Sardonically funny humor from Charles Hugh Smith about the decline of the dollar.
August 1, 2012: Federal Reserve Chairman Ben Bernanke once again defended the Fed’s accommodative monetary policy at today’s press conference. Mr. Bernanke was late to the conference, which was shielded from protesters by riot police.
In his absence, a pet parrot was brought out to amuse the waiting journalists, who had been carefully vetted by the Fed to “represent the nation’s media.” The parrot had apparently occupied a perch in the Fed’s conference room, for it repeatedly squawked, “Stocks are up, stocks are up.”
OK, funny, but with an edge.
As the dollar continued its slide, unemployed German workers shouted “Death to America” in mass protests in Germany’s industrial heartland. With the euro worth $2, German exports to the U.S. have shriveled, causing a sharp contraction in the once robust German economy.
In Japan, the 7th government in six months took power, vowing to continue fiscal stimulus, despite the failure of the policy. The dollar’s decline has crushed Japanese exports to the U.S., as the dollar fetches only 55 yen, far below the breakeven point for Japanese exporters.
Japan’s new prime minister voiced support for the quatloo, the new petroleum-backed currency being touted by Saudi Arabia, China and PIMCO as a global alternative to the U.S. dollar.
You may now buy my new book in quatloos, or my favorite global reserve currency, the Vermont Maple Dollar.