"Shock Therapy" and The Freefalling Dollar --Mike Whitney

[Demeter]

http://www.opednews.com/articles/opedne_mike_whi_060514__22shock_therapy_22_and_.htm

The dollar is getting hammered almost daily now. It’s like watching the blood ooze from an open wound. In just one month the dollar has tumbled from $1.20 to $1.29 vs. the euro; an astonishing 7% retreat... Bush has piled up more debt than all the other presidents combined. His tax cuts have fattened the bankrolls of his constituents but they’ve put the dollar on a downward slide. Since he took office the once-mighty greenback has plummeted a whopping 35%.

Meanwhile, at the Federal Reserve, new Fed-master Bernacke has the printing presses running at warp-speed. The soaring price of oil has soaked up more than a trillion dollars of freshly-minted fiat currency, but it’s the only thing that's kept the greenback from slipping beneath the waves. Unfortunately, that trick won’t last forever...On Thursday the congress added another $70 billion to Washington’s mountain of debt, completely ignoring the fact that the dollar lost a full 2% against the euro in the same 24 hour period. Is it possible to be that obtuse?

...
Bush is simply carrying out a crackpot plan from his globalist friends at the Council on Foreign Relations (CFR) It is a strategy that Washington has executed many times via its surrogates in the World Bank and IMF. Corrupt politicians (Bush and co) plunge the nation into unsustainable debt, interest rates rise, the economy implodes, and the banks and corporations pick the carcass clean; privatizing what they can while destroying what's left of the social safety net. (John Perkins “Diary of an Economic Hit Man” provides a first rate account of how this method has been used repeatedly throughout Latin America) In fact, it is simply the corporate version of traditional colonialism....

The dollar-slaughter is the biggest part of this whacko scheme. It is the quickest way to crush the middle class by robbing them of their life-savings through hyper-inflation.







Mike is a freelance writer living in Washington state.

ONE OF THE BEST BLOGGERS AROUND--HE SHOULD GO PRO!

[Taxloss]

1. Mogambo Guru must be having a stroke right now. n/t

[Demeter]

2. He's Not the Only One!

I am so grateful that my grandparents, who survived pogroms, world wars, and the previous Great Depression are not around to see this one. When you envy the dead, things are in really bad shape.

[katty]

5. agree! envying them more&more

[leveymg]

3. We'll see cross-market and multiplier effects soon.

We're already seeing it for commodities, such as copper and manganese. The rising Euro and energy costs will create a cascade effect for all goods, and components of manufactured goods, that are internationally tradable.

Expect food, starting with coffee and other non-perishables, to go up next. Imported auto parts are going to become very expensive.

Eventually, even costs of services will have to go up, too. In this corporate controlled economy, wages will be last to rise.

[cliss]

4. Thanks for posting.

The only good news that I can think of is, we've been warned. The free-fall of the dollar is what I could call a "Long Emergency" which has in fact, taken time to develop.

Think of it as a very long downhill ski run on the slope of Mt. Hood. There's been time to prepare. I've been reading the DU for about 3 years, and I can assure you that just about every day, there's been a thread which warns of the upcoming disaster.

The best advice I've seen is - keep your expenses down. Pay off all your debt, if possible. If that's not possible, don't acquire any new debt. Lay low until this storm passes.

We WILL make it through. And when the storm clouds have passed, lo and behold Bush will be gone. He and all the other creeps will have been washed out with the storm.

[phantom power]

6. We spent over $500 on a cart of groceries this weekend.

It was a somewhat large cart (shopping at Costco) but nothing special, just typical food and household supplies. Definitely into "budget affecting" territory.

[yurbud]

7. We should learn something from the countries in Latin America that

fought back.