Democratic thinking

Articles on democracy in the independent online media

May 14, 2006

The Freefalling Dollar

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.

Can’t the American people see what is happening to their future? In just 6 years Bush has taken the world’s strongest currency and chopped it into finally ground hash. By the time people rouse from their stupor, the greenback will be eye to eye with the peso.

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.

Now that Bernacke is hinting that interest hikes may slow down or stop entirely, central banks across the world are stealthily off-loading their dollar-stockpiles. The twin-deficits ($400 billion account deficit and $800 billion trade deficit) have finally come home to roost and are pushing the dollar to new lows.

Dick Cheney’s foolish axiom, “Deficits don’t matter” has turned into a funereal-dirge for the greenback. Deficits Do matter, and bankers around the world are proving that by hastily moving away from Uncle Sam’s washed-out script.

More here.

2 Comments:

At 11:58 PM, Blogger July Canute said...

Hey democratic thinking, we are in a tizzy across the pond because of the Iranian Borse and the switch to the Euro which will devastate our economy.

We are wondering if bush will want to attack Iran because of the Borse and in spite of the EU negotiations helping Iran with its uranium enrichment and nuclear program.

Do you think the EU will have to replace the dollar with the Euro and will they also have to take up the slack in leadership left by Bush and the vile neo-cons who are destroying America?

 
At 6:21 PM, Anonymous Democratic thinking said...

I think that Bush's hardline on Iran has nothing to do with the EU. US seems again set to attack no matter what.

As long as countries such as UK and Italy remain in the EU, we will never see a unified European Union. They remain puppets for Mr Bush and his administration.

Lets also make it clear that the EU is not the next empire. Empowering the EU and creating a strong alliance is all about providing a second voice to world politics.

So next time a decision is made to launch a senseless war, people can stand up and veto.

Iraq and Iran are all about the monopoly in world politics.

 

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