One World Currency

US Supports One World Currency

(Telegraph, UK)

The US Dollar plunged against all major world currencies on Friday after US Treasury Secretary Tim Geithner suggested that Washington is open to the Chinese proposal for "a super-sovereign currency reserve" under IMF management - a world central bank.

Creditor countries around the globe are very concerned because the Federal Reserve decided to buy US government bonds (debt) with printed money, reported earlier on my blog(s).

What the hell is the United States doing? 

Are we hauling down the flag?

Declining Dow Jones Industrials

Rolling the dice with our children's future.

The Dow Jones Industrial Average tumbled another 250 points today. It's dropped 1150 points since the Democratic Administration announced the stimulus package that isn't (February 9th). McDonalds Hamburgers are selling like hot cakes as we as a nation revert to eating happy meals as a business lunch. In a surprising development even Campbell's Soup stock dropped today. It's one of the companies one would expect to do well in this environment. 

The DJI is back to 1997 levels with no practical bottom in sight.

It didn't have to be like this. An HONEST stimulus package designed to do what the current one has been purported to do would have had a positive effect. Now the middle class can look forward to being looted further with the Obama Gang's announcement of a 40% capital gains tax rate aimed squarely at the middle class for the purported purpose of "benefiting the poor".

Nationalize the Banks?

Bank of America and Citigroup shares took a beating last week in the stock market because of fears that the US Government would take over both banks, wiping shareholders out. B of A shares were down 19% Friday to $3.20 and Citigroup's fell 20% to 2.00/share. Both stocks have lost 90% of their value in the last year.

Are the government bailouts, subsidies and stimulus packages propping up industry value or are they hurting? Is all this government money pouring into banking, the auto and housing industries encouraging investors? Or is it scaring them off due to fears of nationaliztion? (the government steps in, owns everything and the private investors are left holding worthless paper)

Government meddling tends to create more problems than it solves. The Obama crowd are weighed down with self-interest and pork barrel projects that cause them to loose perspective.

Ronald Reagan defined the US Taxpayer this way: "Someone who works for the federal government but doesn't have to take the civil service examination."

My favorite example of government's ability to run private businesses harkens back to the days of the Mustang Ranch, a Reno, NV area bordello. The federal government took over the Mustang Ranch and ran it at a loss. The government couldn't turn a profit running a house of ill repute. Finally the feds brought back the suspected tax cheat and allowed him to run it to keep them from pouring more taxpayer's dollars into the whorehouse to keep its doors open.

I fear for us all if the federal government takes over all the banks.