Dollar Gets Hit Hard

Dollar Gets Hit Hard – The BRIC nations met on April 14, 2011. These nations are Brazil, Russia, India, China and South Africa. This is a massive financial market dwarfing the downtrodden USA. They signed an agreement that future credit transactions among these five nations will no longer be using the US dollar as the currency. WOW. This is big time. This is not concerning ordinary trade agreements although there are other previous agreements to cover the non use of the USD for such transactions. This is concerning credit transactions. The five signing nations hold 40% of the world currency reserves. This caused the USD to drop to 74.68 using the US dollar index which compares it to a basket of other currencies. This is a major low. Want to see how the Wall Street Journal barely mentions this and see how they twist the words go here:
Brazil Real Strengthens As Dlr Slides On Data, BRICS Plan
How many of your friends know this happened? Did you see this on the Mainstream Media?
Folks you should be holding four or five strong currencies. Think Canadian, Aussie, Swiss, Singapore. Then add in precious metals. Don't try to ride this one out holding USD. Invest in an offshore bank account and hold a mix of foreign currencies. The dollar can easily drop 30% or more this year. That is a nice return for doing nothing. What if the dollar goes down by 60%?
Obama – Well the worst President since Lincoln is still claiming he was born in Hawaii. Trump the lead GOP candidate has a team of investigators working to uncover dirt on Obama regarding where he was born. If Obama send the FBI to watch what Trump people are up to then he has to silence the FBI investigators if Trump's people get the goods on him. He is sort of just forced to sit back and wait. Now Arizona has passed a law stating that a presidential candidate must show proof of birth before they can get on the state ballot. It is awaiting signature by the Governor. A number of other states are expected to follow suit. Obama knows about this and is still running. I expect the federal courts will come out and say the states have no right to require the birth certificate from a candidate and thus nullify this great idea. Possibly this will get the states to ignore the fed more. It is very hard to ignore all the evidence that Obama is not US born. Many are just afraid to face the truth since it is so painful. We saw Whoopi Goldberg and Bill Cosby speak out in favor of Obama and against Trump using the race card subtly and not so subtly. I think they know what Obama has done. They are afraid if Obama gets exposed it will set back the progression of black in politics for decades. They thus chose to try and ignore the birther issues. To quote that Manning guy who ran the mock Obama trial a few months ago who is a black preacher “You don't call him black and I won't call him white”. People need to see Obama as not being the poster guy for blacks. He is half white. He says he identifies with blacks and he also identifies with muslims. Come on. This is a scoundrel and a bad man all around. Forget his color and multi racial roots, he is evil. Either he is the stupidest President we ever had based on his sheer failure to help the economy or more likely his agenda is to destroy the economy of the USA. This brings us back to the Saudis and Kuwaitis as his possible backers who got him elected through the investment bankers. These are the only ones doing well while this evil regime occupies the white house. So just work the money trail backwards to find the source of the evil. Trump is getting a lot of mileage out of the birther issue, good for him. He at some point is going to have to come out and tell the people what he stands for which to date is unknown. Even then so what. The candidates say one thing and after they are elected do something else. Trump just might mention this and pledge to not do this. We wait and see.
Egypt – The court in Egypt dissolved Mubarak's party and is moving to confiscate their assets. Mubarak is still in detention awaiting a decision as to whether or not he is going to be prosecuted.
Syria – Assad swore in a new government in hopes of keeping the people from throwing him out. Things are violent there with a lot of protests. Billary Clinton is saying Syria should stop using violence against the protestors. Right. Go to DC and call for Obama to leave and see the response you get. Rest assured it will be bad.
Israel – The Deputy Foreign Minister said the only way to stop the rockets being fired into Israel is to topple Hamas. It appears that Hamas takes orders from Iran. On Friday two Grad missiles were fired into Israel in violation of a ceasefire. It appears that a large scale military intervention may be coming.
Libya – Fighting continues.
US Housing Markets Decline – Experts are predicting a 21% drop in housing markets from 2010 to 2012. Yikes that is a lot. There are 6.7 delinquent mortgages on the books now. This will drive prices down. The markets expected to get hard hit are as follows: Phoenix, Bakersfield, Stockton, San Bernadino, Prince George's, MD, Riverside, Las Vegas, Orlando, Ft Lauderdale, and Miami. Mostly in Calif, and Florida but Las Vegas is doing very poorly.
Worst Tax Countries other than the USA – Below you can see their highest tax bracket.
Portugal 42%
Spain 43%
Italy 44.9%
Canada 46.4%
Australia 46.5%
Germany 47.5%
France 47.8%
Finland 49.1%
Austria 50%
Japan 50%
Denmark 51.6%
Netherlands 52%
Belgium 53.7%
Sweden 56.5%
Fill Up in Mexico – In San Diego regular unleaded is $4.61. In TJ it is only $2.54. People are driving there to tank up. Hawaii already hit $4.46 a gallon. Gas is averaging $4.00 in five states and more expected as the days roll on. Experts are saying we should expect to $5.00 during the summer. I think if the middle east gets hotter we may see gas at the pump go over $5.00 just on speculative fears alone. Is Saudi Arabia goes the gas prices could get much higher.
Gold and Silver – Gold was $1486.40 and Silver was $43.05. The metals are rising with oil prices. You people should be holding precious metals and several currencies.
Currencies – The Euro is buying $1.44. The Swiss franc is buying $1.118 USD. The Franc is getting strong. A few months ago it was at $0.99, more than 10% gain. The AUD is buying $1.05. The CAD is buying $1.04. These are times to be holding four or five foreign currencies, not just the currency of your home country. Converting currency is not considered to be a capital gain if you come out ahead in the jurisdictions I am aware of. The offshore banks do not have a capital gains tax in any event.
Food Prices – The rising gas prices and declining dollar are going to cause food price increases above and beyond what you have already been seeing. This is all going to diminish the chances of an economic recovery. These rising food prices are a major threat to the poor countries. Many millions of people around the world will be driven into poverty by this. Well they do talk about population reduction don't they, so why be surprised.