Tuesday, June 12, 2007

Nations Abandoning Dollar


More bad, bad news for the dollar. The United Arab Emirates (UAE) is apparently moving away from the dollar. Bloomberg reported that the UAE "may be the next Middle Eastern country to stop pegging its exchange rate to the U.S. dollar, according to trading in currency forwards." This worrisome possibility comes as several other nations are severing their ties with the dollar. Countries such as Iran and Venezuela have been joined recently by Syria and Kuwait in divorcing themselves from the dollar.

This move by the UAE should not be confused and likened to the dollar-dumping moves by countries who virulently hate America. The UAE (includes Dubai) is ruled by Sheikh Mohammed bin Rashid al Maktoum, the Prime Minister of the UAE, who like his late father, is extremely pro-West and pro-capitalism. Kuwait and the UAE explain why they are severing ties with the dollar: simply to fight inflation because the dollar has been wildly inflated by the U.S. government - despite phony claims that official CPI is "low." The rest of the world recognizes this inflation. Thus, the dollar continues to tumble, despite Federal Reserve rate increases. Also the global cost of commodities measured in dollars continues upwards.

By turning away from the U.S. dollar, these nations are not just hurting its international value, they are also undermining the dollar's political power as the world's reserve currency. This is a major threat to America's political "power multiplier" in the coming world struggle for power. It is also a major threat to America's global economic strength, and most importantly your wealth as an American.

Our government has engaged in some of the most profligate spending yet known to man, running up huge debts and borrowing (off balance sheet obligations) against the earnings of future generations. The Fed is unable to defend our dollar against the rising interest rates of other nations. If Bernanke and the Fed raise rates, the U.S. economy moves quickly into recession. (NewsMax.com)

· Pray for our US economy - that it reaches a stability, which can only come from the Lord's intervention. Of course, to bring the USA to its knees is the plan of the EU and the New World Order: we lose our position as a world power and can no longer fight for liberty. Too many entitlements, which buy votes for Congress, have brought us to such enormous debt. · " In the house of the righteous is much treasure: but in the revenues of the wicked is trouble." (Proverbs 15: 6)