Why the Dollar Bubble is about to Burst?

Why the Dollar Bubble is about to Burst?



IRAN HAS REALLY DONE IT...more deadlier than the nuclear..



The Voice (issue 264 -) ran an article beginning, 'Iran has really gone and done it now. No, they haven't sent their first nuclear sub in to the Persian Gulf. They are about to launch something much more deadly -- next week the Iran Bourse will open to trade oil, not n dollars but in Euros' This apparently insignificant event has consequences far greater for the US people, indeed all for us all, than is imaginable.

Currently almost all oil buying and selling is in US-dollars through exchanges in London and New York. It is not accidental they are both US-owned.

The Wall Street crash in 1929 sparked off global depression and World War II. During that war the US supplied provisions and munitions to all its allies, refusing currency and demanding gold payments in exchange.

By 1945, 80% of the world's gold was sitting in US vaults. The dollar became the one undisputed global reserve currency -- it was treated world-wide as `safer than gold'. The Bretton Woods agreement was established.

The US took full advantage over the next decades and printed dollars like there was no tomorrow. The US exported many mountains of dollars, paying for ever-increasing amounts of commodities, tax cuts for the rich, many wars abroad, mercenaries, spies and politicians the world over. You see, this did not affect inflation at home! The US got it all for free! Well, maybe for a forest or two.

Over subsequent decades the world's vaults bulged at the seams and more and more vaults were built, just for US dollars. Each year, the US spends many more dollars abroad that at home. Analysts pretty much agree that outside the US , of the savings, or reserves, of all other countries, in gold and all currencies -- that a massive 66% of this total wealth is in US dollars!

In 1971 several countries simultaneously tried to sell a small portion of their dollars to the US for gold. Krassimir Petrov, (Ph. D. in Economics at Ohio University) recently wrote, 'The US Government defaulted on its payment on August 15, 1971 . While popular spin told the story of `severing the link between the dollar and gold', in reality the denial to pay back in gold was an act of bankruptcy by the US Government.' The 1945 Breton Woods agreement was unilaterally smashed.

The dollar and US economy were on a precipice resembling Germany in 1929.
The US now had to find a way for the rest of the world to believe and have faith in the paper dollar. The solution was in oil, in the petrodollar. The US viciously bullied first Saudi Arabia and then OPEC to sell oil for dollars only -- it worked, the dollar was saved. Now countries had to keep dollars to buy much needed oil. And the US could buy oil all over the world, free of charge. What a Houdini for the US! Oil replaced gold as the new foundation to stop the paper dollar sinking.

Since 1971, the US printed even more mountains of dollars to spend abroad.
The trade deficit grew and grew. The US sucked-in much of the world's products for next to nothing. More vaults were built.

Expert, Cóilínn Nunan, wrote in 2003, 'The dollar is the de facto world reserve currency: the US currency accounts for approximately two thirds of all official exchange reserves. More than four-fifths of all foreign exchange transactions and half of all world exports are denominated in dollars. In addition, all IMF loans are denominated in dollars.'
Dr Bulent Gukay of Keele University recently wrote, 'This system of the US dollar acting as global reserve currency in oil trade keeps the demand for the dollar `artificially' high. This enables the US to carry out printing dollars at the price of next to nothing to fund increased military spending and consumer spending on imports. There is no theoretical limit to the amount of dollars that can be printed. As long as the US has no serious challengers, and the other states have confidence in the US dollar, the system functions.'

Until recently, the US-dollar has been safe. However, since 1990 Western Europe has been busy growing, swallowing up central and Eastern Europe .
French and German bosses were jealous of the US ability to buy goods and people the world over for nothing. They wanted a slice of the free cake too.
Further, they now had the power and established the euro in late 1999 against massive US-inspired opposition across Europe , especially from Britain - paid for in dollars of course. But the euro succeeded.

Only months after the euro-launch, Saddam's Iraq announced it was switching from selling oil in dollars only, to euros only -- breaking the OPEC agreement.. Iran , Russia , Venezuela , Libya , all began talking openly of switching too -- were the floodgates about to be opened?

Then aero planes flew into the twin-towers in September 2001. Was this another Houdini chance to save the US (petro) dollar and the biggest financial/economic crash in history? War preparations began in the US But first war-fever had to be created -- and truth was the first casualty. Other oil producing countries watched-on. In 2000 Iraq began selling oil in euros.
In 2002, Iraq changed all their petro-dollars in their vaults into euros. A few months later, the US began their invasion of Iraq .

The whole world was watching: very few aware that the US was engaging in the first oil currency, or petro-dollar war. After the invasion of Iraq in March 2003, remember, the US secured oil areas first. Their first sales in August were, of course, in dollars, again. The only government building in Baghdad not bombed was the Oil Ministry! It does not matter how many people are murdered -- for the US , the petro-dollar must be saved as the only way to buy and sell oil - otherwise the US economy will crash, and much more besides.

In early 2003, Hugo Chavez, President of Venezuela talked openly of selling half of its oil in euros (the other half is bought by the US). On 12 April 2003, the US-supported business leaders and some generals in Venezuela kidnapped Chavez and attempted a coup. The masses rose against this and the Army followed suit. The coup failed. This was bad for the US .

In November 2000 the euro/dollar was at $0.82 dollars, its lowest ever, and still diving, but when Iraq started selling oil in euros, the euro dive was halted. In April 2002 senior OPEC reps talked about trading in euros and the euro shot up. In June 2003 the US occupiers of Iraq switched trading back to dollars and the euro fell against the dollar again. In August 2003 Iran starts to sell oil in euros to some European countries and the euro rises sharply. In the winter of 2003-4 Russian and OPEC politicians talked seriously of switching oil/gas sales to the euro and the euro rose. In February 2004 OPEC met and made no decision to turn to the euro -- and yes, the euro fell against the dollar. In June 2004 Iran announced it would build an oil bourse to rival London and New York , and again, the euro rose. The euro stands at $1.27 and has been climbing of late.

But matters this month became far, far worse for the US dollar. On 5th May Iran registered its own Oil Bourse, the IOB. Not only are they now selling oil in euros from abroad -- they have established an actual Oil Bourse, a global trading centre for all countries to buy and sell their oil!

In Chavez's recent visit to London ; he talked openly about supporting the Iranian Oil Bourse, and selling oil in euros. When asked in London about the new arms embargo imposed by the US against Venezuela, Chavez prophetically dismissed the US as 'a paper tiger'.

Currently, almost all the world's oil is sold on either the NYMEX, New York Mercantile Exchange, or the IPE, London's International Petroleum Exchange.
Both are owned by US citizens and both sell and buy only in US dollars. The success of the Iran Oil Bourse makes sense to Europe , which buys 70% of Iran 's oil. It makes sense for Russia , which sells 66% of its oil to Europe . But worse for the US , China and India have already stated they are very interested in the new Iranian Oil Bourse.

If there is a tactical-nuclear strike on - deja-vu - `weapons of mass destruction' in Iran, who would bet against a certain Oil Exchange and more, being bombed too?

And worse for Bush. It makes sense for Europe , China , India and Japan-- as well as all the other countries mentioned above -- to buy and sell oil in Euro's. They will certainly have to stock-up on euros now, and they will sell dollars to do so. The euro is far more stable than the debt-ridden dollar. The IMF has recently highlighted US economic difficulties and the trade deficit strangling the US-- there is no way out.

The problem for so many countries now is how to get rid of their vaults full of dollars, before it crashes? And the US has bullied so many countries for so many decades around the world, that many will see a chance to kick the bully back. The US cannot accept even 5% of the world's dollars -- it would crash the US economy dragging much of the world with it, especially Britain .

To survive, as the Scottish Socialist Voice article stated, 'the US, needs to generate a trade surplus to get out of this one. Problem is it can't.'
This is spot on. To do that they must force US workers into near slavery, to get paid less than Chinese or Indian workers. We all know that this will not happen.

What will happen in the US ? Chaos for sure. Maybe a workers revolution, but looking at the situation as it is now, it is more likely to be a re-run of Germany post-1929, and some form of extreme-right mass movement will emerge...

Does Europe and China/Asia have the economic independence and strength to stop the whole world's economies collapsing with the US? Their vaults are full to the brim with dollars.

The US has to find a way to pay for its dollar-imperialist exploitation of the world since 1945.. Somehow, eventually, it has to account for every dollar in every vault in the world.

Bombing Iran could backfire tremendously. It would bring Iran openly into the war in Iraq , behind the Shiite majority. The US cannot cope even now with the much smaller Iraqi insurgency. Perhaps the US will feed into the Sunni v Shiite conflict and turn it into a wider Middle-East civil-war.
However, this is so dangerous for global oil supplies. Further, they know that this would be temporary, as some country somewhere else, will establish a euro-oil-exchange, perhaps in Brussels .

There is one `solution' -- scrap the dollar and print a whole new currency for the US . This will destroy 66% of the rest of the world's savings/reserves in one swoop. Imagine the implications? Such are the desperate things now swimming around heads in the White House, Wall Street and Pentagon.

Another is to do as Germany did, just before invading Poland in 1938. The Nazis filmed a mock Polish Army attack on Germany , to win hearts and minds at home. But again, this is a finger in the dam. So, how is the US going to escape this time? The only global arena of total superiority left is military. Who knows what horrors lie ahead. A new world war is one tool by which the US could discipline its `allies' into keeping the dollar in their vaults.

The task of socialists today is to explain to as many as possible, especially our class, that the coming crisis belongs purely to capitalism and (dollar) imperialism. Not people of other cultures, not Islam, not the axis of evil or their so-called WMDs. Their system alone is to blame.

The new Iranian Oil Bourse, the IOB, is situated in a new building on the free-trade-zone island of Kish, in the Persian Gulf. It's computers and software are all set to go. The IOB was supposed to be up and running last March, but many pressures forced a postponement. Where the pressure came from is obvious. It was internationally registered on 5th May and supposed to open mid-May, but its opening was put off, some saying the oil-mafia was involved, along with much international pressure

IT guys

Two IT guys were chatting in a pub after work.
"Guess what, mate," says the first IT guy, "yesterday, I met this gorgeous blonde girl in a bar.."

"What did you do?" says the other IT guy.

"Well, I invited her over to my place, we had a couple of drinks, we got into the mood and then she suddenly asked me to make her feel special!!!"

"You're kidding me!" says the second IT guy.

"I then I lifted her and put her on my desk next to my new laptop."

"Really? You got a new laptop? What configuration?"

"It's a 1 GB RAM, Mobile Internet Connectivity Card and 250GB HardDisk, Wi-Fi, DVD-Writer......................"
"Oh great.. is it a Sony laptop / Dell ?"

"No no its a Compaq Presario ..."

Rajanikanth's facts

Do you want to know who is Rajanikanth....here are the facts

Rajanikanth makes onions cry

Rajanikanth can delete the Recycle Bin.

Ghosts are actually caused by Rajanikanth killing people faster than Death can process them.

Rajanikanth can build a snowman..... out of rain.

Rajanikanth can strangle you with a cordless phone.

Rajanikanth can drown a fish.

When Rajanikanth enters a room, he doesn't turn the lights on,......... .... he turns the dark off.

When Rajanikanth looks in a mirror the mirror shatters, because not even glass is stupid enough to get in between Rajanikanth and Rajanikanth.

Brett Favre can throw a football over 50 yards.

Rajanikanth can throw Brett Favre even further.

The last digit of pi is Rajanikanth. He is the end of all things.

Rajanikanth does not know where you live, but he knows where you will die.

Bullets dodge Rajanikanth.

A Handicap parking sign does not signify that this spot is for handicapped people. It is actually in fact a warning, that the spot belongs to Rajanikanth and that you will be handicapped if you park there.

Rajanikanth' calendar goes straight from March 31st to April 2nd, no one fools Rajanikanth.

If you spell Rajanikanth wrong on Google it doesn't say, "Did you mean Rajanikanth?" It simply replies, "Run while you still have the chance."

Rajanikanth can do a wheelie on a unicycle.

Once a cobra bit Rajanikanth' leg. After five days of excruciating pain, the cobra died.

When Rajanikanth gives you the finger, he's telling you how many seconds you have left to live.

Rajanikanth can kill two stones with one bird.

Rajanikanth was once on Celebrity Wheel of Fortune and was the first to spin. The next 29 minutes of the show consisted of everyone standing around awkwardly, waiting for the wheel to stop.

Leading hand sanitizers claim they can kill 99.9 percent of germs. Rajanikanth can kill 100 percent of whatever he wants.

There is no such thing as global warming. Rajanikanth was cold, so he turned the sun up.

Rajanikanth can set ants on fire with a magnifying glass. At night.

Rajanikanth has a deep and abiding respect for human life… unless it gets in his way.

It takes Rajanikanth 20 minutes to watch 60 Minutes.

Rajanikanth once shot down a German fighter plane with his finger, by yelling, "Bang!"

In an average living room there are 1,242 objects Rajanikanth could use to kill you, including the room itself.

Behind every successful man, there is a woman. Behind every dead man, there is Rajanikanth.

Rajanikanth destroyed the periodic table, because Rajanikanth only recognizes the element of surprise.

Rajanikanth got his drivers license at the age of 16 Seconds.

With the rising cost of gasoline, Rajanikanth is beginning to worry about his drinking habit.

The square root of Rajanikanth is pain. Do not try to square Rajanikanth, the result is death.

When you say "no one's perfect", Rajanikanth takes this as a personal insult.

Salty Coffee

He met her on a party. She was so outstanding, many guys chasing after her, while he was so normal, nobody paid attention to him. At the end of the party, he invited her to have coffee with him, she was surprised, but due to being polite, she promised. They sat in a nice coffee shop, he was too nervous to say anything, she felt uncomfortable, she thought, please, let me go home.. Suddenly he asked the waiter:
"Would you please give me some salt? I'd like to put it in my coffee."
Everybody stared at him, so strange! His face turned red, but, still, he put the salt in his coffee and drank it.
She asked him curiously: why you have this hobby?
He replied: "when I was a little boy, I was living near the sea, I liked playing in the sea, I could feel the taste of the sea, just like the taste of the salty coffee. Now every time I have the salty coffee, I always think of my childhood, think of my hometown, I miss my hometown so much, I miss my parents who are still living there".
While saying that tears filled his eyes. She was deeply touched.
That's his true feeling, from the bottom of his heart. A man who can tell out his homesickness, he must be a man who loves home, cares about home, has responsibility of home.. Then she also started to speak, spoke about her faraway hometown, her childhood, her family.
That was a really nice talk, also a beautiful beginning of their story. They continued to date. She found that actually he was a man who meets all her demands; he had tolerance, was kind hearted, warm, careful. He was such a good person but she almost missed him!
Thanks to his salty coffee! Then the story was just like every beautiful love story, the princess married to the prince, then they were living the happy life... And, every time she made coffee for him, she put some salt in the coffee, as she knew that's the way he liked it.
After 40 years, he passed away, left her a letter which said: "My dearest, please forgive me, forgive my whole life lie. This was the only lie I said to you---the salty coffee. Remember the first time we dated? I was so nervous at that time, actually I wanted some sugar, but I said salt It was hard for me to change so I just went ahead.
I never thought that could be the start of our communication! I tried to tell you the truth many times in my life, but I was too afraid to do that, as I have promised not to lie to you for anything..
Now I'm dying, I afraid of nothing so I tell you the truth: I don't like the salty coffee, what a strange bad taste.. But I have had the salty coffee for my whole life! Since I knew you, I never feel sorry for anything I do for you. Having you with me is my biggest happiness for my whole life. If I can live for the second time, still want to know you and have you for my whole life, even though I have to drink the salty coffee again".
Her tears made the letter totally wet.
Someday, someone asked her: what's the taste of salty coffee? It's sweet. She replied.
Love is not 2 forget but 2 forgive
Not 2 c but 2 understand
Not 2 hear but 2 listen
Not 2 let go but HOLD ON !!!!

Classified ads

These four classified ads appeared in a newspaper on four consecutive days. The last three hopelessly trying to correct the first day's mistake...

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MONDAY: For sale - Vishanth has a sewing machine for sale. Phone 98407 16581 after 7PM and ask for Mrs Mani who lives with him cheap.

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TUESDAY: Notice: We regret having erred in Vishanth's ad yesterday. It should have read, "One sewing machine for sale cheap. Phone 98407 16581 and ask for Mrs Mani, who lives with him after 7PM."

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WEDNESDAY: Notice: Vishanth has informed us that he has received several annoying telephone calls because of t he error we made in the classified ad yesterday. The ad stands correct as follows: "For sale - Vishanth has a sewing machine for sale; Cheap. Phone 98407 16581 after 7PM and ask for Mrs. Mani who loves with him.

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THURSDAY: Notice: I, Vishanth, have no sewing machine for sale. I smashed it. Don't call 98407 16581 as I have had the phone disconnected. I have not been carrying on with Mrs. Mani. Until yesterday, she was my housekeeper but she quit!

How developer solves a bug?

##########################################################
#include
#define LAST 10
int main()
{
int i, sum = 0;

for ( i = 1; i < = LAST; i++ ) { sum += i; } /*-for-*/ printf("sum = %d\n", sum); return 0; } ##########################################################

And the developer fixes it this way

##########################################################
#include stdio.h;
#define LAST 10
int main()
{
int i, sum = 0;
/*

*/
for ( i = 1; i < = LAST; i++ )
{
sum += i;
}
/*-for-*/
printf("sum = %d\n", sum);
return 0;
}
##########################################################