Cynthia’s Interests

This is good news for penny saving Queens like me.

A potential shortage of coins in the United States could mean all those pennies in your piggy bank could be worth five times their current value soon.

I received an email about this breaking news that was first reported on the Hal Turner show. Hal reports, China is getting ready to dump its U.S. Reserves because of the following reasons:

1) The Federal Reserve Bank ceased publishing "M3" data in March, making it nearly impossible for anyone to know how much cash is being printed.  China said this act made it impossible to tell how much a Dollar is worth.

2) The U.S. Dollar has lost upwards of thirty percent (30%) of its value against other foreign currencies in the recent past, meaning China has lost almost $300 Billion simply by holding U.S. Dollars in its reserves.

3) The U.S. has no plans whatsoever to reduce deficit spending or ability pay down any of its existing debt without printing money to pay it off.

If this was true, it could be catastrophic. The decision to dump doesn’t make sense because these two countries are too dependent on each other. If one system collapses, so will the other. For instance, Wal-Mart wants to be the global one-stop and lobbied against U.S. firms to protect its relationship with China (China was dumping low price goods on the U.S. markets and U.S. companies went to Congress to stop this practice). The U.S. government sided with Wal-Mart at the expense of these U.S. companies.  Many of these same U.S. firms subsequently went out of business. China not only needs a place where it can dump it’s cheaply made goods, but also needs a place to dump its highly educated people because their economy can’t support them.

This morning I was listening to Matt McGill, former co-host of the Matt & Perry Show on WVON and one of his guest predicted within the next ten years, the money will change. He believes that the U.S. is going to create a whole new system because this one is in trouble and many people are going to lose. The question is – will this happen?

According to what has transpired with the discontinuation of M3 we know that this monetary system is indeed in trouble. OnBlast Media wrote an interesting piece as to why and how this system got in trouble and it explains why it is necessary for the U.S. to go to war with any country that threatens the security of the all mighty dollar. 

Nixon took office 1969 and that’s when it all began, around or on August 15, 1971, when it ended. Nixon closed the gold window and refused to pay out any of our remaining 280 million ounces of gold. In essence, we declared our insolvency and everyone recognized some other monetary system had to be devised in order to bring stability to the markets. A new system was devised which allowed the U.S. to operate the printing presses for the world reserve currency with no restraints placed on it– not even a pretense of gold convertibility, none whatsoever! Though the new policy was even more deeply flawed, it nevertheless opened the door for dollar “fraud” to spread.

The U.S. authorities, struck an agreement with OPEC to price oil in U.S. dollars exclusively for all worldwide transactions. This gave the dollar a special place among world currencies and in essence “backed” the dollar with oil. In return, the U.S. promised to protect the various oil-rich kingdoms in the Persian Gulf against threat of invasion or domestic coup.

I received an email about monetary matters and it has a new and interesting twist as to why the whole Immigration Amnesty Debate (especially the well-funded well-attended protests) was scheduled during this time. The act/actions of the protestors was/were deliberately scheduled to take place now, to divert attention from this massive printing/devaluation of the U.S. Dollar. Since I think that whatever Congress does there is always a "hidden agenda", I kept reading because this seemed plausible to me.

Anyway, the email went on to say, that Six months ago, the Federal Reserve quietly announced that as of March 20, 2006, they would no longer publish "M3" Data. The"M3" was the amount of cash the government printed to put into circulation, propping-up the U.S. economy, which means there is no way for anyone to gauge how much a "dollar" is truly worth.

Rather interesting don’t you think?

So, I googled "M3" and true enough, the federal government is discontinuing this practice. According to the information compiled at Wikipedia, Congressman Ron Paul introduced H.R. 4892 in an effort to reverse this change. I wonder why Congressman Ron Paul is trying to institute a bill to reverse this change especially since this report released from the Federal Reserves says M3 doesn’t convey any additional information about economic activity that is not already embodied in M2.

There is so much misinformation and so much deception; I find it rather difficult to determine the truth. One thing I’m sure of – nothing is what it appears to be. Does this mean that the U.S. Dollar is falling against all major world currencies as the email suggested?