The world is entering into a time of final upheaval for the global economy. The stock market cannot continue its masquerade of being healthy and robust while being falsely propped up by positive talk, pseudo-exuberance and creative forecasting. The day of reckoning is now on the world's doorstep. Many deeply-felt pangs of sickness will reverberate throughout the world as we draw nearer to a huge market crash.
Some nations are already indicating a shift from dollar to euro as a better assurance for future stability. Although many in the United States scoff at such a possibility, that is precisely what will happen as confidence in the dollar continues to wane.
With corporate scandals and corruption on an alarming rise (not to mention never ending downsizing), along with a loss in confidence in a sick economy, the United States is drawing nearer to an economic implosion.
Colorful forecasts, indifferent management, slight-of-hand trickery concerning corporate assets, downsizing, and other corporate gimmickry have reached the point of no return. There will be no bouncing back from the cancerous greed that has nearly choked all life out of free-market capitalism.
Add to all these economic woes the problem of trade deficits, money manipulation, volatile oil markets, and a list of other global ailments; and you have a sure formula for global economic upheaval, the likes of which this world has never seen. The world has experienced times of great economic upheaval, but it has always bounced back in one way or another. This time there will be no bouncing back because the world will experience a complete economic meltdown to a level which not even the hoarding of gold and silver will solve.
The stability of the global economy is on very shaky ground, so much so that even a small country like Iran is making threats that can actually help push it over the edge. This week World Net Daily (Feb. 3, 2006) reported on an unusual move from Iran. The global economy is so insecure that something this small could actually start a final domino affect:
Beginning in 2003, Iran began demanding oil payment in euros, not dollars, although the oil itself was still priced in U.S. currency. Now, Iran is seriously considering establishing an Iranian Oil Bourse, with the goal of competing with the New York Mercantile Exchange, NYMEX, and London's International Petroleum Exchange, IPE.
Right now, the NYMEX and IPE use three oil "markers" to establish price - West Texas Intermediate crude, Norway Brent crude and the UAE Dubai crude. With the establishment of an Iranian Oil Bourse, Tehran wants to create a fourth oil marker, this one priced in the euro.
Today, about 70 percent of the world's international foreign currency reserves are held in dollars. If the petroeuro begins to challenge the petrodollar, this percentage could diminish drastically.
The United States depends on the dollar foreign-currency reserves in order to sell the Treasury debt that sustains budget deficits. Most Americans are completely unaware of this threat Iran represents to the U.S. economy.
Even China has been hinting at shifting some of its reserves from the dollar to the euro. There is much economic uneasiness in the world today, and this is about to lead into an unprecedented economic upheaval worldwide.
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