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War Drags the Dollar Down

by KEARNEY | March 14, 2007 at 09:00 pm | 453 views | add comment | 0 recommendations

"Money expansion is financing the US warfrong. Both the Fed's sleight of hand and the credit creation of the derivatives industry have worked magic for the government and the elite...The shaky housing and mortgage markets threaten to spark more panic on Wall Street and pierce the credit bubble. The orbital ship of the dollar may still be cruising, but through a dark space heretofore unknown."

March 15, 2007

War Drags the Dollar Down

by Ann Berg

See the faint jet plumes overhead? Once soaring high through the celestial sphere of finance, the dollar is starting to lose orbit – tugged by the drag of war.

But this time it's different. It's different because war is being waged in a monetary climate that has no precedent: an inflationary fiat monetary system, a derivatives bubble, a pesky PATRIOT Act, and a bulging trade deficit with China. The confluence of the four spells trouble for the dollarized system, a system that broke away from the gold-backed Bretton Woods arrangement in 1973.