show. Japan is seen keeping its rate at 0.1 percent through 2010." The value of this 2.4 percent depends on what percentage the economies have shrunk due to the recession. I don't know what this percentage is.

This article from World Net Daily seems to indicate that there is an active attempt to bring about a new global currency and that this would not be a bad thing. This statement is from the economics professor who helped to create the Euro and is currently advocating a new global currency.

Mundell has argued for decades the proposition that nation-state currencies, including the dollar, need to give way to a new official world currency. According to Mundell, an "optimal currency area" is best defined by international free-trade areas and regional markets, not by nation-states such as the United States of America. Mundell's argument was that nation-states are not optimal currency areas because nation-state borders are artificial constraints imposed on the globe to create ethnic or historical divisions that do not necessarily represent how international markets operate. To understand the concept, Mundell cites former Federal Reserve Chairman Paul Volker's frequently quoted dictum, "[A global economy needs a global currency].'The benefits from a world currency would be enormous,' Mundell argues on his website.

From the above article, it seems that a global currency makes sense in the global economy and will solve some issues of free trade by eliminating "artificial constraints" to world trade.

Some would state that a plan to create a one-world currency is some conspiracy, "Appearing on Sean Hannity's Fox News Channel television show, political consultant Dick Morris and Hannity agreed the decision by the G20 proved the 'conspiracy theorists were right' and there is now clear evidence of a plan to create a one-world currency." I don't see that as some "conspiracy" but just the natural course of the development of human civilization. Globalization is here to stay and will only become more pronounced in the future. This would be a necessary development towards a one-world government that WND makes a big deal out of--I disagree with this being made out to be some conspiracy and some bad thing. It would depend on who is in charge of this government. But I don't see a truly one-world government coming about any time soon; the world is still very divided and will not likely be able to come to any major agreements. Maybe if there is some world wide crises such as an economic crises or some war, this would cause the world to unite and form some temporary agreement by electing some unified government or some type of alliance.

It seems inevitable that some form of a new global currency will come about some time in the future, and the current developments in the world economy and the decline of the dollar is helping to bring this about by illustrating a need for such a currency, and these developments are acting as a catalyst to help bring this about. This would be a shift of power that is currently held by America and other nations to an international body. From what I understand, the dollar is currently acting as a form of a global currency and that it is in the slow process of being replaced by an international currency. The world will only become more interconnected and interdependent due to globalization, and this development will create a need for a global currency. Many of the world trade export and import issue seem to me to be caused by the world using different currencies. While there are definitely some negative effects for America in the short term due to the dollar being devalued, it seems like these negative effects could be temporary and is helping to bring about the inevitable necessity of re balancing the global economy. I still have a long ways to go to understand what all of this really means.

Oh.My.God. - Dear Leader wins Nobel Peace Prize

I think I pretty much feel like Janice on hearing the news of our super overachieving President's Nobel Peace Prize (check out this London Times opinion of the choice).



To paraphrase a real leader, Never has one man been nominated for so much for doing so little.

An entertaining song and dance in support of health care reform!

This video is very funny! I don't know if it is real or not. I got it off of Rush Limbaugh dot com. This is a video of students of the Ron Clark Academy, located in glorious Atlanta, that took place on CNN live. The kids are singing a cool song along with a nice little dance. I think that this school is a public-private partnership. Anyways, an entertaining little two minute video that shows what is happening in our education system. Before long, children will be pledging allegiance to the president or some system, like they do in those countries with an overzealous government. This is America though, so we don't have to worry about that happening. Again, very funny.

Blowing Man Made Global Warming out of the Hot Water

The environmental scientists at Climate Audit and Watt's Up With That have blown that 'science' behind Anthropogenic Global Warming (that's Man-Caused Global Warming fer you ignerant Rethuglicans) out of the water. They showed that the folks that put together the reports used to jump start the Global Warming craze back in the '90's were totally cherry-picking that data and not submitting the full data sets for peer review. When asked to provide the full dataset after the flaw was discovered, the pushers of this famous 'Hockey Stick' spike in global temperature in the late 20th century would not release it for general peer review. Totally spitting in the face of true scientific method. They finally released the data earlier this year.

The graph above shows three data sets: the red is the famous 'hockey stick' data taken from twelve cherry-picked trees, the black is the data taken from the rest of the trees in the area in Russia that was measured, and the green is the merging of the two data sets. What this shows is a late 20th century that, though warming, is not atypical at all for the last 2000 years. There is some incredibly good stuff written at these two sites. The main author of the new analysis, Steve McIntyre states

As CA readers also know, until recently, CRU staunchly refused to provide the measurement data used in Briffa's Yamal reconstruction. Science(mag) acquiesced in this refusal in connection with Osborn and Briffa 2006. While the Yamal chronology was used in a Science article, it originated with Briffa 2000 and Science(mag) took the position that the previous journal (which had a different data policy) had jurisdiction. Briffa used the chronology Briffa et al (Phil Trans B, 2008) and the Phil Trans editors finally seized the nettle, requiring Briffa to archive the data. As noted before, Briffa asked for an extension and, when I checked earlier this year, the Yamal measurement data remained unarchived. A few days ago, I noticed that the Yamal data was finally placed online. With the information finally available, this analysis has only taken a few days.

This should add an incredible amount of ammunition to the anti-Cap 'n' Trade fighters. Al Gore, as most reasonable people know, is full of hot air, and bullshit.

A good artilce on the state of America's university system and a valuable resource for the college student.

"A general state education is a mere contrivance for moulding people to be exactly like one another: and the mould in which it cast them is that which pleases the predominant power in the government, whether this be a monarch, a priesthood, an aristocracy, or the majority of the existing generation; in proportion as it is efficient and successful, it establishes a despotism over the mind, leading by natural tendency to one over the body", J.S. Mill. We find that this quote is accurate when we examine what is taught in the universities and the effects that this has on society. This article was written by a conservative professor. In it, he describes what is taught in universities.

• "The legitimacy of virtually any program that promotes the interests of minority and female faculty, staff and students, even if the program is blatantly racist or sexist -- justified by a belief that America's past unjust treatment of blacks, American Indians and Japanese-Americans, and its unfair treatment of women render such discrimination necessary and lawful."
  
• "A multicultural mentality, which preaches that America's Eurocentric, white, Christian heritage is responsible for colonialism, imperialism, racism and sexism, and that its replacement by a culture that "celebrates diversity" will transform the US into a more just and humane society."
• "A distrust of free markets and democratic capitalism, and its severe limitation in favor of a centralized, government-controlled economy that will redistribute the wealth of America more fairly."
• "A denigration of religious belief and its replacement by the "worship" of secular humanism, with mindless environmentalism occupying a central place in the new religion." I would add the worship of the state.
  

He goes on to state how these "citadels of thought" use diversity as reverse racism. "My epiphany came about 20 years ago at the inauguration of a new campus president. In his acceptance speech, he said many things that seemed bizarre to me, but the comment I recall most vividly was his insistence that he would create a world-class university by building "excellence through diversity." His point seemed to be that by substantially increasing the number of minority and female faculty, staff and students (and consequently decreasing the number of white males), this would of necessity make us a great university." Diversity is a magic word that will cure all evils. It is just a nice facade to hid their true intentions of suppressing people and thought.

He describes the conformity of thought and the fact that all think alike. "My second observation is that I was not the only one failing to make waves. [In fact, there were no waves whatsoever.] There was no debate, no controversy; just the calm serenity of a campus at peace with its almost universally accepted mind set. I attribute this to three things. First, of course, anyone raising an objection was viewed, as I was, as hopelessly out of it and worthy only of being ignored. This has a chilling effect, perhaps even more effective than derision. Second, I suspect that those who believed as I did were still in lockdown mode -- for the same reasons as I was over the years. And third, I believe the liberal brainwash has been so effective on campus -- and in the national educational system in general -- that many in the liberal majority can't even fathom that there is anyone who doubts the legitimacy of their point of view."

He shows how this conformity of thought has been spread throughout our whole system. "My final observation is the following. The liberal hegemony exists in many quarters of the country beside academia -- e.g., the mainstream media, major foundations, law schools and the trail lawyers they produce, public school teachers, the Democratic Party, even big corporations. But none of these can maintain the atmosphere as effortlessly as campus profs and administrators." Indeed, the state education system is helping to make people "to be exactly like one another". To defeat America, it must be defeated from within. The education system is a major tool to bring a disintegration of our system by undercutting the very foundation of our society and Country. One must be armed with knowledge to overcome the system.

A good website with information to battle the liberal establishment in the university system and their lies and crap that they teach is the Intercollegiate Studies Institute. They review colleges and provide a plethora of information for the college student. It is a good source to find a college; and overall, to overcome the liberal tide in the education system. Well worth a check by the college student.

Awesome Recount of the Obama Administration

Still worried about this country going apeshit, here's a good account of somethings to be excited about:

Update on the decline of the U.S. Dollar.

I came across this short news article on Fox News dot com titled Arab States in Secret Talks to drop dollar.

"Gulf Arab states are in secret talks with Russia, China, Japan and France to replace the U.S. dollar with a basket of currencies for the trading of oil, Britain's The Independent newspaper reported on Tuesday.

"Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars," said the report, which cited unidentified sources in Gulf Arab states and Chinese banking sources in Hong Kong. It added that France had also been involved in the talks.

According to The Independent, the plans are to transition the trading of crude oil over nine years from the U.S. dollar to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Cooperation Council, including Saudi Arabia, the United Arab Emirates, Kuwait and Qatar.

U.S. officials, which are 'sure to fight this international cabal,' are aware the meetings have taken place but have not fully discovered all of the details, the newspaper said.

The report cited an unnamed Chinese banker as saying the plan ['will change the face of international financial transactions.] America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate.'

The issue of shifting oil trade away from the U.S. dollar has been raised occasionally in recent years, [but analysts and experts told Reuters it is unlikely to occur any time soon.]

In wake of the report, the U.S. dollar fell against the yen and euro on Tuesday.

'There are worries that Middle Eastern countries may stop using the dollar in oil transactions,' Yuji Saito, head of the foreign-exchange group in Tokyo at Societe Generale SA, told Bloomberg. 'This is causing the dollar to be sold across the board.'"

If read the report; you will see a shift in power throughout the world being stated, "The decline of American economic power linked to the current global recession was implicitly acknowledged by the World Bank president Robert Zoellick. '[One of the legacies of this crisis may be a recognition of changed economic power relations],' he said in Istanbul ahead of meetings this week of the IMF and World Bank."

This transition will not occur until around 2018, "Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the transition from the dollar in nine years' time. The current deadline for the currency transition is 2018." It seems that a lot of the ramifications, most are not good, of current economic policy--cap and trade, debt, the devaluing of the Dollar, and etc.-- will occur around the 2020 time frame. It seems like this time period will be a pivotal moment for the World Economy.

Well, it seems that the world is aware that the Dollar is on the decline due to the recent economic policies of our government. The world reaction to this development reveals a lot about the condition of America's economy. What does it mean for the U.S.? I can't give all the answers, but it is not good when a nation's currency is devalued. One important point to take away from these recent developments concerning the Dollar is that it is a indication of the decline of America, and this is leading to a stronger and more unified world. To me, this is an important development. Why is it not being reported in the major news outlets? Nothing that will be of concern for the average person until later down the road.