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[contrarian2investor] 01/12/2010 22:33

traderabc,

They will be followed by other emerging economies. Sooner or later China and Japan will start buying overseas assets with those flimsy US treasuries also instead of their own currency. Well they have to get rid of them some how!!
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So what have you been trading (buying) recently?
I returned to Blighty this evening after completing some business in Eire. My last purchase was IFL @29p 2 weeks ago, after an order got filled. I hope to still be holding in 3-10 years time at which juncture it should be a multi-bagger.

c2i

[traderabc] 01/12/2010 22:24

c2i thanks, It's happening now, I heard China has a similar agreement with Brazil.

[contrarian2investor] 01/12/2010 22:20

Hi traderabc,

I thought you might find this article of interest:

China and Russia Trade Agreement: More than Meets the Eye


Wednesday, 1 December 2010 |Source: GoldSeek.com
By: Dr. Jeffrey Lewis

Direct trade between China and Russia may be less than $50 billion annually, but it's not the numbers that matter. Under the new agreement, China and Russia have decided that they will use their own local currencies to settle bilateral trade. Previously, both countries used the United States dollar as an intermediary for settling delivery payments.



Two sides of the argument quickly settled on two issues: that the dollar would experience lower demand, or that the sum of $50 billion is largely irrelevant. Both of those viewpoints are correct; neither China nor Russia need to hold US dollars for bilateral trade, and in the grand scheme of international trade, $50 billion is a very small sum.



Truthfully, the days of the dollar as an international medium of exchange are over, and they have been over for quite some time. With the explosion in electronic trading and free floating exchange rates, importers and exports can, within a matter of minutes, effective neutralize any currency risk with a simple financial transaction. Thus, settling contracts in dollars for liquidity and stability purposes is no longer a function of the US dollar.



Where the Dollar Reigns as King



There is one market where the dollar is critically important. Following a 1970s agreement with Saudi Arabia, the US dollar was made to be the only currency in which oil could be bought and sold. The agreement was perhaps the best victory for the dollar since the official breakdown of the gold standard in 1971, as it meant that countries and companies would have to hold dollars for the sole purpose of buying energy, and that the United States was the only country that could buy oil with printed dollars. Countries wishing to inflate to buy oil would have to make their actions immediately known by selling off large amounts of currency in floating international markets for dollars.



Chipping Away at the Dollar's Value



China exports a variety of products to Russia, but Russia sends back only one: oil. With an agreement in place to avoid the dollar, China will now settle oil contracts in Renminbi or Ruble, not dollars.



In the days of quantitative easing and concerns over US debt, the dependence of the oil market on dollars was one of the few anchors the currency had left. With China now agreeing to purchase directly in another currency, and having already made direct investments in energy companies at home and abroad, a wedge is clearly being driven between the oil market and the dollar.



At current prices, some $2.3 trillion of oil is consumed annually, most of which is bought and sold in dollars. The fate of the US dollar's utility now rests in the hands of the Saudis and whether they can keep OPEC, an organization responsible for one-third of total output, to keep trading barrels for bucks. If they can't, the long precipitous decline of the American dollar will end, and we will see instead an instantaneous decline in the importance of the dollar and its value – which is yet another reason to further invest in precious metals.

Dr. Jeffrey Lewis

c2i

[the bounty hunter] 30/11/2010 19:02

with the euro coming under pressure, a good day for gold and silver

[teapreacher] 30/11/2010 16:32

No probs. I think they are normally posted first on the RT site.

[traderabc] 30/11/2010 10:11

Thanks tea, can't find KR99 on his site for some reason.

[teapreacher] 30/11/2010 08:11

Keiser Report Number 99:

[traderabc] 29/11/2010 19:31

Mr Henwood and Rogers on their own would have been amusing, I can see why they call this Cross Talk.

Rogers starts at min 4.

CrossTalk: Socialism for the Rich (ft. Jim Rogers)

[traderabc] 29/11/2010 09:34

Interview With David Morgan About Silver Manipulation

[traderabc] 29/11/2010 09:32

Robert Creamer Debate Part 1 - Peter Schiff Radio 11/23/10

1


2


3

[traderabc] 28/11/2010 15:20

Iceland Better Off Than Ireland Because They Let Big Private Banks Fail, says President



Jonas Bergman and Omar R. Valdimarsson
Bloomberg
Nov 28, 2010

Iceland's President Olafur R. Grimsson said his country is better off than Ireland thanks to the government's decision to allow the banks to fail two years ago and because the krona could be devalued.

"The difference is that in Iceland we allowed the banks to fail," Grimsson said in an interview with Bloomberg Television's Mark Barton today. "These were private banks and we didn't pump money into them in order to keep them going; the state did not shoulder the responsibility of the failed private banks."

[traderabc] 28/11/2010 15:18

100K that's even better.

Thousands protest against Irish bailout



Henry McDonald
London Guardian
Nov 28, 2010

More than 100,000 Irish citizens took to the streets of Dublin today to protest against the international bailout and four years of austerity.

Despite overnight snow storms and freezing temperatures, huge crowds have gathered in O'Connell Street to demonstrate against the cuts aimed at driving down Ireland's colossal national debt.

So far the march has passed off peacefully although there is a huge Garda presence with up to 700 officers on duty working alongside 250 security guards for the Irish Congress of Trade Unions.

Among the marchers there is deep anger that most of the more than €80bn (£67bn) from the EU and the International Monetary Fund will be given to shore up Ireland's ailing banks.

[traderabc] 28/11/2010 15:07

"Yesterday, around 50,000 people took to the streets of Dublin to register their opposition to the Government's four-year plan to cut the budget deficit to 3 per cent of GDP by 2014."




Too right they should default, why pay the 6% interest to only default latter, when the nation is even poorer?
50K people on the streets of Dublin is a great start, let's hope they can turn up the pressure and boot out all the useless politicians and crooked banksters. All it could take is for one Euro nation to do this and the rest (of the piigs) may see the light and do the same.

When written in Chinese the word crisis is composed of two characters. One represents danger, and the other represents opportunity. I hope all the Euro nations in trouble realize that they do not have to be held hostage to the bankers, that there are alternatives to indebted servitude.

[the bounty hunter] 28/11/2010 10:38

thanks chestnuts - great read

[049balt] 27/11/2010 23:54

The"Knights in White Satin" aka the IMF are in my country on this cold and frosty night, I fear for the future, really bad times lie ahead for all of us! Ireland WILL have to default! we simply can not repay our debts, it has all ended in a bloody awful mess!!

[049balt] 27/11/2010 23:40

Trader, this is for you!!

[traderabc] 27/11/2010 21:37

The lady's film.


California Dreaming

[traderabc] 27/11/2010 18:29

An interesting interview.

On the Edge with Max Keiser – California Dreaming

[traderabc] 27/11/2010 16:47

Humour.

Rap News v. News World Order: Wikileaks and the War on Journalism (ft. Julian Assange)

[traderabc] 27/11/2010 15:56

Dollar rally, sovereign debt, black Friday, Schiff Radio.com

[traderabc] 27/11/2010 15:55

Peter Schiff 2010 Predictions. Spot on!

[traderabc] 27/11/2010 14:16

Greece → Ireland → Portugal → Spain → Italy → UK → ?


Washington's Blog
Nov 27, 2010

It is now common knowledge that there is a potential domino effect of European sovereign debt contagion in roughly the following order:

Greece → Ireland → Portugal → Spain → Italy → UK

While some people have been writing about this for well over a year, many others have joined the party late (there are now over 600,000 hits from a Google search discussing this topic.)

It is also now common knowledge that while Greece and Ireland have relatively small economies, there will be real trouble if the Spanish domino falls.

Iceland has the world's 112th biggest economy, Ireland the 38th, and Portugal the 36th. In contrast, Spain has the world's 9th biggest economy, Italy the 7th and the UK the 6th. A failure by one of the latter 3 would be devastating for the world economy.