The euro and the yen have surpassed the dollar as the favored currency by central banks

From Neal Boortz:

HOW'S THE HOPEY, CHANGEY, SPENDY THING WORKING OUT FOR YA?

When Barack Obama was elected, he and the Democrats insisted that we could spend our way out of this crisis. Remember that? Remember the $787 billion stimulus bill that needed to be passed IMMEDIATELY in order to start our economy on its way to recovery? Yeah ... the bill that was essentially written by hard-left, anti-capitalistic activist groups like The Apollo Alliance. Well more than six months later, we have unemployment creeping up on 10%. And we have this ..... from Bloomberg:

President Barack Obama's effort to lead the world economic recovery by spending the U.S. out of its recession is undermining the dollar, triggering record commodities rallies as investors scour the globe for hard assets.

Did you hear that, folks? Isn't that just wonderful? Isn't that just the type of change you voted for? All of this spending ... all of this printing of money ... all of these government dreams and schemes and bailouts .... they are starting to affect America. Big time.

The dollar went into "crisis mode" earlier this week when the euro and the yen surpassed the dollar as the favored currency by central banks.

Thank you Oh Great Chosen One ... the American dollar on the back bench. That's the type of change we voted for, isn't it?

Then we get reports like this from the New York Post:

After printing up trillions of new dollars and new bonds to stimulate the US economy, the Federal Reserve chief is now boxed into a corner battling two separate monsters that could devour the economy -- ravenous inflation on one hand, and a perilous recession on the other.

"He's in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing."

Bringing "the whole thing" down! Even MORE change you can believe in!

Don't you see what has happened here, folks? Obama has succeeded in weakening America. Low interest rates, flooding the economy with money by simply printing it, a mounting pile of debt. So now ask you again ... how's this hopey, changey, spendy thing working out for ya? Better yet, how is it going to work out for your grandchildren?

I keep hearing on from the MSM that the recession is over, yet unemployment continues to rise. And that continues to affect what could otherwise be a recovery:

HIGH UNEMPLOYMENT ADDS TO THE DEFICIT

Speaking of unemployment ... that, too, is having an impact on our massive government deficit, which is currently $1.4 trillion in 2009. This makes perfect sense if you think about it.

High unemployment means two things: more taxpayer dollars spent on unemployment checks and less tax revenue. This will cost the government about $100 billion a year.

I bring this up for one reason and one reason only. The Democrat solution to this is to throw more money at the unemployed ... to extend unemployment benefits. In the meantime, they wish to increase taxes on the very people who would be able to create jobs for these people .. to get them off the government dole. Creating jobs, not spending money, is the solution.

There. How hard was that?

I don't see anything being done to create jobs, only things being done to cripple, limit and restrain those who can, could and would create jobs.

If you think that a 1.4 TRILLION dollar deficit is bad, consider that our national debt is pushing 12 TRILLION dollars, and climbing:

U.S. NATIONAL DEBT CLOCK

Our situation is becoming increasingly unsustainable, as we continue to do exactly the wrong things to get out of the hole our government is digging us into.
     

The demise of the dollar as oil trading currency

The demise of the dollar
In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.

The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.

[...]

The decline of American economic power linked to the current global recession was implicitly acknowledged by the World Bank president Robert Zoellick. "One of the legacies of this crisis may be a recognition of changed economic power relations," he said in Istanbul ahead of meetings this week of the IMF and World Bank. But it is China's extraordinary new financial power – along with past anger among oil-producing and oil-consuming nations at America's power to interfere in the international financial system – which has prompted the latest discussions involving the Gulf states.

Brazil has shown interest in collaborating in non-dollar oil payments, along with India. Indeed, China appears to be the most enthusiastic of all the financial powers involved, not least because of its enormous trade with the Middle East. [...]

Read the whole thing, to see what this transition away from the US dollar is going to mean. What's next, dumping US dollars as a reserve currency, which would devalue our money even further? It would help bring about exactly what many countries have wanted: a weaker America. Or even worse.

I have to wonder if some people in our government would like to see our currency ruined, so they can switch it over for... something else? I've read that George Soros favors the creation of a Global Currency.


Related Links:

The Devaluing of American Currency Continues

Is Obama compounding Bush's mistakes?
     

The Devaluing of American Currency Continues

Commentary: Time for another tea party?

[...] as the federal government continues to print money that isn't worth the paper it's written on and as our national debt soars past $11 trillion, a United Nations panel is set to recommend that the world ditch the U.S. dollar as its reserve currency in favor of a shared basket of currencies.

One of the enduring strengths of the dollar has been that it has always been the currency of choice in times of crisis. But that's not the case anymore. Our ballooning deficits have driven down the value of the dollar so much that the Chinese government recently asked for guarantees from Washington that the Treasury bills they own are safe. [...]

If the dollar is perceived as unreliable, it could lead to global "dumping" of all assets in American currency, further devaluating the dollar.

Fed to pump another $1 trillion into U.S. economy

[...] to the surprise of investors and analysts, the committee said it had decided to purchase an additional $750 billion worth of government-guaranteed mortgage-backed securities on top of the $500 billion that the Fed is already in the process of buying.

In addition, the Fed said it would buy up to $300 billion worth of longer-term Treasury securities over the next six months.

[...]

In effect, the central bank has been lending money to a wider and wider array of borrowers, and it has financed that lending by using its authority to create new money at will.

Since last September, the Fed's lending programs have roughly doubled the size of its balance sheet, to about $1.8 trillion, from $900 billion. The actions announced on Wednesday are likely to expand that to well over $3 trillion over the next year.

Despite a trickle of encouraging data in the last few weeks, Fed officials were clearly still worried and in no mood to cut back on their emergency efforts.

Fed policy makers sharply reduced their economic forecasts in January, predicting that the economy would continue to experience steep contractions for the first half of 2009, that unemployment could approach 9 percent by the end of the year and that there was at least a small risk of a drop in consumer prices like those that Japan experienced for nearly a decade.

The Fed rarely buys long-term government bonds. The last occasion was nearly 50 years ago under different economic circumstances when it tried to reduce long-term interest rates while allowing short term rates to rise. [...]

So we are creating this massive debt for ourselves, which is also devaluating the dollar internationally, which also weakens it at home. We have to pay interest on this debt, which keeps growing. What happens when interest rates go up, the interest on our debt it compounded, nations globally begin dumping our currency, and we can't borrow any more? And that causes a massive run on our banks, requiring the Fed to print up even more money, in order to comply with the FDIC? You might as well ask, What would a U.S. currency collapse look like?