Prepare Yourselves For The Dollar To Crash and Burn

Things are getting close, folks. I have said several times on this blog (and others) that there will come a time when the US Dollar will lose its place as reserve currency and the trading vehicle in the world of finance. The American exceptionalism thing will cause most of you to shrug and ask, “So what?”

So, what will happen? We will find that the moment this happens, we will find our economy in a swan dive from a mile high cliff. The indicators have been around for a while (and I am sure that kelso can give specifics), but suffice it to say that when the big players in the world begin to sell off their Dollar investments and force the world into some other currency for trade, we will not be prepared for the devastation that will follow. We have basically destroyed our manufacturing in the US and have become so heavily military focused that the knee-jerk reaction will be for Americans to try and find work in a missile factory, et al. Or building ships (the largest employer in Mississippi is military, as I understand it).

Keep an eye out on these countries and this particular person (this man, Jim Rogers, foresaw the current bubble bust and did something about it… moved out). Jim is readying to sell off his dollar holdings.

We already know that China and Russia are pushing for the same.

But now we have India, who is a huge trading ally (and military ally), questioning the US Dollar Dominance:

Suresh Tendulkar, an economic adviser to Indian Prime Minister Manmohan Singh, said he is urging the government to diversify its $264.6 billion foreign-exchange reserves and hold fewer dollars.”

The major part of Indian reserves is 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 yesterday in Aix-en-Provence, France, where he was attending an economic conference…

Singh adviser Tendulkar said that big dollar holders face a “prisoner’s dilemma” in terms of managing their holdings. “That’s why I’m telling them to do this,” he said.

He also said that world currencies need to adjust to help unwind trade imbalances that have contributed to the global financial crisis.

“The major imbalances which led to the current situation, the current account surpluses and deficits, have to be addressed,” he said. “Currency adjustment is one thing that suggests itself.”

It is really quite evident that it is all falling apart. Yet, we have Americans who glibly move along as if there is nothing wrong, or worse, defeated into believing that nothing can be done.

Let me tell you what can be done, at least from an elected representative standpoint:

First and foremost, we need a referendum to change the way elections are financed and conducted in America. No more electroal college bullshit.

Secondly, vote out of office, each and every corporately owned congressperson. Anyone who has received campaign finance from banks, telecom, military, etc, should lose their jobs immediately. Anyone who votes with their campaign finance interest in mind and not those whom they represent need to go post haste.

Third, Limit terms to 2. Period.

Fourthly, either force Congress to purchase their own health insurance or go Single Payer across the board, force them to invest in their own retirement, instead of being paid their full salary for the rest of their lives (even if having only served one term), force them to pay INTO Social Security, stop their ability to vote in their own raises and force them into observing and upholding the same laws that we, normal Americans, are made to uphold.

Fifth, MAKE them balance the budget. We simply cannot afford the $1T annually for overseas bases that are unnecessary and the cause for most of the back lash we have been receiving for many years. If the shoe were on the other foot, I guarantee things would be seen differently (say, if China had bases all over North and South America).

(BTW: many of these ideas are seen in a video shown at Not Another CONspiracy)

We have a small window of opportunity left before it is too late. If you are still asleep, forgive the intrusion, but we are just a gnat’s ass away from devastation.

UPDATE:

Washington’s Blog links to an article that shows where France, the 5th largest economy in the world, is now calling for an end to the Dollar dominance. Just like dominoes, here come the rest of the world’s countries…