Demolishing America's Twin Towers: The Sequel
The first one happened on 9/11, where two physical towers were demolished. This one involves two financial towers: America's purchasing power and its deficit, and the usual suspects are behind the controlled demolition.
THE dollar has embarked on a big decline that will see it fall against all leading currencies, according to analysts.Don't let anyone tell you otherwise. What's left of America's economy is being deliberately destroyed by global financial demolition firms in a failed effort to save their disintegrating system.
The plunge is being prompted by America’s $800 billion (£438 billion) current-account deficit, they say.
The dollar has been under pressure following last weekend’s meeting of G7 finance ministers and central bankers, which emphasised “global imbalances” and said currencies should reflect economic fundamentals. Then China raised its key interest rate to 5.85%, its first hike for months, and Ben Bernanke, the new Federal Reserve chairman, hinted that American rates would pause at 5% after a rise in May.
Analysts say that without interest-rate support, the dollar will be weighed down heavily by America’s imbalances.
“I think this is it,” said Tony Norfield, global head of currency strategy at ABN Amro. “The dollar has been supported by high yields but markets are saying that is no longer enough.
The question for policymakers [is] how to manage the dollar’s decline. It won’t be a one-way street but the fall is likely to be biggest against Asian currencies.”
Only one person I know understands exactly what's going on and can help us save our physical economy before the financial one disintegrates.