The Last, Great Run For The U.S. Dollar, The Death Of The Euro And 74 Trillion In Currency Derivatives At Risk
Are we on the verge of an unprecedented global currency crisis? On Tuesday, the euro briefly fell below $1.07 for the first time in almost a dozen years. And the U.S. dollar continues to surge against almost every other major global currency. The U.S. dollar index has now risen an astounding 23 percent in just the last eight months. That is the fastest pace that the U.S. dollar has risen since 1981. You might be tempted to think that a stronger U.S. dollar is good news, but it isn’t. A strong U.S. dollar hurts U.S. exports, thus harming our economy. In addition, a weak U.S. dollar has fueled tremendous expansion in emerging markets around the planet over the past decade or so. When the dollar becomes a lot stronger, it becomes much more difficult for those countries to borrow more money and repay old debts. In other words, the emerging market “boom” is about to become a bust. Not only that, it is important to keep in mind that global financial institutions bet a tremendous amount of money on currency movements. According to the Bank for International Settlements, 74 trillion dollars in derivatives are tied to the value of the U.S. dollar, the value of the euro and the value of other global currencies. When currency rates start flying around all over the place, you can rest assured that someone out there is losing an enormous amount of money. If this derivatives bubble ends up imploding, there won’t be enough money in the entire world to bail everyone out.
Hey! I was reading a similar question on another site. Esp. the dollar surge. Here it is from Jim Stone web site:~~~""""Absolutely no one is reporting this, so this is my own observation and insight
I have noticed lately that the dollar is rocketing upward in "value" in relation to all other world currencies. The dollar index proves that this is the dollar alone being manipulated and brought upward, and not the devaluation of other currencies, which are for the most part remaining stable in relation to each other.
Why would this be done? There are two simple sweet answers and both are awful.
1. China and Russia are both attempting to get their own alternative reserve currency systems in place. By doing this to the dollar (have it increase in value) the Rothchild/Rockefeller inbreed club makes the dollar look like a wise, safe investment because it is paying everyone back enormously in relation to their local currencies. By having this happen, it weakens the appeal of alternative reserve currencies, AND at the same time, makes it more difficult financially for competing systems to launch.
2. #2 is the big one - If any nation is in debt and has to pay back in dollars, increasing the value of those dollars in relation to other national currencies has the effect of massively increasing the amount nations have to pay back the inbreed club. (and they are definitely getting inbred, but that is beside the point).
Increasing the value of the dollar is the ultimate pump which will preceed a dump, - here is how it works -
First you get nations in debt with low value dollars. Then, because you have control over enough financial systems, you can manipulate them artificially and push the value of the dollar up.
Let's say Tajikistan took out a billion dollar loan in low value dollars, when the index was at 0.72. If you then manage to increase the value of those dollars to 1.0 on the dollar index, Tajikistan now has to pay you back, in equivalent value to the old weak dollars, an additional $280 million. The amount is slightly more than that (for the math buffs out there) but to make it easy I will go with that. SO, on top of the interest they had to pay back, now they have to additionally pay back the effective value of $280 million more dollars simply because someone manipulated an index. It is all fake, but it works anyway and that's just fine when the money barons are evil.
Having the dollar scream upward is cool for people who are holding dollars because the dollars will be worth more in relation to their local currencies, but it is very bad for people who owe debts in dollars. Additionally, it makes it very bad for Russia and China, who are trying to start their own new reserve currency systems and economic alliances.
As of the time of my writing this, they had the dollar index all the way up to 97.6 which is a huge difference from the earlier (within this year) level of 0.72. Really, the Euro did not come down as much as it looks, in reality the dollar simply got pumped through the roof.
What all of this really means I do not know, but I do know the above two points are real. As for the motive (perhaps they have a reason to do this before a hot war) I do not know, all I can say is something is definitely amiss. As for now, this amounts to a financial war that will wreak havoc on many nations, why would "they" want that?""