Topic: Economics
Executive Branch Refuses To Discuss Dollar’s Value Government's refusal to discuss the value of the dollar.by jposty
(Libertarian)
Tuesday, March 11, 2008
It is almost if the FED and the White House Sect. are taking orders from the same people. Which is highly ironic since neither department is supposed to be influenced by the other. During the FED's annual two day illusion of democratic oversight, Ben Bernanke and Dr. Ron Paul got into a lengthy exchange on how absurd it was to discuss domestic price stability and low domestic inflation when the M3 money supply jumped at a 16 percent rate. Bernanke instantly went into Alan Greenspan's favorite method to dodge hard questions about the actual value of the dollar, "that is the treasuries responsibility".
Friday the White House Press Sect. on CSPAN refused to discuss the value of the dollar and once again deferred to the Sect. of Treasury. In response to OPEC 's allegations that the increase in the price of oil is a direct result of the decrease in the value of the dollar, she said, "I am under strict instructions… to not talk about the value of the dollar and I'm not going to get fired to satisfy your question."
One would think an administration concerned with the value of the dollar would hold a press conference with the Sect. of Treasury, if it was in fact their responsibility. My question is when is Mr. Henry Paulson going to bring this show full circle and publicly defer to the US Mint, since they in fact are the branch that physically deals with the printing of money.
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2008 jposty, all rights reserved.
Published: Tuesday, March 11, 2008
Last modified: Tuesday, March 11, 2008
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Our dollar is indeed backed by a commodity. But it's not gold. It's oil. Greenspan recently advised OPEC to de peg from the dollar. The reason we invaded Sadam was because he had done exactly that. He was selling oil for Euros. Iran now trades oil in currencies other than the dollar.
But that is not the real problem. The ugly truth is that cheap oil is over. Very rational, intelligent people who would know say that the world has peaked in oil production. In other words Demand is out stripping supply and ultimately supply is dwindling - FOREVER. Oil is getting harder and harder to get to market and meet the demand. This is why Canada is undertaking the extremely expensive, environmentally tragic, mining of the Athabasca oil sands. Even though best estimates are that they will only be able to get 5 million barrels a day by 2020. We use nearly 25 million barrels a day in the USA alone right now.
Bush has danced like a rummy for the Saudi's twice in as many months begging them to produce more oil. They said no. They said there is plenty of oil in the stocks. So then why did Bush humiliate himself asking for more? Saudi's say they have plenty. But mysteriously they can't pump more to meet increased demands. No sane politician is going to tell you this accept Roscoe Bartlett http://www.energybulletin.net/4733.html
The dollar is tanking because we are bankrupt. We have borrowed too much. Nobody wants our paper anymore. We can't pay it back. We are in Iraq to keep oil pegged to the dollar. Because once it becomes de pegged it's over. That is gradually happening now.
Energy independence is the only thing that can save us. I'm afraid Rome will have to burn before we can look back in hindsight and say, shoulda, woulda, coulda.
Didn't I hear that Bernake reminded Congress that they could choose to go back to the gold standard? Ie, reverse the Federal Reserve Act. The Fed is just about stealing, but the responsibility remains with Congress.
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2008 jposty, all rights reserved.