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Old 02-16-2008, 07:29 AM
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stompk stompk is offline
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Join Date: Jan 2008
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Default Re: The economic hijacking of America

The following article was written in April 2007, and predicts exactly the situation we are currently in.

Quote:
The trade deficit puts downward pressure on the dollar and acts as a hidden tax. In fact, thatís what it is--a tax! Every day the deficit grows, more money is stolen from the retirements and life savings of working class Americans. Itís an inflation bombshell obscured by the bland rhetoric of ďfree marketsĒ and deregulation.

Consider this: In 2002 the euro was $.87 on the dollar. Last Friday (4-6-07) it closed at $1.34-- a better than 50% gain for the euro in just 4 years. The same is true of gold. In April 2000, gold was selling for $279 per ounce. Last Friday, at the close of the market it skyrocketed to $679.50---more than double the price.

Gold isnít going up; itís simply a meter on the waning value of the dollar. The reality is that the dollar is tanking big-time, and the main culprit is the widening trade deficit.

The demolition of the dollar isnít accidental. Itís part of a plan to shift wealth from one class to another and concentrate political power in the hands of a permanent ruling elite. Thereís nothing particularly new about this and Bush and Greenspan have done nothing to conceal what they are doing. The massive expansion of the Federal government, the unfunded tax cuts, the low interest rates and the steep increases in the money supply have all been carried out in full-view of the American people. Nothing has been hidden. Neither the administration nor the Fed seem to care whether or not we know that weíre getting screwed --itís just our tough luck. What they care about is the $3 trillion in wealth that has been transferred from wage slaves and pensioners to brandy-drooling plutocrats like Greenspan and his níer-do-well friend, Bush.

These policies have had a devastating effect on the dollar which has been slumping since Bush took office in 2000. Now that foreign purchases of US debt are dropping off, the greenback could plunge to even greater depths. Thereís really no way of knowing how far the dollar will fall.

That puts us at a crossroads. We are so utterly dependent on the ďcharity of strangersĒ (foreign investment) that a 9% blip in the Chinese stock market (or even a .25 basis point up-tick in the yen) sends Wall Street into a downward spiral. As the housing market continues to unwind, the stock market (which is loaded with collateralized mortgage debt) will naturally edge lower and foreign investment in US Treasuries and securities will dry up. Thatíll be doomsday for the greenback as central banks across the planet will try to unload their stockpiles of dollars for gold or foreign currencies.
Source: Doomsday for the Greenback
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