CNN has echoed the Bush administration's snowjob policy on the dollar crisis by ludicrously citing "experts" who claim that the unprecedented plunge of the greenback is "not necessarily a bad thing for the U.S. economy."
An article by CNN Money's David Ellis entitled, Experts: Don't fear the weak dollar, lulls Americans gently back to sleep by reassuring them that the wholesale sacking of their own currency is nothing in particular to worry about, at the same time that food costs skyrocket and prices at the pump accelerate every day, while basic commodities like wheat reach record price levels.
The "expert" that CNN referenced in claiming that inflation worries were "overblown" was the Federal Reserve's own Frederic Mishkin, who "said in a speech that the dollar's decline only poses a limited inflation threat to the United States, arguing that there is little correlation between consumer inflation and changes in the exchange rate."
As Ron Paul forced Fed chairman Ben Bernanke to all but acknowledge last month, the weakening dollar directly impacts consumers - and the real rate of inflation, from numbers tracked by private sources due to the government's insistence of keeping the data secret - is a staggering 16 per cent.
"Inflation comes from the unwise increase in the supply of money credit....to argue that we can continue to debase the currency, which is really the policy of that you're following, purposely debasing value of currency - which to me seems so destructive....it just puts more pressure on the federal reserve to create capital out of thin air in order to stimulate the economy," Paul pointed out.
With China threatening the "nuclear option" of jettisoning their dollar assets due to the greenback's increasing worthlessness, American's living standards are teetering on the brink of meltdown. As the pioneer of Reaganomics and former Treasury Secretary Paul Craig Roberts points out today, "US living standards, which have been stagnant for years, will plummet once dollar decline forces China off the dollar peg."
Thanks to encouragement from traitors like Alan Greenspan, who last month urged Gulf states to abandon their dollar peg, foreign investors are already deserting the greenback at accelerating speeds.
Even CNN's snowjob piece is forced to admit that, "According to the most recent Treasury International Capital report, a monthly reading on foreign investment flows, net foreign purchases of long-term U.S. securities were $69.1 billion in December, down from net purchases of $70.3 billion in November and $118 billion in October."
CNN states that the dollar's fall "Won't hurt the economy unless the greenback enters a prolonged slump."
Just how far down the toilet does the dollar have to be before it can be recognized as having entered into a "prolonged slump"?
The greenback has already lost more than 60 per cent of its value against the Euro since the Euro's introduction. The dollar was down 10.2 per cent in 2006 and lost another 9.5 per cent in 2007.
Surely that would be characterized as a prolonged slump? What kind of fantasy world are CNN's financial journalists living in if they don't believe the dollar has yet to suffer a prolonged slump?
Furthermore, if the plunging greenback is good news for the economy as CNN and their "experts" claim then why are Bush administration talking heads scared to even mention its slide?
When White House press secretary Dana Perino was asked about the dollar during a press conference this week, she refused to talk about it for fear of losing her job.
While experts outside of government and establishment media desperately warn of the danger of a "dollar crash," hyperinflation and financial chaos, the press are busy aping the government's ludicrous position in claiming that the dollar's continued plunge is not something Americans should be concerned about.
In the meantime, top investors are dumping the greenback, buying gold, and hunkering down for an economic firestorm that some fear could rival the great depression of 1929.
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