The declining power of the `ol American greenback...should we start panicking?

12 Reasons Why Gold Should Bounce Sharply Higher in 2014 
(Lorimer Wilson)
Munknee.com

edited excerpts by Jason Hamlin (goldstockbull.com) from his original article entitled: 12 Reasons Why Gold Will Rebound and Make New Highs in 2014.

[...]

#4 – Dollar Losing Status as World Reserve Currency

   The exorbitant privilege of being able to print the world reserve currency is coming 
   to end.

   --“It is perhaps a good time for the befuddled world to start considering building a de-   
   Americanized world,” said a statement by Xinhua, the state news agency of China — which 
   holds some $1.3 trillion in Treasury bonds.

   --“The United States will inevitably lose its reserve currency monopoly,” wrote economists 
   Hélène Rey of the London Business School.

   --Pierre-Olivier Gourinchas of the University of California, Berkeley, and Emmanuel Farhi of 
   Harvard University said. “It can only be a matter of time before the world becomes multipolar.”

   --The IMF echoed this sentiment, stating how “reserves concentration in the government debt 
   of one country introduces idiosyncratic risks to the international monetary system.

   Several nations now have bi-lateral trade agreements that bypass the dollar.

   --China has made arrangements to swap Yuan’s for for local currencies with Japan, Russia, 
   Australia, Iceland, South Korea, Malaysia, Brazil, India and South Africa. The BRICS nations 
   are emerging as a powerful economic force and they are intent on conducting affairs without 
   use of the U.S. dollar.

   --The growing rift with Saudi Arabia threatens the petrodollar.

   --Oil-rich countries that have attempted to sell their oil in currencies other than dollars include 
   Iraq and Libya, both bombed into submission.

   --Iran is now trading oil for gold, bypassing the U.S. petrodollar. This is likely the real reason 
   they are now in the crosshairs of the U.S. military.

   --Syria is seen as a stepping stone to attacking Iran, but widespread opposition from ally 
   countries and citizens alike stopped the recent war momentum.

   --As the influence of the petrol-dollar continue to wane, so too will the power of the U.S. dollar 
   as the world reserve currency. Without the ability to deficit spend and export our inflation, it   
   will come home to roost and the dollar will suffer or even collapse as have other debt-ridden 
   fiat currencies throughout history....

[Click here to read the full article]

Related articles:
--Learn how the 'petro-dollar' got started

Billions of petrodollars flood into Egypt post military coup, so who needs democracy anyway?

I was never a Muhammed Morsi fan but to uproot a democratic institution without following the normal and proper conventions of a government is just ludicrous, and it goes to show that the Egyptian military is an institution beholden NOT to the people as they Egyptian people might think, but in reality to a 'foreign' entity. The sooner the people realize this, the better they can control the outcome. The Egyptian army has always protected itself at any cost and will do the bidding of others as its strings are pulled to and fro. No matter what else occurs in Egypt in terms of a government, the military will always be there as a watchdog ready to obey it`s master`s orders. And of course, lets not forget it`s military financing and budget...that it`s wholly dependent on. Finally, what can one say about the Persian Gulf nations...no self identity whatsoever. They who hate and abhor democracy, pumped into Egypt a staggering $12 billion all in a single month, chump change when compared to what was 'given' to Cairo post-Mubarak.

Its funny in retrospect when you think to President Obama`s 2009 Cairo speech, where he declared, “No system of government can or should be imposed upon one nation by another,..."

Our wise Founding Father George Washington`s farewell address sums up accurately our current state of affairs concerning our diplomatic and military commitment to virtually the entire world. “Nothing is more essential,” Washington said, “than that permanent, inveterate antipathies against particular nations, and passionate attachments for others, should be excluded.”

“The nation which indulges towards another a habitual hatred or a habitual fondness is in some degree a slave,” he added. “It is a slave to its animosity or to its affection, either of which is sufficient to lead it astray from its duty and its interest.” What ominous words from our founding father, who sadly is ridiculed by our government officials as being 'un-American.'

Egyptian army’s financial coup: 12 billion petrodollars from Saudi, UAE, Kuwaiti fans
DEBKAfile
July 10, 2013

In a dazzling display of monetary muscle, Saudi Arabia and the United Arab Emirates poured $8 billion in a single day into the coffers of Egypt’s army rulers in cash, grants, loans without interest and gifts of gas, a dizzying life-saving infusion into its tottering economy. Forking out sums on this scale in a single day – or even month - is beyond the capacity of almost every world power – even the US and Russia - in this age of economic distress. The Arab oil colossuses managed to dwarf Iran’s pretensions to the standing of regional power.
Tuesday, July 9, just six days after the Egyptian army overthrew the Muslim Brotherhood president Mohamed Morsi, a UAE delegation of foreign and energy ministers and national security adviser landed in Cairo. They came carrying the gifts of $1 billion as a grant and $2 billion in long-term credit.

In well-orchestrated moves, Saudi Arabia then stepped forward with a $5 billion package, of which a lump sum of $2 billion was drafted to Egypt’s state bank that day, followed by another $2 billion as a gift of Saudi gas, and a further $1 billion for propping up the sagging Egyptian currency.

The delivery by two Arab governments to a third of financial assistance on this scale and on a single day is unheard of in the Middle East, or, indeed, anywhere else.

As they celebrate Ramadan, 84 million Egyptians can start looking forward to a square meal at the end of their month of fasting.

This river of largesse was the outcome of a development first revealed by DEBKAfile last week: The Egyptian military high command was not working alone when its operations headquarters put together the July 3 takeover of power from the Muslim Brotherhood; it was coordinated closely down to the last detail with the palaces of the Saudi and UAE rulers and the operations rooms of their intelligence services.

The last DEBKA Weekly issue 594 (July 5) carried details of the military-intelligence mechanism at work between the three governments.

The coming issue, out next Friday, July 12, offers further revelations of how this mechanism is designed to shore up Egypt’s post-coup regime and restore the strife-torn country, the most populous in the Arab world, to its traditional eminence. Cairo is assigned a lead role in a Sunni Muslim bloc stretching from the Gulf to Cairo (with room for quiet collaboration with Israel) to withstand the challenges posed by the alliance of Russia, Iran, Syria and the Lebanese Hizballah.

The petrodollar shower for Egypt did not end with the $8 billion from Saudi Arabia and the UAE: Kuwait has pledged another $5 billion - later amended to $4 billion - in a secret communication to Riyadh. It will be released after the sheikhdom's parliamentary elections on July 27, and so raise total Gulf Arab bounty to Egypt to the staggering total of $12 billion.
Friendly assistance on this scale tends to diminish the relevance of Washington’s dilemmas over the continuation of its $1.3 billion aid package to Egypt after a military coup, of which $700 million is due this year.

The suggestion that US aid may be used to hasten Egypt’s “swift return to a democratically elected civilian government” loses its force when Saudi Arabia and the UAE have both guaranteed to make up any shortfalls in US aid to Egypt.

On June 26, Syrian Deputy Prime Minister Kadri Jamil boasted that Moscow, Beijing and Tehran were contributing half a billion dollars per month to Syria’s war chest. “It’s not so bad to have Russia, China and Iran on your side,” he gloated.

Egypt can now boast to have far outstripped Syria in foreign support - $12 billion in a single month, compared with a mere $6 billion in a year.

We celebrate the Fourth of July, but do we ask WHY we salute the red, white and blue and WHERE it came from?

Why the U.S. Flag is Red, White and Blue
By Nicole Greenstein
TIME
July 04, 2013

credit: AmericanFlagFoundation

Every Fourth of July, we flaunt Uncle Sam hats, wave our flag, and watch fireworks shoot sparks into the night sky. But many never even stop to ask the question, “Why does America salute the red, white and blue?”

On June 14, 1777 in Philadelphia, the Marine Committee of the Second Continental Congress adopted a resolution that read the following: “Resolved, that the flag of the United States be thirteen stripes, alternate red and white; that the union be thirteen stars, white in a blue field representing a new constellation.”

And with these words, the Stars and Stripes were born. Yet the resolution never said a word about the significance behind the choice of red, white and blue. And for good reason. The three colors did not have any official meaning when the flag was adopted in 1777.

The colors and their significance still trace back to the birth of the country, and had very specific meanings in the creation of the Great Seal a year earlier. On July 4, 1776, the Continental Congress passed a resolution authorizing a committee to develop a seal for the country. The committee was instructed to draw up a seal that reflected the Founding Fathers’ beliefs and values, as well as the sovereignty of the new nation. Red, white and blue were chosen, and the Great Seal was officially adopted on June 20, 1782.

Heraldic devices such as seals have specific meanings for each element and color, and the U.S. Seal was no exception. Charles Thomson, Secretary of the Continental Congress, explained the significance to Congress when he presented the seal. “The colors,” Thomson said at the time, “are those used in the flag of the United States of America. White signifies purity and innocence. Red, hardiness & valour, and Blue… signifies vigilance, perseverance & justice.”

Mike Buss, a flag expert with the American Legion, says that the most obvious reason for the flag’s colors is that they were simply taken from our mother country’s flag — the Union Jack of England. “Our heritage does come from Great Britain, and that was some of the thought process that went about in coming up with our flag,” Buss says of the American flag’s red, white and blue. “They come from the three colors that the Founding Fathers had served under or had been exposed to.”

Over the years people have altered Thomson’s original interpretation. Some now say that red represents the blood spilled by the patriots and those who fight to protect our country. President Reagan even put his own spin on the matter when he proclaimed 1986 the Year of the Flag. “The colors of our flag signify the qualities of the human spirit we Americans cherish,” Reagan said. “Red for courage and readiness to sacrifice; white for pure intentions and high ideals; and blue for vigilance and justice.”

The significance behind the flag’s design is more commonly known than that of its colors. The 50 stars stand for America’s 50 states, while the 13 red and white stripes represent the 13 colonies. But there’s also a lesser-known interpretation for the Stars and Stripes. The House of Representatives’ 1977 book about the flag states: “The star is a symbol of the heavens and the divine goal to which man has aspired from time immemorial; the stripe is symbolic of the rays of light emanating from the sun.”

Although most Americans today aren’t aware of the specific symbolism behind the flag’s red, white and blue, flag expert Buss is not concerned. Instead, he believes the flag’s power to evoke patriotism and pride after all these years is most important.

“For us veterans, the flag represents why we served,” Buss says. “We were there because the flag represented our freedoms — freedom of speech, freedom of the press, freedom of religion.”

Naval blockade of Iran needed says US Senator - Really? Congress is just getting funnier by the day...

Senator Levin Calls for Naval Blockade of Iran
Kurt Nimmo
Infowars.com
March 10, 2012

US Senator Carl Levin, Infowars

Democrat Senator Carl Levin, chairman of the Armed Services Committee, has called for an international naval blockade of Iranian oil exports. He said the action should be taken before the U.S. and Israel attack Iran.


“I think (these are) options that whoever is willing to participate should explore, including Israel and including the United States,” Levin told C-Span on Friday.

A naval blockade is considered an act of war.

In order to minimize the impact on world oil prices, Levin said alternative oil supplies should be put into place before the blockade. Iran is the number two OPEC oil producer. The EU has agreed on an oil purchase embargo scheduled to begin on July 1.

If sanctions do not force Iran to drop its nuclear program, a “strike is likely” within “months,” Levin warned. He said an Israeli missile system installed by the United States had minimized Iran’s ability to retaliate against Israel after an attack.