Thursday, February 24, 2005

The incredible shrinking dollar

Mike Whitney: 'The incredible shrinking dollar'
Contributed by megsdad on Thursday, February 24 @ 10:00:34 EST
By Mike Whitney
The Bush Euro-junket is taking place just as the economic storm clouds are thickening over the Fatherland. On Tuesday the market plummeted another 175 points mainly due to soaring oil prices (tipping the $50 mark) and a surging Euro headed for the stratosphere. While Bush ambles around Europe waxing on about Camus and Voltaire, (I kid you not) America's tenuous economic plight is becoming alarmingly more apparent.
The world has taken stock of the administration's profligate spending and, now, Central Banks across the globe are shunning the dollar for the more stable Euro. The BBC says that a "poll carried out by Central Banking Publications found that 39 of the 65 banks surveyed were raising their Euro holdings, with 29 cutting back on the US dollar". Banks are voting with their feet, and the results may spell doom for the Bush plutocracy. As Paul Craig Roberts so aptly put it, "The world is tired of mopping up America's red ink".
At this point, it looks as though nothing short of an economic meltdown in America will deter from the administration from its war mongering Middle East.....