Dollar

Empire on the Brink: Republicans and “Free Market” Zealots Bring Disaster to America

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March 13, 2008
By PAUL CRAIG ROBERTS

March 12. Crude oil for April delivery hit $110 per barrel. The US dollar fell to a new low against the Euro. It now takes $1.55 to purchase one Euro.

These new highs against the dollar are the ongoing story of the collapse of the US dollar as world reserve currency and corresponding collapse of American power.

Each new decision from the insane Bush regime pushes the dollar a little further along to oblivion. The same Fed announcement that boosted the stock market on March 11 sent the dollar reeling and the price of oil up. The Fed’s announcement that it and other central banks are going to deal with the derivative crisis by monetizing $200 billion of the troubled instruments signaled more dollar inflation.

Read moreEmpire on the Brink: Republicans and “Free Market” Zealots Bring Disaster to America

Watching the Dollar Die

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By Paul Craig Roberts

13/03/08 “ICH ” — – I’ve been watching the dollar die all my life. I sometimes think I will outlast it.

When I was a young man, gold was $35 an ounce. Today one ounce gold bullion coins, such as the Canadian Maple Leaf, cost more than $1,000.

Our coinage was silver. Our dimes, quarters, and half dollars had purchasing power. Even the nickel could purchase a candy bar, ice cream cone or soft drink, and a penny could purchase bubble gum or hard candy. If a kid could collect 5 discarded soft drink bottles from a construction site, the 2 cents deposit on the returnable bottles was enough for the Saturday afternoon movie. Gasoline was 32 cents a gallon. A dollar’s worth was enough for a Saturday night date.

Read moreWatching the Dollar Die

Derivatives Have Become the World’s Biggest Black Market

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Buffett and Gross warn: $516 trillion bubble is a disaster waiting to happen

ARROYO GRANDE, Calif. – “Charlie and I believe Berkshire should be a fortress of financial strength” wrote Warren Buffett. That was five years before the subprime-credit meltdown.

“We try to be alert to any sort of mega-catastrophe risk, and that posture may make us unduly appreciative about the burgeoning quantities of long-term derivatives contracts and the massive amount of uncollateralized receivables that are growing alongside. In our view, however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.”

Read moreDerivatives Have Become the World’s Biggest Black Market

Fed Prints Another $200 Billion Out Of Thin Air

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World central banks unite to ease credit strain

WASHINGTON (Reuters) – The U.S. Federal Reserve and four other central banks on Tuesday teamed up to get hundreds of billions of dollars in fresh funds to cash-starved credit markets, allowing financial firms to use securities backed by home mortgages as collateral for central bank loans.

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Stocks surged, bonds fell and the long-suffering U.S. dollar soared in reaction to the moves, a sign financial markets saw the plan as a step in the right direction to ease a crisis that has threatened world economic growth. The Dow Jones industrials closed nearly 3.6 percent higher.

In the latest effort to ease a credit contraction that has disrupted global finance, the Fed, Bank of Canada, Bank of England, European Central Bank and Swiss National Bank announced a series of aggressive measures to boost liquidity. It was the second time in three months that central banks from around the globe had launched coordinated efforts.

Wall Street economists were quick to call the new lending facility a step in the right direction, but what’s most needed is time for the de-leveraging of billions of dollars in loans globally.

Read moreFed Prints Another $200 Billion Out Of Thin Air

The U.S. Dollar Is Being Destroyed

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The global economy is falling apart all around us. We can expect a continued rise in the price of gold and silver as it is becoming increasingly apparent that the Federal Reserve, the U.S. government and even Alan Greenspan are doing everything they can to destroy the value of the U.S. Dollar. In fact, the policies currently being implemented by the establishment is criminal because by devaluing the U.S. Dollar they are indirectly robbing from the American middle class by destroying the purchasing power of everyone’s bank accounts that are denominated in U.S. Dollars. At this point it is becoming increasingly clear that the establishment wants a weaker U.S. Dollar considering some of the insane policies they are implementing and insane things that they are saying.

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What makes this rise in precious metals particularly interesting is the fact that the IMF has been dumping gold on to the market and gold continues to move up in value. The manipulation of the gold market is starting to fail as is the policy of managing a slow decline of the U.S. Dollar without a parabolic rise in precious metals. The rise in silver has been particularly spectacular rising around $1 in price yesterday and it shows no signs of slowing down. At this point we could easily see gold at $1,000 an ounce and silver at $20 an ounce within the next month or two. So why is all of this happening? Let’s take a look at some of the news that has come out in the past few days.

Read moreThe U.S. Dollar Is Being Destroyed

How Low Can The Dollar Go? Zero Value

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The corporate controlled media is finally starting to talk about the economic problems that the alternative media and assorted precious metals advocates have been talking about for years now. We are facing a potential inflationary depression. Independent estimates of the M3 money supply show that we are seeing an annual increase in the M3 money supply by around 16 to 17 percent. The Federal Reserve chose to stop producing this report right around the time when these figures began going parabolic on their chart showing a massive increase in the money supply. An increase in the money supply results in a devalued currency and that’s one of the primary reasons why we are seeing the price of gold flirt with the $1,000 an ounce mark and silver explode past the $20 an ounce mark. The U.S. Dollar Index is now treading water around the 72 to 73 mark and it is becoming increasingly clear that the role of the world’s reserve currency is shifting from the U.S. Dollar to the Euro. Some ask how low the U.S. Dollar could go and that answer is simple. The U.S. Dollar could go to zero because it is a fiat currency with no real tangible backing. Every fiat currency in the history of man has been replaced or collapsed and there is nothing fundamentally different between the U.S. Dollar and these other fiat monetary systems of the past.

Read moreHow Low Can The Dollar Go? Zero Value

Global “Oil Shock” Rattles World Stock markets

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Cleaning up the mess that Mr Greenspan left behind was never going to be easy. Banks and brokers around the world face more than half-trillion dollars in write-offs as a consequence of the US sub-prime mortgage crisis, which is spreading from the US property market and roiling global stock markets. It’s toppled the US economy into a recession and the tremors are also rattling Asian stock markets.

Roughly $7 trillion has been wiped from world stock markets since the beginning of the year amid fears of a severe US economic recession and financial institutions reporting more mega losses. “The market crisis will preoccupy us well into 2008,” he said German Finance Minister Peer Steinbrueck on Feb 15th. “The financial risks securitized by banks contained packaged explosives,” and he accused rating agencies of having a conflict of interest in the role they played in the process.

So far, the Bernanke Federal Reserve has pumped more than half-a-trillion dollars into the markets with open market operations and special emergency lending schemes, to help cushion the blow to the US economy and stock markets. However, there’s evidence that the Fed’s prescription for dealing with the sub-prime debt crisis, is actually making matters much worse, and leading to “Stagflation.”

Read moreGlobal “Oil Shock” Rattles World Stock markets

Lou Dobbs: U.S. Heading For Stagflation Crisis – CNN host slams Fed’s depreciation of dollar

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CNN host Lou Dobbs says the U.S. economy is heading for a stagflation crisis as a result of the U.S. government’s policy of dollar depreciation and that the only solution is for the American people to restore a proper Constitutional system of government.Dobbs told The Alex Jones Show today that the decline of the dollar was, “a clear signal as to how much trouble this economy is in,” added to a 9 trillion dollar national debt and a 6 trillion dollar trade debt.

America’s dependence on cheap imported Chinese consumer electronics, clothes and toys was negating any elasticity that could be gained from the demand relationship with China on imports, meaning that the only conceivable benefit of a weak dollar – cheaper exports – was not even applicable, Dobbs explained.

“We have the specter of stagflation staring at us coldly and inevitably right now,” said Dobbs, adding, “There’s no doubt that those who would degrade the sovereignty of this country would want to certainly the power, the strength, and the respect of the U.S. dollar and it is the last thing we should permit.”

Stagflation is a macroeconomics term used to describe a period of inflation combined with stagnation, ie slow economic growth allied to a potential recession.

“We have to come to terms with the amount of debt that we have allowed the elites of this country to run up,” Dobbs concluded.

Read moreLou Dobbs: U.S. Heading For Stagflation Crisis – CNN host slams Fed’s depreciation of dollar

Gold futures rebound as dollar drops – METALS STOCKS

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NEW YORK (MarketWatch) — Gold futures reversed earlier losses on Tuesday, as the dollar fell against major counterparts on bleak U.S. economic data, while traders reconsidered the importance of an expected sale of gold reserves by the International Monetary Fund.

Gold for April delivery gained $8.40 to end at $940.50 an ounce on the New York Mercantile Exchange.

Gold futures had fallen Monday after a senior Treasury official said the U.S. supports the proposed sale of part of the gold reserves held by the IMF.

“But there is an understanding that the IMF issue is minor at best,” said Brien Lundin, president at Jefferson Financial. “The sale still needs congressional approval, which remains doubtful, and the amount would be minor anyway.”

“In the past, IMF gold sales have typically marked a buying opportunity for people who had missed a rally,” Lundin said.

Read moreGold futures rebound as dollar drops – METALS STOCKS

Iran shifts oil sales away from dollar

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Deputy head of the National Iranian Oil Company for international affairs says Iran has completely dropped dollar in its oil sales.“We issue invoices in dollars and agree with clients that the letters of credit and other means of payment will have a non-dollar basis,” he said.

In an interview with The Financial Times, Hojjatollah Ghanimifard said that over the past three months, Iran has received 75 percent of the proceeds from its oil sales in euros and the remaining 25 percent in the Japanese currency, yen.

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Hojjatollah Ghanimifard

Read moreIran shifts oil sales away from dollar

Ron Paul has been the only hope for the U.S.

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Congressman Ron Paul slammed Federal Reserve chairman Ben Bernanke during a House Financial Services Committee meeting today for following a policy of deliberately destroying the dollar and wiping out the American middle class.
Paul held Bernanke to task over his refusal to address the decline of the dollar and its clear link to inflation.
“Inflation comes from the unwise increase in the supply of money credit….to argue that we can continue to debase the currency, which is really the policy of that you’re following, purposely debasing value of currency – which to me seems so destructive….it just puts more pressure on the federal reserve to create capital out of thin air inorder to stimulate the economy and usually that just goes into mal-investment,” said Paul.
Watch it.
“Ron Paul Schools Ben Bernanke Yet Again”


Paul highlighted the fact that the M3 money supply was rising at a rate of 16 per cent and that this was the real rate of inflation.
“History is against you,” Paul told Bernanke, “History is on the side of hard money – if you look at stable prices you have to look at the only historic sound money that’s lasted more than a few years – fiat money always ends, gold is the only thing where you get stable prices,” he added, pointing out that despite the price of oil’s rapid ascent, it had remained flat when compared to the price of gold.
“I cannot see how we can continue to accept the policy of deliberately destroying the value of money as an economic value,” said Paul, adding that the policy was “immoral,” and would lead to a reduction in American’s living standards and “the middle class being wiped out.”
Asked how he could defend a policy of deliberately depreciating the dollar, Bernanke stumbled through his response and was basically forced to agree with Paul’s point. Paul’s comments come on the day that the dollar hit its all time low against the Euro.
Earlier this week, former Fed chairman Alan Greenspan laid the groundwork for the further collapse of the greenback by encouraging Gulf states to abandon their dollar peg.
Watch Paul’s opening statement.
“Ron Paul opening statement to Bernanke at FSC – 2-27-2008”

Oil hits record

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The price of oil increases dramatically and will continue to do so.

Oil hits record as OPEC rebuffs Bush http://www.azstarnet.com/business/228364

All this fits into the plan to crash the economy, destroy the value of the Dollar, take away your money and to keep all of you in a survival mode.

There has been found enough oil in Alaska to keep the US economy running for 200 years!

Lindsay Williams, an ordained Baptist minister for 28 years, is witness that this is true.

Visit his homepage: http://www.lwoil.com/index.php and read his book: The Energy Non-Crisis

Why would they do that? To earn more money? Yes, but those guys already have enough money! It’s now all about power.

They want to control you utterly and totally.