How the Bu****sts have killed the dollar
There were two major factors which have forced Bush Administration to kill
the dollar as the world currency:
First, it chose to have been conducting two very costly (and totally
unnecessary for the American tax-payer) military campaigns throughout its
reign. Additional costs have been incurred in order to prevent dissent
against its policies inside the US – Homeland Security. Additionally, as
it
is now being discovered, from one to three Trillion dollars have been
siphoned out of Pentagon to Israel with the help of the people like Dov
Zakheim (
http://onlinejournal.com/artman/publish/article_1047.shtml
).
Normally, when any Administration in any non-totalitarian country is
incurring such huge costs, it is forced to raise additional taxes in order
to pay for their huge additional expenses. Not the Bush Administration!
It
came to power as the result of rigged elections to begin with. Its
policies
quickly led to dramatic fall of popularity of the Administration and of
its
collaborationist Congress. They decided (probably rightly so) that hiking
taxes in such an environment would have been suicidal for the
Administration.
Yet, it had to come up quickly with fresh Trillions of dollars to pay for
their extremely expensive policies. Two simple tricks did the job.
First they followed the example of Reagan and Bush Sr. of simply ****fting
taxes forward to future generations of tax-payers (those who don’t vote
yet) – this is what massive selling of Treasury notes to mostly Asian
creditors means. Current Administration only pays interest on that
National
Debt created by such massive selling of Treasury’s IOU’s (which is already
the government’s third largest expense!) and it gracefully allows future
Administrations to start super-taxing our children and grand-children in
order to keep paying to the Asians the growing interest on National Debt
and
to start paying back the principal.
Second, Bush has quickly learnt that he can easily compensate for the
under-collected taxes by simply running the printing presses of the
Federal
Reserve at highest speed possible. Of course, the additional noise
created
by those dollar-printing presses would have quickly been noticed by the
vigilant among the normally indifferent Americans, so they explained the
reason for running the money-printing presses red-hot by the “NEED” to
replace the old green-backs with the new multi-colored dollar-bills.
The Administration has conveniently chosen to ignore two simple economic
truths.
1). The world market for the US Treasury debt had already been flooded by
Reagan and Bush Sr. New buyers for additional US debt could only be lured
by higher interest payments – the environment of lower interest rates is
not
conducive to new sales of the Treasury debt.
2). Damping upon the world of additional huge amounts of new dollar bills
not sup****ted by gold reserves or by any newly-created material values is
equivalent to printing counterfeit money. Yes, Bush Administration has
become the biggest counterfeiter of US dollars in history!
What does this massive counterfeiting activity mean economically? – It
means
that the value of the dollar goes down. It means that the prices of
anything of real value (oil, gold, platinum, other commodities) expressed
in
dollars go dramatically up. It means that net-im****ter American nation
will
need to keep paying more and more dollar bills for the same crappy quality
Chinese goods. They keep telling us that cheaper dollar is good for the
US
ex****ters! – Excuse me, is America still ex****ting much of anything
besides
its services and/or debt? It means that Americans (not the top 1%, but
the
rest of the Americans) will be getting poorer and poorer. They will
depend
more and more on credit. However, with the current credit crunch and with
the major creditors already cracking all over new credit will be harder
and
harder to get!
That was only the beginning of the bad news. Just wait till the Chinese
and
other Asians realize that the Trillions of dollars ac***ulated by them
will
keep losing value in foreseeable future and they will start dumping their
dollar bills upon the currency market in a hurry. That will force the
value
of the US Dollar down by hundreds of percentage points – not unlike the
fall
of the Soviet currency in the early 1990’s!
Fasten your seat belts Americans. This Administration is taking us for a
very hot ride!
Which makes me wonder: when will somebody dare to remind Bush Jr. the
phrase
which BushSr. is so familiar with - "It's the economy, stupid!"
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