Wise Up Journal
by Gabriel O’Hara
Massive bailouts within the EU, like Ireland’s 400 billion promise, the European Central Bank printing billions a day along with more EU countries to promise Ireland style bailouts suggests the Euro could eventually be in more trouble than the hemorrhaging Dollar. But is there data to confirm this? Yes.
The Dollar against the Euro went from €0.66 for $1 on Sept 24 to €0.74 for 1 Dollar in less than 1 week. A 12% gain in one week, wiping hundreds of billions of value off the Euro verses the Dollar. Many might think the Dollar has gone up against the Euro, but what’s really happening is that both of them have been dropping, and dropping rapidly. However the the Euro is dropping even faster than the Dollar and the Japanese Yen shows that.
The Dollar went from ¥106.00 to ¥100.50, a 5.1% drop, in 1 week from Sept 24. The Euro went from ¥155.00 to ¥135.50, a 12.5% drop, in 1 week from Sept 24. Both the Euro and the Dollar are dropping like a rock with the Euro speeding down at a much faster rate, which makes the Dollar appear to be recovering ground against the Euro. As more money is printed eventually the price of goods and services rise.
CNBC ran an article last week titled “How Ireland Will Destroy the Euro” said Ireland’s €400 billion bank guarantee “will contribute to the demise of the single European currency, because it will erode the euro’s credibility if it’s allowed to go ahead.”
If the Euro continues to collapse at such a pace expect Argentina 1990’s style hyper inflation in which your savings will rapidly be worth less and less.
For grand problems, there are grand solutions
A solution to this banker-made global problem already exists and has been talked about for many years. One of the most recent articles coming in 2007 from a top politically influential group called the Council on Foreign Relations, whom published an article titled “The End of National Currency“. The CFR advises that “the world needs to abandon unwanted currencies” and then goes on to say the Dollar is one of those. The CFR’s solution to dramatic currency fluctuations is to introduce “multinational currencies as yet unborn,” which of course would need to be under the full control of international/regional central banks. This suggestion has been talked about for a long time but even in 2007 such a grand solution would not have been considered seriously for implementation; but thanks to the current stage of the global banking scandal many are saying what the International Monetary Fund chief recently said, “the banks’ losses are the worst we’ve ever seen,” and “the IMF thinks it’s a global problem that needs a global response.”
Wikipedia explains the American CFR, “has exerted influence on U.S. foreign policy from the beginning, due to its roster of State Department and other government officials as members. Today it has about 4,300 members, which over its history have included senior serving politicians, more than a dozen Secretaries of State, former national security officers, bankers, lawyers, professors, former CIA members and senior media figures.”
Wikipedia also lists a handful of CFR members (Directors and Officers) which include:
George H. W. Bush