The value of the U.S. dollar on the international market is continuing to plummet, despite record growth in the US economy.
Since October, the dollar has fallen 4 percent against both the euro and the Japanese yen. And this week, the dollar hit the lowest it has been against the euro since March 2005.
With the Dow setting records every week and America creating more jobs than it can fill, why is the dollar falling? There are several reasons.
Approximately 70 percent of all foreign-exchange currency is currently held in U.S. dollars. The U.S. then sells Treasury debt into that foreign exchange market.
This is a bit complicated, but here’s what that means. Each U.S. bill is a receipt for Treasury debt. Once accepted as “money” it has value to its bearer. But, it is debt to its issuer. The system relies on the global flow of U.S. dollars in and out of foreign currency reserves. A smaller foreign exchange holding in U.S. dollars means a smaller pool out of which to sell U.S. debt.
This sets up a financial peril that is little understood by most Americans. It sets up a double threat to the dollar. It not only shrinks the dollar’s value, but also raises both the trade deficit and the budget deficit. Now stay with me, here. This may be some of the most important information you will need to try and force Congress to do something – and also to take action to defend your own personal financial future.
It has become apparent that there is a new strategy to destroy America. It is a new kind of warfare designed to destroy the value of American currency via a carefully coordinated attack against our dollar by a coalition of our enemies. And, based on the rapid shrinking of the dollar’s worth, despite an economic boom, it appears to be working.
Certain countries have begun quietly divesting themselves of U.S. foreign exchange holdings, converting them to euros. In 2004, the Switzerland-based Bank for International Settlement reported that the U.S. dollar-denominated deposits of OPEC countries fell from 75 percent of their total deposits in the third quarter of 2001 to 61.5 percent by the end of 2003.
In the same period, the share of euro-denominated deposits of OPEC countries rose from 12 percent to 20 percent. OPEC member euro-denominated deposits reached 44 billion in June 2004, nearly double the 23.4 billion euros these countries held in the third quarter of 2001.
In the same period of time, the dollar holdings of the OPEC member countries decreased from $145.3 billion to $132.1 billion. In 2005, China negotiated major oil and natural gas rights from Iran.
For years, North Korea’s Kim Jong-il has been flooding the global economy with so-called “supernotes” – counterfeit U.S. $100 bills so good even Secret Service agents can’t tell the difference without conducting sophisticated tests.
The 2005 arrests of major Asian crime figures in several U.S. cities led investigators straight to Pyongyang – and from there to Beijing. Experts now believe that a significant percentage of U.S. $100 bills now in circulation are counterfeit.
The strategy is to flood the market with counterfeit dollars to deflate its value. Then to convert U.S. holdings to euros, thus pushing the dollar into a deflationary freefall.
In January 2006, China announced an intention to reduce 75 percent of its foreign exchange reserves currently held in U.S. dollars.
Since China is the world’s second-largest holder of U.S. dollar-denominated foreign-exchange reserves, it has the power to create a catastrophe. At the same time, Venezuela and Iran are now demanding that all payments for oil shipments be paid for in euros – not dollars.
In addition, both nations are planning regional central banking schemes designed to hold all foreign exchange holdings of participating countries in euros instead of dollars. This explains why enemy operators, spearheaded by members of the Saudi royal family, have flooded hundreds of millions of dollars into Venezuelan held bearer-bonds that are used to buy as many banks as possible throughout the Caribbean and South American areas.
All these factors cannot be coincidence. They reveal a concerted, well-coordinated strategy to destroy America through economics.
I believe oil is being used in this same overall strategy against America. Last October, OPEC agreed to reduce production to keep oil prices up near $60 per barrel. The price was suggested by Hugo Chavez after consultation with his friends in Tehran and Moscow and accepted by OPEC.
With that one brilliant maneuver, Chavez cornered the global oil market. Venezuela has vast deposits of heavy oil in the Orinoco, but heavy oil is expensive to extract and refine at free-market prices. However, at $60 per barrel, the Orinoco reserves give Venezuela the largest proven oil reserves in the world.
Not just larger than the vast reserves of Iran or Saudi Arabia, it is larger than both of them put together. In fact, it is bigger than all the proven oil reserves in the Middle East combined. Venezuela’s deposits alone could extend the oil age for another 100 years.
Hugo Chavez is raking in some $200 million a day in oil sales, most of it from the United States. If Chavez demands payment in euros, it will throw the whole U.S. economy into a crisis.
Amazingly, Hugo Chavez has now become the go-to guy for all of OPEC. He’s held audience with every oil sheik and dictator in the Middle East, including our “friends” the Saudis and Kuwaitis. With the recent re-election of Chavez, the U.S. is ringed by five of the most virulently anti-American leftist regimes in Latin America.
Related special offer: