In fact, thanks to Milton Friedman and neoclassical economics in general, the Fed ignored the run up of debt that has caused this crisis, and every rescue engineered by the Fed simply increased the height of the precipice from which the eventual fall into Depression would occur.
Having failed to understand the mechanism of money creation in a credit money world, and failed to understand how that mechanism goes into reverse during a financial crisis, neoclassical economics may end up doing what by accident what Marx failed to achieve by deliberate action, and bring capitalism to its knees.
pete-It’s not so much Ben destroying the dollar as it could be a concession to the other world powers to allow a basket of currencies, which in turn would severely devalue the dollar.
The reserve currency is essentially a tax to the empire and allows the US to be fiscally irresponsible and pass it’s monetary penalties to the the worlds currencies via the dollar link. The chinese know this, Putin knows this, Sarkozy knows this and a few UN economists just did a report on how it is in the worlds best interest to remove the dollar a reserve currency. So the meme is out there on the international scene.
If it does happen it has been planned behind the scenes for some time. Power plans ahead and is secretive.
Interestingly, there is a Rumor going around Russia that Obama has told Putin that he is going to dissolve the Fed. Albeit, not a credible source but still interesting in light of Putin’s recent remarks.
