Posted on 10/06/2009 9:01:58 AM PDT by FromLori
A recently declassified, formerly Confidential, 30 year old memo prepared by Henry Owen for President Jimmy Carter's eyes only, highlights the perils facing the United States if oil were to be priced in SDRs instead of dollars, a topic which is all the rage today as rumors are swirling that this is an imminent transition to be "put" upon the United States.
In response to your request, we have considered, and discussed with other agencies, whether the US should favor use of SDRs instead of dollars, to pay for cure oil... I have concluded that dollar pricing should be maintained -- a view that is shared by State, Treasury and CEA. The reasons:
1. An announcement that dollars were no longer being used as the unit of account in paying for oil would trigger selling of dollars on the foreign exchange markets. So we would suffer. 2. I don't see any offsetting gain, since OPEC would probably raise prices in SDR terms, as necessary to recover revenue losses if the SDR appreciated relative to the dollar. And the conclusion:
We might be able to persuade the OPEC countries to make the shift if the dollar weakened but that's precisely when the move would be most damaging to us. Poor Mr. Owen- little did he realize that a mere 3 decades after this memo was penned, the administration would be consumed by a bunch of Wall Street pandering, middle class extortionists, who seek nothing else than to inflate the trillions of toxic "asset" loans that make up the broken backbone of the American financial system. It would come as no surprise if the move is now in fact spearheaded by the same administration which has no other purpose in life than to destroy what little savings Americans have and to throw all their cash to prop up artificially inflated equity prices so that insiders can sell their stock at agreeable levels, and so the toxic companies can use the run up to issue follow on offerings, moderating their untenable debt holdings.
Yep, but if we actually drilled and used our own resources ...
Hyperinflation.
Dollars would be good for toilet paper.
Scary.
Perhaps we should remind the world that a healthy US = a healthy world.
Should we suffer an economic collapse, the billions of dollars in foreign aide leaving the country would immediately cease.
Yes well bo will give money to brazil for soros but we will not be allowed to drill and to all PLEASE GO TO SITE AND READ IT IN IT’S ENTIRETY.
You can’t do that. That would be too American. The destruction of this country is what’s part of the game today. We best get a handle on things fast or the “Dreams” of this mans father will come true. We need to use our resources now and I want to know why we can’t. I want to hear it from our politicians. As of today, they won’t even talk about it. Why?
the economic news is all bad today
Perhaps we should remind the world that a healthy US = a healthy world.
A Conservative President could deliver that message by shutting off the foreign aid spigot and announcing that we were giving the boot to the UN
I expect it to get worse!
http://www.zerohedge.com/article/max-keiser-death-us-dollar-middle-class-and-overall-economy
I tried but cannot recall a case when you acknowledged news as positive, Dennis. Isn't it all job outsourcing, corporate greed, CEOs super pay?
It is the lack of confidence in out shifting system that reduces confidence in its currency, which in turn makes other countries to look towards use of other currencies. Naturally, Chine and the oil producers are at the forefron of this.
What memoranda are needed for that?
Interesting “structural” discussions in the youtube video. G4/G7/G20/IMF in detailed discussions of SDR’s (special drawing rights), coupled with a 50% dollar devaluation.
Oil purchases with a “new basket” comprised of 40-50% gold, and 40-60% “blend” of currencies from Russia, China, Japan, Brazil, France ...
So if you made $200k last year, next year may feel like $100k ... after the 50% devaluation.
In which video?
Re: which video
http://www.zerohedge.com/article/max-keiser-death-us-dollar-middle-class-and-overall-economy
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