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[QUOTE]Recessions and Global Bi-Currencies Without The Doom Days Posted by Derrick Michael Reid on 09 January 2006 @ 10:15 AM
The LaMetropoleCafe web page published an article entitled "US Government is Preparing for the 2010 FRN collapse" on 12/26/05, by your truly. (Federal Reserve Note --FRN--) In that article, it was stated then that: "The inevitable collapse the FRN will not spell doom for the good old USA … This is the good news. The USA is the 3rd largest gold producer subject to 2010 wind-fall taxes, as in 1860 when the comstock load silver mines funded the civil war, and when the USA $20 gold coin was king in the rebel south." The speculation of a FRN collapse seems in the cards but with a bi-currency solution.
There was also a projection of a bi-currency economy. "This real money believer and USA Yankee is now convinced of an FRN collapse at about 2010 and is now screaming the bi-currency rebel yell". "I can now see US banks allowing for silver and gold bank accounts with the issuance of silver and gold certificates to supplement conventional FRN accounts".However, in that article, there was not a kind word for the US central banks activities that lead us sheep to altar when the FRN collapses. "The FRN being the world reserve currency, will be the first of the fiat money to fall from grace, as the world banks dump the dollar, trying not to be last to bail out of FRNs. The USA national debt will also be effectively wiped out by tremendous devaluation of the FRNs, a possible intended scheme by the US Government to effectively defraud bankers and savers world wide."

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The declaration of a return to real money has recently been echoed by moves by the EU, Russian, and Chinese banks. In the January 5th 2006 LeMetropoleCafe. com James Joyce tread, it was stated: "Spoke with our STALKER source this afternoon. The buzz in London in the precious metal world is: More talk among the Saudis, Chinese, and Russians of a gold backed currency … maybe two currencies. They are supposedly concerned about the zillions of dollars floating around everywhere in the world. Word is they are feeling too exposed to a dollar debacle."


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As such, the global trend toward world banks hoarding of gold seems to be coinciding with the prospects of bi-currencies in preparation for bi-currency economies and ultimately to only real money economies in the out years. That transition will be firstly to real money possession and secondly to real money economies, which is inevitable, though, there will certainly be a difficult transition period.

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The Looming Fiat Currency Train Wreck

http://www.safehaven...rticle-4450.htm

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So Just How Much Oil Does Iran Produce Per Day Anyway? Well, let's ask the experts over at the U.S. Department of Energy [DOE] - shall we?

In 2003, Persian Gulf countries had estimated net oil exports of 17.2 million bbl/d of oil (see pie chart). Saudi Arabia exported the most oil of any Persian Gulf country in 2003, with an estimated 8.40 million bbl/d (49% of the total). Also, Iran had estimated net exports of about 2.6 million bbl/d (15%), followed by the United Arab Emirates (2.4 million bbl/d -- 14%), Kuwait (2.0 million bbl/d -- 12%), Iraq (0.9 million bbl/d -- 9%), Qatar (0.9 million bbl/d -- 5%), and Bahrain (0.01 million bbl/d -- 0.1%).

Now let's take a look at what 2.6 million barrels of oil per day is really worth in term of "potential new Euro demand" anyway? Here is the math:
2,600,0000 x 60.00/barrel x 30 [days per month.] x 12 [months per yr.]

TOTAL = 56.16 BILLION [ANNUALIZED] WORTH OF NEW EURO DEMAND

Now, Let's Take A Look At Venezuela

Let's get the lay of the land, so to speak, right from the horse's [Chavez's] mouth - 1.5 million barrels of Venezuelan crude [60 % of production] is currently purchased by the US of A each and every day. At 60.00 per barrel, this amounts to 60 x 1,500,000 x 30 [days per month] = 2.7 billion per month Worth of EUROS [32.4 BILLION WORTH ANNUALIZED]. This is simply the amount of Euros the US will need to purchase [read: print] or borrow to maintain its current quota of Venezuelan crude should Chavez sell all output for Euros. Additionally, the balance of Venezuelan crude will fetch another [60.00 x 1,000,000 x 30] = 1.8 billion per month worth of Euros the rest of the world will need to purchase said oil, or, A FURTHER 21.6 BILLION ANNUALIZED. So folks, cumulatively - in the case of Venezuela alone - we are potentially talking somewhere in the neighborhood of NEW DEMAND FOR EUROS OF 54 BILLION US DOLLAR EQUIVALENT PER YEAR.

Oh well, at least the Fed will save a few nickels and will no longer be publishing M3 [money supply] data. If you can't see the money printing - I guess it can't hurt you, eh?



While the price of crude oil has increased dramatically over the past 5 years - U.S. consumption has factually grown. Also, by looking at the production line in the chart above - we have a crystal clear illustration of exactly what "Peak Oil" really is - right in front of our noses!

Imagine, main stream pundits continue to speak of interest rate conundrums without even mentioning the 300+ TRILLION U.S. GORILLA [interest rate derivatives - swaps] sitting on top of the interest rate complex. Why has no one stopped to investigate or explain the cancerous growth [123 Trillion at Q3/03 - now exceeding 300 Trillion [Q3/05] - pg. 47 of 126]? Also, the most recent rise in the price of gold - the main stream media would have us believe it is wholly attributable to increased nuclear tensions with Iran - failing to mention a well documented 16,000ish ton short of physical metal on the part of Western Central Banks?

In addition, has anyone not noticed that while "officially" inflation continues to be reported in benign terms [around 2% - core rate?] - the cost of virtually EVERYTHING [except DVD players] from health care to insurance/professional premiums to copper to real estate and municipal taxes keeps going up?