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Thursday, June 16, 2011

In A Currency Tug-Of-War, The U.S. Dollar Loses…

I imagine sometimes in my most optimistic moments that one day I will live in the midst of a true free market economy, where the tides of trade and investment, the ebb and flow of commerce, are a rather beautiful thing. A marketplace without centralized manipulation, were legitimate supply and demand are elevated instead of obscured, and toxic financial instruments, crooked corporate institutions, and even faulty currencies, are allowed to finally meet their long deserved demise because they no longer serve the needs of our nation and our culture. I imagine an economy that is not only continuously shedding off old skins and renewing itself as our society grows, but one whose primary purpose is to nurture and expedite that growth. I imagine an economy that works FOR the people, not against them. Like I said, “optimistic”.

In today’s economy, we have something quite different. We are imprisoned in a labyrinthian deathtrap of a mainstream system, one that feeds endless fiat formaldehyde into the crusted veins of a long since corpsified infrastructure; a financial golem, a wraith, a thing that creeps across the dark horizon of our country’s future waiting to unleash a special kind of hell. A thing that should not exist.

We live in an unnatural and monstrous economy. A Frankenstein creation…

This creation owes its wretched life to the efforts of a relatively small number of international bankers, corporate financiers, and of course, the private Federal Reserve; the mad scientists of our age, consumed with a lust for power over everything. One day, in the distant future, we will finally understand and appreciate their “brilliance”, or so they tell themselves. The “plan” is simply too complex and wondrous for we nearsighted and frightened villagers to comprehend.

In fact, the plan is very easy to comprehend, and not driven by brilliance, but hubris (one does not necessarily lead to the other). The key to grasping the mangled workings of our economy lay in the lifeblood of our commerce; the dollar itself. If you know the dollar, you’ll know just about everything else. Ignore the dollar, or assume comprehension without ample study, and you will find yourself completely lost in the fog and chaos of the markets.

This brand of confusion is very evident amongst a majority of investors, who seem bewildered by the seesaw activities in global indexes, Treasury Bonds and currency exchanges, and more specifically, the tug-of-war between the dollar and the euro. Why does debt instability keep cycling in the EU like a tornado? How could commodities decouple from currencies and act independently of “normal” market indicators? How could the U.S. economy still be on the verge of complete meltdown after three years of bailouts and quantitative easing measures? Where is all this headed?

Many of these questions can be answered by examining the battle going on between major developed and developing nations, including their currency policies, which appear to be at odds. However, there is indeed a concerted and focused effort in play underneath all the supposed “bumblings” and catastrophes around us, and this effort is not being implemented for our benefit…

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