Michale Ruppert - Alert - Run on the Dollar Imminent

[FloridaPat]

As The World Burns

By
Michael C. Ruppert

-- But when the run on the dollar begins, OPEC will inevitably at some point switch its pricing to the Euro, which the entire world is wrangling - much to Europe's chagrin - into not only a safe-haven currency, but a profitable one. The next house is being built before the old one is abandoned. When the run on the dollar begins, it will be as if the rest of the world declared war on the United States of America by launching a missile, dropping a bomb, or landing an army at Bethany Beach, Delaware. That this will lead ultimately to widespread global warfare seems certain. This is exactly the way the administration is setting it up to appear to the American people. Think of 9/11 times fifty.

The rest of the world is merely defending itself with non-violent means - for the moment. But it will be portrayed as an attack upon the US. "Why?" George Bush will ask, rhetorically. "They hate us because of our freedom."

And, barring a miracle, the end results will be exactly the same as from a physical attack: devastation so complete and unthinkable - magnified by the brutal impacts of Peak Oil - that only a few will even try to prepare for it. That is sad because preparation will make all the difference (barring luck or divine intervention) in who survives and to what extent they remain intact and functioning afterwards.


http://www.fromthewilderness.com/free/ww3/120104_world_burns_summary.shtml

[nadinbrzezinski]

1. My only problem wiht Rupert is

he has been off in some critical things such as the Coup vs bush from the CIA...

Taht said, the fall of the dollar will lead to the sell off of Federal Securities... and yes we are now in the midst of economic warfare

[ProfessorGAC]

27. He's Wrong On This One, Too

As weak as the dollar is, it's still the 2nd strongest currency in the world.

As soft as this economy is, it's still the most resilient and, in the grand scheme, the most robust in the world.

The monolithic nature of the economy is such that absent a worldwide cataclysm (nuclear war, for instance) there are no extrinsic forces that will radically shift that supermacroeconomic leverage.

This is just another doom & gloom scenario for which there is no theoretical foundation. It's also one of the key elements within the neocon economic principles, which is why they want control of the oil. They want control so the currency of oil WON'T change. Since i think they're wrong about everything else, i'm not going to support this ridiculous notion. Just because a non-neocon has bought this canard doesn't change my opinion of it.
The Professor

[NewJeffCT]

32. agreed - and, China has their own problems

A lot of unemployment & quiet unrest... banking problems... electrical/power grid problems... pollution.

However, our two economies are too tied together for them to try to pull the rug out from under us. I don't think China feels they are strong enough (yet) to take the hit on their economy yet that a plunging dollar would cause.

The Chinese are very patient people who view things long term, unlike most in the US. The Chinese feel it is inevitable that they will overtake us as the world's #1 economy, be it in 10 years, 20 years or 50.

However, if there is ever a confrontation over Taiwan, they could use their economic clout as a big stick to keep us away - they are already lining up support in many small countries in Africa & South America through favorable trade agreements. So, a UN vote will likely be embarrassingly 1 sided in favor of mainland China vs Taiwan and make our current "coalition of the willing" look broad & universal in comparison.

[nadinbrzezinski]

33. Problem is who owns our debt, you heard of China, haven't you

As I said he has been wrong, but on this one it is not a canard... and other economists see the same thing

But Rupert has been wrong so many times, But the chief economist for Golden Sachs has been talking the same way, as in economic armagedon

[Swamp Rat]

2. Meanwhile... SLEEEEEEEEEEP!

[DrWeird]

28. That's a great pic, SR.

I don't usually say that, but yours is really good.

[denverbill]

3. And when it happens, thank your Republican voting friends.

Short-sighted, selfish assholes one and all, who voted to give themselves a $400 tax cut and add $1 trillion to the national debt.

[mmonk]

4. My last energy report

said the Saudis will not jump to Euros. We will see what the overall OPEC view will be.

[el_gato]

9. given the fact that the house of saud is helping Murdoch right now

and their history of being in bed with the Bush gang I really don't see them jumping to the Euro either. Now if the House of Saud fell...

[Fovea]

5. Call me Cassandra

I have been yelling this since before we rolled into Iraq.
1. that we would get no oil boost from Iraq
2. that the world would agree on mutual support as they collapsed our economy.
3. that oil would seek at least $50/bbl as a floor. I did not really think that Bush* would want the dollar to sink like this, as any idiot would realize that a soft dollar would do us little good, considering how small and shakey our mfg base is now.

[chicagiana]

11. Soft dollar would help the trade deficit if ....

... if the Chinese didn't peg their currency to the dollar. If the dollar crashes, we'll have the WORST of both worlds. Most foreign goods will be too expensive. At the same time, the presence of underpriced Wal-Mart chinese crap will prevent the revitalization of domestic labor sources.

[Fovea]

18. The Chinese have already

started to move away from the dollar.
But I don't see our industrial base as being able to produce things the Chinese want to buy, other than agri products.

If your weathly Chinese has a choice between a Ford Expedition, and a Toyota, guess which they will buy?

[HereSince1628]

6. So, those who have staked out a place under the overpass

will actually have played it right??????????

I will go to the local sport shop and by 3 dozen fish hooks and one hundred yards of 10 lb test monofilament...

The question is how to get access to vegetable resources befor those nasty corporate compactors squash them into inedible mush.

[Fovea]

19. Too bad most rivers are not fit to fish out of anymore.

n/t

[movonne]

7. Does anyone here subscribe to FTW that could print more of

this article??? From what I have been reading this sounds very plausable. I hope all the bush lovers find this interesting... they hate us for our freedoms..I ask what freedoms..there is a whole bunch of countries that have more freedoms than we do. I really dislike these people (bush lovers) for what they are doing to this country...

[cliss]

8. Thank you for the info, F.

This is the reason why I keep my channel tuned to DU. We get the important stuff long before it becomes general knowledge.

Here's the scary part. The rest of us (meaning the vast majority of Americans, but also many foreign countries including banks, importing companies, governments, all of whom have $dollar holdings) will be left holding the bag.

Meantime, even the "patriotic" Bush Gang will have flushed the dollar down the toilet, as the moved on to Euros.

Think of Bush, standing there with his little American flag pin on his lapel. :smoke:

[Dover]

10. Would a subscriber care to share the whole story? Please PM me

with the full story.......PLEASE! grovel....grovel.

[Dover]

12. I don't know what the U.S. policy is, but I've read enough to know that

currency/trading blocks are in the works. China and Asian countries are talking about their own currency, Europe has already developed theirs, the Middle East has discussed it and I've heard some talk about a Western currency/trade block with both South and North America. So that might ultimately be the goal though I have no idea how this would be engineered, how long it would take, who's for it or against it, etc....

[Squeech]

26. Brazil

is trying to put together a South American trading bloc, without us. There's already a mini-version called Mercosul, Brazil and three of her neighbors, that works pretty well.

I've heard economists use the acronym BRIC for the countries they expect to be our biggest 21st century competitors: Brazil, Russia, India and China. (I wonder why Korea isn't in there too, to make the acronym complete-- are they too small to matter, or are they already in the top stratum for all practical purposes?)

[Sperk]

13. I asked my husband if he could take 10 or 20 grand from his

401K and buy gold (when it was 317 an oz). No can do, gold wasn't an option. grrrrrrrr....at 450 now and rising.
DAMN! I hope his 401K is still there when he retires in 8-10 years.
Hope he can get work for the next 8-10 years!

At least we have no credit card debit and we refinanced at a fixed 4.75 -10 year-no points. Hope we have income for the next 10 years to pay it off. Shit.

Maybe those doomsdayers where right after all....we should all be buying cans of tuna and stocking our bomb shelters.

Am I being too dramatic? Please say yes.

[Minstrel Boy]

14. I'm a subscriber. Here's a further excerpt:

There are as yet no volunteers from among the other nations to suffer the carnage necessary to break the US military's back in an open firefight. But there are non-violent ways to fight the Empire which are in fact precursors to military confrontations. At some point the Empire will resort to what it knows, maybe in the Ukraine, maybe in Africa, maybe in Latin America. At some point after that, unless something is done, the safeties will come off nuclear and biological weapons. The unthinkable will become a rational option.

All of that may take less than a year. In the meantime the trick for the rest of the world is how to get out of the dollar before it plummets and thus protect foreign currency holdings.

Catch 22? Maybe not. Many countries are now signaling that they are willing to take a little shot in order to give the US a very big one. That's what November 2nd told Wall Street, the Treasury and the Fed. And - according to a November 29th AP story reprinted in Forbes -China's Central Bank has now moved in to try and manage the dollar's decline by buying and selling them through its four largest banks. The likely intent is to allow all the other nations aligning with this plan to get out safely with minimal losses. Only China has currency reserves (approximately US $175 billion) and an economy big enough (even as Peak Oil is just beginning to hit home) to underwrite the switch and make it palatable to those taking the risk. It appears that since November 2nd the rest of the world feels it has much less to lose. They are correct. The oil and gas supplied by Iran are essential to the survival of many countries.

But China is also facing increasingly frequent blackouts due to energy shortages. If it is going to move on the dollar it must move before its economy slows and the US, Koreans, Europe, Japan, Canada, and the rest of the industrialized world start to shut down their factories there and withdraw their investments. In short, China must strike at the dollar while China stands a chance of winning. It will never have a better opportunity than right now.

[Minstrel Boy]

15. omg: "Olduvai Cliff Event: ca. 2007"

This is a lengthy and important article from Ruppert, and I haven't read it all. Perhaps the most disturbing point I've digested is the following. Those who know about Peak Oil should know the name Richard Duncan, and his theory of the "Olduvai Gorge."


Within two weeks of the publication of this warning, legendary oil geologist Richard Duncan will publish a new paper titled The Olduvai Cliff Event: ca. 2007 after a peer review of Duncan's work is completed. FTW will bring that paper to you as soon as it becomes available.

Excerpts from that paper read as follows:

The Olduvai theory states that the life-expectancy of Industrial Civilization, defined in terms of world energy use per capita ("e"), is less than or equal to 100 years. History: We know that the peak of "e" occurred in 1979 and that "e" declined from 1979 to 1999 (the 'slope'). Future: The Olduvai theory predicts that "e" will decline even faster from 2000 to the so-named 'cliff event' (the 'slide'). A previous study put the 'cliff event' in year 2012 (Duncan, 2001). However, it now appears that 2012 was too optimistic. The following study indicates that the 'cliff event' will occur about 5 years earlier than 2012 due to an epidemic of 'rolling blackouts' that have already begun in the US. This 'electrical epidemic' spreads nationwide, then worldwide, and by ca. 2007 most of the blackouts are permanent. The 'modern way of life' is history by ca. 2025. …

Postulate 2 of the Olduvai theory states, "Energy production per capita (e) will decline exponentially from the cliff event circa 2008 to 2030." If that is true, then the population in the world's industrial nations, we argue, will go from about 3.3 billion in 2008 to about 0.9 billion in 2030, a net die-off of about 300,000 people per day in the 22 years from 2008 to 2030.

[Nordic]

16. I am reminded of the Irish potato famine

n/t

[grasswire]

21. batten the hatches....

....and tell all your friends and family of child-bearing years to think twice about bringing an infant into this whirlwind.

[maxsolomon]

17. OBL's plan in action

his entire plan is to collapse our economy so we withdraw from the ME.

its going to work, and bush's rejection of christian compassion & enlightenment played right into their hands.

[leesa]

23. Nah. The neocons want to crash our economy and drown the safety nets

They are looting our treasury. OBL is just a tool, if he's involved or alive at all.

[Beam Me Up]

20. ping

:kick:

[Dover]

22. Some thoughts after reading Ruppert's report........

Ruppert reminds me a lot of Gary North and the Y2K scare. While his scenario certainly seems within the realm of possibility there are as always MANY possible ways for things to play out. I do agree with the general premise that global power/currency/economic shifts are in the works and that the dollar will inevitably lose much of its value, but it's really much too complex to be so neatly explained as having a single outcome. And who really has all the pieces to this puzzle?

Ruppert's breathless urgency must sell a lot of books and newsletter
subscriptions! I do appreciate the way he pulls all the threads together for us, but just don't always feel confident in his conclusions.

It is interesting that there are many people now who are becoming "news interpreters"...people who do all the reading, culling, sorting and analysing for us in this overwhelming age of information. We do that right here on DU. My favorite is Jon Stewart who is very aware of this role he's playing. Our traditional news sources no longer are very effective at connecting all the dots....whether intentional or as a result of their being a time-sensitive, low budgeted/under staffed industry. And then a story came out the other day that validates through their own admission that this Bush Administration made a decision to proliferate lies in various media for
strategic purposes. So if we, or the news media or these "news interpreters" are relying on these false sources for their stories.....? Of course the danger is that when there really IS a wolf baring down, no one will believe it, or they'll confuse it's message.

Like the new form of advertising that plants people in chatrooms or public places in order to create the 'buzz' about a product, all this false info is only going to undermine our trust in one another as information sources. On the other hand, perhaps we'll have to develop a more keen instinct for truth by going within and learning to trust that more....

[Beam Me Up]

30. "...a more keen instinct for truth by going within..."

I appreciate your analysis and where you've taken it.

I to appreciate what Ruppert is doing but believe it is not a good idea to make "predictions." We can certainly see that something is coming and we can sense that whatever it is, it won't be pretty.

But the "going within"--that is where the real truth lies.

[Dover]

31. Ahhhhh.....so nice to cross paths with kindred souls and seers.

When life is your art....it's all a creative matrix.

Getting real tired of the fear factor coming at us from every angle.
The antidote? To playfully splash water in it's face and marvel when we see that it is all wet.

[Beam Me Up]

34. I choose both -- I want to look into the eye of the gorgon

knowing that although he may eat me alive (and that would be very painful) there is something more real than either of us. That's the ground I stand on, inside.

Peace!

[DownNotOut]

24. I'm making sure to

be able to provide and protect myself and my family from the impending collapse. Make sure to arm yourselves. You know that the thugs will be right there to put a bullet in you as soon as the shit goes down.


DownNotOut

[Sterling]

35. You know that the thugs will be right there to put a bullet in you as soon

I somehow think you have a close source on this.

[Sara Beverley]

25. Saddam threatened to change to the Euro. Another reason for the ivasion

I guess we can take on the entire world.

[pberq]

29. Even Thomas Friedman agrees

http://www.nytimes.com/2004/12/02/opinion/02friedman.html?oref=login&ex=buzzflash

<snip>
The very reason Mr. Bush had the luxury of launching a war of necessity in Afghanistan and a war of choice in Iraq, without a second thought, was because of the surpluses built up by the previous administration and Congress. Since then, the Bush team has been slashing taxes in the middle of two wars, weakening the dollar and amassing a huge debt burden - on the implicit assumption that nothing will go wrong in the future.

But what if there is another 9/11 or war of necessity? We're cooked. The tax revenue won't be there, so the only option will be more borrowing and a weaker dollar. But what happens if the Chinese and other foreigners, who now hold over 40 percent of our Treasury securities, decide they don't want to hold these depreciating dollars anymore, let alone buy more?