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" I’ve Been Watching The Dollar Die All My Life. "

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Watching the dollar die

Paul Craig Roberts

Information Clearing House

13 March 2008

I’ve been watching the dollar die all my life. I sometimes think I will outlast it.
When I was a young man, gold was $35 an ounce. Today one ounce gold bullion coins, such as the Canadian Maple Leaf, cost more than $1,000.
Our coinage was silver. Our dimes, quarters, and half dollars had purchasing power. Even the nickel could purchase a candy bar, ice cream cone or soft drink, and a penny could purchase bubble gum or hard candy. If a kid could collect 5 discarded soft drink bottles from a construction site, the 2 cents deposit on the returnable bottles was enough for the Saturday afternoon movie. Gasoline was 32 cents a gallon. A dollar’s worth was enough for a Saturday night date.
Our silver coinage was 90% silver. People sometimes melted coins in order to make silver spoons, known as coin silver, which can still be found in antique shops. Except for the reduced silver (40%) Kennedy half dollar which continued until 1970, 1964 was the last year of America’s silver coinage. The copper penny departed in 1982. As Assistant Secretary of the Treasury, I opposed the demise of America’s last commodity money, but I couldn’t prevent the copper penny’s death...
People who haven’t accumulated much age have little idea of the corrosive power of “acceptable” inflation. Unlike gold and silver, fiat money has no intrinsic value. When money is created faster than goods and services it drives up prices, thus driving down the value of the money.
If freely traded currencies are excessively printed or if inflation, budget deficits, and trade deficits drive currencies off their fixed exchange rates, prices of imports rise as the foreign exchange value of the currency falls.
Today the US, heavily dependent on imports, is subject to double-barrel inflation from both domestic money creation and decline in the dollar’s foreign exchange value.
The US inflation rate is about twice as high as the government’s inflation measures report. In order to hold down Social Security payments, the government changed the way it measures inflation.
In the old measure, inflation measured the nominal cost of a defined standard of living. If the price of steak rose, up went the inflation rate. Today if the price of steak rises, the government assumes that people switch to hamburger. Inflation doesn’t go up. Instead, the standard of living it measures goes down.
This is just one of the many ways that the government pulls the wool over our eyes.

This has many parallels with Gordo Mugabe's economy here in Britain.

That is 100% correct. Guaranteed.

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This is part of the process of bringing China into the global economic marketplace, it cannot be achieved without a recession in the West. They are lying about the inflation rate because they cannot allow wages to inflate in the West until this there is a level playing field with regard to global trade.

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This is part of the process of bringing China into the global economic marketplace, it cannot be achieved without a recession in the West. They are lying about the inflation rate because they cannot allow wages to inflate in the West until this there is a level playing field with regard to global trade.

Why the hell not?

The recession in America has everthing to do with the Federal Reserve, Wall St and other usurers - and has fvck all to do with China.

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Why the hell not?

The recession in America has everthing to do with the Federal Reserve, Wall St and other usurers - and has fvck all to do with China.

Of course the Fed, Wall St etc caused this.......it's the way the system is designed.

This is just a little game they are playing to distract you while they lower your standard of living, in a couple of years there will be a supply-side revolution in the West and whatever Govt is in charge will have saved us, we'll all be hugely grateful and the world will carry on spinning just like it always has..........

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Watching the dollar die

Paul Craig Roberts

Information Clearing House

13 March 2008

(snip)

The US inflation rate is about twice as high as the government’s inflation measures report. In order to hold down Social Security payments, the government changed the way it measures inflation.
In the old measure, inflation measured the nominal cost of a defined standard of living. If the price of steak rose, up went the inflation rate. Today if the price of steak rises, the government assumes that people switch to hamburger. Inflation doesn’t go up. Instead, the standard of living it measures goes down.

Which is the whole point. A country like the USA (and the UK) that is living beyond its means must reduce its standard of living, and therefore must fiddle the numbers that are used for index-linking and for pay-claims. Remove that, and you've taken the one useful long-term effect of inflation, and reduced it to mere theft of savings ;)

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WH Press Sec NOT ALLOWED to Talk about the Dollar

http://www.youtube.com/watch?v=C-Cvg9deslg

Q I'd like to follow up on their refusal to talk about the dollar, if I could. I mean, we're in a kind of a bad situation here, when OPEC says the reason for $105 or $106 a barrel of oil is the falling value of the dollar -- and you won't address that issue. Where do we go to find out who is right?

MS. PERINO: Well, as he just said, the Treasury Secretary is where you go to talk about the dollar. It's a longstanding policy that predates this administration, and I'm not going to change it today. But Treasury can talk about it.

Q I don't expect you to change it, but I do expect you to be able to say whether OPEC is completely wrong about this, or whether there is at least something to their claim that the dollar is responsible for the high price of oil right now.

MS. PERINO: Wendell, I'm under strict instructions, and have been from the beginning, to not talk about the dollar, and I'm not going to get fired to satisfy your question. (Laughter.)

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Why the hell not?

The recession in America has everthing to do with the Federal Reserve, Wall St and other usurers - and has fvck all to do with China.

Destroy the world's largest, most powerful economy so the US can be "integrated" with other nations in the western hemisphere - but do it slowly, so nobody can point the finger at one particular Fed action and go lynch the bastards. In other words: plausible deniability. That way, at least, that pesky thing called a "Constitutions" that some hopelessly backwards Americans still believe in no longer needs to be paid lip service to.

At least, that appears to be the plan.

Click

This would appear to confirm what I stated above, accelerated devaluation of UK/US currency as a solution to defeating the current account deficits, the CB's deflation threat is a red herring.

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This is part of the process of bringing China into the global economic marketplace, it cannot be achieved without a recession in the West. They are lying about the inflation rate because they cannot allow wages to inflate in the West until this there is a level playing field with regard to global trade.

And so trade and protectionist barriers develop...

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But wouldn't a recession in the West reduce demand for the goods from China, India et al? This will affect them too, although China, being a 1 party state can exert more control on their economy but couldn't paper over the cracks indefinitely, such as the old USSR tried.

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But wouldn't a recession in the West reduce demand for the goods from China, India et al? This will affect them too, although China, being a 1 party state can exert more control on their economy but couldn't paper over the cracks indefinitely, such as the old USSR tried.

It would certainly hurt them short term but ultimately taking increasingly worthless IOUs from the West isn't in their long-term interest. It's only a matter of time before they decide to liquidate their dollar holdings and use them to buy large chunks of the US (real estate, shares, etc). I doubt that the US government will allow them to do this (it would mean ruinous hyperinflation for the US) so expect trouble.

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  • 294 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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