Skip to content

Obama Is Destroying The Dollar

October 7, 2009

torn-dollar_248041t

The budget disaster awaiting the United States if the trillion dollar-plus Obamacare plan is passed was discussed on The O’Reilly Factor last night.  Numbers from the Congressional Budget Office on the latest legislative iterations are expected this week.

I think that the most important part of The O’Reilly Factor discussion focused on the sliding dollar, which will worsen considerably with the ballooning costs of Obamacare.   Few knowledgeable people believe President Obama‘s assertion that it will be deficit neutral over the next ten to twenty years. 

With the Obama administration’s run-away spending financed by the Federal Reserve’s newly printed money and with the massive deficits already underway that are largely funded by China, the dollar’s days as the global de facto reserve currency are numbered.  Obamacare will destroy the dollar’s worthiness in that regard altogether.

It has been recently reported that key Arab countries (including Saudi Arabia and Qatar) are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, and replace it with a basket of currencies instead. 

For his part, while denying any intent to embrace the idea of a global reserve currency replacing the dollar as the world’s de facto reserve currency, President Obama agreed to go along with certain global reforms at two Group of 20 economic summit meetings held this year to show the Europeans and the undeveloped countries how much he wants to get along with the rest of the world.   Specifically, he signed on to the International Monetary Fund’s surveillance of the U.S. economy and use of the IMF-created international reserve asset called Special Drawing Rights to help provide funding to undeveloped countries.   It is these Special Drawing Rights that are being positioned by China and others to replace the dollar as the global reserve currency.

What will this mean to the U.S. economy?   We may well find ourselves giving away dollar devalued hard assets at ridiculously low prices to OPEC countries. 

Moreover, the U.S. government will no longer have the advantage, as the issuer of the world’s de facto global reserve currency, of being able to borrow money at a comparatively cheap rate.   As a consequence, Americans would likely end up paying much higher interest rates on their credit purchases, including purchases of automobiles and houses.  With consumer demand drying up for a long time to come, our economy could well sink into a catastrophic depression. 

Obamacare’s reckless spending has a good chance of causing our already sick economy to suffer cardiac arrest.

About these ads
23 Comments
  1. October 7, 2009 11:42 am

    It takes a lot more to “destroy” a currency than one President. Why don’t you stop faffing off with this nonsense and do some actual analysis?

    • Swemson permalink
      October 7, 2009 12:58 pm

      No wonder you’re lonely !

    • Joseph Klein permalink
      October 7, 2009 1:34 pm

      Sorry Lonely Trader, but you need to get out more and study what is really going on in the world today. China has been clear about its ultimate intentions, which it will work with other nations to execute over time so as not to create an immediate shock to its own economy. I have linked in my blog to a recent article concerning the plan of Arab nations, China, Russia, Japan and France to replace oil dealings in dollars with a basket of currencies. And there is much more to support what I wrote. Obama has at least three plus more years to serve, and perhaps two terms, during which he can do tremendous damage with run-away spending. We are already running deficits that dwarf anything seen during the Bush years. Obamacare will make the situation much worse.

      • October 7, 2009 7:07 pm

        Yeah I’ve linked to the same article. Perhaps you should do some more research?…

    • In the know permalink
      October 7, 2009 2:22 pm

      No it doesn’t. Mugabe did it. Learn some history before you make blatently assumptive “ass”ertions.

      • Joseph Klein permalink
        October 7, 2009 3:00 pm

        In the Know -

        What is the “it” you are referring to in “No it doesn’t”?

        • In the know permalink
          October 7, 2009 3:16 pm

          “It takes a lot more to “destroy” a currency than one President.” sic

          • In the know permalink
            October 7, 2009 3:21 pm

            “I have linked in my blog to a recent article concerning the plan of Arab nations, China, Russia, Japan and France to replace oil dealings in dollars with a basket of currencies. ”

            This thread is about that article, in fact it is hyperlinked above. Have you researched the scam of reselling TARP bonds? I bet you would find it interesting. Your right about China, they have reduced their active bond purchasing. They are using stockpiled US currency to purchase assets including mines, mineral rights, etc. They are using our money to buy resources that our government won’t allow us to purchase in the name of being “green”. This is no accident, it is deliberate.

            • Swemson permalink
              October 7, 2009 4:12 pm

              I think the last part of what you said above:

              “They are using our money to buy resources that our government won’t allow us to purchase in the name of being “green”. This is no accident, it is deliberate.”

              Is clearly true… China is constructing oil rigs in the gulf, tapping into our resources while we are not allowed to…

              The Obamation IS deliberately trying to destroy our economy…

              The “Green” excuse is pure bulls*^t … if it’s not environmentally safe for us to drill there, how could it NOT be environmentally safe for CHINA to drill there…

              Environmentalism run amok is the new and most effective tool of the collectivists !

              • Swemson permalink
                October 7, 2009 4:14 pm

                Whoops:

                how could it NOT be environmentally UN-safe for CHINA to drill there…

      • October 7, 2009 7:09 pm

        Zimbabwe is a completely different case — and Mugabe was not acting in a vacuum. There are a host of other people/interests and macro-factors involved in Zim’s condition. I happen to have studied that part of the world quite a bit.

        • In the know permalink
          October 8, 2009 8:27 am

          Your assertion that federal policy is not being dictated from a central point is preposterous. It seems like you are setting the stage as an Obama apologist. The House, Senate and Executive branches are controlled by leftist extremists. Their leaders hold conclave daily. Pelosi, Reed, and Obama cannot “wash their hands” of this one. Mugabe’s government took over industry and printed money to pay debts. I don’t see how any reasonable person cannot see the parallels. The governments debts are paid by printing money, hyperinflation ensues, the people lose control. That’s basic economics 101. And, as for this whopper: “I happen to have studied that part of the world quite a bit.
          “…..well, I guess you’re the expert then. I’ll tell my friend, a natural born Rhodesian whose brother is currenty a Zimbabwean police leiutenant that you are an authority so they must be wrong. EPIC FAIL

    • Julie Trevor permalink
      October 7, 2009 5:05 pm

      “It takes a lot more to “destroy” a currency than one President. Why don’t you stop faffing off with this nonsense and do some actual analysis?”

      Oh yeah, the article forgot to mention a willing Democrat controlled congress is needed as well as an Obama.
      Julie

  2. October 7, 2009 4:59 pm

    If you want to get to the truth, follow the money…funny money, it giggles while it goes…

    …China’s stake in the oil & gas resources in the Gulf of Mexico comes via joint ventures with other U.S. companies, or capitalization of companies incorporated in the U.S. Through these entities, it participates in leases acquired via a competitive sealed bid process overseen by the Minerals Management Service. I’ve not heard of any U.S. companies being denied access to drilling in the Gulf, either the continental shelf or deep water, except the region offsetting western Florida. Florida freaks at the sight of all offshore rigs. I can’t imagine what genius stunt China could’ve pulled off to un-freak them. Fortune cookies?

  3. October 7, 2009 7:06 pm

    LOL. It has nothing to do with politics. These are secular trends that neither Bush nor Obama can stop.

    You all need to get nonpartisan. These are rational actors making rational choices — although they may not be the right ones.

    There is nothing Obama can do…but in any case, whether it was Bush or Obama, they could never do anything right. This blog proves that point.

    Really, stop faffing off.

    Cheers.

    • Joseph Klein permalink
      October 7, 2009 8:31 pm

      Tripling the deficit in one year’s time was a political choice which, I agree with Julie Trevor, was a cooperative effort of the Democratic controlled Congress and Obama. So far, all we have to show for the stimulus is 9.8% unemployment and a rapidly sinking dollar.

  4. rosine ghawji permalink
    October 8, 2009 4:58 am

    “I am one of those who do not believe that a national debt is a national blessing, but rather a curse to a republic; inasmuch as it is calculated to raise around the administration a moneyed aristocracy dangerous to the liberties of the country.” — President Andrew Jackson (1767-1845)

  5. jac mills permalink
    October 8, 2009 5:05 am

    Mr Klein: As I recall last night’s Factor, BOR cut off a discussion with Dick Morris about Obamacare and the dollar with an off-hand, “Let’s wait until we see the final bill. All this is too boring and the average American doesn’t understand this anyway,” or words to that effect. BOR probably did that, of course, because it is HE who does not understand what is happening, and would not listen to the much smarter man, Morris. I think that if we are going to reference discussion about the dollar and health care with any accuracy, let’s try a show other than The Factor, which now is as close in content to “Entertainment Tonight” as it can get.

    • Joseph Klein permalink
      October 8, 2009 5:17 am

      Jacmills -

      You make a good point regarding BOR’s dismissal of discussion of the Obamacare-dollar issue. However, on prior shows Dick Morris has explained his concerns as did Neil Cavuto the night before I wrote this post. Their opinion is consistent with mine.

  6. jac mills permalink
    October 8, 2009 6:27 am

    Mr Klein: I was not arguing against your content. Far from it, as I have heard the Cavuto and Morris explanations, also. I probably did not write my post as clearly as I thought I was musing it, for which I apologize.

  7. Michaelle Maloney permalink
    October 8, 2009 9:53 am

    They have been trying to destroy the dollar for years to usher in a one world currency-nothing new. Its by the political rich elite control addicts-they want to control the world to feel good about themselves. They like feeling all powerful-even though they never will be; after they die and leave this world and their all powerful sydrome will be hitting the dust.

    • Swemson permalink
      October 8, 2009 10:04 am

      Michelle;

      Never forget that POWER, is the most addictive drug of all….

Trackbacks

  1. Steynian 388 « Free Canuckistan!

Comments are closed.

Follow

Get every new post delivered to your Inbox.