Simple Explanation by Dick Morris: The Fed's Futile Move

[Chuckiechan]

The explanation is over-simplified IMO, but is on target.

THE FED’S FUTILE MOVE at DickMorris.com

There is so much uncertainty, many businesses are in a holding pattern. replacement only hiring, not investing in capital equipment, hoarding cash rather than buying inventory.

The problem? A chump President, and a vacant Treasury office. This post should have been job # 1. Geithner - who is a dead man walking - doesn't seem to have a plan, has no deputies to provide input.

The finance industries have basically turned their backs on cooperating with the Federal government due to this "scarlet letter", and "hang 'em high" rhetoric.

[Toadman]

China backs talks on dollar as reserve -Russian source | Currencies | Reuters

MOSCOW, March 19 (Reuters) - China and other emerging nations back Russia's call for a discussion on how to replace the dollar as the world's primary reserve currency, a senior Russian government source said on Thursday. Russia has proposed the creation of a new reserve currency, to be issued by international financial institutions, among other measures in the text of its proposals to the April G20 summit published last Monday.

Calls for a rethink of the dollar's status as world's sole benchmark currency come amid concerns about its long-term value as the U.S. Federal Reserve moved to pump more than a trillion dollars of new cash into the ailing economy late Wednesday.

Russia met representatives of China, India and Brazil ahead of the G20 finance ministers meeting last week, as the big emerging powers seek to up their influence on decisionmaking globally. Their first ever joint communique did not mention a new currency but the source said the issue was discussed.

[SiliconJon]

The drop of the Dollar as a world reserve currency could easily yield $6ooo(USD)/oz gold.


The only reason our fiat monetary policy has not induced inflation levels equivalent to its quantity is because so much of the dollar is exported into detached markets, only to recirculate once the previously detached market comes online with our own, at which point they have generated their own demand levels to help offset the devaluation of the currency they begin to pump back into our system.

The bailing of our currency would create a massive influx, thus a quantity increase almost unfathomable, and an inflation level against our currency that would couple with our economic deflation for what could make the Great Depression look tiny.

I'm pretty sure technology has not progressed enough to make up for the regression our politics have taken and keep us above water if such an event were to occur.