Barack Has Already Destroyed the Buck

I knew things would be bad once far-left Democrats were in control of both the White House and Congress, but even I didn't anticipate that Barack Obama would destroy the value of the U.S. dollar within two months.

And yet here we are:  China -- the largest holder of U.S. dollar financial assets, is now proposing a new global reserve currency.

China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.

In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”.

Analysts said the proposal was an indication of Beijing’s fears that actions being taken to save the domestic US economy would have a negative impact on China.

“This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,” said Qu Hongbin, chief China economist for HSBC.

Swell.  The U.S. dollar, long valued around the whole world, is quickly losing its luster.  Everyone sees the writing on the wall.  The policies Obama is pursuing cannot be paid for by tax revenues, so they must be paid for by making more money.  As the money supply grows, the value of every dollar goes down, and the price of everything (measured in U.S. dollars) will go up.  The smart money wants out.  Can you blame them?

Comments

[Dave M]

But isn't that the plan? "Obama" has a threefold strategy to destroy the
USA. Why would he want to do that? Well, most likely he is
a muslim jihadist.
The plan is firstly to destroy the dollar and bankrupt the country.
Secondly he intends to allow jihadists to get the nuclear bomb in both Iran and Pakistan. "Obama" intends to precipitate as large a war as he
can manage before 2010. The fuse is the current policy of dumping Israel,
thereby forcing them into a preemptive strike on Iran.
In the ensuing chaos resulting from bankruptcy and war, "Obama" intends
to declare martial law, disarm the population, and promote stability (meaning no more elections) at all cost.
And Americans were STUPID enough, despite clear warnings being shouted
out across the land, to vote this evil Manchurian dictator into office.
We will be lucky if we survive this time.

[MAS1916]

The tragic truth is that Americans are stupid enough to elect this guy. Members of the Teachers Unions have done their jobs well. An entire generation of voters has no idea how an economy works or why the Soviet Union failed.

Even the Chi-Coms are scared abou what Obama will do the world economy. The Chinese are Communists alright, but they know a thing or two about selling labor on the world market and using the profits to buy American debt. They know now that their investments in American debt are sure losers. They will invest elsewhere and drive up further the cost of borrowing Obama's debt. On top of the inflation that will spike in 2010 due to the massive increase in the money supply, the economic disaster will be unparalleled.