It has already been done by reelecting Bush, now it is only to sit and wait for the results.
Hakan At 15:29 30/05/2006, you wrote: >Is there anything we at home can do to help speed this process? :) > >Joe > >AltEnergyNetwork wrote: > > > > > < http://www.vheadline.com/readnews.asp?id=58951 > > > > > > > Threat against the US$ comes from countries such as Iran > > and Venezuela... > > > > Former Nordland University (Norway) associate professor, > > Dr. Abbas Bakhtiar writes: On Wednesday, May 17, the > > Dow Jones plunged 214 points to 11,206 -- its worst point > > drop since March 2003. The downward trend started a week > > ago and is a warning sign of troubles ahead. This sudden > > drop has come as a complete surprise to the unfortunate > > small investors and speculators. The so called "experts" > > point at the sudden threat of inflation as the main cause > > of the recent reversals in the markets. > > > > What is actually surprising is the surprise of the > > "experts." A cursory look at the United States' finances > > will reveal the amount of pressure that its economy is > > under. > > > > When Bush became president in 2001, the United States' > > public debt was 5.8 trillion dollars. Today the public > > debt stands at US$8.3 trillion. Of this over $2.2 > > trillion are held by foreigners. The United States > > has a GDP of $12.4 trillion ... this gives the US a > > Debt/GDP ratio of 66%, placing it in 35th place > > (out of 113) in the ranking of the Debtor Nations. > > > > The current account deficit of over 7% has long passed > > its danger levels of 4-5%. In 2005 the US government > > paid $325 billion only in interest payments alone. > > Then, there are the future obligations such as Medicare, > > Social Security and government pensions. These obligations > amount to $54 trillion. This huge problem worried the former > Federal Reserve Chairman, Alan Greenspan. He told congress: "As a > nation, we may have already made promises to coming generations of > retirees that we will be unable to fulfil." > > > > One would think that this amount of debt would worry the > > president and the congress ... but apparently it does not. The > United States' Congress recently (March 2006) voted to increase the > Federal debt limit to $9 trillion. Any other nation in similar > circumstances would have had to approach IMF for help. The IMF > would then have forced that nation to cut spending and devalue its > currency ... but US does not need to do this. The US can just print > some more dollars. > > > > But how long can this continue before the world loose > > faith in the greenback, sending it crashing to > > unimaginable levels. > > > > The Asian Lender > > > > The Asian countries such as Japan, China and others > > that hold most of the US debts have been happy to > > indulge the American deficit spending. This has been > > a two-way Street, America has kept its market open > > to their products and they have financed the Americans' > > spending. > > > > The value of US dollar so far has been kept artificially > > high by Japan, China and oil-exporting countries. > > These countries by buying US debts have has kept > > interests rates relatively low in the United States > > and allowed Americans to keep spending even as their > > debts mount. > > > > But there is only so much risk these lenders > > (Asian and oil-exporting countries) are willing to > > take. Any serious devaluation of the US$ will > > considerably reduce the value of their national > > reserves (mostly kept in dollars) and the value > > of their debt holdings (certificates, bonds, etc.). > > At the same time, the devaluation will affect their > > exports to the US. > > > > A weaker dollar makes their products more expensive > > in US, thereby reducing their export earnings. > > Most Asian countries keep up to 70% of their reserves > > in dollars. China with the reserves of over $800 billion > > has already begun to slowly reduce its dependency on > > dollars by converting part of its reserves to other > > currencies. > > > > If other Asian countries -- with their vast dollar > > holdings -- follow suit, then it will be disastrous > > for the value of dollar. Nobody is interested in > > holding a weakening currency. > > > > Petro-Dollar > > > > Another threat against the dollar comes from countries > > such as Iran and Venezuela. > > > > Iran recently registered an Oil Bourse to compete with > > Bourses in New York and London. The threat comes from > > the currency in which the oil is to be sold in Euro. > > Iranians are going to make the Euro the standard > > currency for oil transactions. Some sympathetic > > countries such as Venezuela and others may join in. > > If the Iranians succeed in this, the pressure on > > dollar will be catastrophic. Nearly every country > > has to hold a certain amount of dollars in reserve > > for oil purchases. > > > > If the dollar continues to weaken in value, and there > > is the possibility of purchasing oil in Euro, then > > these countries would unload their dollars for safer > > currencies such as Euro. > > > > What will then happen to the value of dollar? > > > > Iraq and Iran > > > > As though there is not enough pressure on the dollar, > > the US government keeps spending money in an un-winnable > > war in Iraq and is considering starting another one in > > Iran. The total cost of Iraq war, including the future > > payment to the disabled soldiers, replacement of > > equipment, etc., is estimated be between $1-2 trillion. > > > > Any attack on Iran will substantially increase this > > cost ... even if there is no attack, the tense > > situation in the region will keep the oil prices > > at uncomfortable levels, contributing to both a > > reduction in US growth and an increase in its > > deficit. > > > > Conclusion > > > > The current American deficit and its long-term financial > > obligations, if goes un-answered, will sooner or later > > lead to either a marked increase in interest rate or a > > substantial devaluation of dollar. > > > > On the one hand, a substantial increase in interest rates > > will lead to a major recession in USA which will be felt > > immediately around the world. > > > > On the other hand, a substantial devaluation will cause > > financial chaos in the world. > > > > What is needed is to seriously reconsider the international > > role of the dollar as the world currency ... in other > > words we need a new Bretton Woods Agreement. > > > > At the end of the WWII, 45 nations gathered at a United > > Nations Monetary & Financial Conference in Bretton > > Woods, New Hampshire to address the problems of > > reconstruction, monetary stability and exchange > > rates. The delegates agreed to establish an > > international monetary system of convertible > > currencies, fixed exchange rates and free trade. > > To facilitate these objectives the delegates agreed > > to create two international institutes: the > > International Monetary Fund (IMF) and the International > > Bank for Reconstruction & Development (the World Bank). > > An initial loan of $250 million to France in 1947 was > > the World Bank's first act. > > > > Since then there has already been considerable criticism > > of the roles of IMF and the World Bank. The above > > mentioned problems and the ongoing trade imbalance > > in the world have to be addressed by a similar gathering. > > > > Sooner or later, both the United States and the rest > > of the world have to address the existing problems. > > > > This problem is not United States alone. > > > > We can not ignore the largest economy on earth ... it > > is said that if United States sneezes, the world catches > > cold. > > We have to either make sure that United States doesn't > > catch cold or vaccinate ourselves against it. > > > > Abbas Bakhtiar > > > > > > Dr. Abbas Bakhtiar is a former associate > > professor of Norway's Nordland University. > > He is currently writing a book about the > > reasons behind the United States involvement > > in Iraq and Iran. > > > > > > > > > > Venezuelan president Chavez pledges energy loans to Bolivia > > > > < http://www.alternate-energy.net/N/news.php?detail=n1148814738.news > > > > > > > > > > > Get your daily alternative energy news > > > > Alternate Energy Resource Network > > 1000+ news sources-resources > > updated daily > > > > http://www.alternate-energy.net > > > > > > > > > > > > > > Next Generation Grid > > http://groups.yahoo.com/group/next_generation_grid/ > > > > > > Tomorrow-energy > > http://groups.yahoo.com/group/tomorrow-energy/ > > > > > > Alternative Energy Politics > > http://groups.yahoo.com/group/Alternative_Energy_Politics/ > > > > _______________________________________________ > > Biofuel mailing list > > Biofuel@sustainablelists.org > > http://sustainablelists.org/mailman/listinfo/biofuel_sustainablelists.org > > > > Biofuel at Journey to Forever: > > http://journeytoforever.org/biofuel.html > > > > Search the combined Biofuel and Biofuels-biz list archives > (50,000 messages): > > http://www.mail-archive.com/biofuel@sustainablelists.org/ > > > > > > > > >_______________________________________________ >Biofuel mailing list >Biofuel@sustainablelists.org >http://sustainablelists.org/mailman/listinfo/biofuel_sustainablelists.org > >Biofuel at Journey to Forever: >http://journeytoforever.org/biofuel.html > >Search the combined Biofuel and Biofuels-biz list archives (50,000 messages): >http://www.mail-archive.com/biofuel@sustainablelists.org/ _______________________________________________ Biofuel mailing list Biofuel@sustainablelists.org http://sustainablelists.org/mailman/listinfo/biofuel_sustainablelists.org Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Search the combined Biofuel and Biofuels-biz list archives (50,000 messages): http://www.mail-archive.com/biofuel@sustainablelists.org/