The dollar is strong, the dollar is weak; the dollar is strong, the
dollar is weak; the dollar is... ad nauseum. Over the past few years the
Dollar is continually given the appearance of being volatile when it is
not; volatility in all investment markets is replacing stability,
because stability is less profitable for Wall Street. Volatility induces
more trades that result in more fees, commissions, and opportunities
for brokerage firms to remove the contributions of investors to pay the
wages and expenses of Wall Street, rather than increase the value of
stocks, bonds, and commodities. So the Dollar must also be made to
appear to be volatile as well, to continue a charade of strength that
over any period of time greater than one year shows that the Dollar is
continually weakening; and has, with one exception, been weakening for
the past 100 years; the gross manipulation of the dollar to destroy
equity, during the great depression, being the exception; today it
requires $98.00 to buy what $2.00 would buy in 1914, such is the
strength of the Dollar on its relentless march to zero. The Dollar may
be temporarily stronger relative to a few other currencies, but our ever
increasing massive debt load belies any Dollar strength.
If the
world economy were an enormous weight being lifted by a multitude of
cranes representing various currencies, the corners would be lifted by
the U. S. Dollar, the Euro, the Yen, and the Yuan. It is true that
currencies and cranes start out with a given strength which declines
with age; money inflates and iron fatigues; to continue the analogy, if
the Euro crane begins to weaken and buckle, the fact that the other
cranes are still holding the world economy weight up, does not mean that
they have gotten stronger; and with the Euro currency headed down the
path of devaluation by inflation does not make the Dollar, Yen, or Yuan
stronger relative to any economic relationship except a direct exchange
for Euros; every other economic relationship is unchanged except trade
with the Euro countries, whose imports from other economies will
decline.
Yet there is an almost weekly cycle of the Dollar being
weak relative to stocks, bonds, and commodities for a few days and then
the Dollar is suddenly strong relative to these markets. The Dollar is
not strong one day and weak the next except for a purpose; and that
purpose is extracting dollars out of the investment accounts of
individuals and businesses that are market chasers, buying and selling
behind the curve and losing wealth in the process. It costs billions and
billions every year to pay the wages and profits to operate Wall
Street; a lot of that money comes from the monthly contributions of
401Ks and IRAs and daily market chasers. When the inflow of these
contributions ceases, or drops below the amount needed to fund Wall
Street, the whole thing will collapse suddenly and totally; and just as
occurred in 1929 the wealthy insiders and specially informed elite will
remove themselves from these markets before the collapse, preserving
themselves at the expense of the controlled ignorance and naiveté of the
middle class, whose 401K and IRA investments (like all their other
federal and local taxes) are spent and gone.
