- There is so much to touch on regarding the dollar this
month, I hardly know where to start. Regardless of where I begin, the news
is not good and affects all of us.
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- First on our list is China. They have now announced that
they are refusing to accept American Corporations purchasing into their
stock market any longer as they did in the past. China also said that they
are no longer going to be purchasing our securities as they have in the
past, including bonds and T-bills. China's decisions and subsequent announcements
at the beginning of the week has sent a panic across the World's markets.
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- Additionally, OPEC met recently and they have also stated
they will be diversifying into other currencies instead of just the American
dollar. They will now begin accepting other currencies and limit the trade
of oil via the American dollar.
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- March 21st 2007 will be one of the most significant dates
this month. Iran has outlawed the American dollar and will put anyone in
jail that uses it in their country after that date. They have the ominous
notoriety of being the first nation in the world to do such a thing. The
real issue in Iran is NOT nuclear, but rather the decision to not use the
American dollar for trade and the sale of oil. On the heels of Iran's decision,
North Korea has followed suit and also outlawed the use of the American
dollar in their country. Finally, Malaysia the next day did the same thing.
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- Central banks around the world are increasingly diversifying
their reserves, including cutting holdings of American dollars, according
to a survey sponsored by Royal Bank of Scotland Group PLC, the U.K.'s second-largest
bank. Italy, Russia, Sweden and Switzerland have made "major adjustments"
in foreign-exchange holdings favoring the Euro and the British pound, according
to the poll conducted by Central Banking Publications Ltd. between September
and December. "Central banks are open to saying they've been diversifying
to improve returns and reduce exposure to any single currency," said
Sean Callow, senior currency strategist at Westpac Banking Corp. in Singapore.
There's no doubt that when they say 'diversification' they mean selling
dollars.
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- Last week a friend of mine told me they called their
bank president in Vancouver, BC and he agreed with everything I have been
saying about the dollar. What amazed me the most was her comment that he
told her his bank is currently making preparations for the crash of the
American dollar!
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- My dear friends, I urge you to structure yourself and
get out of the liquid dollar immediately. I suggest that you get out of
stock markets and into international hard assets such as real estate, gold
and other assets. Structure your family by setting up proper International
Business Corporations and Foundations that will preserve your finances.
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