Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

The Seeds of Discontent are in Play to Bring the US Dollar Down

The seeds of discontent concerning two issues are brooding and they could easily  snow ball. The potential for derailing the US dollar is there. The first is the declaration by Nigerian Rebels to end  the cease fire. A previous warning to this effect was made on December 19, 2009 when a warning attack was ordered against pipelines used by Shell and Chevron. The latest warning issued by e-mail stated that "Nothing will be spared". Apparently all oil companies in the Niger Delta  have been on alert. The US have been receiving oil from this area. This information was released recently by a Bloomberg report.
The second issue relates to the arms sale by the US to the Taiwanese government. The Chinese have issued strong opposition to the sale. They claim the sale threatens  the relations between the Chinese and Taiwanese peoples. This sale  comes on the heels of a stiff rebuking made by the US Secretary of State, Hilary Clinton expressing  concern to the Chinese government's over their handling of the "Google Affair". When you consider the reprisals implemented by the Obama administration against China last fall concerning trade restrictions and add to that  these recent developments, then one easily can appreciate that the magnitude for a potential economic war is in the making. A shot across the bow is surely to be the next event. One could see the US dollar plummeting as the Chinese implement large sales of US dollar holdings to play out. The Chinese use these dollars to gain a foot hold into resource plays that are in short supply. This is an ideal strategy for them to employ that is at their disposal. They use their us dollar holdings at a time when the dollar is presently overvalued because US investors are dumping European investments. The dollar longs had better be prepared because this type of repositioning is likely coming sooner than latter. LOL Looking after your money.


Disclosure: Disclosure: no positions