| Indications that the Fed has overstretched spell disaster for global economy |
Paul Joseph Watson |
The U.S. government and the Fed's drive to devalue the dollar in order to reduce the trade deficit and lower the living standards of the American middle class has spiralled out of control, promising a global financial meltdown despite the desperate efforts of the elite to restrain a horse that has already bolted.
Four years ago the Bush administration was forced to admit that they had initiated an "orderly decline in the U.S. dollar" for the purposes of inflating exports and creating jobs in order to secure votes before the 2004 presidential election.
When this admission was made, analysts raised the alarm that a "dollar crisis" was looming on the horizon and billionaire investors like Warren Buffett began to bail out. Since then the dollar has hit new lows against every major basket currency in the world bar the Mexican peso.
Now the debasement of the greenback has accelerated so rapidly that it threatens to engulf Europe in a spiraling downturn that will have reverberations for years to come.
The problem is that the "orderly decline" has now become a chaotic mess, as made evident by the fact that the Fed's indication that Wednesday's interest rate cut would be the last failed completely to rescue the ailing dollar which continues to hit record lows against the Euro today.
This proves that the dollar's depreciation has been too swift even for the Fed's liking, who are now desperately trying to prop up the greenback to no avail as it spins into the abyss.
The decision on behalf of the Saudis to drop their interest rates and maintain their dollar peg is another clue that the elite have lost control of the dollar's decline and are nervously attempting to halt the slide without success.
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Now the dollar has dropped so low that even Eurozone head honchos are pleading with Bernanke to take drastic correctional measures as EU exports of staple commodities like food dry up while the U.S. barrels towards a full blown economic depression.
Exports are shrinking because demand from the U.S. is shrinking, allied to the fact that a weak dollar makes commodities unaffordable. Europe is now taking its biggest hit since just after 9/11 and predictions for economic growth across nearly all member nations are dire.
Most analysts predict that the knock-on effects will see the Euro and the pound follow the dollar's descent over the next two years as Europe is impacted by the economic tsunami of stagflation and recession in the U.S., while the Empire lurches forward into Iran and the U.S. national debt balloons.