The Dollar Sags in Full View of the World This Invites a Run on the Dollar. Inflation Threatens US.

Abstract: We are swamped with debt and allowing our dollar to inflate with reckless abandon just to allow Obama to bloat our government with leftist parasites. The diluted US currency is now the concern of many of our enemies and the search is on for a substitute reserve currency for the world. Using the recent near collapse of the world banking system led by debt and psychotic credit policies, we elect to double down that debt and simultaneously advise our creditors that we can keep our dollar stable. This is an opportunity for the G-20, a pack of sick economies save a very few, and they are not our friends, and this 20 could become 33 or 133 given the fact that there are no rules for membership in this stick cluster of losers. Their objective, in my view, is for the UN to become the governing body of the G-20 with rotating chairpersons and such and Obama supports this psychosis.

We are broke and getting broker:

We spend trillions of dollars on ‘education’ and cannot implant the basest notions of economics anywhere within driving distance of Washington, DC. There is some kind of cognitive fungus that blots out any fear of inflation as our frolicking Fed prints more money than the world can handle. I have posted numerous warnings on deflation[1], outrageous spending[2][3][4], gargantuan debt[5] along with hyperinflation[6] and the blatant and drug-induced bankruptcy of Micro-Marxian enclaves like California[7] with little success.  Apparently the lefties in control assume we can tax[8] our way to prosperity.[9]

Our government will soon run out of buyers for their phony bonds and will grunt and grab for the assets of the old white folks.[10] They will panic and turn Fascist in order to get the money to pay for their follies.[11] Granny’s 401(k) will be confiscated and blended in with the Social Security trash bin.

Apparently, our government officials believe that their nefarious financial dealings are covert and beyond inspection and analysis by others outside our borders. The Chinese and English have been watching our folly for some time and now the push to dump the dollar as the major reserve currency is gaining strength:

“PITTSBURGH, Pennsylvania (AFP) – The embattled US dollar is expected to come under scrutiny at a summit of developing and industrialized nations following China-led calls to review its role as a reserve currency.”[12]--Dollar under scrutiny at G20 summit by P. Parameswaran – Thu Sep 24, 7:45 am ET . [Emphasis is mine in all quotes.]

 “Beijing was the first to call for a new global currency as an alternative to the US dollar as the US deficit rocketed -- the White House estimates it could reach nine trillion dollars over a decade.”— Dollar under scrutiny at G20 summit

Our government types must presume that the Chinese should believe in Little Timmy Geithner and his nostrums about printing money in the US and how he can ‘unwind’ this gadget before the spring breaks and the pieces fly away:

The Geithner Pledge:

"We have the deepest and most liquid markets for risk-free assets in the world. We're committed to bring our fiscal deficits down over time to a sustainable level.

"We believe in a strong dollar ... and we're going to make sure that we repair and reform the financial system so that we sustain confidence," he said.”[13]-- Geithner tells China its dollar assets are safe On Monday June 1, 2009

There is so much hokum in this blather that we must assume he is mad or more liberal than we thought.

Another view from the Brits:

“A monetary policy of near zero rates – further juiced by quantitative easing – is completely incompatible with circumstances in most of Asia, the Middle East, Latin America, and Africa. Divorce is inevitable. The US is expected to hold rates near zero through 2010 to tackle its own crisis.

What is occurring is an epochal loss in the relative wealth and economic power of the old G10 bloc of rich countries compared to rising regions of the world. The euro, yen, sterling, Swiss franc and other mature currencies will be relegated along with the dollar in this great process of rebalancing, but the Greenback will bear the brunt.”[14]— HSBC bids farewell to dollar supremacy The sun is setting on the US dollar as the ultra-loose monetary policy of the US Federal Reserve forces China and the vibrant economies of the emerging world to forge a new global currency order, according to a new report by HSBC. By Ambrose Evans-Pritchard Published: 7:14PM BST 20 Sep 2009

The Chinese and others who have recently managed their economies better that the Americans, know that their trade surpluses will sink in inflation as the dollar falls. To print money and spend wildly like the Obama administration is doing is insanity and we now hang our reputations on what Tim Geithner mutters; this is the ultimate in insults toward the world financial community.

They now can guess the plan: we will use a weak dollar to get out exports running and somehow make our economy spring back into shape. The disgusting part of this scenario is that they cannot do much about this theft. What currency will they replace the dollar with since the dollar constitutes about 65% of the world’s reserves now? The Euro is a joke and the Yuen is too secretive and prone to political interventions to be used. Can we come up with a weighted basket of currencies and issue some international credits off the pile?

If the Fed knows that our dollar will sink then they must be smoking the same weeds that they do in Sacramento because those Froot Loops think Obama is going to bail them out because they are ‘too big to fail.’ California will show the world how not to run a society when the crash and bawl for pennies.

More US Dollars to be ‘spread around’ the world:

The general thrust, supported by President Obama, is to have the G20 act as some kind of world clearing house for economic activities focused on banking. [15] There is some strange language about isolating certain countries that might provide a ‘haven’ for those who might want to escape high taxes and economic restraints. This is an attempt to trap capital and hold it in place for massive taxation. There is no other way to pay for big government and Obama knows this.

There are several problems with this G-20 notion:

[1] The US is the biggest reserve currency in the world and the dollar is being weakened by massive spending by our government. This gives impetus and frenzy to China, Brazil and India to preserve their reserves currently held in US dollars. Our economy is sinking and the dollar will inflate soon causing major world-wide problems in finance and savings and investments. We are broke.

[2] The Third World has a desperate need of cash, inter alia, and the UN wants to tax the world starting at about 1% of the GDP of each nation. They are the most radical, racist and incompetent organization on the planet and cannot be trusted with a dime. The Cap and Trade Tax would add costs to everything in the US and would allow China and India to escape such a burden because they refuse to adhere to this nonsense.[16] The UK is committing economic hara-kiri [seppuku] with their carbon emissions follies led and abetted by their inbred and gibbering Princeling of Wails [17] who now embraces advanced EcoNazism.[18]

[3] The proposed banking regulations and attempts by the G-20 to limit banker’s bonuses and such are a smoke screen. What they want is to do is to prevent the US from being the world leader, but the language is vague and veiled.[19] President Obama uses language that appears to want to isolate outer world financial centers thus confining entrepreneurism to small units that can be strictly regulate and taxed out of existence if necessary. Switzerland has set up Mayfair for such a haven.[20]

Conclusion

The G-7,8 were incompetents in past decades and now we are encouraged to allow the G-20, possessing fewer skills and less wealth and even less potential, to formulate the economic and financial rules for the planet. We must note that there are NO REQUIREMENTS for membership in the G-20 which could expand to the G-33 or more.[21] To think that we would want our finances controlled even in part by the likes of Mexico, Russia, Saudi Arabia, South Africa, South Korea, and Turkey is insanity.

The nostrums displayed here by our government smack of the imbecilities of President Wilson in 1919. [22] Here, we see the Hand of Obama mimicking Article 10 in spirit if not in fact where the US would be forced to act under a directive from some assembly of nations.[23]That is all we need: to take any advice form the idiots in third world or even the Brits.

rycK

Comments: ryckki@gmail.com