Dollar Alarms

(Conspiracy Nation, 12/30/04) -- No, it's not the Dalai Lama, it's the dollar alarma. To sell newspapers, whenever the dollar loses a cent to the euro there are ominous headlines and dire predictions. Meanwhile, slowly but steadily, Sir Alan Greenspan and the "Federal" Reserve are raising the interest rates.

Some good sense is found in a recent article by syndicated columnist Scott Burns. ("Now we know where the Grinch lives," Champaign-Urbana News-Gazette, 12/26/04) The Grinch did not awaken this Xmas (the "X" here is the Greek letter signifying Christ) and Burns heaves a sigh of relief. The Grinch holds the dollars we've been exporting, writes Burns, in return for which we get doodads from abroad. "Other governments would have to invent us if we didn't exist because it is our consumption that keeps other governments in power." There is no good alternative to the dollar, since we are actually in better shape than most of the other industrialized nations.

But alarming stories sell newspapers, and so that newspapers can be sold we are kept on edge. In Personal Finance for Dummies, author Eric Tyson heads one section, "Alarming or informing us?":

Imagine sitting down to watch the evening news and hearing the following stock market report:

On Wall Street today, stock prices dropped a bit less than one percent... The reason: There were more people wanting to sell than there were people wanting to buy..."

Now contrast that report with the following report for the same day:

Stocks plunged sharply today as the Dow Jones Industrial Average plummeted more than 100 points to close at its lowest level in the past 168 hours...

At www.xe.com you can check the dollar/euro/yen ratios every day if you want; it's not nearly as dramatic as the Drudge Report and other more mainstream sensationalists -- but drink caffeine instead if you need a pick-me-up.

The Judas Economy

The dollar does not look to be a sudden sinker. What appears to be in the offing is the old easy money/tight money switcheroo. First there was easy credit and people got over-extended. Now the knighted (by England) chairman of the "Federal" Reserve is inching up on the interest rates. As more default on their loans, bargain hunters can come grab their property for pennies on the dollar. It's the same sleight-of-hand done by the big-money boys back in the 1920s/1930s.

The larger situation is covered by authors William Wolman & Anne Colamosca in their 1997 book, The Judas Economy. "A hardheaded look at the world suggests that the betrayal of [labor] is only beginning. In the global economy of the mid-1990s no country can stay ahead for very long without continuing strenuous effort on the part of corporations to cut costs, reorganize their workforce, and shed employees." So, "productivity is up," you see.

When Soviet communism collapsed in 1988, the power of global capitalism soared. The mobility of labor has stayed about the same while the mobility of capital "has taken a quantum jump." This means increasingly that U.S. workers compete in the global marketplace with workers in such grinded-down locales as China, for example. Wolman & Colamosca foresee an eventual leveling off of labor conditions between first-world and third-world workers, but in the meantime -- ouch! It's going to be very tough.

Following the collapse of the Soviet system, western capitalists combined with some traitorous Russians to privatize the former Soviet state-owned assets. The people of Russia were robbed and now live in the midst of economic ruin. Why bring up Social Security at this point? Are you saying some greedy sons-of-bitches are on-the-march here in the good old USA?

There are mutterings in so-called "conservative" media outlets about the American Association of Retired Persons (AARP), which opposes the Dubya Bush plan for Social Security "reform." Murmurings are being heard: "The AARP is a liberal organization." Uh-oh. Say, you're not a liberal are you??

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Conspiracy Nation
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