The circumstantial evidence in the Dominique Strauss-Kahn incident and the “Arab Spring” phenomenon are a manufactured distraction to the looming world economic and financial monetary crisis which will result in inflationary disaster worldwide that has never before been imagined.
The soaring prices of commodities worldwide are primary indications of the world’s financial system collapse that will occur soon due to the United “States Dollar’s decrease in value.
Daily, we see the price of common necessities like corn, wheat, sugar, cotton, copper, silver and commodities soaring on the world market. A comparison taken from the Wall Street Journal’s “Cash Prices” section shows nearly all commodities at almost twice the price compared to a year ago.
These changes in the world’s financial markets, the Dominique Strauss-Kahn incident, the “Arab Spring” and the soaring commodity prices are tied together by the falling value of the United States Dollar. The U.S. dollar value has fallen thirteen percent (13%) since June of 2010 and continues a rapid decline.
On March 2, 2011, Warren Buffet told CNBC that, “the U.S. dollar will become less important as America’s ‘dominance’ of the world’s economic system diminishes.”
The U.S. dollar is the world’s reserve currency. It forms the basis for the world’s financial system. The U.S. dollar is what banks around the world hold in reserve against their loans. America is the only nation on earth that does not have to pay for its imports or debts in a foreign currency. It can print its own currency.
The Wall Street crisis which reached its zenith in late 2008 and whose debts were transferred to the United States Treasury, triggered the printing of trillions of dollars to “paper over” the United States’ debt.
The United States can continue printing money to pay its debts and not be forced to go bankrupt in the ordinary sense of the word, as long as the U.S. dollar continues being the world’s reserve currency. Thus, we get to the crux of the matter.
All other counties must buy dollars before making purchases of, for example, oil. They can not use their own currency directly to pay for the oil they want to purchase because the oil, like most other commodities, is priced in dollars.
Major world countries have secretly gathered to discuss the prospect of a different currency of reserve. The countries meeting for this purpose include China, Russia, Japan and France.
On October 6, 2009, a Beirut – based journalist, Robert Fisk, reported that
“Gulf Arabs are conspiring in secret with the Chinese, the Russians, the Japanese and the French to free themselves of the need to price oil in dollars.” An unnamed Chinese banker told Fisk, “You will know how worried America and Britain must be by the thunder of denials this news will bring.”
After the details of the meeting were published, U.S. officials and central bankers from around the world vehemently denied these plans.
On February 11, 2010, CNN reported that the International Monetary Fund (IMF) suggested a possible replacement for the dollar as the world reserve currency. The IMF, headquartered in Washington, D.C. is the intergovernmental organization that oversees the global financial system. It is the most influential financial organization in the world’s economy.
The IMF has proposed replacing the U.S. dollar with what is called “Special Drawing Rights” (SDRs). These SDRs represent potential claims on the currencies of IMF members. SDRs can be converted into any currency based on the weighted basket of international currencies.
The IMF also proposed creating SDR-dominated bonds which could reduce central banks’ dependence on U.S. Treasury Bonds. It also put forward a suggestion that certain commodities which are traded in US dollars could be priced using SDRs.
Dominique Strauss-Kahn (DSK) has been charged with the rape of a housekeeper in a posh hotel room in New York. DSK was the Managing Director of the International Monetary Fund (IMF). The IMF’s Managing Director is both chairman of the IMF’s Executive Board and Head of IMF Staff. The Managing Director is assisted by three Deputy Managing Directors. The Managing Director is appointed by the Executive Board for a renewable term of five years. It is therefore conceivable that DSK was set-up for this fall in order to keep the final decision of conversion to SDRs worldwide. The choosing of new Managing Director will take time to come to pass and the decision may in the time being, never occur.
Meanwhile the CIA operations in the Middle East are causing enough havoc in the world to keep the mind of the heads of the Arab countries and the other involved countries from replacing the U.S. dollar as the world’s reserve currency.