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Traitor Greenspan Urges Gulf States To Abandon Dollar
Former Fed chief’s insistence that Arab nations dump greenback peg could lead to economic chaos in America
Paul Joseph Watson
Prison Planet
February 26, 2008
Alan Greenspan has again exposed himself as a traitor working against the interests of the American people by urging Gulf states to abandon the dollar peg, a move that could result in financial chaos and an economic depression in America.
The dollar peg mandates Gulf nations to price their assets in U.S. dollars and follow U.S. monetary policy at a time when the Fed is cutting interest rates, a system that has produced a boom in oil revenues but led to high inflation as the dollar weakens.
“It [de-pegging] is probably the most useful thing that can be done to stop the increasing influence of foreign assets on the monetary system and therefore the monetary base which is basically the major force in inflationary pressures,” Greenspan told the Abu Dhabi Corporate Leadership Forum yesterday.
“In the short term free floating … will not fully dissipate inflationary pressure, although it would significantly do so,” added Greenspan, giving a green light for Gulf states to drop the dollar peg.
According to Economist editor Pam Woodall, Greenspan’s comments heralded the beginning of the end for the US dollar as the currency of choice for foreign exchange reserves.
“If Asian central banks hold today more than 80 per cent of the global foreign exchange reserves, which indicates the shift of the global economy domination towards Asia, it seems quite awkward that the UAE still maintains the peg of its currency to the US dollar,” she told Gulf News.
Greenspan’s zeal to destroy the dollar is evident in numerous public statements he has made predicting the replacement of the dollar with the Euro as the world reserve currency.
The former Fed chairman has repeatedly badmouthed the dollar and hyped the inevitability of economic chaos at a time when market confidence is in the toilet. Greenspan’s rhetoric matches that of the IMF, who in October of last year bizarrely slammed the dollar as “overvalued” at the same time the greenback hit its all time low against the Euro.
A decision on behalf of the Gulf states to abandon the dollar peg would have disastrous consequences for the greenback and the American economy.
Such a move could lead the likes of the United Arab Emirates and Saudi Arabia to diversify their foreign exchange holdings out of dollars. This would amount to a vote of “no confidence” in the dollar and may cause other countries with large dollar reserves, such as China and Japan, to follow suit and begin dumping the greenback en masse.
China has threatened repeatedly to use the “nuclear option” and liquidate its vast holding of US treasuries in response to continued pressure on the Communist state to force a yuan revaluation. According to a widely-read London Telegraph report, such an event “could trigger a dollar crash” and also “cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession.”
Runaway inflation would also ensue, making the cost of living unaffordable to even middle class Americans as food prices skyrocket and international aid organizations like the World Food Programme predict rationing and food riots.
The dollar has held firm against the Euro and recovered some losses against Sterling over the past two months, but it has still lost 12 per cent of its value against the trade-weighted index over the last two years and has plunged by a whopping 60 per cent against the Euro since Bush entered the White House.
Stiglitz Blames Greenspan For Recession
Former World Bank Chief Economist says US probably already in recession
Steve Watson
Infowars.net
February 26, 2008
Former chief economist of the World Bank, Joseph Stiglitz, has said that the US economy is already in recession and is pointing the finger of blame directly towards former Federal Reserve chairman Alan Greenspan.
Remarking that the economy is “probably” now in recession, Stiglitz told Bloomberg Television that “There is a very significant slowdown in the U.S. economy… The housing bubble has broken and housing prices are coming down. Most experts think they will have to come down substantially more.”
Stiglitz stressed that Alan Greenspan “is right that this downturn is going to be the worst downturn in a quarter century, but he’s largely to blame,” adding “It’s not just that he was asleep at the wheel, he actively looked the other way”.
Stiglitz’s comments come on the back of news that Greenspan has been actively urging Gulf states to abandon the dollar peg, a move that could result in financial chaos and a further economic depression in America. We have previously reported on Greenspan’s penchant for working to destroy the US economy.
Stiglitz also took a swipe at current Fed chairman Ben S. Bernanke, charging him with failing to counter the deterioration of the real-estate market by procrastinating over interest rate cuts.
“The dramatic lowering of the main interest rate by 75 basis points [last month] was a panic not a prudent measure.” Stiglitz said.
The Nobel-prize winning economist also cited the $3 trillion cost of the Iraq war as a key factor in the economic downturn, saying it has increased the budget deficit and consumed resources that would otherwise promote growth.
In contrast, the president last week stated that the war in Iraq has had no bearing on the economic slump.
Stiglitz is no stranger to speaking out against the establishment on the economy. In October 2001 he caused controversy when he exposed rampant corruption within the IMF and blew the whistle on their nefarious methods of inducing countries to fall under their debt before stripping them of sovereignty and hollowing out their economies.
Sixteen months ago, on the nationally syndicated Alex Jones radio show, Stiglitz predicted a global economic crash would occur within 2 years.
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