DOLLARS: DISSIPATION

The canard of indefatiguable Consumer Spending continues to make the rounds-- Praise for the resilient consumer who was once too ignorant to save money and is now too smart not to attempt to get something even Chinese schlock for his money by spending it as quickly as possible before it devalues itself like a runaway elevator cascading through once impenetrable floor supports-- Then again many wild spenders revered by the predatory credit card companies are doing just that....having used up all their accumulated home equity and cash.... breaking out the plastic-- Consumption used to be a disease-- Now its just an addiction-- Incoming!!!!...Break out the therapy--

Here is a paragraph sure to raise an eyebrow and is intended thus so please don't initiate a panic.....

Last week the U.S.
dollar was carved up like a Thanksgiving turkey. Against the Swiss franc,
euro, British pound, and Japanese yen, the dollar lost 3%, 2.2%, 2% and 1.8% of
its value respectively. To put those declines into perspective, in terms of the
euro the Dow Jones’s 60 point plus decline this week translates into the
equivalent of a 320 point decline when measured in euros. In fact, year to date
the Dow is only up by about 3.5% when priced in euro’s, compared to its 14.5 %
advance when measured in depreciating U.S. dollars. From its high in 2000, the
euro price of the Dow is down by over 27%. In terms of gold, the world’s only
legitimate money, the picture is even worse. Priced in gold the Dow is off
better than 50% from its 2000 peak, and actually down over 7% thus far this
year. So much for Wall Street’s phony rally!

It seems to be a stretch really to think the consumers being honored for their continuing compulsion are really spending so much so quickly because they are paying close attention to the realities of the diminishing dollar-- The Materialist addiction that demands this social pathology is not rational and therefore does not lend itself to moral suasion much less pertinent information-- If the dollar does collapse 40-50% in value over the course of the next two years the acute and enforced Withdrawal from this compelled consumption will not be pretty--

“A strong dollar is clearly in our nation’s best interest,” or so says Treasury Sec Paulson frenetically pursuing a weak dollar, and he who along with Fed Chairman Bernanke and a bevy of slightly lesser economic heavyweights some of whom bear obtuse fatheads to go with their sartorial splendor and elegant resumes intend to fly to China and cajole the Beiijing Elite into what amounts to a pure and simple bailout-- China is now our Creditor-- Our Loan Shark in chief-- Remember when Chrysler and Iaccoca sought a surrogate(via the US Post Office) guaranteed loan they approached the Feds in DC not China-- What Paulson fails to acknowledge(or pretends to) is that he and the rest of us now spend a good part of our day working for that Loan Shark-- His hard earned(presumeably) dollars go to pay the usurial interest on our Chinese financed trade deficit and our governmental debt(trillions) in part so those cannabalistic consumers mudwrestling each other in those frenzied shopping aisles for the latest holiday boffo gizmo can continue such self inflicted humiliation ostensibly until the sun goes out-- Paulson and Bernanke are not going to China wielding DC power-- They will arrive with hats in their hands-- They are going as a once behemoth world economic engine reduced to beggary-- an indebted conundrum suddenly without clothes and soon to be recognizably without face both economically and diplomatically -- Sometimes reality has to reflect important facts unvarnished and only by facing those facts can we begin to dig ourselves out of the hole we have dug for ourselves-- The Chinese are not to blame-- They are playing the capital game better than we are and American middlemen have sold our country's future for a quick and now diminishing buck-- Paulson should prepare for disappointment-- Negative History is quickening--

US Manufacturing sank sharply and unexpectedly in October. The ISM factory index fell below 50 portending outright contraction in a 12% slice of the Gross Domestic Pie--Economists had been expecting a rise-- Add, too, that Construction spending that fell further in October than the last five years largely reflective of a Housing Market in freefall-- There too the experts forecasting only a 0.4% fall had their expectations buffeted--Meanwhile in the Euro region manufacturing rose for the 17th consecutive month, its index coming in at 56%-- The dollar continued its relentless downslide against the euro after the report, weakening to $1.3335 at 4:29 P.m. in New York. The yield on the benchmark 10-year Treasury note fell 3 basis points to about 4.43 percent. The ISM report on the index of prices paid for raw materials showed a rise to 53.5, from 47 the month before. The knowledgeable experts forecast an inflationary friendly rise to only 49.8-- Serious discrepancies on the part of the know-everythings-- Afterall an 'ex' is a has been and a 'spurt' is just a drip under pressure--

This happens so often one is compelled to ask if any of the DC/ Wall Street crunchers get any of their numbers correct-- Touting rising stocks denominated in dollars without noting to the buyers that the true stock market values are actually based on the buying power of the dollar is just that......a giant con game-- shell game-- just keep those shells moving ...........as well as the shills-- The drubbing of the dollar will continue hopefully not unabated but then again.....What this will mean is higher prices/interest rates and falling home prices-- What we earn will be lower-- What we buy will be higher-- What we own will fill the fire sales-- Step right up!!!!

Ford sales slide 10% in November - Reuters (12/1/2006 11:24 AM)
Mortgage Bonds Hurt by Delinquencies, Housing Slump - Bloomberg (12/1/2006 8:30 AM)