The trade deficit of the world's biggest economy also remains huge. How much longer can the dollar defy gravity?
Last week, America's currency fell to a 15-month low against the euro, cutting through $1.5050. Against a trade-weighted currency basket, the dollar was also at its weakest since July 2008. The greenback plunged to parity with the rock-solid Swiss franc, then hit a 14-year low against the yen.
The dollar's weakness is based on fundamentals – not least America's jaw-dropping debt. It's a long-term trend. From the start of 2002 until the middle of last year, the dollar lost 30pc on a trade-weighted basis.
It was during the summer and autumn of 2008, though, that the sub-prime debacle entered its most vicious phase (so far). The rescue of Fannie Mae and Freddie Mac, America's quasi-state mortgage-lenders, followed by the Lehman collapse, sent shock waves around the world. For six months or so, Western investors piled into what they knew, liquidating complex positions and buying plain dollars. The greenback became stronger, spiralling upward during the so-called "safe haven rally".
All that has now changed. The trade-weighted dollar has lost 22pc since March. One reason is that, since the spring, the Federal Reserve has been printing money like crazy – both to bail out Wall Street and service America's rapidly growing debt.
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Venezuela's Chavez shuts four banks
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First!
ReplyDeleteSurprisingly someone is doing something about the bankster. Apparently Chavez understands the dangers that banks can render on the country. Unlike the American leadership he studied what Jefferson warned about.. He even dared to nationalize the central bank of Venezuela; it would be analog of nationalizing the Fed. Now he really has to watch his back. The banksters will not tolerate it. Americans, here comes a new conflict/war for you. Prepare your kids to fight the “terrorists” from Venezuela.
ReplyDeleteRiiiiiight.
ReplyDeleteBecause if you carefully watch the causes of these various wars lately you discover that they all relate to the control of that nations economic system and nothing else although in the case of Afghanistan the opium trade is a nice bonus, and in the case of Iraq the oil is the bonus and in the case of Rwanda we where doing the right humanitarian thing by saving all those Hutu's and Tutu's from genocide to the tune of millions of butchered dead people.
Oh wait, we never invaded Rwanda.
My bad.
In case of Afghanistan it was both control of the opium production and control of the gas pipelines that were to be constructed from Turkmenistan to the nearest port in Pakistan. Now ask yourself why Pakistan is being destabilized as well on a daily basis? All these moves have the only goal-isolation of Russia. Russia with all of it natural recourses is the ultimate bonus these bastards are after. Also remember, America does not conduct wars to steal oil. It is too trivial. What it does want is to have all the transactions to be carried on in US dollars. Saddam decided to change the “rules of the game” and he paid the price. Now Iran and Venezuela are changing the rules and they both became targets for invasion/destabilization. The trouble for US is that behind these two countries there are bigger guys who do not like what is going on - Russia and China. Do you think the banksters did not realize the Dubai World will go bust. Of course they did, but the goal is to have that part of the World indefinitely indebted to the banksters
ReplyDelete9:10 - any country that resists the central banksters is a terrorist, period. The banksters really, really, really want a Rothschild's central bank in Iran. At any cost. Fully expect a Mossad false flag. The fake election revolution scripted by the Mossad didn't fly.
ReplyDeleteMost American idiots don't even know that Iran was a democracy in the 50s and we went in and crushed it.
I have to agree with Jordan Maxwell's recent comments that the USA is done as a nation and on a biggest scale, the human race as we know it.
We are just too stupid and apathetic to last much longer.
In the cosmos we are a flyspeck among millions of galaxies and billions of star systems. Only the most ignorant and proud people could possibly believe that man is significant. We are not. We are lint.
ReplyDeleteWe really are not that important as a speciesm in any way. Backward and violent. No one will miss us.
Humanity will probably de-evolve into a society of drones serving a superior species. In other words, we had a good run but it will all be over in a few decades.
@11:51
ReplyDeleteNo friend, your country is beind destroyed and the majority of people do not get it. Here are 6 priorities by importance of conducting a war against any nation, including your own:
1. World View (you introduce a concept in the country- “For the LORD your God will bless you as he has promised, and you will lend to many nations but will borrow from none. You will rule over many nations but none will rule over you.”). This is the slowest method, but the most stable. Worked and still does for thousands of years.
2. Historical or Chronological (anti-Semites blame anti-Semitism on Semites. Sounds like delirium, doesn’t it? Yes, it does for as long as one doesn’t know how things work. Who runs Israel? Ashkenazi Jews. Who is Ashkenazi Jews? They are Khazars-who have nothing to do Semites. They blame anti-Semitism on whom? Arabs. But Arabs are Semites. Who can you accuse Semites in anti-Semitism? So, this is another useful tool to run the World)
3. Ideological – TV, Movies, Shows, etc.
4. Economic through world money, aka reserve currency. Whoever controls the money issuance controls the situation-locally or globally.
5. Genetic warfare (you can kill a nation by alcohol, drugs or both. Alcohol is a good example of warfare against the natives in North America. Drugs – currently mowing population in North America, Europe-both Western and Eastern, Russia)
6. Military force (fastest, but least effective)