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Dinar increase could come by way of worldwide DV.


hot2bewe
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There have been many rumors now about if and when hyperinflation will set in, something we all are not looking forward to. It seems as though there may be no safe currency left, except precious metals. The word on the street is that the 1 tril bailout by the IMF and EU is bound to fail, hence Merkels recent ban on naked short selling of bank stocks and other German CDS and bond swaps. I think her actions speak 10 fold. The smart ones knew that eventually we would see that nasty word, hyperinflation, but we just were not sure when it would set in. Well that answer is here. First of all I'm glad to see Iraq trying to solve some issues with bond sales rather then going to the IMF or World Bank. Borrowing from these 2 do nothing but ruin countries, look what they did to Jamaica. There is starting to be a lot of chatter of hedgefunds betting against the EU bailout. Many of them have come out and said the Euro could even DV to be more competitive. The short story is that countries spent more money then there actually was. They have been trying to let the balloon deflate slowly but it's as though there is a little kid in front of the balloon with a huge needle just smiling. If China does nothing to increase their currency the US could look towards a DV as well. So in reality the Dinar might not have to RV that high if all the other larger nations are DV'ing their currencies to be competitive. The continuing holdoff on the formation of the new GCC currency continues to strike my interest. Are they holding off waiting for Iraq and if so what does that mean for us? It will be interesting to see if the other EU nations followup with Germany. If you start seeing the US put bans on shorts again you know what's going to hit the fan. Other information that seems to be coming out is that many Iraqi officials have said they would be happy to have new government seated by Sept and that if they can do that they would be in great shape. It seems there are more underlying issues than what many thought there were.

http://www.nytimes.com/2010/05/17/world/middleeast/17iraq.html

http://finance.yahoo.com/news/EU-Commission-urges-joint-apf-1268145110.html?x=0&sec=topStories&pos=5&asset=&ccode=

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There have been many rumors now about if and when hyperinflation will set in, something we all are not looking forward to. It seems as though there may be no safe currency left, except precious metals. The word on the street is that the 1 tril bailout by the IMF and EU is bound to fail, hence Merkels recent ban on naked short selling of bank stocks and other German CDS and bond swaps. I think her actions speak 10 fold. The smart ones knew that eventually we would see that nasty word, hyperinflation, but we just were not sure when it would set in. Well that answer is here. First of all I'm glad to see Iraq trying to solve some issues with bond sales rather then going to the IMF or World Bank. Borrowing from these 2 do nothing but ruin countries, look what they did to Jamaica. There is starting to be a lot of chatter of hedgefunds betting against the EU bailout. Many of them have come out and said the Euro could even DV to be more competitive. The short story is that countries spent more money then there actually was. They have been trying to let the balloon deflate slowly but it's as though there is a little kid in front of the balloon with a huge needle just smiling. If China does nothing to increase their currency the US could look towards a DV as well. So in reality the Dinar might not have to RV that high if all the other larger nations are DV'ing their currencies to be competitive. The continuing holdoff on the formation of the new GCC currency continues to strike my interest. Are they holding off waiting for Iraq and if so what does that mean for us? It will be interesting to see if the other EU nations followup with Germany. If you start seeing the US put bans on shorts again you know what's going to hit the fan. Other information that seems to be coming out is that many Iraqi officials have said they would be happy to have new government seated by Sept and that if they can do that they would be in great shape. It seems there are more underlying issues than what many thought there were.

http://www.nytimes.com/2010/05/17/world/middleeast/17iraq.html

http://finance.yahoo.com/news/EU-Commission-urges-joint-apf-1268145110.html?x=0&sec=topStories&pos=5&asset=&ccode=

Nice post ... thanks

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There have been many rumors now about if and when hyperinflation will set in, something we all are not looking forward to. It seems as though there may be no safe currency left, except precious metals. The word on the street is that the 1 tril bailout by the IMF and EU is bound to fail, hence Merkels recent ban on naked short selling of bank stocks and other German CDS and bond swaps. I think her actions speak 10 fold. The smart ones knew that eventually we would see that nasty word, hyperinflation, but we just were not sure when it would set in. Well that answer is here. First of all I'm glad to see Iraq trying to solve some issues with bond sales rather then going to the IMF or World Bank. Borrowing from these 2 do nothing but ruin countries, look what they did to Jamaica. There is starting to be a lot of chatter of hedgefunds betting against the EU bailout. Many of them have come out and said the Euro could even DV to be more competitive. The short story is that countries spent more money then there actually was. They have been trying to let the balloon deflate slowly but it's as though there is a little kid in front of the balloon with a huge needle just smiling. If China does nothing to increase their currency the US could look towards a DV as well. So in reality the Dinar might not have to RV that high if all the other larger nations are DV'ing their currencies to be competitive. The continuing holdoff on the formation of the new GCC currency continues to strike my interest. Are they holding off waiting for Iraq and if so what does that mean for us? It will be interesting to see if the other EU nations followup with Germany. If you start seeing the US put bans on shorts again you know what's going to hit the fan. Other information that seems to be coming out is that many Iraqi officials have said they would be happy to have new government seated by Sept and that if they can do that they would be in great shape. It seems there are more underlying issues than what many thought there were.

http://www.nytimes.com/2010/05/17/world/middleeast/17iraq.html

http://finance.yahoo.com/news/EU-Commission-urges-joint-apf-1268145110.html?x=0&sec=topStories&pos=5&asset=&ccode=

Nice break down...thanks!

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Very well thought out and explained. Germany seems to always be one step ahead of everyone else and What they are doing very well could be a prelude of things to come for the rest of the world powers. This dinar thing is becoming more and more the answer to the worlds answer... OH, let me throw in the,IMO, thing of course :-)

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Many of them have come out and said the Euro could even DV to be more competitive.

A lot has been said about the finacial woes of the EU.. There are problems with5 countries in particular (Referred to as PIIGS - Portugal, Italy, Ireland.Greece and Spain.)

It is important to bear in mind that these 5 countries only represent some 14% of the GDP of the EU, so let's keep the doomsday scenarios on hold for a while yet!

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A lot has been said about the finacial woes of the EU.. There are problems with5 countries in particular (Referred to as PIIGS - Portugal, Italy, Ireland.Greece and Spain.)

It is important to bear in mind that these 5 countries only represent some 14% of the GDP of the EU, so let's keep the doomsday scenarios on hold for a while yet!

GDP has nothing to do with it. The debt of these countries that other countries like us own does. If Greece defaults, then Portugal would because they own a lot if Greece's debt and so on and so on down the ladder.

This was from tonystewart Post: zzz 5/19/10... found on another site's site. (Also posted here in chat logs)

Oh, K98 look at his post on zzz it was at 11:50am again mine was like a little after 7am

Already sent a nice email to another site and they removed the post from their site.

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GDP has nothing to do with it. The debt of these countries that other countries like us own does. If Greece defaults, then Portugal would because they own a lot if Greece's debt and so on and so on down the ladder.

hot2bewe, I believe you are overstating the problem. The following has some very relevant points, for example the fact that member nations can be kicked out of the EU if necessary. But even more relevant is the relative state of the EU problem versus the USA problem. Sadly USA is kept afloat at present by deficit budgets of astronomic proportions, and by pork-barrel politics that defies the integrity of that (formerly?) great nation.

Long before I worry about the effect of Greece on the EU, I will be looking at the efforts to find a resolution to the problems of major States like California, New York, and Illinois.

**********************************************************

Copied from Sovereign Society’s Offshore A-Letter

Tuesday May 18th 2010

Euro Collapse? Give Me a Break

Long ago, before there was a “euro” the European Union members agreed to the Maastricht Treaty. This treaty would govern the member countries, so eventually they could create a “one policy meets all” for the entire EU.

Among other things, the Maastricht Treaty mandated that each member state could only have a budget deficit of 3% of its GDP. To join the EU, each member must meet that limit.

Most members decided to meet the target by selling their gold, which they did in 1998 and 1999. But they made it. When the Union formed, 13 nations joined together under the Maastricht Treaty.

Today, 17 nations are EU members, and all those citizens use the euro as their currency.

Unfortunately, one of those members used voodoo economics to meet the budget deficit rule. Basically, they cooked the books to make it look as if they only had a 3% budget deficit.

Now the truth is finally coming out, years after joining the EU.

That country? I’m sure you can guess. It’s Greece.

Is this shocking? Wrong? Absolutely.

But it’s also the reason why pundits all over the world are talking about the “coming collapse of the euro.”

Now I can agree that this will definitely be a setback for the euro. But come on. The euro will NOT fall apart just because of one bad apple. It doesn’t make sense.

Greece’s total contribution to the total Eurozone GDP is just 2%. If you remove 2% of the total Eurozone’s GDP, do you really think the EU will collapse?

That’s like saying the U.S. GDP would collapse if Idaho left. Not going to happen!

To take this further, everyone calls EU’s troubled states “the PIIGS” (Portugal, Italy, Ireland, Greece and Spain). But again, the PIIGS only account for 14% of the total Eurozone GDP.

Think the PIIGS Are Bad? Listen to This

Several U.S. states are already in default due to a number of reasons.

Some can’t make payments to state schools. Some are in the red on their pension payments. Some aren’t paying their insurance premiums. Some are issuing IOUs on tax returns and other payments, but they can’t repay without more debt.

The list of deadbeat states includes the “great states” of California, Michigan, New York, Massachusetts and even Obama’s territory, Illinois.

Count up all these states’ debt and the “hit” to the U.S. total GDP is more than 30%!

(Remember I said that the PIIGS’ debt was only 14%?)

Here is the key difference…

Greece, or Spain, or any of the PIIGS could drop out of the EU at any time … or EU leaders could force them to leave.

California, Illinois, and others cannot leave the U.S. — and Uncle Sam can’t kick them out either!

So the U.S. is saddled with these defaulted states’ deficits, whereas the Eurozone could very well say, good riddance to the PIIGS, and move on as a stronger entity!

Just as an example, let’s shine the light on the goings-on in Illinois…

“The state is in utter crisis,” said Rep. Suzie Bassi (R-Ill.). “We are next to bankruptcy. We have a $13 billion hole in a $28 billion budget.”

“The state has been paying bills with unfunded vouchers since October. A fifth of buses have stopped. Libraries, owed $400 million, are closing one day a week. Schools are owed $725 million. Unable to pay teachers, they are preparing mass lay-offs. ‘It’s a catastrophe,’” said the Schools Superintendent.

Again, the dire nature in the U.S. states is far greater than the Eurozone members.

Chicken Littles Cry About Euro’s Impending Demise (Again!)

Yes, these EU member states were completely out of line when they continued deficit spending. It’s only fair that the euro suffered a bit.

However, to say that the euro is going to collapse is simply unreasonable.

Before the euro even became a real entity in 1999, there were those that did not believe it would last, and would soon collapse. However, the euro, which suffered at first, eventually came on strong.

In 2005, when Sweden and Denmark both said “no” to join the euro, pundits once again called for the euro to collapse. But the euro only came back stronger. In 2008, during the financial collapse, they said the euro would fall apart. And once again, the euro came back stronger after selling off.

So is this just another case of euro selling as various Chicken Littles run around calling for the euro’s collapse, only to see it rebound and come back stronger?

Or is this finally the hangman’s noose for the euro?

Personally, I believe it to be the former. Here’s why…

The euro is the second most liquid currency in the world, and the second most widely traded currency in the world.

It is the offset currency to the dollar — and the closest thing to the next world reserve currency.

So, if you believe that the euro will collapse, then you must believe that the U.S. dollar will continue to soar for years. You must think our deficit spending that’s gone on for over eight years now is no big deal.

There are plenty of traders who think this way. I call them the “deficits don’t matter crowd.”

This blatant disregard for a currency’s debt always reminds me of a man leaping off the Empire State building.

He passes the 56th floor and screams… “So far, so good!”

The point is long-term deficits always matter. Greece found that out. It’s only a matter of time before the U.S. does.

*************************************************

Edited by GrahamB
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