|
Fed's interest rate games
could destroy the dollar
Tim O'Brien
Detroit
News
Friday, April 4, 2008
Federal Reserve Chairman Ben Bernanke has reduced
the key federal funds rate six times in as many months -- reducing
the cost for major borrowers significantly. This combines with
providing $270 million in funding, plus $30 billion in additional
guarantees, for JP Morgan Chase to buy Bear Stearns Cos.
"Helicopter Ben" is living up to the nickname he earned
after he remarked in a 2002 speech that he would stave off a recession
even if he had to drop money from helicopters to do it.
The results of these policies have been destructive. The dollar
is collapsing not only against foreign currencies -- we're now
at par with the Canadian dollar and rocketing toward a 2-1 deficit
against the Euro -- but also against commodities. Gold was passing
the $1,000-an-ounce landmark, silver $20. Even industrial metals
like copper and zinc are fetching record prices.
(Article continues below)
Now, a spike in a particular commodity -- say, for instance,
$100-per-barrel oil -- can be attributed to a shortage. But when
they all move dramatically and simultaneously, it's the purchasing
power of our money that has gone down.
In fact, the increasing cost of even the base metals recently
prompted Edmund Moy, director of the United States Mint, to propose
further debasing the copper and nickel-plated, zinc slugs we call
coins by substituting color-coated steel.
Full
article here.
|
INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
|
|
