The Crash is a Good Thing? By Dale Allen Pfeiffer

Dandelion Salad

By Dale Allen Pfeiffer
Speaking Truth to Power
MOUNTAIN SENTINEL
Monday, 01 October 2007

“If people don’t start thinking for themselves and preparing, then we will follow the scenario our leaders have mapped out for us.”–Dale Allen Pfeiffer

Freefall

Since Bernanke cut interest rates last Tuesday (Sept. 25th), the already weak dollar has gone into a tail spin. Bernanke’s banker friends complained that they did not have enough money to cover their obligations and Bernanke responded by revving up the presses and printing up a slew of fresh funny money. In doing this he ignored the rest of the world, which was hoping that he would show some backbone and stand firm in support of the dollar. So now, everywhere you look, the dollar is losing its value against other currencies.

The Saudi’s unpegged their currency from the dollar for the first time since the oil dollar was established. They had no choice; it would have been suicide for them to follow Bernanke’s move. And elsewhere, other countries will have to follow suit or the US will drag them down. Japan is scrambling for shore.

Not long after the cut in interest rates, the dollar passed a key point against the Euro when it surpassed 1.41 dollars to one Euro. Since then the value of the dollar has continued to drop. The US dollar has been dropping against the Euro since January 2003. It now worth less than 59% of the value it had four years ago. At this point a dollar crash is nearly inevitable. US dollars may soon have as little value as confederate dollars.

For many years we have depended on foreign investors to support our economy by stockpiling our currency. These foreign investors cannot hold onto their dollars for much longer. Already they have lost over 40% of their investment. They will have to cut their losses and divest. This has already started to happen, and as the sell-off accelerates the dollar will find itself in a freefall which will quickly leave it a worthless currency. A massive sell-out could see the dollar losing as much as 90% of its value within days.

Snake Oil

You would not know any of this from the major news networks. They are trying to tell us that the drop in the dollar is actually a good thing. They reason that foreign consumers will flock to the US to buy devalued goods. This is a load of crap, and they know it.

US goods will not devalue. There are very few goods that are wholly US-made today. Most are at least partially manufactured offshore. Because of that, US goods will not devalue, they will simply go up in price. Soon, US consumers will find that their dollars can only purchase half of what they currently buy. And this ratio will worsen as the dollar continues to plunge. Once this crash is complete, US consumers will learn that they have lost everything. They will find that their salaries, their pensions, their health insurance coverage, everything is worthless.

So why is the media trying to sell us this lie? Simply to keep up consumer confidence. If US consumers understood what was really happening, there would be a panic. The truth could cause a run on the banks. Along with foreign investment, consumer spending is the only other pillar supporting the US economy. Consumer spending has already become sluggish. If the reality of our situation were understood, US consumer spending would quickly crumble.

The smart money is already fleeing the US market. It is diversifying into precious metals and a host of other currencies. It is quietly moving outside of the US. This migration has been going on for years, but now it is beginning to speed up. Yet, while this flight is going on, they want the general public to remain unalarmed. The smart money is trying to make its exit before a stampede blocks the fire doors. There were only so many lifeboats on the Titanic and the first class passengers were evacuated before anyone else was allowed out of steerage.

Continued…

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One thought on “The Crash is a Good Thing? By Dale Allen Pfeiffer

  1. Bubble bubble toil and trouble.
    How long can “we” tread water, everyone is in debt up to their proverbial eyeballs, pay off as many credit cards as possible to lessen the burden of coming out of the crash. Remember “our” elected officials are not allowing you to go bankrupt cleanly[the principle’s must be repaid]. Thanks Congress, we know who’s corner your in, and who’s important.
    Evict all Incumbents ’08, Clean House[s].
    Vote by Absentee Ballot, No-Morph No-quiz, No-Caging, No-Thuggery ! No-Count ??

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