Fiscal Crisis 2007 - The dollar slips away - Nov 19 2007

[patriotsundergod]

Good job! How do you think the currency basket will be denominated. It seems to me that a new currency specific to oil should be instituted as a means of transaction based on the basket. The new structure would have to be strong enough to break the historical dollar standard.

[grossmano88]

I´´m viewing this from Spain and I feel you nailed this spot on . Looking foward to hearing more commentaries from you.

[catdog262]

This man speaks the truth.I am Looking forward to your next back of the envelope video.

[talktal]

as far as i can tell, we have a struggle between the financial institutions and currency/oil values.

my question is this, what if the feds raised the interest rates inorder to strengthen the dollar and drop the price of oil. What's more important to the american economy, a secure financial system with free flowing money or cheap energy resources and a strong currency?

[jpalme2000]

Good question. After taking a deep dive into GAAP and the valuation of structured investment vehicles to answer this, check out my blog.

It's NOT this simple, but it would be nice if it was.

[olamapsa]

Oh.. there something new! There is new shiny thing behind your back John. What is this? The new fridge???

[jpalme2000]

That is the bottom of my Murphy bed. I live in a very small studio apartment, and it comes equiped witha Murphy bed. In order to make the 220 square feet look larger, they placed a mirror on the bottom on the bed. Personally, I hate it. I sleep on the floor in any case. I'm very frugal, which I hope you can see from my videos and writing. I'm thinking about covering it up. What do you think?

[hunt1803]

You could partially cover it, say with some charts, maps, posters, etc. Or if you wanted to maintain some of the reflected light effect, put up some garden lattice. Ha, you could even line that with a border of plastic ivy. It wouldn't be so glaring, but would still offer your apt some light.

[aukxsona]

Dear John, I think buying gold would be useless. I mean they stole all the Liberty Dollars, won't they just steal our gold too? I don't trust putting my money into any state side bank because of so many write off's in the big banks lately. I mean how long until they fall under. I am just going to invest in equipment. I'm afraid of hyper inflation like Germany had in the 1930's. Millions starved and died because of it...I don't THINK it will happen, but it is a fear of mine.

[Jackinape]

Im putting my dollars into honey and wheat,since I cant eat gold.

[tonjg]

good call Jack. I'm trying to turn my money into surival assets too, putting it anywhere except the bank. I'm not touching gold either.

[bgturk]

Saddam had switched to the Euro, and some speculate that was the reason for the invasion of Iraq.

[asampson]

This is certified plan by the US Giovernment to crash the dollar. The reason why is because they want to merge Mexico, US and Canada to form the North American Union. Then they can save us all by issuing the Amero asd the new form of currency.

[chewypeanut]

WoW!!! 28 year old loser here who has only saved up 60k at this point. I want to protect it ! What bank can I use to move my money there and convert it to Euros? Can I do it at CitiBank or Wachovia? Help !Thanks ;)

[mbamber]

Dude good question!

[hunt1803]

One of the posters over at manoftruth mentioned that you can actually buy a financial instrument called a EuroCD from some US banks - I believe he suggested Wells Fargo, but when I did a search for EuroCD a link to Everbank came up - they are a Florida bank, and since I'm a west-coaster I've never heard of them. But you could do some research and see whether it would be worth the risk.

[tonjg]

runour runour runour gossip gossip rumour rumour.

[tonjg]

oops that should have been rumour not runour.

[talktal]

i think you're giving ben bernanke too much credit.

[JackNeedles]

Well, Ron Paul won the new Zogby poll, ranking 1st pace. Everyone go check it out! God hhelp us if he doesn't win.

[JiveDadson]

No one in their right mind holds dollars today, regardless of what Bernanke says. As I type this, one FOREX contract of Japanese Yen shorting the USD purchased an hour and a half ago is up $450. What people miss is that there is no guarantee the collapse of the dollar will be gradual. We are in uncharted territory.

[mcc11505]

Are you surprised? Hasn't the USA sacrificed enough for Israel? Switching to a "Basket of currency" would just seem like common sense to me to diversify my assets if I can. I hope you disagree with me. Please tell me how threatening Iran & starting WWII is going to lead to a stronger dollar & cheaper Oil.

[mn8aol]

Opec switching to a basket of currencies makes as much sense as going to the store and buying a loaf of bread with a euro, a yen and yuan.

[john5246]

Oh and stop saying things about electing Ron Paul. How stupid could someone be to elect a guy that's practically George Bush's cousin? Besides republicans suck, they are the cause of global warming, disease, loss of the value of the dollar, cancer, etc etc etc.

[john5246]

I agree and I know that's the reason we went to war with Iraq. But the question is how long will it be before we go to war with IRAN?

[catdog262]

Good to see you again keep posting the videos i have your back on all your views.

[Mohd212]

thanks john. i just would like to add that Kuwait had already moved for a basket of currencies before 6 months ago. it was the first country who took that way from the GCC. many of other GCC countries consider this move as a bad choice. but guess what?? it was not.

keep it up.

[gordong156]

I agree. This is really important. It's worth googling '7 Countries considering abandoning the US Dollar' for more.

[tonjg]

John somehow I can't see the US just sitting back and taking this on the chin and doing nothing. I see the point you make but it's academic - it doesn't account for the human factor of fighting back, and I don't doubt that the US govt will pull a rabbit out of the hat. What are they gonna do? stand there and shrug their shoulders? No, they're not going to do that. They'll act.

[jpalme2000]

The question is: How does the US act in this particular scenario? Sounds like a message board discussion to me.

[NoFaithTheist]

The only card the US has left is war. The neocons will attack Iran. It will serve as a warning to those who dare to move away from the dollar. It will rip the Saudis back into line and Chavez will shut up without an ally. Saddam moved away from the dollar before the invasion of Iraq. On the downside Putin will likely retaliate in some way if not militarily.

Oh by the way John I saw your blog post about homeland security visiting your blog. Welcome to a fascist state my friend.

[DangerousCombination]

Have you considered that the collapsing dollar was planned? And they knew that other countries would dump the dollar. These things don't just happen. Some say it's to make way for the North American Union (NAU) and a new currency called the Amero.

Besides, the "Elite" who run/own the FED aren't really American, nor do they care about the little people. Sinking dollar only makes them richer at everyone else's expense.

[tonjg]

yes I have considered the collapse was planned but that's only speculation, nothing more. It's easy to get caught up in gossip and rumour as many seem to be. All this does is cloud the truth and make us all look stupid.

[triangels]

this evaluation by dangerous c is spot on and correct.

[tonjg]

Oh yes of course it is. Lets see - do you proof it was planned? no. Do we have an NAU? no, we have gossip. Do we have the amero? no, we still have the dollar. There's a difference between reality and speculation triangels. And the last paragraph by dangerous c was just bullshit. Delusion is a disease sweeping through youtube. Are you part of the infected?

[andrepp1701]

No i doubt it was planned, you can't blame the OPEC nations moving away from the increasingly worthless dollar.

[talktal]

if you've watched john's videos, you know he's far from buying into conspiracy theories. however, he states facts which you cannot deny. the dollar is slipping away.

[JoeShmoe65]

I agree with your assessment of the current situation. The dollar is sinking fast. I hope people head the warning. I put most all of my money in my house (mortgage) already. Vote Ron Paul 2008!

[OzSteamer]

Your video quality is much improved.

[OzSteamer]

You mention the US dollar as being the world's reserve currency, but you're a bit late with the date. This was formalised in July of 1944 with the Bretton Woods Agreement.

This merely formalised the arrangement which had been in place since 1914 when the US Banks started bankrolling the European powers as they fought the First World War (which caused the banking crisis of 1917)

[amgalanbator]

Go John!!, I would like to meet you and be your student. I live in Los Angeles.what do you think?

[jpalme2000]

Well, I'm not sure what I could teach you. But if you wanna set up a Meetup group, I'll do my best attend the events. Or you can just give me a call sometime at (562)219-3321.

[hunt1803]

Image and sound quality of this video is much better than past ones!

I feel kind of stupid - educate me: what does a 'basket of currencies' consist of? I keep hearing that but don't know what it is...

[jpalme2000]

A basket of currencies is a unit of measure that consists of a mix of currencies from different countries. For example, OPEC might say one OPEC unit is equal to 5 dollars and three pounds and 200 yen.

This allows OPEC To control the value of the basket by picking the highest value currencies to maximize the value of the basket.

I switched over to iMovie 08, which allows me to edit before uploading. Thanks for the complement.

[sheiki22]

I always look forward to your videos!

[Kapan60]

Yet another reason why we need Ron Paul. We need a new gold monetary system. The fiat federal reserve notes are WORTHLESS!

RP 2008