Amero - after $25 Oil?

Yes, they can... bring that black gold down another 50%. Oil hasn't been as cheap since January 2005. It has plunged 70 rational percent since the closing milestone of $145.29 set in July 2008 and may fall below $25 next year Merrill Lynch wrote in a report today. How about yesterday? Just a conspicuous theory: After the Oil Dive is before the Amero 2009 Rise?

Amero in the RSS

Investors switch to precious metals, reports AME Info, straight from the United Arab Emirates on May 20, 2008. {Yeah,} And if the financial crisis gets worse then one solution under discussion is the replacement of the US... "Dollar imperialism is the new form of colonisation" is a fresh (13 hours ago) Zimbabwe Guardian (UK) headline ... rumoured that a North American union of USA Canada and Mexico will come up with their answer to the Euro in the form of a new currency called ...
Best in Small Business: Chamber salutes 4 as 'Small Business ... You can thank the Gloucester Daily Times for this vital piece of info: A reception for Amero in Essex will be held at Woodman's Top Deck at 5 pm on Thursday, June 5, while Pierce will be honored Monday, June 2, at the Atlantis ...

Iran strike = $150 Oil = $1500 Gold = ...

Contrary to some claims that the Bush administration will allow diplomacy to handle Iran’s nuclear weapons program, a leading member of America’s Jewish community tells Newsmax that a military strike is not only on the table – but likely. [...] “Look at Dick Cheney’s recent trip through the Middle East as preparation for the U.S. attack,” the source said. Cheney’s hastily arranged 9-day visit to the region, which began on March 16, included stops in Israel, Saudi Arabia, Iraq, Oman, Turkey, and the Palestinian territories. [...] A number of signs indicate that, contrary to the belief President Bush is a lame duck who will not act before he leaves office, the U.S. is poised to strike before Iran can acquire nuclear weapons and carry out the threat of Iranian President Mahmoud Ahmadinejad to “wipe Israel off the map”:

Read the whole article at Newsmax.com

Iran strike = $150 Oil = $1500 Gold = the next step towards a North American currency

Requiem for the US Dollar

The Goldman Sachs plant as the new head of the Bank of Canada ensures the takeover of the Canadian banking system, the introduction of the newly inaugurated amero currency, and lost sovereignty for Canada . This is tragic. With a crippled US banking system, a faltering USEconomic system dependent upon housing, and a Mexican failed state in the making, my hopes for the viability of the amero currency are dim. This garbage regional currency is doomed from the start. Canada is a small economy with an absolutely gigantic treasure of natural resources. The relative size of the three economies bodes poorly for the amero. With 30 million population in Canada , 300 million in the Untied States, and 120 million in Mexico , Canada cannot pull the three-horse team running ahead of a bizarre stagecoach. Cheap Mexican labor, ample Canadian minerals & resources, even with a spiffy new network of corridor transportation lines, cannot comfortably mesh with US entities.

The lopsided imbalanced upside down corrupted mix of US elements, steered toward consumption not investment, large & powerful rather than efficient, directed by wrong priorities, dominated by corrupt Wall Street and aggressive military forces simply is bound to produce little on the positive, and much on the negative. This queer alliance will not stop gold or silver prices from rising to great heights. This queer alliance will not prevent the energy prices from rising either. The main policy behind the amero currency will be inflation, no different from the USDollar.

Source: The Market Oracle

The Austrian Endgegner

Impossible predictions aside, it seems fair to say the US dollar will be a mere shadow of its former self by 2014 (if recognizable at all in its new form). If we aren't on some kind of pure gold standard by that time (an extremely tough logistical nut to crack), we could be on some type of digitized commodity standard instead, under which the currency units in one's bank account are tied to an intrinsic-value basket. One resourcebuck = a fixed allocation of 30% precious metals, 30% base metals, 20% energy, and 20% timberland. Or something to that effect.

Whatever happens, it's important to keep hold of the fact that the world does change. Many things will stay the same, but others will look quite different... including global monetary policy.

The Austrian Endgame

Returning now to the recent past (mid August actually), your Macro Musings editor still has a sore fist from pounding the table for gold stocks. Specifically we said the following:

We feel gold stocks could put in a triple or quadruple from current levels -- over the course of months to years -- and it isn't clear when the move will begin in earnest. Given that it could be sooner rather than later, we think it's time to buy.

The timing was indeed "sooner." Gold stocks took off like a rocket within a few weeks of that call... the price of gold itself adding a none-too-shabby $50 per ounce or so.

Patting one's self on the back makes for a sprained shoulder, so we'll say little more there. It just seems prudent to add, in this discussion of golden milestones, that we are no johnny-come-lately to the bullish gold argument.

Events of the past few years have played out in classic fashion, just as the Austrian Endgame (a personal term) predicted. Here we quote from an explanatory note to readers, penned by yours truly, back in August 2005:

The [Austrian Endgame] is rooted in a basic observation of Austrian economics, articulated by Ludwig von Mises:

"There is no means of avoiding the final collapse of a boom expansion brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

Here is how it works:

1. In attempting to stave off recession or depression, the powers that be induce a credit boom through monetary stimulus.

2. The following boom is enjoyed at the cost of a massive debt buildup.

3. Excesses of the credit boom eventually lead to inflationary pressures.

4. The powers that be find their hands tied; they cannot kill rising inflation without killing the debt-laden economy at the same time.

5. The Fed's choice thus becomes take real steps to reign in inflation and destroy the economy, or let inflation run and eventually destroy the currency.

Anchors away

We are now heading into the thick of stage five. The sharpest evidence for this is gold above $700 (on the way to new all-time highs), the dollar at fifteen year lows (bye-bye long term support), and loud clamoring for a Fed rate cut from nearly all parties, even as the greenback is getting pitched headfirst down a well. (There is plenty more evidence too of course. Those are merely the most visible symptoms.)

~by Justice Litle (Consilient Investor)