“A key reason for the 30pc rise in the euro agasint[sic] the dollar over the last two years has been the move by Asia central banks and Mid-East wealth funds to parking huge sums of newly acquired wealth in European bonds as an alternative to the dollar.” – AEP
No mate, you’re obfuscating again – lying in plain English.
The dollar is weak(and the pound), not the euro strong. It is caused by:
– $9.4 trillion US National Debt
– structural, chronic US budget deficits to pay for illegal war-fighting in Iraq, Afghanistan etc.
– structural, chronic trade deficits
– US Fed Reserve deliberate dollar-destroying policy:
– slashing interest rates to 2.25 from 5.25% in 8 months when inflation and M3 money supply are running north of 15%;
– handing out free US Treasuries to buddies on Wall Street for worthless trash – ABSs/MBSs etc
In response to above, AEP blames the Chinese/Japanese/Arabs for moving their deliberately-made worthless dollar holdings into other currencies. What chutzpah! – must rub off from associating with the banksters.
For all UK readers/pound investors, the exact same policy to devalue the pound through hyperinflating the supply of money is now under way with the BoE’s announcement to give out taxpayer-backed Gilts for worthless MBSs from British banks. Gee, I had an ‘investment’ go bad on the 3.20 at Kempton Park yesterday – on an old nag – wonder if the BoE will give me a 5% interest-bearing gilt in return for my betting slip? Fair’s fair after all! In fact why not just print loads of money for all of us and pay off all our debts – what could possibly go wrong with that?
The ECB are right. The collapse of the US dollar could be stopped if the US Fed raised interest rates. Ah, but then that presupposes that the US Fed – a private bank – is there to protect the US’s currency, the US economy and by extension the average American. But it’s not, it’s purpose is to save the banks with taxpayer-paid bailouts for Wall Street banks and brokerages – the same entities that own the US Fed in the first place! How criminally corrupt.
