US Dollar

U.S. dollar facing collapse, warns Malaysia's Mahathir

http://asia.news.yahoo.com/050330/afp/050330081922business.html

KUALA LUMPUR, (AFP) - The US dollar is facing an imminent collapse and the global economy will suffer a "catastrohpe" when it is rejected as the currency for trade, former Malaysian prime minister Mahathir Mohamad said.

Mahathir, who famously ignored International Monetary Fund (IMF) advice and instead chose to peg his country's ringgit to the US dollar during the Asian financial crisis, said a standard gold currency was now the best alternative for world trade.

The dollar was retaining some value because of fears of a global economic catastrophe if it was rejected, he told a conference of some 650 chief executives from 30 countries at a conference in Kota Kinabalu on Borneo island Tuesday, The Star newspaper reported.

"But the catastrophe will come one day because even the most powerful country in the world cannot repay loans amounting to seven trillion dollars," Mahathir said.

The former premier, who was also finance minister, said he believed central banks worldwide were reducing their US dollar reserves and he suspected that Malaysia was also switching to other currencies.

Telling reporters that he was giving his personal views, he warned that "unless (the Americans) change their president and have a more responsible president who will try to reduce the deficit, they will have serious trouble with the US currency." 

Mahathir told the CEOs it was doubtful that the sliding dollar could regain its old strength as the administration of President George W. Bush did not consider deficits worth reducing.

The huge deficit meant that the dollar had no backing but it continued to be used internationally because some people still accepted payments in dollars.

"But there will come a time when we will switch away from the dollar and we have suggested the use of gold for international trade," he said.

Meanwhile, if companies did not want to be "short changed" they should insist on payments in alternative currencies such as the euro or be paid in US dollars but at euro-equivalent value, he said.

Mahathir, who was widely condemned internationally for imposing capital controls and pegging the ringgit to the dollar during the Asian financial collapse 1998, has since won plaudits from economists and the IMF for his handling of the crisis.

Mahathir, who retired in October 2003 after 22 years in power, created a stir in January when he joined a chorus of calls for Malaysia to review the currency peg of 3.8 to the dollar because of the US unit's decline in value.

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Any comments, insights, or concerns?

The pound is getting stronger and stronger, almost 10c more per pound already when I visited the US last october. I think it could be nearly two dollars to the pound before my next visit.

Im not too hot on international currencies, however and will solemnly reserve judgement until the market collapses or (more predictably) does nothing but stabilise.

The US is the largest importer of goods in the world.

People seem to overlook that fact.

Importation could be a downfall if you dont have the exports to counter it.

If it was all import import import then the country would eventually fall to it's knees.

China is fast becoming one of the world's largest exporters. That gives them the upper hand in the long run.

Yes it does, we import more than we export.

But our jobs are going to CHINA!!! How ironic.

Anyway, the only reason that our importing statistics matter is because there would be a total economic collapse world wide if the dollar faltered.

That's all.

OK. Tell us the political system of a world without currency.

How would that work?

That's progression for you.

Well, that's life for you ;)

lol, it only gets more and more dissappointing.

I guess we should get used to it, yes?

Does that mean I have to sale my house
and my cars and throw away all of my
man made passions? Then burn or toss
all the money and beat my women for not
covering up her hair cause, I met smell
something that will make me lust for her.
Or even hit her with a stick for showing
a little leg or some part of her body, and
then live in a cave with a bunch of men.
No wonder these guys are mad, dang!
So the bad guys think the USA has put
oppression and exploitation on them.
Bull they just want a refrigerator and
a x-box. lol
Is this what is misunderstood in the
western world?

So the real deal is not all the above but,
The greatest jihad is to struggle with the insidious suggestions of one’s own soul. Thus, jihad primarily refers to the inner struggle of being a person of virtue and submission to God in all aspects of life.
That’s all good and I understand this.

Then what is the problem with the extreme
drama of suicide boomers and holy war. They are going to hell, are they not?
They sin in the face of God, do they not?
and money is given to their families
for murder. Are those people going to
hell also for taking the so called bad
evil money. Oh! Now it’s holy money.
Now that is some real twisted beliefs.

What of rainbow money? One
Moneys for all free nations.
“New world order”

Just a few questions from a
ignorant westerner confused.

No offence anyone,
just looking for answers.

Thank you Bob, maybe I wrote that a little
strong. I don’t dislike the religion of Islam
or hate Muslims for what a hand full of
goons are doing. Maybe I don’t know
what answer I am looking for. I guess
maybe I’m just mad about 911 and how
the goons want to kill Americans and
other peoples of the world with there
hidden cells everywhere, it freaks me out.
Makes me want to invent a goon snifter.
I say again that I have no problems with no
ones religion. I work with every race on this
planet in the casinos. It’s one big happy
family. I mean we even exchange home
made foods. Being a taco bender, yes I
bring the enchiladas and the hot chilly. lol
I know what racism is growing up in
Las Vegas in the 60s and 70s there weren’t
many Latinos here then. I saw and lived
what my parents went thru. That’s why I
have no hatred for any good hearted person.

P.S. I am left handed and went to a Catholic
School. I was hit a lot with a ruler not
for using my left hand. But for being my
bad self.

What of rainbow money?
One Moneys for all free nations.
“New world order”