We Are Going To Kill The Dollar:Senior Obama Admin Official

At least they coming clean with plan B.

Investor Kyle Bass discloses his discussion with a senior Obama admin about how this economic crisis is going to play out. The answer is to export our way out of this mess by making our exports cheaper by destroying the dollar in a global game of currency devaluation. This simply means that they are going to print more and more dollars until all of your purchasing power is destroyed and you will need more and more dollars to buy the same amount of goods. (ie. Massive Inflation.)

Simple really devalue the dollar so the 16 trillion debit is inflated away and labour is
cheaper in the usa so jobs come back from the east.

So the goverment is saved and can spend and spend unlike the people who wont
be spending money on anything other than the cost of living.

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Originally posted by skuly
Simple really devalue the dollar so the 16 trillion debit is inflated away and labour is
cheaper in the usa so jobs come back from the east.

So the goverment is saved and can spend and spend unlike the people who wont
be spending money on anything other than the cost of living.

So let me get this straight. They devalue the dollar so I have to charge more for the same work I do right now (web design) since there will be a flood of dollars in the economy.

These people are damn nutz!

reply to post by skuly


No wonder Ron Paul never stood a chance, he was the only one that wanted to save the dollar while everyone else wanted to kill it. It´s better for the government of course, to just kill it, but far, faaar worse for the people. But why would those guys care about the people when they are in the government? Simple math.

Its called hyperinflation. If one were to want to go to an "amero" or global type currency, its a very effective way to make it happen.

Our salvation comes through collective suicide.

err.. I mean our salvation is collective. No wait.

Those who claim to be governors of authority will find out that they can only consider it so when they receive the consent of the governed.
Soon, I think it’s just going to be them against us, and it isn’t going to be pretty.

this scheme would work if america still had a manufacturing base.

much of the parts and materials used to manufacture [read assemble] things in the usa come from overseas and the cost on those would go up, so again this type of plan just can't work.

me thinks they would be 'killing the dollar' for other reasons [like issuing new currency from above post]

It doesn't have to be "hyperinflation", but yes, AFAIK the stated aim of the "Quantitative Easing" has always been to lower the value of the US$, hence make expeorts more competitive and imports more expensive.

the trade deficit will then be "addressed" by improving the balance of trade due to increased economic activity, unemployment is lowered, and generally the economy gets running better again. At least that is the theory - and it makes some sense.

Sure it is not the normal process by which Govts alter the value of their currency - that is usually by varying interest rates. But when your interest rate is already pretty much 0% ther isn't much room to lower it further!!

But it is orthodox economic theory - not a secret conspiracy, and there is no reason for this to be in skunk works.

The title looks very ominous and devious, but in actuality it is quite simple, allowing the currency to fall in value relative to other currencies in order to gain advantage for the country's exports in the international market. The only problem in achieving that with the US$ is that it is the reference currency for the rest of the world since the Bretton Woods agreement and there exists a demand for US$ even when the trade doesn't involve US.

In this scenario, there are only two ways in which it can be achieved (1) The US defaulting on the interest payments on treasury bonds leading to a sell off of US Treasury Bonds held by foreigners and hence a sharp decline in the demand for US$ international currency markets leading to US$ losing its value and (2) Inflating the supply of US$ far beyond the demand in the international currency markets leading to the US$ losing its value.

From their behaviour so far, the republicans seem to prefer option (1) which explains their reluctance to revise upward/remove the debt ceiling. Obama and the democrats seem to prefer option (2).