Another Day Another Devalued Dollar

Another day another devalued dollar.

The Yen has risen to a 14 year high against the dollar reports Bloomberg. Bloomberg also reports that the Russian central bank is buying reserves of Canadian dollars instead of American dollars. Meanwhile countries buy more gold from the IMF and the price of oil goes up.

Remember, where the $ goes the £ follows!

We get force fed from the BBC and the compliant press about 'recovery'. The powers that be know that there are massive problems lurking under the surface. Let's look at a little more evidence.

Today we have a:

Red Alert:
The Second Wave of The Financial Tsunami

From Matthias Chang writing in his website Axis of Logic. He warns:

"This Red Alert is to enable visitors to my website to take appropriate actions to safeguard their wealth and welfare of their families in the coming months."

"Since the last quarter of 2008, unrelenting currency warfare has been waged by the key global economies and while this competition thus far has been non-antagonistic, it will soon be antagonistic because the inherent differences are irreconcilable. The consequences to the global economy will be devastating and for the ordinary people, massive unemployment and social unrest are assured."

"And unless the creditor is willing to write off the debt, resorting to drastic means to collect the outstanding debt is inevitable.
It would be naïve to think that the US would quietly allow itself to be foreclosed! When we reach that stage, war will be inevitable. It will be the US-UK-Israel Axis against the rest of the world. "

Gulp. Then let's take a sneeky peeky at an article by Peter Schwarz. Writing for http://www.wsws.org/ Peter opens thus:

"Within Germany’s top political circles fear is growing of a second international financial crash exceeding in intensity and impact that of autumn 2008."

Talking about the rising values of global stock exchanges in recent months Schwarz writes:

"The rally in stock prices is due to the enormous liquidity that governments and central banks have pumped into the economy."

According to one German magazine about stock prices, Schwarz continues:

"the price-earnings ratio—comparing the market value per share to the annual earnings per share of the respective enterprise—has reached a historic maximum of 133. A price-earnings ratio of 14 or more is considered to mean shares are valued excessively." (numbers resized by me).

He refers to a Der Spiegel editorial:

“risk of hyperinflation—a breakneck rapidly progressing monetary depreciation, as Germany experienced at the beginning of the 1920s.”

In the end Peter agrees with Matthias's conclusion:

"The vehemence with which Der Spiegel now attacks the American finance sector expresses the acuteness of the mutual tensions that are seldom openly addressed."

"This must all be seen as a warning for working people. The global crisis of capitalism has reached a point where social and political compromise is no longer possible. Workers must prepare for fierce social struggles."

Mmm, what happened to those 'green shoots' and all that garbage about 'recovery'? Does Gordon Brown think he's going to escape from the mayhem he is responsible for? He's been buying time with taxpayers' money to save him from the taxpayers' wrath!

It's time people woke up. The SNP needs to sit down and talk real politics. The outside world is breaking through and Scotland must bravely face reality. The alternative of bankrupt Britain truly will be hellish!