Home > General Topics > Economics > Brazil's new president warns of WW3.

Brazil's new president warns of WW3.

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    <p><span>&nbsp; <a rel="nofollow" style="color: rgb(0, 51, 153);" target="_blank" href="http://www.ft.com/cms/s/0/326a6d62-e83d-11df-8995-00144feab49a.html#ixzz14Xqf2lWT"><span class="yshortcuts" id="lw_1289083534_0">http://www.ft.com/cms/s/0/326a6d62-e83d-11df-8995-00144feab49a.html#ixzz14Xqf2lWT</span></a> </span>
    <p>Brazil ready to retaliate for US move in ‘currency war’
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    <p>By John Paul Rathbone in London and Jonathan Wheatley in <span style="border-bottom: 2px dotted rgb(54, 99, 136); cursor: pointer; background: none repeat scroll 0% 0% transparent;" class="yshortcuts" id="lw_1289083534_1">São Paulo</span>.Published: <span class="yshortcuts" id="lw_1289083534_2">November 4</span> 2010 18:28 | Last updated: November 4 2010 18:28
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    <p><span style="border-bottom: 2px dotted rgb(54, 99, 136); cursor: pointer;" class="yshortcuts" id="lw_1289083534_3">Brazil</span>, the country that <a rel="nofollow" class="yiv538706091bodystrong" title="FT - Brazil in ‘currency war’ alert" target="_blank" href="http://www.ft.com/cms/s/0/33ff9624-ca48-11df-a860-00144feab49a.html"><span class="yshortcuts" id="lw_1289083534_4">fired the gun</span></a> on the so-called “<a rel="nofollow" class="yiv538706091bodystrong" title="FT In depth - Currency wars" target="_blank" href="http://www.ft.com/indepth/currency-wars"><span class="yshortcuts" id="lw_1289083534_5">currency wars</span></a>”, is girding itself for further battle.
    <p>Brazilian officials from the president down have slammed the <span class="yshortcuts" id="lw_1289083534_6">Federal Reserve</span>’s decision to depress US interest rates by <a rel="nofollow" class="yiv538706091bodystrong" title="FT - US Fed to pump in extra $600bn" target="_blank" href="http://www.ft.com/indepth/currency-wars"><span class="yshortcuts" id="lw_1289083534_7">buying billions of dollars of government bonds</span></a>, warning that it could lead to retaliatory measures.
    <p>At a joint press conference with <a rel="nofollow" class="yiv538706091bodystrong" title="FT - Rousseff picks her transition lieutenants" target="_blank" href="http://www.ft.com/cms/s/0/38697fba-e774-11df-b5b4-00144feab49a.html"><span class="yshortcuts" id="lw_1289083534_8">president-elect Dilma Rousseff</span></a>, <span class="yshortcuts" id="lw_1289083534_9">outgoing president</span> <span style="border-bottom: 2px dotted rgb(54, 99, 136); cursor: pointer; background: none repeat scroll 0% 0% transparent;" class="yshortcuts" id="lw_1289083534_10">Luiz Inácio Lula da Silva</span> said on Wednesday he would travel to the <a rel="nofollow" class="yiv538706091bodystrong" title="FT In depth - G20" target="_blank" href="http://www.ft.com/indepth/g20"><span class="yshortcuts" id="lw_1289083534_11">G20</span></a> summit in Seoul with Ms Rousseff, ready to take “all the necessary measures to not allow our currency to become overvalued” and to “fight for Brazil’s interests”. “They’ll have to face two of us this time!” he said.Ms Rousseff added: <font size="6"><span style="font-weight: bold;">“The last time there was a series of competitive devaluations. . . it ended in <span style="cursor: pointer; background: none repeat scroll 0% 0% transparent;" class="yshortcuts" id="lw_1289083534_12">world war two</span>.” </span></font>
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  2. There have been many wars fought over economic and fiscal policy. What the Fed is doing is angering many nations.
  3. Of course they're angry. The U.S. just exported/dumped a ton of inflation on the heads of everyone else in the world, whether they want it or not.
  4. And here I thought the messiah was going to \ get the world to "like" us again?

    Oh wait, he is trying, but this is still W's fault.

    Hardliners in denial will NEVER admit they drank the koolaid.
  5. WW3?

    GO LONG! Bet the FARM!!
  6. has brazil got nukes? I thought was only G5

  7. well if we are going to go to war Brazil would be a good choice


    wtf are they going to do?
  8. LOL, wait for us to do something idiotic like we always do...
  9. Pakistan, India, and of course Israel so you forgot a few! :eek:
  10. we do not need nukes to fight WW3, all that is needed is a proxy country where everyone can commit their forces and kill each other to their heart's content.

    Actually i thought Brasil did develop nukes but later gave it up like S.africa
  11. I always wondered why only 8 or 10 countries out of 200 countries have nuclear weapons.
  12. Because those countries already have enough nuclear bombs to destory the world.

  13. They could invade us with crocodiles/ alligators or pirrahna fish.

    Probably put millions of them in our rivers. Kill all of us. Damn. What a way to go.
  14. In the ME, "having nukes" (or even having A nuke) seem as much a "manhood" issue as anything else.

    But nukes aren't of much use against most potential enemies without a delivery and guidance system.
  15. This would explain why the nutjob in Iran wants a nuke. He feels like a little boy in a man's world.
  16. I do not think nuclear weapons can destroy this world. Example if USA drops a nuclear bomb in Afghanistan the blast wave/shockwave and heat would be stopped by the mountains. Mountains are strong enough to stop nuclear explosion. Afghanistan is full of mountains. People fear nuclear weapons for no reason at all. Correct me if I am wrong.
  17. You are correct, nukes are useless in the mountains. The only way a weapon would have penetrative capability in mountainous regions is to have weaponry that can damage the earth's core.
  18. If he had one, how would he use it? Load it onto a big truck and DRIVE to its destination?
  19. November 8, 2010

    SouthAmerica: Why do you think the United States has been building 7 military bases in Colombia?

    Just to throw away the money the United States had to borrow from China?

    The answer is yes - Brazil has an arsenal of nuclear weapons and we have been discussing that subject here on ET forum for many years.

    Besides that Brazil has one of the most advanced arsenals of biological weapons.

    You people are so clueless that you are Pathetic - you can't connect the dots to even save your life.

    After the end of WW II where do you think a lot of top notch German scientists went?

    I give you a clue: Brazil and Argentina.

    The only reason the United States were able to move so quickly with its space program was because the US brought Von Braun to the United States - and now that all these old German brain power is gone NASA is closing shop.



    Even basic common-sense is dead in the United States. For those who still have the illusion that Americans advanced technologies and innovation is going to help the recovery of the US economy in the coming years – here is a reality check:


    How dumb can you get?

    The US economy it is sinking just like the Titanic – Here is how Pathetic a former superpower can become in a very short time.

    Every place you look at you can see signs of massive decline of the US economy. The Shuttle space program is having its final voyage into space in the coming weeks then NASA is laying-off thousands of high power scientists in Florida, and in California – and keep in mind that NASA has been for a long time one of the symbols of American advanced technology – this NASA implosion it's just another sign of American decline and that the American economic system has become completely obsolete.

    If you look around and connect the dots probably you will find 100's of similar examples here in the United States, and the dismantling of NASA it's not an isolated fluke.

    I can already picture the US defense secretary calling China and saying: “The US is thinking about having a military confrontation with your country - Please can you send us a new supply of smart bombs to replenish our inventory of smart bombs which is very low right now.


    How dumb can you get?

    I am talking about the US decision making process: not only in the financial system that lead to a complete economic and financial meltdown, but also regarding the US government....as per above examples.

    Can you name another former superpower in world history that got this dumb?

    Here is another example:

    Afghanistan War: Here is a conversation between two Generals at the Pentagon - We can't bomb the Taliban because we run out of smart bombs.

    Please call the Chinese and tell them that we need to replenish our inventory of smart bombs ASAP, and in the meantime we place that war on hold.

    Before we change the subject - please also give a call to Israel and let them know that they can't bomb anybody in the Middle East in the near future, because we are not in the position of supplying Israel with more smart bombs.

    We could go on and on with this laughable routine until we run out of funny ideas...


    Now do you understand why China is financing this massive deficit spending of the United States?

    In exchange the United States will manufacture all its critical military armament in China – and as the United States get rid off and layoff scientists with PhD's and high-tech personnel in critical defense facilities in the US – at the same time the Unite States replaces the old high-tech defense facility with a a dog kennel in turn creating jobs with no benefits and Walmart wage levels.

    You can get a lower cost in China, and the Chinese are very efficient they are able to fill in any order from the United States - ASAP.

    I wonder if the Russians are also getting that dumb and if they are outsourcing their military armament production to China?
  20. hum... that a bit of a worry.
  21. I think the taliban and al-qaeda know that nuclear weapons are useless in the mountains that is the reason they are fighting and hiding in mountains.

    I also believe that Osama bin laden is hiding in USA. Osama must have changed his face from medical surgery. He knows that USA will not bomb USA.
  22. Nukes aren't useless in the mountains. You just have to drop more of them, and use the big ones.
  23. yes you would have to use a lot more. Actually there is a study that shows that if the USA exhausts its nuclear arsenal on a mountainous region. It would merely flatten a mountainous country the size of....Nepal.
  24. If the President of a country says there will be World War 3, people give it importance. If a unknown person says there will be World War 3, people do not give importance to it.
  25. har har. Are you referring to yourself.:D
  26. Did you guys read the story about how F1 racer Button was confronted in Brazil with 12 duded packed with machine guns wanting to kidnap his ass while waiting in traffic?

    He only managed to escape because there were hired ex militairy close ready to escort him out of trouble..

    Sounds pretty WW ish already but what do I know....
  27. Yes and many other people from Elitetrader. I think including you.

    I say. Who are these Presidents? They are just ordinary people.
  28. Do you know DJ Ironik? He is a famous DJ who works in London. yesterday he was walking to his posh highgate home in north London and got accosted by 2 men who stole his jewellery and stabbed his BUTT.
  29. Because the Powerfull USA is going to invade Brazil and take everything she has. LOL

    Those idiots down there are working their assess off for nothing. Because the USA is going to take everything from them like taking candy from a baby. Remember Iraq? Brazil is next! LOL
  30. Bring it on baby.... Their army consists of some vine swingin, farvela livin, moped ridin porch monkeys.

    Give me a break. It would be over before the first airstrike was complete.
  31. Is that also what happened in Vietnam?

    But i dont think she is talking abt a direct military conflict with the USA.

    A proxy war would do just fine. The United States lost 30k Men in korea and 50k in vietnam. Can the USA of today stomach these losses?
  32. ??? what the...i cannot believe the dazzling intellect on this site.

    theres this pesky stuff called radiation. mountains aren't so good at stopping that from getting into the system.
  33. Imagine the U.S. and Brazilian forces battling it out in the rain forest. Maybe we'll bring back nepalm. Definitely the most politically-incorrect war ever!

    Of course, that's all a joke, but the fact that most of the developed world doesn't like our QE isn't...
  34. In the largest study ever done about what the consequences of a full scale nuclear war might be.

    They estimated that 14,000 weapons would be used.

    That it would cause a nuclear winter that would last 3 years before the atmosphere cleared.

    That 40% of the worlds population would die from direct effects of the nuclear weapons, starvation or disease.

    That study was done at the height of the cold war, when the US and the Soviet union had over 30,000 nuclear weapons.
  35. this is just politics.

    brazil finally realized they were screwed by china... and now they are looking to blame the U.S. doh? Homer, you told me that we did not need the U.S. that we were part of the new third world super order?

    You mean we lost our export industries because china pegged to the dollar and undersold us? Our top socialist advisors said we should concentrate on making energy out of sugar and be friends with China....

    Now they tell me we should have pegged and matched China step for step... where are the advisors?
  36. I thought you were dead.
  37. .

    November 8, 2010

    SouthAmerica: If there's a major bubble in the international financial system that bubble is called: US dollar.

    There's an over supply of US dollars flying around the world.

    We have passed the saturation point and have reached the boiling point – now it is just a matter of time for some central banker to spook the herd and we have a massive stampede out of the US dollar.

    It looks like that China and Japan are the guys who will be holding the bag for the United States as they take a beating on their massive US dollar holdings.

    It will be also bad for many small countries around the world since the little foreign reserves that they have are in US dollars.

    The world is waking up to the fact that there's little future for the US economy and there's no justification whatsoever for the US dollar to continue to be the major foreign reserve currency around the world.

    In a Nutshell: The party is over!!!!!


    Now going back to some of the comments on this thread – Dilma was not predicting a war between Brazil vs. USA – she was talking about WW III and this time around such war would be even nastier than WW II and such war would engulf more countries than WW II.

    The United States government better place their calls to China to place an order for smart bombs ASAP – the only problem is who is going to finance this war for the United States?

    Maybe this time around the US can finance such war with Confetti (by printing more US dollars).

    A war between the United States and Brazil you can rule that one out, because Brazilians love to spend their vacation in Disney World in Florida.

  38. you keep think the exporting predator country with the peg is hurt by the u.s dollar going down.

    What you fail to see is that they were the manipulators who would have had many fewer dollars if their currency had not been manipulated.

    China is a predator and Brasil was the prey. Your export industries were the weak gazelles and now china is looking to thin your heard some more.
  39. yours is the hubris of too many poorly educated americans.
  40. Nukes would be detonated at altitude.
    The initial blast would be harmless but the radioactive rain would kill virtually all humans, animals and plants within two weeks.

    Brazil new president was once a guerrilla fighter.
    She could well become the new chavez.
    Like all leftists she's delirart of a war with the US.

    LOL. So true.
    Wine swiging? Why so classy?
    Try homemade liquor instead.
    You can also substitute mopeds for bicycles.

    Like good leftists they are always trying to blame somebody for their crappy social system.
  41. .

    Jem: China is a predator and Brazil was the prey. Your export industries were the weak gazelles and now china is looking to thin your heard some more.


    November 9, 2010

    SouthAmerica: Reply to Jem

    Brazil is a country almost 100 percent self-sufficient – if Brazil close its borders tomorrow to the rest of the world, Brazil can survive with minimum disruption to its internal market.

    We have everything in Brazil and basically Brazil does not need anything from any other country to be able to survive.

    Brazil is a credit nation and the United States is on the hook to Brazil for over $ 300 billion dollars as of December 31, 2010.

    The United States is the poor country that needs to borrow money from Brazil and not the other way around.

    Brazil is in such a good shape economically speaking that in the last meeting of the G-20 in South Korea about 2 weeks ago the Brazilian Finance Minister did not bother even of showing up because he had more important things to do in Brazil.

    The monetary game with China has been doing well for many years – but the suckers on this deal is not Brazil – it's the United States.

    The Chinese are laughing of the United States and its collapsing economic system and they are going to help undermine the US economic system with very cheap money as long as necessary – and they just watch the US economic system self-destruct one step at the time.

    Ben Bernanke latest “quantitative easing” QE2 in plain English “printing money” as fast as possible it is a desperate effort by a Central Banker to project the illusion of wealth a little longer before the house of cards come down crashing.

    When, under QE, a central bank buys from an institution, the institution's bank account is credited directly and their bank gains reserves. The increase in deposits from the quantitative easing process causes an excess in reserves and private banks can then, if they wish, create even more new money out of "thin air" by increasing debt (lending) through a process known as deposit multiplication and thus increase the country's money supply. The reserve requirement limits the amount of new money. For example a 10% reserve requirement means that for every $10,000 created by quantitative easing the total new money created is potentially $100,000. The US Federal Reserve's now out-of-print booklet “Modern Money Mechanics” explains the process.

    China needs Brazil, but Brazil does not need China or the US for that matter.

    Brazil has something to sell to China, the ships go full of commodities to China – then China pays Brazil in US dollars and after paying most of its international debt to the IMF and to the Club of Paris and on top of that being able to accumulate another US$ 300 billion dollars in foreign exchange currency – Brazil does not care about what Americans think – for all practical purposes the United States has become completely obsolete and yesterday news.

    The ships come full of stuff to sell on the United States and they go back empty to China.

    In the meantime, China has the United States by the balls to the tune of trillions of US dollars – and the United States has become so pathetic that they don't have control even of critical strategic minerals that they sold to China because the US economic system is becoming a completely clueless economic system.

    What is left of the US economic system is standing on top of quicksand, and is held together by government intervention, accounting gimmicks, and not much substance.

    Here is the sad reality of what is left of the US economy:


    I close my case.


    Jem, as you can see Brazil is the country on the way up, and the United States is the country that is falling like a rock.

  42. Is Brazil finally lifting itself out of the gutter? If they do, maybe they can lift their head and see the feet of the super giant USA!
  43. OK, but I think your case would be a bit stronger had you personally immigrated from the U.S. to Brazil... instead of the other way around.
  44. LOL Come on man. The Brazilian Finance Minister didn't show up to the G20 meetings because Brazil is so good off he didn't need to go?! Too funny. Brazil is growing, yes, but to suggest that they are so well off they need not bother with what any of the top countries in the world are doing is absurd.

    Brazil got those favelas all cleaned up down there?

    This is called fractional reserve banking and is not unique to the USA. You also don't need to buy an out-of-print booklet to learn the process. Wikipedia should do it.

    You have it backwards. Since the USA owes China so much money, they have China by the balls. China is currently scrambling because they fear USD devaluation, and hence they are essentially getting stiffed on a portion of the debt owed to them. The question is - what can they do about it? I suspect....nothing.
  45. if brazil were so self sufficient and did not care about china destroying its industries... why would it now care about the dollar doing down?
  46. .

    November 9, 2010

    SouthAmerica: A friend of mine who in in the process of moving with his family from the United States to Brazil, he sent me today this email with the attachment with info about the Brazilian census.

    He is a very smart fellow who sold his software company located in California about 3 years ago. And he had the opportunity to travel to most countries around the world on his pursue of business deals – he has been all over Europe, Africa, Middle East, Asia, Russia, and South America. There are very few countries that he does not know in person. He also has traveled all over Brazil and knows Brazil very well.

    After he sold his company in California 3 years ago he moved to Austin, Texas to decide what would be his next move – he still is a young man in his mid-40's and he has a son age 10.

    It became his goal to search for a country and city where his son would have the best prospect for the future, and after an year of research he came to the conclusion that when he took in consideration the future of his son the best country in the world it would be Brazil and the best city it would be Curitiba.

    He made various trips to Brazil last year and finally he bought a nice condo in Curitiba – and since last year he has been transferring his family to Brazil one step at the time.

    This fellow could have moved to any country he desired around the world since he has money and he is looking to start a new company. He is already studying a ton of new opportunities in Brazil related to the Brazilian regular economic growth, but also related to the investments being made for the World Cup of 2914, and the Olympics of 2016.

    He was in Curitiba in August when a census person came to his house and in a matter of 15 minutes took all the census information necessary with their digital state-of-the-art equipment and 3 months later the Brazilian government is publishing the results and detailed information about the 2010 census.

    In the US the census was done in April of 2010 and after 8 months the US Census Bureau still is working to get the results.



    I experienced the census count when i was in Curitiba in august. the entire census for this continent sized country was done digitally - no paper. the ibge (instituto brasileiro de geografia e estatistica) equipped the census workers with 200,000 lg smartphones loaded with a special software app. that they had developed. the workers were efficient & well informed.

    In comparison the U.S. started it's paper based census in April & we still don't have the results.


    Tuesday, November 9th 2010

    “Brazil’s population is 186 million; 9.5% increase over the previous census in 2000”

    Brazil, the country with most territory in Latin America also has the largest population, almost 186 million according to preliminary figures from the latest census, released by the Brazilian Geography and Statistics Institute, IBGE.

    The exact figure is 185.712.000 and represents a 9.5% increase over the last census in 2000. However this was 3% less than the 191.5 million calculated by IBGE for this year based on birth and death rates and immigration figures.

    The IBGE managed census collected information between August first and 31 October, having visited 67.275.000 households in 5-565 Brazilian municipalities.

    Primary data indicates that Sao Paulo, the industrial hub and the richest of the country is the most populated of 27 states, 39.9 million and recently created Roraima in the Amazon region the least populated.

    Sao Paulo city is Brazil’s most populous municipality with 10.66 million residents. This does not include those in its metropolitan area where practically a similar number live. Brasilia, the national capital registered a 20% population increase compared with the 2000 census

    The full data of the census is scheduled to be released next November 29. The last census was done in 2000 when the total resident population in Brazils was 169 million.

    After Sao Paulo comes Rio de Janeiro, with 5.9 million residents; Salvador, 2.5 million; Brasilia, 2.46 million; Fortaleza, 2.31 million; Belo Horizonte, 2.25 million; Manaus, 1.71 million; Curitiba, 1.67 million; Recife, 1.47 million; and Porto Alegre, 1.35 million.

  47. .

    Jem: if Brazil were so self sufficient and did not care about China destroying its industries... why would it now care about the dollar doing down?


    November 9, 2010

    SouthAmerica: China is destroying the Brazilian industry because their currency is pegged to the US dollar, and since January 2009 the Brazilian real went up about 40 percent versus the US dollar.

    Anyway, the currency game is changing very fast, and very soon a lot of fools are going to be caught with their pants down.

  48. hubris of americans is endless. america is sinking under the weight of its debt the same way argentina brazil and SA use to do .
    my awareness became personal after over a year ago I made this statement and a "patriotic" american mod bounced the thread to chit chat. now even 3rd world countries don't want US dollars.
  49. Rearden Metal: OK, but I think your case would be a bit stronger had you personally immigrated from the U.S. to Brazil... instead of the other way around.


    November 9, 2010

    SouthAmerica: Reply to Rearden Metal

    I want to remind you that I came to the USA about 40 years ago, and I have been a first-hand witness to the decline of the United States – and I have been recording on my articles and postings every step of this decline way before the mainstream media caught on on what was happening.

    Other than my years working for Templeton, Dobrow, and Vance in the investment area in the early 1970's my entire career I have been working in international trade or the international area of major US companies, because of my Brazilian background.

    I have seen the exodus of Brazilians who returned to Brazil from the United States in the last few years including many friends of mine. And people ask me all the time “What are you doing in the United States, instead of returning to Brazil?” - They ask me in the sense “What is wrong with you?”

    I realized that the US economy has reached the end of the line when you connect all the dots – It is time to get off this ship before the Titanic goes completely down.

    Today, I am ready to go back to Brazil if the right opportunity comes up – since the US economic system is on an implosion mode, and there is nothing Americans can do about it – it's too late in the game, and this place is going to spin out control in the near future. The crazy Republicans are going to speed up the implosion process in 2011, and 2012, and turn the US economy into a black hole.

  50. I dare you to move to Brazil and live there for the next ten years!
  51. How to move to brasil? Is Portuguese hard to learn?
  52. WTF do you think Odumba/Pelosi have been doing with their $3T deficit in the last 2 years with another $2.6T to come during the Odumba Administration? (Assuming the A-Hole serves only ONE term, of course.)
  53. He is staying here because of his social security check lol.

    A guy who thumps his chest about Brazil but cannot actually make a living there, priceless. :D
  54. .

    November 10, 2010

    SouthAmerica: Reply to Scataphagos

    You are new to the ET forum – but if you had been participating on the discussions on this forum about 4 years ago, then you would know that I was a die-hard Al Gore supporter all the way to the Democratic Party convention. You can read about it at:

    Al Gore - Democratic Party candidate in 2008
    http://www.elitetrader.com/vb/showt...4835&perpage=6&highlight=al gore&pagenumber=1

  55. MohdSalleh: How to move to brasil? Is Portuguese hard to learn?


    November 10, 2010

    SouthAmerica: Just call a Brazilian consulate near where you live and ask them your questions regarding Brazil.

    Depending on your age you can learn Portuguese relatively fast.

    I have been thinking for a while about learning Mandarin.

  56. Topic of WW3:

  57. .
    November 10, 2010

    SouthAmerica: Reply to Wilburbear

    Starting tomorrow morning (South Korea time) during a 2-day meeting the G-20 can put together the foundations for WW III.

    That would make you happy?

  58. Tomorrow several nations have to send a clear message to Mr. Bernanke and his incompetent string puppets at the FED : stop printing ph...ing USD and reorganize your industrial base !

    Otherwise capital controls and protectionism is a sure thing.
  59. Earlier you said you can't move to China because you don't know Mandarin.

    IF you can learn it, you can leave the USA and go to China!

    Imagine how happy you would be in China! Now go and do it!
  60. Lol you gotta be kidding - I thought SouthAmerica was an American expat who'd moved to Brazil?
  61. By the way, this whole citizenship thing would be easily settled if there were a free market in residency/citizenship. For example, if each country allotted X% of its population for temporary residents, and a small % for new citizens. It would then be like stocks, you could see which countries were valued the most. It would be amusing to see which countries required *negative* prices to attract immigrants and citizens - would you become a resident of Zimbabwe if they paid you $100k a year? What about becoming a citizen of Saudi Arabia for $1 million in oil money? Would anyone pay more than about 10 euros to live in Belgium? :D

    Damn, I'd LOVE to see how this would work out.
  62. .

    November 15, 2010

    SouthAmerica: The US dollar has reached the end of the road after a long ride that lasted over 60 years - From the Marshall Plan days around 1946 to the Ben Bernanke QE1 and QE2 also known as the "Confetti" days.


    January 10, 2008

    SouthAmerica:...Here is some food for thought regarding the US dollar:

    …Today over 70 percent of US currency circulates outside the United States. The major holders of this currency are the euro countries, Japan, China, Hong Kong, Taiwan, South Korea, Indonesia, and Singapore. (We are talking about trillions of US dollars.)

    Over 70 percent of the US dollars ever created are flying around the world completely outside of the power and of the influence of the US government including the US Treasury and the Federal Reserve Bank.

    …About 75 percent of the US dollars circulating outside the United States are in the hands of these few Asian central banks, and if any one of these countries decides to sell their US dollar monetary reserves to buy gold it will produce a stampede to exit the US dollar, creating a gold and euro buying panic.

    … This oversupply of US dollar circulation outside the United States might prove to be the Achilles heel of the US economy and also can become a nightmare to the Federal Reserve. The Federal Reserve would need to raise interest rates in the US, creating a major problem for the US economy and the financial markets.

    As of 2007, the US dollar still has the largest share (65.7%) of foreign reserve holdings by central banks from around the world, and the Euro has only a 25.2% market share.

    In 2008, the current global currency composition of official foreign exchange reserves includes the US dollar with about a 65 percent market share and the euro has about a 26 percent market share – and combined these 2 currencies accounts to 91 percent market share of official foreign exchange reserves held by central banks around the world.

    Here is another issue to keep in mind: the global financial system has been very creative and dynamic for many years and today there is an estimated 20 trillion US dollar in circulation in the world and most of them are in the form of electronic computer-credits. Only about five percent is in physical cash form. Half of those 20 trillion dollars float around the world outside of US borders and outside the US economy. If we have a major international monetary crisis in the near future and a large portion of that half of the global floating US dollars suddenly returns to US shores, instant hyperinflation in the US would be the result and also the collapse of the current international monetary system.

    The day the world loses faith on the future value of the US dollar and the US economy - that's the day when the Titanic will hit the iceberg and sink.



    November 15, 2010

    SouthAmerica: Now that the Titanic has hit the iceberg...you also can kiss goodbye to:

    Military spending, collapse of US empire

  64. .
    November 16, 2010

    SouthAmerica: The above information that I posted was for the year 2007, since that time we had the collapse of Wall Street and and other international money flows that increased the over-supply of US dollars even more in the last 3 years.

    The enclosed information I posted on the Elite Trader Economics Forum in January 2008 - since that time the United States government has added at least another US...$ 5 to US$ 7 trillion dollars to the over-supply of US dollars circulating outside of the United States.

    In November of 2010 there is an estimated $ 27 trillion US dollar in circulation around the world and most of them are in the form of electronic computer-credits. Only about five percent is in physical cash form. Half of those $ 27 trillion dollars float around the world outside of US borders and outside the US economy.