The US Dollar is Being Destroyed

 

From http://www.truthnews.us/?p=2034

The U.S. Dollar Is Being Destroyed

Lee Rogers
Funny Money Report
February 27, 2008

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.

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.

First, Alan Greenspan actually told Arab nations in the Gulf to drop their peg to the U.S. Dollar. He actually said that the reason why they have so much inflation in their economies is because they are pegged to the U.S. Dollar. Greenspan is essentially admitting that there is inflation built into the U.S. Dollar and that’s why they are having problems with inflation. His statements also serve to undermine confidence in the value of the U.S. Dollar since many people pay close attention to what the former Federal Reserve chairman has to say. Even worse though, is that if these Arab nations decide to drop their peg to the U.S. Dollar this will further reduce demand for the currency. This will result in the U.S. Dollar continuing its move lower.

It is certainly ironic that Greenspan who actually created this economic mess through his easy money policies in the early part of the decade is now encouraging other countries to move away from the U.S. Dollar. Greenspan has done everything he could to destroy the currency both while he was the Federal Reserve chairman and he’s continuing to do it years after he quit the post. Even when Greenspan was the Federal Reserve chairman all he did was increase the money supply and reduce interest rates whenever there was an economic crisis. Greenspan is a criminal because his policies are responsible for the current housing crisis and many of the other problems we are seeing with the economy today. It is disgusting that Greenspan would actually make statements that he knows will facilitate a further destruction of the U.S. Dollar.

Second, the current Federal Reserve chairman Ben Bernanke shows no signs of reversing course and setting policies that will save the U.S. Dollar. Bernanke testified in front of Congress today and he indicated that they would continue to reduce interest rates to prop up the economy. This is also a criminal act. Bernanke would prefer to sacrifice the value of the U.S. Dollar just to make the stock market look as if it is treading water. It is much more destructive from a long term basis to destroy the monetary unit that the economy is based off of than it is to raise interest rates and defend the monetary unit. The Federal Reserve should be raising interest rates to defend the U.S. Dollar. This would cause an immediate economic slowdown but long term it would save the economy. Bernanke has decided to choose the wrong option and this could cause an inflationary collapse.

Third, the FDIC is predicting that we are facing a crisis. An article from the Wall Street Journal revealed that the FDIC is actually bringing on more people to deal with future bank failures. They aren’t hiring new people because it’s a fun thing to do. They are bringing people on because they believe things are starting to spiral out of control. This is without question an ominous indication that we could be on the brink of a major collapse.

Fourth, the government announced that they are lifting restrictions on Freddie Mac and Fannie Mae in terms of the amount of mortgages they are allowed to hold. As private banks fail, the government will need these two entities to take over more of these mortgages. This is another indicator that the government believes that we could see a ton of these private banks fail.

Fifth, the Russians are going to slowly start moving their oil sales away from U.S. Dollars and into Rubles. This will further erode demand for the U.S. Dollar and continue accelerating its slide downward. This combined with the Iranian oil bourse which has recently come online is going to increase pressure on the value of the U.S. Dollar. The Iranian oil bourse trades oil and other commodities for currencies other than the U.S. Dollar. It is certainly interesting that we’ve seen a huge decline in the U.S. Dollar since the Iranian oil bourse began operations.

Sixth, we are beginning to see an escalation in food prices. In particular, the price of wheat has gone through the roof and there have been reports of panic buying. This is not only a monetary phenomenon but it is also the result of the fact that there are government subsidies for biofuels. Biofuels are essentially the result of food being turned into fuel which means there is less food in the open market and this has resulted in the price of food moving up. The United Nations has already been warning of food shortages and there have been reports of food riots in different Middle East countries. This is something that could occur in the United States if the government continues to subsidize biofuels and the Federal Reserve continues to inflate the money supply.

As scary as this is, these are just some of the lowlights over a few days of economic news. To summarize, these news stories indicate that the U.S. Dollar is being destroyed on several different fronts and this is resulting in gold, silver and other commodities going up in U.S. Dollar denominated terms. We didn’t even get a chance to talk about the phony tax rebate scam and the out of control spending by the clowns in Washington DC which are also contributing to this disaster. The U.S. Dollar Index has dropped substantially and we now see a situation where the U.S. Dollar is at an all-time low versus the Euro. We are about to witness a financial calamity of epic proportions and the establishment shows no sign of wishing to implement policies to reverse this. The end game appears to be the continued destruction of the U.S. Dollar which will allow the establishment to implement the North American Union and a regional currency which will completely undermine the sovereignty of the United States. The crisis in the U.S. Dollar will be used to facilitate this phony solution which will give the big multinational corporations and central bankers even more power.

The only way to survive this coming economic disaster is to buy physical gold and silver. It also wouldn’t hurt to stockpile ammunition, firearms, storable foods and survival equipment. This is a very serious situation. We are going to see a substantial rise in gold, silver and other commodities and we should see a spectacular rise in the price of many junior mining stocks. The U.S. Dollar is being destroyed through inflation and those who own precious metals will be rewarded as precious metals serve as a fantastic defense against the criminal central bankers that set these criminal policies.