Sell Cash

[Daveparts]

Sell Cash
By David Glenn Cox


Sounds odd, doesn’t it? As cash is the commodity that we use to purchase our goods and services. But that was the advise of financial guru Jim Cramer, the same Jim Cramer whose You Tube tirade about a market melt down has almost two million views. But this time, a calmer and more restrained Cramer explains as he points to the fire exits that it is time to sell cash.

I admire Mr. Cramer as the best of the worst, waist deep in predatory capitalism and unrepentant in his unbridled greed but with just enough, just a drop of integrity, enough to yell fire. He knows that this its arson and drops hints about people with matches and jars of gasoline. Sell cash was just such a hint.

The expected Federal Reserve rate cut will not only reduce the cost that banks pay for cash but the rates that they will pay out as well. The oceans of dollars mass produced by the treasury in the last six years are driving down its value. Do you want your retirement in CD’s of a currency declining in value as well as with falling interest rates? Of course not, now you know how the Arab sheiks feel sitting on a mountain of petro dollars. Sell cash.



Abu Dhabi is selling cash and assuming a troubled bank is a better investment than a deteriorating currency. Citigroup gets 7.5 billion or enough cash to cover their third quarter losses of 6.8 billion but that amount will be but a memory when the anticipated bill for 11 billion in fourth quarter losses lands in the mailbox. But good news! The wise apes of Wall Street predict that the purchase of US assets at fire sale prices by sovereign wealth funds may signal an end to the free fall of stocks. Much like the crash of the Hindenburg signaled the end of the no smoking restrictions.

Yes, Yes the Arab calvery to the rescue, sovereign wealth funds under the control of unelected dictators are our hero’s. But because of the lack of transparency in these funds the amount that they are allowed to purchase is tightly regulated.

Right, and Mr. Potter was just another Joe from Bedford Falls and George W. Bush’s father being the President had nothing to do with Harkin energy bailing out Bush the younger.

Since I mentioned Bush the geriatric, guess who was the first on the block to kick the dollar to the curb? The Iranians? Hugo Chavez? No, it was our dear dear flag waving Kuwaiti friends but as Jim Cramer is always quick to advise business is business its not about hunches or friendship. And in what is almost certainly a Freudian slip Prince Saud al-Faisal, foreign minister, speaking to reporters in London quelled speculation of any Saudi intention to drop the dollar. “Why would one do that?” he said, adding only half-jokingly that there “aren’t enough euros” around. Translate that as, we would if we could but we can’t ha,ha,ha. Our as Cramer would say, sell cash.

Gulf investors have purchased more than $70 billion of foreign assets this year, more than in the previous two years combined. All purchased with US dollars they are indeed selling their cash. They are getting while the getting is good but what of those who can’t? Those who are stuck with those dollars?

Thomas Enders, the CEO of Airbus, advised his employees at the consortium's production complex in Hamburg. He was there to tell them that a pain threshold had been reached. The graph he had projected on the wall revealed the horrifying progression of the dollar’s erosion. The US currency has lost 13 percent of its value against the euro since the beginning of the year. Conversely, the euro has risen in value, and for a short time it even approached the symbolic $1.50 threshold.

According to Enders, the rate at which the US currency is falling makes "reasonable processes of adjustment" a virtual impossibility. Every cent the dollar drops against the euro costs Airbus €100 million. This has even the normally optimistic Enders alarmed. "It's life-threatening," he explained to his audience.

So if every drop of a penny in the dollars value cost Airbus 100 million euro’s that’s $ 146,817,430 Bush dollars. If you think that’s got the Deutschlanders pissed off maybe that explains why the Chinese refused to let the US Navy dock in Hong Kong as the Chinese are sitting on a pile of one Trillion in paper Bush dollars. The Chinese don’t seem to share the Saudis sense of humor because the Chinese unlike the Saudis have to work for their cash. The Saudis just have to keep and eye on the pump and sell their oil for as many of those depreciated Bush dollars as the market will bear.

Analyst had predicted that OPEC at its upcoming meeting would raise production to ease prices but now OPEC has said no. Why should we? Do we need your cash? Will you stop buying if we don’t? The Saudis are doing everything in their power to try and help their idiot Uncle George out. They’ve cut interest rates following the Fed when it was in their own national interest to raise them. So asking them to pump more oil so that they can receive less income and to be paid in a currency that no one can say what it will be worth next month is beyond the pale.

The anger and consternation is rising world wide, the cash rich nations are in effect stuck with billion dollar gift certificates for Spencer’s in the mall and they don’t see anything they want. European central bankers have discussed intervening and purchasing dollars to raise its value. Only there is a flaw in the slaw, for the scheme to work banks worldwide would have to cooperate. Why would American banks do that? They are on the other end of the Airbus paradox; every cent the dollar goes down in value saves them 100 million in payments to foreign bankers as they pay their debts in depreciated Bush dollars.

Then there is the problem of speculators, if the central banks where to attempt to prop up the dollar currency speculators would rush in worldwide to cash in on the guaranteed windfall. The more they propped the more the speculators would profit buying and selling dollars making any fix only temporary. Or every time they give the patient a unit of blood they just draw more vampires from the woodwork.

It all comes back to Cramer’s recommendation to sell cash, the future of the currency is bleak. The fix is long term even if those with the power to do so had even a modicum of interest in doing it. For them this is literally a situation to say let them eat cake, the system has done right by them. But for the other 95% of Americans this is going to get ugly.

Elizabeth Kuber Ross in her groundbreaking book Of Death and Dying pointed to the five stages of grief. But the steps can be applied much more broadly to our own economic health. The stages are 1. Denial2. Anger3. Bargaining4. Depression 5.Acceptance The wise apes of Wall Street in August denied the sup prime crises and tried to minimize its importance. Then they became angry with those who tried to speak the truth they blamed Democrats for promoting bad publicity. Now they have tried to set up funds to stave off losses and the treasury secretary and the administration have done a 180 in regards to helping sub prime bowers, in effect bargaining.

Leading on to the last and inevitable step, remember sell cash!

[sam sarrha]

1. so this was a conspiracy to raise oil prices to give the Arabs the money to buy us up for 5 cents on

the dollar after the NeoCons destroyed the economy thru the mortgage sceme....

this isn't coincidence with a Bu$h in the White House

http://www.bushwatch.com/bushmillions.html