Propping Up the Dollar

Last week on Dec. 13th, 5 major central banks allocated 114 billion to increase liquidity for the global economy due to the US sub-prime mortgage debacle. This would make it more easy for banks to obtain loans and prevent some from closing due to the bad mortgage loans. Since they did not have loan payments coming in, their reserve requirements were in danger and ultimately getting close to foreclosure themselves.

This real estate problem was causing major concerns around the world about the health of the US economy. This was weakening the dollar against all the major currencies. The Fed was more concerned with the dollar than the mortgage industry. But since they are interconnected, they had to do something and spin the news to look like they are doing something constructive. So far, the measures seem to be working in terms of propping up the beaten US dollar. The US dollar index closed at 77.62, up from 77.39 last week. It made significant gains on the major currencies in the world this week, but time will tell on how long it lasts.

The Federal Reserve and the other central banks had to do something. The interest rate reductions in from September through December were not doing much to stem the slide of the dollar. Furthermore, more and more nations around the world were declaring that they would not use US dollars to purchase oil. China and other nations who hold trillions in US government securities were threatening to dump them to retain whatever value they have left. No one likes it when your assets keep losing value. These are significant items leading to the "handwriting on the wall".

Make no mistake, the demise of the US dollar is planned, but the timing is a little off. The Amero is not properly positioned yet to replace the US dollar, or to be politically and economically accepted yet. Measures had to be taken to slow down the pace. How soon will the smokescreen clear?

Gold and silver prices continue to rise, despite the recent retracement. Gold closed at $811.70 per ounce and silver closed at $14.34 per ounce. This continues to verify that investors seek the stability of precious metals during times of economic instability. Read my post of Dec. 1st to see the projections of what gold and silver are very likely to go to in the next six months.

Despite the plans of the elite and the powerful, let us remember who really is in control.

Your wealth and your treasures I will give as plunder, without charge,
because of all your sins throughout your country. Jeremiah 15:13 (NIV)

If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com