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Business/Finance See other Business/Finance Articles Title: Dangerous Lie or Frightening Prophecy? Posted on August 13, 2015 by Brad Hoppmann When politicians speak, most of the time they don’t really say anything all that important. Yet when they do, and when they say something both outrageous and scary, we need to pay attention. Case in point is Secretary of State John Kerry. He recently made the unbelievable statement that if the Iran nuclear deal doesn’t go through, the U.S. dollar could lose its status as the world’s reserve currency. What? The linking of two events wasn’t explained by Mr. Kerry. But let’s see if we can unpack what he’s saying, and speculate on precisely what this might mean. *** First, here’s the quote in question that I think is either a dangerous lie, or a frightening prophecy. If we turn around and nix the deal and then tell them [Iran], "You’re going to have to obey our rules and sanctions anyway," that is a recipe, very quickly … for the American dollar to cease to be the reserve currency of the world, which is already bubbling out there. You can tell that the political stakes are high when big threats like this start flying. The threat that the U.S. dollar would lose its vaunted status as the reserve currency if Congress were to reject the Iran nuclear deal is just one of those threats. It also tells you that the Obama administration is downright worried that the deal will be rejected. We’ve already seen influential Democrat Sen. Charles Schumer announce that he would not be supporting the deal. Although stopping the deal in Congress seems unlikely given the number of supporters the president has — and the fact that the deal isn’t really a treaty requiring a full two-thirds vote in the Senate — makes it much more likely to go through. It does, however, seem like threats of war as the only alternative to the deal, and now the threat of fiscal Armageddon from a mass sell-off of dollars by foreign governments, means the administration is worried enough to pull out the big-gun threats. On the surface, the Kerry statement seems to be a dangerous lie. But what if it’s not? *** The alternative explanation to Mr. Kerry’s statement gets a bit conspiratorial. But just remember that he said it, and we’re not just making it up. That alternative is that the administration might just know something that the rest of us don’t — and that is the U.S. dollar could be closer to losing reserve status than most everyone thinks. In a Reuters’ article covering the Kerry comments, the news agency writes: Kerry warned of a potential loss of U.S. financial and political clout. He said this was not something that would happen overnight but many countries were "chafing" under the present international financial arrangements. He said U.S. Treasury experts "are doing a full dive on how this works and what the implications are. But the notion that we can just sort of diss the deal and unilaterally walk away as Congress wants to do will have a profound negative impact on people’s sense of American leadership and reliability." This sounds eerily like a foreshadowing of things to come regarding the dollar’s status. If it is, that’s a frightening prophecy that should make your blood boil, and your bank account tremble. If the dollar is no longer the world’s reserve currency, interest rates would soar, inflation would go hyperbolic, and the value of everything you own would be crushed. Think this can’t happen? It can, and the fact that the U.S. Secretary of State said as much publicly is something that should probably scare the crap out of us all. For once, I’m hoping this statement just another dangerous political lie — and not a frightening prophesy. *** What do you think about the Sec. Kerry’s dollar threat? Is it a lie, or is it a prediction? Send me your thoughts and let me know by leaving a comment on our website or by sending me an e-mail. *** U.S. stocks held their ground Thursday in slow, choppy trade, as investors reacted favorably to solid retail sales and jobless claims data. The Dow industrials ended slightly in the green, while the S&P 500 and Nasdaq finished the day just in the red. Oil wiped out yesterday’s gains to slide to a 6.5-year low at $42.23, and gold gave back half of yesterday’s 16-point gain as well. • Kohl’s (KSS) was the latest retailer to miss earnings. Shares ended down nearly 9% after the company said a delay in some states’ back-to-school sales-tax holidays cut into profits. • The Commerce Department said retail sales rose 0.6% in July, just below the consensus forecast for a 0.7% rise, while sales for May and June were revised higher. • Samsung Electronics Co. (SSNLF) unveiled two new smartphones to their popular Galaxy handset. Meanwhile, smartphone maker HTC laid off more than 2,000 people (15% of its workforce) after reporting lackluster sales. • News Corp. (NWS) stock surged after the media giant said it would start paying a semiannual dividend of 10 cents a share. Shares gained 7.6% today. • Cisco Systems (CSCO) spiked some 4% after the tech giant reported strong fiscal fourth-quarter revenue and EPS. • Gold finished lower, snapping a five-day win streak in part due to the good retail sales numbers and gains in the U.S. dollar. The most-actively traded futures contract, December 2015, ended the day at $1,115.60. Good Luck and Happy Investing, Brad Hoppmann Publisher Uncommon Wisdom Daily P.S. Now is the time to get a jump on a catastrophic event that has already begun to destroy our financial system from the inside out … before this crisis hits. We lay it all out for you in shocking detail in this FREE video. Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: BTP Holdings (#0)
(Edited)
On that score what will be will be. An outcome DC has been spoiling for for decades -- I don't see any big deal here. I'd like to think better of Kohn for in effect endorsing the deal, except that (1) the deal still reeks of yankee imperialism and (2) Kohn is never altruistic or reasonable.
Iran is a technologically advanced country with lots of resources and skilled manpower and where European business sees great opportunities for development. If US doesn't join in development and trade will take place in other currencies than dollars.
It's only fair and natural, ergo the USG hates it!
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