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.
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.
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.
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.
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.
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!
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.