The U.S. dollar continues its journey from Brobdingnagian to Lilliputian stature, and the latest trade report is a prelude to the dollar as microbe. The Prime Mover in this case is King Ben, who has the helicopter on track for a one-way trip to Zimbabwe with every American along for the ride. Death of the world’s reserve currency “is irreversible, and it will unleash a cyclone of chaos and confusion that will leave many literally suspended in disbelief as the entire false paradigm most of humanity has lived under for their entire existence is washed away forever.” It’s not just a bunch of bloggers and pundits announcing the dollar’s funeral, either: Even the International Monetary Fund is discussing abandoning the U.S. dollar as the world’s reserve currency, which portends hyperinflation as surely as Benny and the Inkjets working overtime on the printing presses.
Already, the crushing of the consumer sector is under say even as the road to madness is paved with King Ben’s $100 bills. To his credit, Bernanke finally admitted that nearly every bank in the country almost failed shortly after the price of oil peaked in mid-2008. He failed to mention, however, that such an outcome surely would have terminated western civilization within a month.
Meanwhile, Ben and the boys at the Federal Reserve Bank keep launching new ships in the never-ending fleet of Quantitative Easing. QE II was intercepted by Wall Street on its way to Main Street, so QE III is on the way, undoubtedly destined for the same fate. Like a high-speed, head-on collision, QE III will have quite an impact, but only on those immediately involved. The rest of us will be rubber-necking and wondering what happened as we drive by.
Coincident with the death of the U.S. dollar, the industrial economy is perched on the brink of catastrophic collapse. Or, as I’ve written before, the Great Recession never left us and collapse of the industrial economy is already under way. Most people have simply not realized it yet because they haven’t been told by the media or the completely impotent federal government. Many signs point to 2012 as the year the ongoing collapse of the industrial economy reaches its overdue end, although I’m not yet giving up on 2011.
If you prefers charts to texts, try this set for an abbreviated version of the story. In other words, the Keynesian experiment has nearly run its course, so it’s time to get serious about feeding yourself and your community in the near future.
If you think revolution is restricted to other countries, take a look at the gap between the haves and the have-nots around the world. Inequality is far worse in the U.S. than Egypt, Tunisia, or Yemen: The American picture is truly ugly. Ongoing events in Middle Eastern countries, driven by economic factors, are the canaries in the coal mine of global economic collapse, as intimated by Dmitry Orlov and further explained by noted trends forecaster Gerald Celente. And if you think we wouldn’t use force on our own, then you haven’t checked with the troopers in Wisconsin.
Even as Middle Eastern puppets for the U.S. are falling like dominoes, despite continued U.S. support, it becomes increasingly clear Obama will be the president who asks the last mercenary to turn out the lights on American Empire. Collapse is proceeding apace, and even Congressional Representative Ron Paul admits the federal government is in the process of complete failure.
Crude oil underlies the entire industrial mess and CNBC admits we need those
dictators puppets to keep the oil flowing to the U.S. as the major domestic source of oil in the U.S. continues to falter and past-peak, free-falling Saudi Arabia clings by a thin thread (as recognized by Foreign Policy). When the kingdom falls, it could well take the U.S. dollar with it, and quickly. And contrary to statements from our politicians, “we’re not worried about the rivers of blood — we’re worried about the rivers of oil” coming out of the Middle East. As we’ve been since the 1970s.
If you think we can pay our way out of this predicament, it’s time to pony up. If you pay taxes, you and your family owe more than $1 million en route to saving our monetary system. Small wonder, then, that Tim Geithner foresees imminent default on U.S. debt. Before we get there, Timmy is blackmailing Congress, claiming that failure to raise the debt limit leads to default. But Timmy knows default is right around the corner, either way.
Jeff Rubin explains why oil-price shocks induce recession, and also why there is a lag between the shock and the economic pain. Rubin and an ever-larger choir are joined by Jim Rogers and financier and author Stephen Leeb in the expanding club forecasting oil priced at $150 per barrel in the near term (and Global Research has joined the party, too). That’s what happens when the giant oil fields run dry.
Lest you run out and buy oil futures, bear in mind the other potential outcome to this globalized world: China’s economic bubble could burst in short order. When it does, only one bubble remains: the human population bubble on Earth.