Peak Oil News and Message Boards

Both central banks have been printing cash and raising their debt ceilings faster than the rest of the world can swallow, digest and send what's left to the middle east. There is a very serious mess blowing and I have been trying to get a handle on what is likely to play out next, no easy thing, when the real backroom deals can only be guessed at.

Summary:

Both the Dollar and Euro are in terminal decline.

Whichever one goes first leaves only the other as central reserve currency, with no other option.

The ONLY thing that can save the US Dollar is death of the Euro.

The only thing that can save the Euro is death of the Dollar.

Effectively a currency war, end game, being fought largely over oil in the Middle East. With Iran at it's nexus.

Simultaneously the oil suppliers know and are getting angry about their vast stores of toilet paper.

We will get told something else.

http://www.energybulletin.net/node/7707

This was published in 2005. It predicted this conflict, but not the dire state of central banks in the US or Euro.

http://www.aljazeera.com/news/middleeas ... 13123.html

Shaved Monkey wrote:
US main hope with Iran is Shah V2.0 (pretty hard to sell the second time round ,if its possible, it will only be short term fix)
They tried sanctions to topple Saddam and it didn't work.
Black ops/4GW will be fought through Syria back doored through Afghanistan
Long term Iran will influence Iraq and eventually Saudi'
Long term the $US is dead.
Short term death of the Euro might buy the $US some time or speed up the move to gold.

(Spun off from Armageddon's thread of a very similar vein; Mods please suit yourselves as to merging/ topic heading. This seems pretty vital about now and it's not getting enough attention;)

I don't think either China or Russia will accept Dollar or Euro hegemony much longer. Both currencies will be destroyed and something else will replace them, I suspect it will be the Juan but it might be something new everyone can agree has value. When China and Russia stop accepting toilet paper for their raw materials and finished goods the game will end.

China will need to find a way to dump their $1.2 trillion in US debt bonds and treasuries before they destroy the dollar.

In an environment dominated by white hot printing presses, trying to hold the value of dollar reserves is a bit like trying to pick up water with your hands.

Greece may turn out to be the leverage needed to break the euro.
The USA is left with no alternative but war over M/E oil otherwise, the world can better afford to live with a failed EU than an immediately failed dollar, with no way out but gold standard. Watch this space.

BTW if the gold standard comes in, the Arabs won't be very pleased with some of the 'gold' delivered from 'certain places' in 'unknown quantities'. Any suspect gold delivery in this climate could easily result in the calling in of certificates, blowing the lid on gold to an unforseeably huge extent.
Real actual in your hand gold could multiply tenfold, without hyperinflation. With, well the sky might be the limit.
The planet and her kiddies are taking charge.