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Indybay Feature
Moment of Truth At Hand
The US Dollar's moment of truth is at hand. Unfortunately, George W. Bush is our President. Be afraid.
In case any of you are still enjoying post-Holiday cheer, it may be time to sober up and come back to Reality Land...
Today the US Dollar index ($USD) dropped below its low of December 6: $USD
AND, to make this situation even more compelling,
the $USD is *this* close to its low of 1995. We
*may* see what technicians call "support", but then
again, a failure of support would be a crushing
blow because in terms of the charts, the abyss
looks bottomless...
$USD 1995->Present
$USD 1973->2002
Fortunately for Mr. Dollar the new low today of 80.72 is just a fraction under the Dec. 6 figure of 80.91. This *might* be a head fake. The Japanese Ministry of Finance *might* be waiting for speculators to lean the wrong direction so that it can drop the hammer. The European Central Bank *might* decide to press the fire alarm button.
Lots of things could happen in the short term. For every trade there is a buyer and a seller, so unless one day everyone decides that they are happy with what they already have and stay home, differences of opinion about prices will continued to be argued in the electronic trading pits. And there is always the "last sucker" principle, which in practice means that when Time Magazine has a big story about the falling dollar then that means the dollar's fall is probably over and The Powers That Be need some suckers to buy so that TPTB can sell.
But, OHMIGOD OHMIGOD OHMIGOD!!! The sky sure looks like it is falling...
* * *
You know, my rich friends give me a hard time about using dial-up internet. I can only receive 56,000 bits of information per second, and needless to say, that puts me at a disadvantage ... However, days like today remind me of the basic fact that a nice, long 5 page report that requires 2 seconds to download can provide hours of reading and thinking pleasure... And I have several to share with you. WARNING: these are SCARY.
Warren Buffett puts on his hockey mask and fires up a chain saw as he talks about the $USD: Buffett
AND
Warren Pollock... Pollock
AND
Chris P. Dialynas... Dialynas
make some comments that really bummed me out when I read them...
and that was before I remembered that George W. Bush is in charge. OHMIGOD!!!
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Certainly for us here in California, it's difficult for me to see how this is a bad thing. Already, this Christmas season has seen Euros coming into my city in droves to buy christmas gifts to take back home, and it is happening in other cities. With China pegging their currency to the dollar, the price of Chinese imports is not going to go up (and in fact, them peggin their currency to ours was done for just such a situation). California's growing community, and the rest of the agriculture industry, is loving life right now because they can export like crazy and actually charge more in dollars without raising their price in Euros.
I was just down in Mexico this weekend and the exchange rate is actually more favorable (in the dollars favor) than it was 2 or 3 years ago.
THe only people who should be whining about the dollar being low are thos who import from Europe and the Europeans, who'll start seeing Euros migrate to dollars with the help of eBay. I think all the chicken littles need to brush up on economic theory.
I was just down in Mexico this weekend and the exchange rate is actually more favorable (in the dollars favor) than it was 2 or 3 years ago.
THe only people who should be whining about the dollar being low are thos who import from Europe and the Europeans, who'll start seeing Euros migrate to dollars with the help of eBay. I think all the chicken littles need to brush up on economic theory.
....Armeno's the expert, don't listen to lightweights like Buffet and Greenspan.
If you cant see "how is this a bad thing" then its you who "needs to brush up on economic theory".
What a dick!!! Did you get paid for that post?
If you cant see "how is this a bad thing" then its you who "needs to brush up on economic theory".
What a dick!!! Did you get paid for that post?
With a dollar cheap in comparison with the euro, you can export more to Europe.
Sure a sunk dollar is good for a country's exports. But the US presently imports FAR more than it exports. Part of the problem is that the US doesn't manufacture things to export these days. American multinationals suck up cheap offshore goods and services to create products. The other part of that problem is that non-Americans are refusing to buy American brands these days. Not a boycott, exactly. Just a very cold shoulder. So, yaybe the US could export natural resources? Lumber. Oil. Etc. But wait. The country is reliant on imports for much of that, too. Only thing to do is keep putting tariffs and quotas on as much as possible, and place remaining imports on the national credit card. But remember that cold shoulder. Who wants to buy American debt now, when American continually proves its untrustworthiness on the international stage and when it's perfectly obvious there is little or no capacity or inclination to ever repay its enormous and growing debt? Are you kidding? Nobody, that's who. Meanwhile, the US continues to waste vast sums on absurd military adventures. They say a fool and his money are soon parted. The same may be said of foolish nations, imo.
But, as far as I know, the US is a very rich country. I suppose its wealth has to come from somewhere. Don't you produce high-tech, for instance?
As for the cold shoulder, I know that there are people strongly critizising the US who live on American hamburgers and similars (this is only a detail).
And everybody thinks that US bonds are reliable.
There is rich and then there is appearing rich. I may look poor but have a million dollars in the bank. Or I might be heavily in debt, driving around in a Bentley (on finance), wearing a fancy suit and drinking expensive champagne (on my credit card). The US is certainly appearing rich, but it is heavily in debt; the stability of its dollar dependant on the foreign owners of that debt.
Economic Theory 101: As one sows, so shall one reap...
According to what I have read, your debt is big. However, you can meet it, so it cannot be said you are debtors.
Besides the US GDP is growing for a lot (I don't remember exactly now, but it is over 3%,which is very good for these days). You have full employment.
I wouldn't say you are bankrupt.
>You have full employment.
Um, in a word? No. Look at the statistics, and keep in mind that unemployment figures only cover people who are on unemployment, not those who have exhausted their unemployment benefits.
Um, in a word? No. Look at the statistics, and keep in mind that unemployment figures only cover people who are on unemployment, not those who have exhausted their unemployment benefits.
America is the largest world debtor nation - it owes the rest of the world trillions. The american public can only have the lifestyles that they have on the credit of other nations. The dollar as the world's reserve currency is VERY fast losing its place as a store of value due to the fiscally irresponsible spending policies of your govt - countries are divulging their US$ holdings at a rapid pace - your interest rates will keep rising as people will not buy your bonds if there is a low rate of return and a falling currency - it is not worth their while. People demanding a better rate of return on their bonds will mean Higher interest rates, which will will lead to less business spending, housing, employment etc. The only reason that America has got away with a current account deficit etc to the levels that you have is that you have the world reserve currency and you are able to print as much as you like (happening now at a rapid irresponsible level). Other countries such as Argentina with comparable levels of defecit went down the gurgler The moment that the position of world reserve currency is removed, and americans have to buy their oil etc in Euro/yen/ruble then it will be felt hard - everything that is consumed is dependent upon oil, whether in the manufacturing or transporting - all of your imports will skyrocket from currrency depreciation and be then slammed also with higher internal costs. You could be looking at 12% interest rates - how many people have that disposable income left to cater for an increase in interest rates - all those houses come flooding on the market and greatly depressing prices - the scenario of selliing your house for one third to half of what you paid for it will become very real (happened here is Australia), but you will be left with the remaining debt at much higher servicing costs.
Your manufacturing industry has been moved overseas so the ability of America to make enough "stuff" to sell to other countries even at a depressed price due to currency devaluation (30% isince its recent peak) to even come close to making only your interest payments on the debt - let alone the principal.
America is on the brink of bankruptcy - the foreign policy, internal govt financial policies all but make it when rather than if - and from an outsider (Australian)looking in, most of the American population are totally unprepared for a housing bubble collapse, higher interest rates and higher unemployment......a slow train wreck.
Your manufacturing industry has been moved overseas so the ability of America to make enough "stuff" to sell to other countries even at a depressed price due to currency devaluation (30% isince its recent peak) to even come close to making only your interest payments on the debt - let alone the principal.
America is on the brink of bankruptcy - the foreign policy, internal govt financial policies all but make it when rather than if - and from an outsider (Australian)looking in, most of the American population are totally unprepared for a housing bubble collapse, higher interest rates and higher unemployment......a slow train wreck.
America is the largest world debtor nation - it owes the rest of the world trillions. The american public can only have the lifestyles that they have on the credit of other nations. The dollar as the world's reserve currency is VERY fast losing its place as a store of value due to the fiscally irresponsible spending policies of your govt - countries are divulging their US$ holdings at a rapid pace - your interest rates will keep rising as people will not buy your bonds if there is a low rate of return and a falling currency - it is not worth their while. People demanding a better rate of return on their bonds will mean Higher interest rates, which will will lead to less business spending, housing, employment etc. The only reason that America has got away with a current account deficit etc to the levels that you have is that you have the world reserve currency and you are able to print as much as you like (happening now at a rapid irresponsible level). Other countries such as Argentina with comparable levels of defecit went down the gurgler The moment that the position of world reserve currency is removed, and americans have to buy their oil etc in Euro/yen/ruble then it will be felt hard - everything that is consumed is dependent upon oil, whether in the manufacturing or transporting - all of your imports will skyrocket from currrency depreciation and be then slammed also with higher internal costs. You could be looking at 12% interest rates - how many people have that disposable income left to cater for an increase in interest rates - all those houses come flooding on the market and greatly depressing prices - the scenario of selliing your house for one third to half of what you paid for it will become very real (happened here is Australia), but you will be left with the remaining debt at much higher servicing costs.
Your manufacturing industry has been moved overseas so the ability of America to make enough "stuff" to sell to other countries even at a depressed price due to currency devaluation (30% isince its recent peak) to even come close to making only your interest payments on the debt - let alone the principal.
America is on the brink of bankruptcy - the foreign policy, internal govt financial policies all but make it when rather than if - and from an outsider (Australian)looking in, most of the American population are totally unprepared for a housing bubble collapse, higher interest rates and higher unemployment......a slow train wreck.
Your manufacturing industry has been moved overseas so the ability of America to make enough "stuff" to sell to other countries even at a depressed price due to currency devaluation (30% isince its recent peak) to even come close to making only your interest payments on the debt - let alone the principal.
America is on the brink of bankruptcy - the foreign policy, internal govt financial policies all but make it when rather than if - and from an outsider (Australian)looking in, most of the American population are totally unprepared for a housing bubble collapse, higher interest rates and higher unemployment......a slow train wreck.
The ongoing slow collapse of US$ is just the most visible sign, kiddies, the USA is the roadrunner 20' off the cliff - just waiting to fall. Whether triggered by natural gas depletion, or a gov debt default or whatever, the american century is over.
My favourite (tho admittedly incredible) scenario comes from http://www.viallis.com, who reckons energy imports via Gulf of Mexico will soon be imperilled by the (SCO) strategic alliance between Russia, China, & Iran, which has been quietly expanded to include Cuba & Venezuela. The latter two countries armed with mig29's & SSN 'sunburn' missiles will stop any ship between Panama & Florida, maybe take out the oil&gas rigs too!
Get out of Dodge folks.
My favourite (tho admittedly incredible) scenario comes from http://www.viallis.com, who reckons energy imports via Gulf of Mexico will soon be imperilled by the (SCO) strategic alliance between Russia, China, & Iran, which has been quietly expanded to include Cuba & Venezuela. The latter two countries armed with mig29's & SSN 'sunburn' missiles will stop any ship between Panama & Florida, maybe take out the oil&gas rigs too!
Get out of Dodge folks.
Its really very sad to see that there still fools that think that just buying stuff on ebay is a BIG thing.
Think of all the Asian economis dump those American bonds for European and other local Asian bonds.
Just imagine if all the countries switch to euros to trade in Crude oil. Then the dollar wont be worth the paper they are printen on.
Did u hear about the Russians they are selling dollars and replacing them with Euros to keep in their forex reserves.
N ur talking abt economics.
Think of all the Asian economis dump those American bonds for European and other local Asian bonds.
Just imagine if all the countries switch to euros to trade in Crude oil. Then the dollar wont be worth the paper they are printen on.
Did u hear about the Russians they are selling dollars and replacing them with Euros to keep in their forex reserves.
N ur talking abt economics.
You have about 5% unemployment, that's true. However, experts consider 5% is technically full employment, since that 5% are people looking for a job, who will find it.
Is that what you mean?
The US Treasury has been thoroughly looted, with more
than 7 trillion in on-the-books debt and another 40 or 50
trillion of unfunded liabilities (like future healthcare and
pensions for military veterans). The excess Social Security
taxes we paid to create a surplus for the Baby Boomer
retirement has all been spent; nothing is left except IOU's
in the government computer.
And that same government that looted our money started
a war of aggression against Iraq and openly threatened
other countries with pre-emption at the President's whim.
100,000 Iraqis are dead and the US has now maintained
an illegal military occupation of Iraq for nearly 2 years.
That same government maintains prisons all over the world
where people are tortured by executive order, without due
process of any kind and in violation of the Geneva Conventions
and other international law.
What we have here is a government of murderous thieves
willing to use our military for purposes that have nothing to
do with defense of America or the Constitution.
So we won't emigrate. It is still our country and the Declaration
of Independence explicitly states our right to change our form
of government. Perhaps the military will detain the civilian
leadership, restore Constitutional authority and put the
responsible civilian leaders on trial. Stranger things have
happened.
In the meantime, information is provided so that individuals
may take precautionary steps to care for themselves as they
see fit. You may decide to prepare for the dollar devaluation
by purchasing gold, silver, Euros, Aussies, Swiss Francs,
and other items that may protect the value of your savings.
You might stock your larder with food, water and other
consumables. You might even go ahead and purchase a new PC
based on the assumption that prices will go up in the future.
The decisions are yours. The information is for you.
Be rational. Be patient. Be steadfast. Have courage.
than 7 trillion in on-the-books debt and another 40 or 50
trillion of unfunded liabilities (like future healthcare and
pensions for military veterans). The excess Social Security
taxes we paid to create a surplus for the Baby Boomer
retirement has all been spent; nothing is left except IOU's
in the government computer.
And that same government that looted our money started
a war of aggression against Iraq and openly threatened
other countries with pre-emption at the President's whim.
100,000 Iraqis are dead and the US has now maintained
an illegal military occupation of Iraq for nearly 2 years.
That same government maintains prisons all over the world
where people are tortured by executive order, without due
process of any kind and in violation of the Geneva Conventions
and other international law.
What we have here is a government of murderous thieves
willing to use our military for purposes that have nothing to
do with defense of America or the Constitution.
So we won't emigrate. It is still our country and the Declaration
of Independence explicitly states our right to change our form
of government. Perhaps the military will detain the civilian
leadership, restore Constitutional authority and put the
responsible civilian leaders on trial. Stranger things have
happened.
In the meantime, information is provided so that individuals
may take precautionary steps to care for themselves as they
see fit. You may decide to prepare for the dollar devaluation
by purchasing gold, silver, Euros, Aussies, Swiss Francs,
and other items that may protect the value of your savings.
You might stock your larder with food, water and other
consumables. You might even go ahead and purchase a new PC
based on the assumption that prices will go up in the future.
The decisions are yours. The information is for you.
Be rational. Be patient. Be steadfast. Have courage.
What I want to do is store my money in a bank here in America that stores their money in Euros, in which I can still derive interest. Is that possible? Please tell me how I can do this? If I want to use Euros to make sure the value of my money is not lost, do I actually have to buy physical paper money to do it? That's ridiculous if true.
I needed to read this info all in one place to update myself on what is going on, so that I thank you very much.
There is no hope, in my opinion, that countries and powers will work together to solve this economic mess, because their greed is too strong. We need God to help us.
I am staying in the few bonds I have, some ginnie maes, and fannie maes and freddie macs (not the stock,but bonds). I am not saying they will get me through to 2006, but I dont see any need to go into oil or gold, its too complicated for me to try to invest in those commodities. I sold my QQQQ today.
I think that people have to start to look to the state of their soul vis a vis their creator... bottom line. We cant take this stuff with us, and if a tsunami can come and rake you out to the ocean in a few minutes... what is the point of all this STUFF in the world?!?!
as for me and my house, we are serving Jesus as Lord. We believe Him about the Father being the one true God. We put all our stake in faith in Him.
thats all I can suggest that others should do also.
sincerely,
glenda
There is no hope, in my opinion, that countries and powers will work together to solve this economic mess, because their greed is too strong. We need God to help us.
I am staying in the few bonds I have, some ginnie maes, and fannie maes and freddie macs (not the stock,but bonds). I am not saying they will get me through to 2006, but I dont see any need to go into oil or gold, its too complicated for me to try to invest in those commodities. I sold my QQQQ today.
I think that people have to start to look to the state of their soul vis a vis their creator... bottom line. We cant take this stuff with us, and if a tsunami can come and rake you out to the ocean in a few minutes... what is the point of all this STUFF in the world?!?!
as for me and my house, we are serving Jesus as Lord. We believe Him about the Father being the one true God. We put all our stake in faith in Him.
thats all I can suggest that others should do also.
sincerely,
glenda
http://www.everbank.com/
Hope this will help. call them and tell them what you want to do!
It's my favorite bank!
Cameron
best bet is to invest in gold. All these currencies are interlinked in value. If the dollar drops, don't think the value of the Euro wont drop too.
Better yet, stop worrying about money and strategize about how we can create communities based on mutual support. Cause if our economy does go to shit, we can't depend on the government to provide food and shelter for us.
Better yet, stop worrying about money and strategize about how we can create communities based on mutual support. Cause if our economy does go to shit, we can't depend on the government to provide food and shelter for us.
learn how to post and stick your own australian websites
For all those in fear that America can not keep up with the world as a manufacturing nation, consider the following:
Two years ago when we went to Wendy’s and ordered 12 Jr Bacon Cheeseburgers we where constantly asked to pull to the side, and the burgers would be brought out to us.
Two days ago we ordered 12 Jr Bacon Cheeseburgers, and almost in the blink of any eye the bag came out the window.
Now that making sandwiches is a manufacturing job, production has picked up. No outsourcing was detected, however the ketchup may be from Mexico.
Why worry about silly theoretical valuations of the dollar? Be happy, keep shopping, be vigilant, and take out a new mortgage soon.
Please step this way to the cliffs edge, you lemmings.
dah de dah
Two years ago when we went to Wendy’s and ordered 12 Jr Bacon Cheeseburgers we where constantly asked to pull to the side, and the burgers would be brought out to us.
Two days ago we ordered 12 Jr Bacon Cheeseburgers, and almost in the blink of any eye the bag came out the window.
Now that making sandwiches is a manufacturing job, production has picked up. No outsourcing was detected, however the ketchup may be from Mexico.
Why worry about silly theoretical valuations of the dollar? Be happy, keep shopping, be vigilant, and take out a new mortgage soon.
Please step this way to the cliffs edge, you lemmings.
dah de dah
I heard that despite the falling of the dollar which would logically should tend to cause an increase in U.S. exports, this has failed to happen thus far. The country isn't exporting more, and we're still buying lots of cheap stuff from asia. So, the low dollar isn't necessarily doing anything great for the US yet.
yea, but rich shopaholics from europe are getting some great deals at saks fifth avenue. whoooppeee!!
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
p.s. to sefarad: US government unemployment figures are deliberately misleading, designed to give a far rosier picture of the economic situation than is the case.
on the one hand, hundreds of thousands (into the millions) of unemployed workers in the US--those who've been unemployed for several weeks and have stopped looking for work--aren't counted as part of the workforce and are instead classified as "discouraged" or "structually unemployed." for all intents and purposes, they are erased from official employment figures.
on the other hand, a person who works one hour a week is considered part of the workforce and is penciled in as "employed."
i'm glad to see you've ventured afield from your obsessive apologetics for israel. my only concern is that you pay heed to the "facts on the ground".....
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
p.s. to sefarad: US government unemployment figures are deliberately misleading, designed to give a far rosier picture of the economic situation than is the case.
on the one hand, hundreds of thousands (into the millions) of unemployed workers in the US--those who've been unemployed for several weeks and have stopped looking for work--aren't counted as part of the workforce and are instead classified as "discouraged" or "structually unemployed." for all intents and purposes, they are erased from official employment figures.
on the other hand, a person who works one hour a week is considered part of the workforce and is penciled in as "employed."
i'm glad to see you've ventured afield from your obsessive apologetics for israel. my only concern is that you pay heed to the "facts on the ground".....
Luv ya work Fiona! Spot on analysi except that I think the train wreck could be rapid if the US bombs Iran or Venezuela or fails to leave Iraq, pronto!
Also, given that Hugo Chavez took umbrage at the US attempt to assassinate him in September 2004 and went to Beijing on 22 December to negotiate to sell Venezuela's current US oil exports of 2.7 million barrels a day to China; and Iran and Russia are arranging to sell ALL their hydrocarbons to China and other western hemisphere customers for local currencies, the US may find it can’t get enough oil at any price, never mind the USD ceasing to be the world’s reserve currency. Such a shame! Fancy American MOMS not being able to buy the groceries and pick up the kids from school in one ton trucks and SUVs. Oh the hardship!
GDay Aussie.
To be fair to the illustrious Joe Vialls (http://www.vialls.com) I think he is really making the case for the US to pull its head in, in relation to its attempts to overthrow Venezuela's democratically elected government (eg the failed coup attempt in October following the aborted assassination attempt on Chavez) in order to steal its oil. As I read it Joe is saying that Venezuela's acquisition of 50 Mig SMTs armed with 40 SS-N-26 Onyx supersonic missiles is insurance against the US doing what it always does: bomb countries that it wants to control and whose oil it wishes to steal. The SS-N-26 capability completely nullifies the America's seven nuclear powered aircraft carrier taskforce groups as well as the USS John Kennedy group etc. Even the Sunburns (SS-N-25s) minus nuclear warheads are sufficient to do the job (especially if carrying a nuclear warhead) but the faster Onyx missiles (which can sink an aircraft carrier using a conventional warhead) can certainly do it. Now the US navy and air force are even more useless than an Abrams tank in Fallujah.
Of course the ultimate payoff (and the only one the Pentagons Wall Street masters understand) is that, as you say, a fleet of Mig 29s armed with Sunburn or Onyx missiles can halt all shipping in the Gulf of Mexico and through Panama. In that regard the fact that Russia has given four Onxy equipped Mig SMTs to Cuba to enable the Cuban air force to train Venezuelan Mig SMT pilots is, to say the least, fortuitous. And of course you are right in saying Sunburns could take out oil rigs in the Gulf: BHP-Billiton beware!
Joe also mentions that an added beauty of the Mig SMT is that it can operate from dirt airstrips making it much harder for US shock and awe tactics to find and ambush it.
You also forgot to mention that the SCO strategic alliance now includes Brazil, another downtrodden South American country currently thriving on genuine democracy much to the chagrin of Bush, the CIA and Wall Street. The inclusion of Brazil into the Chinese organized SCO alliance was cemented by the recent visit of the Chinese president to Brasilia and other Latin American nations. He indicated that China will invest at least 100 billion USD equivalent in the region in the next 10 years. This marks the end of the Monroe Doctrine and the end of US global hegemony. RIP American imperialism.
GDay aaron. You are right about the farcical unemployment statistics. It is a common neoliberal economic rationalist ploy. They do it in Australia too, but there they also hide huge numbers of unemployed people on disability support pensions and mature-age allowances as well.
Ameno Amigo. You'd better enjoy the good times while you may. Fascist economic gurus like Chris P. Dialynas are campaigning for MORE US *defence* (lovely euphemism) spending; a Federal Reserve policy designed to ensure that unemployment rates exceed the mythical (but natoriously excessive) Nairu; AND cutting the minimum (not executive salaries etc) wage in half. But do not forget that when middle income earners disappear as they will with increasing frequency, they usually reemerge as low wage earners. The problem with greedy warmongering fascism as a political philosophy is that it considers the middle class is expendable, along with the workers. Stick around and you may find that the US economy increasingly comes to resemble that of Mexico.
Also, given that Hugo Chavez took umbrage at the US attempt to assassinate him in September 2004 and went to Beijing on 22 December to negotiate to sell Venezuela's current US oil exports of 2.7 million barrels a day to China; and Iran and Russia are arranging to sell ALL their hydrocarbons to China and other western hemisphere customers for local currencies, the US may find it can’t get enough oil at any price, never mind the USD ceasing to be the world’s reserve currency. Such a shame! Fancy American MOMS not being able to buy the groceries and pick up the kids from school in one ton trucks and SUVs. Oh the hardship!
GDay Aussie.
To be fair to the illustrious Joe Vialls (http://www.vialls.com) I think he is really making the case for the US to pull its head in, in relation to its attempts to overthrow Venezuela's democratically elected government (eg the failed coup attempt in October following the aborted assassination attempt on Chavez) in order to steal its oil. As I read it Joe is saying that Venezuela's acquisition of 50 Mig SMTs armed with 40 SS-N-26 Onyx supersonic missiles is insurance against the US doing what it always does: bomb countries that it wants to control and whose oil it wishes to steal. The SS-N-26 capability completely nullifies the America's seven nuclear powered aircraft carrier taskforce groups as well as the USS John Kennedy group etc. Even the Sunburns (SS-N-25s) minus nuclear warheads are sufficient to do the job (especially if carrying a nuclear warhead) but the faster Onyx missiles (which can sink an aircraft carrier using a conventional warhead) can certainly do it. Now the US navy and air force are even more useless than an Abrams tank in Fallujah.
Of course the ultimate payoff (and the only one the Pentagons Wall Street masters understand) is that, as you say, a fleet of Mig 29s armed with Sunburn or Onyx missiles can halt all shipping in the Gulf of Mexico and through Panama. In that regard the fact that Russia has given four Onxy equipped Mig SMTs to Cuba to enable the Cuban air force to train Venezuelan Mig SMT pilots is, to say the least, fortuitous. And of course you are right in saying Sunburns could take out oil rigs in the Gulf: BHP-Billiton beware!
Joe also mentions that an added beauty of the Mig SMT is that it can operate from dirt airstrips making it much harder for US shock and awe tactics to find and ambush it.
You also forgot to mention that the SCO strategic alliance now includes Brazil, another downtrodden South American country currently thriving on genuine democracy much to the chagrin of Bush, the CIA and Wall Street. The inclusion of Brazil into the Chinese organized SCO alliance was cemented by the recent visit of the Chinese president to Brasilia and other Latin American nations. He indicated that China will invest at least 100 billion USD equivalent in the region in the next 10 years. This marks the end of the Monroe Doctrine and the end of US global hegemony. RIP American imperialism.
GDay aaron. You are right about the farcical unemployment statistics. It is a common neoliberal economic rationalist ploy. They do it in Australia too, but there they also hide huge numbers of unemployed people on disability support pensions and mature-age allowances as well.
Ameno Amigo. You'd better enjoy the good times while you may. Fascist economic gurus like Chris P. Dialynas are campaigning for MORE US *defence* (lovely euphemism) spending; a Federal Reserve policy designed to ensure that unemployment rates exceed the mythical (but natoriously excessive) Nairu; AND cutting the minimum (not executive salaries etc) wage in half. But do not forget that when middle income earners disappear as they will with increasing frequency, they usually reemerge as low wage earners. The problem with greedy warmongering fascism as a political philosophy is that it considers the middle class is expendable, along with the workers. Stick around and you may find that the US economy increasingly comes to resemble that of Mexico.
Many thanks for your information. What I know about your economy is from newspapers, which never give you so many details.
Oh, well, I have some American friends who live here and tell me too. For instance, last summer one of those friends went there and came back loaded because everything was a bargain.
I have also read that it is not exactly that the dollar goes down but it is the euro that goes up in comparison with the yen and the sterling pound.
However, as far as I know, you have a very good rate of growth for these times. And you are still the wealthiest country in the world. But listening to you, one has the impression that you need international aid.
And a dollar cheap has also disadvantages for us. For instance, now fewer Americans travel to Europe and more Europeans travel to the US, which is an advantage for you.
I have ventured here because the topic is one of my hobbies. But you shouldn't be optimistic about me giving up other interests.
Please don't tell me you are friends with Chávez and so with Fidel Castro.
And you here complaining about your economic matters. How those two people have their countries?
there are always bombs and earthquakes. don't mess with america....
sadaam thought he liked euros.
sadaam thought he liked euros.
Mr. Little's article at indybay.org
[ http://www.indybay.org/news/2004/12/1711609.php ]
pointed out that the dollar was at a critical juncture.
As of Jan. 3, it appears that the dollar
did find some support. Therefore, it would
perhaps be advisable to wait before selling
dollars. One could even argue in favor of
exiting Euro of Aussie wagers, temporarily.
There may be a period of weeks or months
where the dollar's value goes up in relation
to other currencies. The same may be said for
gold and silver. Or not.
BUT in the long run the story may well be that
the sky is falling. Two articles of some
interest to sky watchers may be:
http://www.timesonline.co.uk/article/0%2C%2C2095-1421899_1%2C00.html
http://www.321gold.com/editorials/downs_matlack/downs_matlack010305.html
I particularly like this quote from Dr. Faber
(taken from the timesonline.co.uk article):
"Aside from unheralded risks to growth and
stability in Asia — civil wars, floods and
other natural disasters — ultimately, he
believes, Chinese growth will propel Asian
financial markets, still down between 50%
and 80% from 1990 levels, and Asian currencies
to outperform America. The dollar, he pointed
out, has lost 90% of its purchasing power
since the creation of the Federal Reserve
in 1914.
“Everything points to the dollar going the
way of the Roman denarius,” said Faber."
[ http://www.indybay.org/news/2004/12/1711609.php ]
pointed out that the dollar was at a critical juncture.
As of Jan. 3, it appears that the dollar
did find some support. Therefore, it would
perhaps be advisable to wait before selling
dollars. One could even argue in favor of
exiting Euro of Aussie wagers, temporarily.
There may be a period of weeks or months
where the dollar's value goes up in relation
to other currencies. The same may be said for
gold and silver. Or not.
BUT in the long run the story may well be that
the sky is falling. Two articles of some
interest to sky watchers may be:
http://www.timesonline.co.uk/article/0%2C%2C2095-1421899_1%2C00.html
http://www.321gold.com/editorials/downs_matlack/downs_matlack010305.html
I particularly like this quote from Dr. Faber
(taken from the timesonline.co.uk article):
"Aside from unheralded risks to growth and
stability in Asia — civil wars, floods and
other natural disasters — ultimately, he
believes, Chinese growth will propel Asian
financial markets, still down between 50%
and 80% from 1990 levels, and Asian currencies
to outperform America. The dollar, he pointed
out, has lost 90% of its purchasing power
since the creation of the Federal Reserve
in 1914.
“Everything points to the dollar going the
way of the Roman denarius,” said Faber."
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