Dollar: Going, Going ...
The dollar has been the world reserve currency since 1944 and the Keynesian Fabian socialist economic palaver in New Hampshire's White Mountains. They all should have paid more attention to Lord Keynes.
The situation is now gradually getting desperate, which is proven by America's attempt to isolate Iran financially. An effort by Hillary Clinton to choke Iran's economy by financial blackmail has failed miserably. Iran has concluded trade agreements with India to deal in gold, with Russia to deal in rubles and with China to deal in yuan. Those three, by the way, are Iran's largest by volume trading partners. Other nations that are avoiding the dollar are Venezuela, Cuba and any number of additional South American states.
To try accomplishing economic policy changes in opponents simply does not work if your currency is seen as weak and the government is seen as incapable of rational behavior. To say that our government has acted irrationally for the last ten years is a major understatement. The dollar has been severely weekened through our national budget and spending practices that any fool will see are untenable. In the face of this reality, Obama has now asked for and Congress has granted yet another massive $1.2 trillion inflationary monetary expansion, with more borrowed money. This will bring the total national (on the books) debt to about $17 trillion by 2013. Off the books we can only assume about another $53 trillion. Given Washington's make-believe accounting practices, no one has the slightest idea of what our nation's finacial position really is.
How screwy can all this get? Today, February 7th 2012, Benjamin Bernanke in front of a Senate panel stated, "Since I have been in office the American inflation rate has been steady from between 1-1/2% to 2%." That's right, Ben. Just keep letting your chauffer fill the gas tank and your cook do the shopping and buy your clothes in Hong Kong while indirectly billing it all to the taxpayers, and you can keep up this charade indefinitely. The really sad matter relating to this is that not one of the over 15 Senators in the hearing challenged Bernanke's pronouncements.
The fact of the matter is that the government has turned into the largest lie-promoting facility in the world. And let us be clear. It makes no difference which of the two clubs is in power, the end result always being identical. Inflation in the immediate past has been 10% in 2009, 12% in 2010 and 12% in 2011 and will be 15% in 2012. Removing the cost of fuel and food from the statistically produced government-reported information makes it all worthless.
Every time the FRS expands the fiat money supply inflation jumps. This does not bode well for the strength of the dollar, which has actually been falling for the last ten years. As the value of the dollar declines prices of everything you buy not domestically produced, which is almost everything, rises in cost. The buying power of your individual income in fixed dollar valuation of 1950 has fallen every year for the last 62 years. When your author lived in NYC in 1952 movies (always a double-feature) cost 75 cents, a cup of coffee was a nickel, a new Chevy was $1,400 and a one-family home cost 9 to 14 thousand dollars.
Why would the Department of Labor produce any more realistic data than the FRS? They, in fact, play the same silly game – this time, just as before – for the benefit of the progressives who want to keep their gratuitous jobs in Washington. They are now reporting the unemployment level as 8.4%, which is so utterly ridiculous that not even 4th graders believe it. Here again, by simply refusing to count all those who fell off the benefits wagon – well, you know what I mean; those whose unemployment benefits have expired – not counting those entering the labor market, those no longer looking for employment and those forced to take jobs at much lower income, they have succeeded in underreporting national unemployment statistics that actually are (according to ShadowStats.com) 24.4% as of 02.02.12 – which, by the way, is identical to the "Great Depression" peak in 1933. By the way, that's not even counting the over 30% of teenagers, blacks and Hispanics. The government-issued numbers do make Obama and Congress look the heroes!
Budgets, as produced, and proposed budget cuts by Congress are always quoted as 'over the next ten years.' Since congressional spending is never planned longer than three years, this is just another load of BS. This is more smoke and mirrors accounting through which any budget cuts are transferred to Never Never Land while the smoke and mirrors fantasy just continues.
In fact, Congress, whatever they tell you, has not cut one single penny in spending for the 2011 and the 2012 budget years. It is obvious even to people with minimal education that you cannot continue spending money that you borrow. Today our government borrows 43 cents of every dollar that it spends. This borrowing increases the national debt and transfers our outlays to our children and grandchildren while further eroding the value of the dollar, making everything more expensive.
In foreign trade through the enactment of "Free Trade" policies – NAFTA, CAFTA, WTO and GATT and our latest fiasco of a free trade deal with Panama, Columbia and South Korea – we have produced ever-growing trade deficits for the last 20 years. The American trade balance has not been balanced since the '60s; today the trade deficit is about $817 billion every year. With NAFTA, our annual trade with Mexico went from a $5.7 billion surplus to a $67 billion deficit in just ten years (2002 to 2012). In the meantime these trade policies have lost us 10 million manufacturing jobs, the highest paid blue-collar jobs in America, and 40,000 manufacturing enterprises. If you buy more than you sell every year – and are now close to approaching buying one trillion dollars more than you sell – you will shortly go belly up.
The end of the dollar as the world's reserve currency is at hand. We would expect this to take place before the 2012 election or very shortly thereafter. Once the dollar ceases to be the international reserve currency we will be unable to continue this game. To verify that inevitability we have noted that Russia, China, Japan and India have been dramatically reducing their American debt holdings in the last six months.
But the worst will be that we will have to provide actual value for what we (you and I) are nationally purchasing. Let us be very clear. We are at the present time buying foreign goods at 60 cents to the dollar. This is because our government continues to put forth statistical information that is bogus, while the money we borrow (40 cents on the dollar) is not part of the statistical information. While the purchase power of the dollar has fallen 97% since 1913 the real plummet only began after Richard Nixon took us off gold conversion. With one "Quantitative Easing" after another, dollar value has fallen dramatically. Then, when in March 2009 the Fed suspended reporting the M-3 money supply, all bets were off. You see, the M-3 statistic factually reported the amount of new money pumped into the existing dollar pool in circulation. Without that information all dollar valuation is simply conjecture.
Now, let us understand one thing clearly: The people doing this are the international banksters with the able aid of the politicians and the passive acquiescence of the media. If you voted for a Republocrat in the last election you have no one to blame save yourself.
Posted by rossbcan on 02/09/12 12:44 PM
"What will be your position"
I will deal with the facts, as they become clear / proven and, leave the speculation, blameshifting and demands for "pre-emptive justice" (a blunt instrument creating innocent "collateral damage"), to fools, whom, hopefully, will be ignored.
Posted by Agent Weebley on 02/09/12 12:25 PM
I just posted this here @ 5:21pm GMT.
Let's see how long it lasts . . .
Click to view link
Posted by agent_weebley
If you had shares in a company and the company decided to do a stock split, did not give the new shares to you, but instead gave the shares to their friends in low places, then I think you would be mighty ticked.
Let's walk away from The Crying Game ARG.
Click to view link
Posted by chad2 on 02/09/12 12:18 PM
What will be your position when at the end of the day Israel has ownership of the Oil? When the Muslim Religion is no more like the Japaneese Empire and the Nazi movement. Israel will rise out of this in peace with the oil. It's all about Israel. The USA is just along for the ride...
Posted by rossbcan on 02/09/12 11:55 AM
so, nuke Israel is where such "thoughts" lead, inevitably to "final solutions".
It's about those who believe they have a "right" to "place harnesses on the backs of their fellow human beings" and, have no end of false rationalizations and contrived situations (machinations) regarding why it is "neccessary" to do so.
Meanwhile, mankind is turning, as one, against the "real perps" who have no distinguishing characteristics (race, ethnic, country, belief, status), apart from initiators of aggression EQUALS destroyers of peace and civilization.
... and, PLEASE, spare us the god stuff. If such an absurdity exists, then, "reality is ALSO god's will", so, stick to it.
Posted by dotti on 02/09/12 11:55 AM
Yes, Abu. I read the article also and felt a quiet sense of panic. They are closing in for the kill.
It's so obvious to those of us whose eyes have been opened.
Thanks for your comments.
Also, Ingo, I loved your post. I wish every citizen could be required to read it. Of course, only a few of them would have eyes to see and ears to hear. Sad. Thanks for this and all your posts. They present a certain clarity to the cloudiness around us--everywhere!
Posted by rossbcan on 02/09/12 11:46 AM
Know that you have flogged this to death, but, a mere assertion of "your opinion, BS" is unhelpful to your cause. How bout a link to your explanations regarding the unconstitutionality of several amendments for those who wish to pursue?
Posted by chad2 on 02/09/12 11:10 AM
You gotta step back to see the forest! It's not about the USA. It's about Israel! Until you understand that your just exploring tree by tree...
Posted by Bischoff on 02/09/12 11:07 AM
"We need a list of all living congressmen whos' voting record supported deficit spending, ranked worst to least. That way, a panicked populace will know who to ask for help on that day of reckoning."
There is no need to cause a witch hunt. All effort must be directed to resolve the mess so that the average American suffers the least amount of damage by the currency collapse. To limit damage can only be done by installing a redeemable parallel currency system which disproportionately will favor the average American against the monetary elite.
BTW, 420 of 435 member of the U.S. House of Representatives routinely enter earmarks into the annual budgets. If they fail to do so, they are in trouble with their party leadership in the House. Put all those Congressmen on your list, but you will also find there some of your friends like Ron Paul, Rick Santorum. The only guy who ever cut into the earmark system, which is designed to create budget deficits to help currency creation by the Fed, is Newt Gingrich with his balanced budgets.
Posted by Danny B on 02/09/12 11:02 AM
Dr. Krieg, excellent article. It has always been known that the bankers needed to be protected from their own greed. Regulatory capture negated that idea. The banks ran with it and now can not extricate themselves. They tried to insure everything but, it has all gotten too big. The insurance is now coming back to devour them. Here is an excellent article on runaway derivatives.
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A good article on the dollar. I expect the dollar to be around for a while. I just don't expect it to have much value.
Click to view link
Posted by kenn on 02/09/12 10:58 AM
[If you voted for a Republocrat in the last election you have no one to blame save yourself.]
Jumped that sinking ship years ago. The entire election process is a charade.
Most people agree that the elections are manipulated,,, when asked why they still participate I usually get "It's my civic duty"...
This conundrum boggles the mind. On one hand they know their vote is being flipped and that dead people are voting against them while on the other hand they volunteer and donate money to the scamsters. It is one of the most humorous and saddest things I have ever laid eyes on...
Apparently the government edumacation sistem werks...
Posted by Bischoff on 02/09/12 10:48 AM
This is the kind of crap that has nothing to do with facts which could enlighten people about what really happend.
This is propaganda quite likely put out by someone who chills for the special interests. This sort of stuff is designed to keep people from finding out the real facts. The emotion it evokes is designed to suppress reasoning. You're wasting your time reading this diatribe.
Posted by rossbcan on 02/09/12 10:20 AM
"when/if ever they"
In this statement, "they" is "them" and, "us".
and, wow! - clarity
Posted by amanfromMars on 02/09/12 09:51 AM
Oops, further to Posted by amanfromMars on 02/09/12 09:39 AM, I meant to add ... ... . The bottom line though is, it doesn't really matter does it, ... ... ... until the masses realise what fools they've been played for. And that message is getting ever loud and spreading ever wider. Then even a mighty army will not be able to protect and save the power elite architects of everyone's global misfortune, and that aint no lie or wild exaggeration and speculation.
One wonder when/if ever they are going to do something different and smart to save themselves and theirs from a fate which is surely certain?
Posted by Steve Campbell on 02/09/12 09:42 AM
now it does
Posted by Steve Campbell on 02/09/12 09:41 AM
link will not open
Posted by amanfromMars on 02/09/12 09:39 AM
The banana republic of the UK is also a copycat folly in dire straits, for all of the very same reasons, Doc ... ... .. Click to view link
And apparently there is still more grave digging to be done in May ... ... .. Click to view link
Who on earth do they think they are fooling, other than themselves that is.
And here's another Ponzi/scam which is breaking cover/coming out, although as you might expect, would I suggest that no matter how much is invented to fight against and/or counter cyber shenanigans, will it all be lost and as peanuts compared to that which is made/sold by those creatives in the field who would wield a contrary opinion which is more attractive to hearts and minds ... ... . Click to view link
Posted by reegje on 02/09/12 09:21 AM
It is my understanding that the Corporation: The United States of America, located in Washington DC and serves the English Crown has been been bankrupt since the 1930's (the US CORPORATE BANKRUPTCY): EVERY American is collateral for these international bankster agents of the perverts that run the globe.
A legal plunder of America's assets and labor: a 24/7 fraud year in year out. Also every American can checkmate these perverts if they only know their legal rights, the Uniform Conmmercial Code emerged as Land of the Law as described in this very important piece about the fraudulent legal system:
Click to view link
Hope you all read and forward this.
Posted by Steve Campbell on 02/09/12 09:12 AM
Yes. Why has he apparently turned his support away from Ron Paul to Obama?
Posted by onebornfree on 02/09/12 09:12 AM
AK: "The end of the dollar as the world's reserve currency is at hand. We would expect this to take place before the 2012 election or very shortly thereafter. Once the dollar ceases to be the international reserve currency we will be unable to continue this game. "
Mr Krieg, the economic future, as always, remains largely unknowable and unpredictable. While the $US might appear to yourself and others to be on shaky ground right now, the simple fact is that the $US's position as the world's no.1 reserve currency might end next week, next month, next year, or in anywhere from 2 to 50 years or more from now, despite the fact that we might both agree that "all things must pass", or even, that it "needs" to end.
Although seeming unlikely [to myself], it might even stagger on in it's present form for a hundred years or more- there is simply no way to know with absolute certainty what will happen in advance. Even if it _does_ come to an end, unfortunately there is no way to guarantee that that end [_if_ it even occurs as envisioned], will even be in yours, mine , or any other readers lifetime.
I feel that the best protection for long term savings against an always uncertain future is therefor an equally balanced, "agnostic", "don't know" plan that does not rely on any crystal ball gazing, seeing as how our predictions for future economic event "certainties" almost invariably turn out to be incorrect. Click to view link
Posted by rossbcan on 02/09/12 09:05 AM
AK: "Dollar: Going, Going ... "
"It's just a goddamn piece of paper" - the shrub
Until force / fraud (high crimes and misdemeanors - treason) is removed from the equation, the grim reaper of "Mathematics of Rule" (reality) will continue to collectively smite us until we do "get it" and address the forcefully imposed imbalance between the productive and unproductive who have already eaten the seed corn of civilization and, are determined to keep us in collective servitude "unto the seventh generation", a goal that can NEVER be achieved, even if their tyranny gambit succeeds (another impossibility, people adapt and, deal with survival threats):
Click to view link