Wednesday, March 25, 2009

"1, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0"

Treasury Sec Tim Geinther managed to cause the Dollar to tank on the currency markets by not dismissing out of hand China’s suggestion that the world should be less dependent on the Dollar. He was forced to come out and say that the Dollar will remain the Reserve Currency for now and forever, amen. The Dollar promptly rebounded. I’m not sure which is more stupid, that Dollar went down when Geinther was polite to the Chinese or that it came back up after he was rude to them.

The Dollar is toast; because the thing is, it’s all on paper; really it’s not even paper. A couple of keystrokes and it’s gone. The same way it was created. In the old days (before Greenspan) money had to have some substance to it. Money issued by the Federal Reserve never really had any reserves behind it but it was at least based on a real economy. Today’s Trillions aren’t based on anything of any value at all. Just keystrokes, "1, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0", there, I just made a Trillion and it’s worth about as much as any of the Trillions that Greenspan created.

The average American doesn’t realize this, but the Chinese do. People are starting to fret that the Wall Street Bankers are getting away with Trillions. All they are getting away with are keystrokes. The factories and such; they already stole all that and sold it to China. Now we’re stuck with Trillions and Trillions of debt. The Bankers expect to keep getting their eight figure salaries because after all; they have to keep track of all the Trillions that we owe.

It’s time we took away their keystrokes and go back to building the American Dream. The Real One, the Middle Class Dream. The Wall Street Bankers should each be given a pad of paper and a pencil and they can sit in their jail cells making Trillions for themselves. "1,0,0,0...."


pamela said...

I love hearing Mike Malloy read your work and always listen eagerly when he says he has something from Prairie2.
great work.

Gary M Photo said...

So glad you're finally blogging your writings... would love it if you could build the archives backwards a bit further as well. Your commentary is one of the highlights of the Malloy show I look forward to most. Cheers!

Anonymous said...

The problem isn't just here though. Aren't the currencies of most of europe also based on a bad fractional reserve banking system that has no reserves? Isn't this the reason why it hasn't all just collapsed because there is no true currencies anymore that can account for the amount of actual growth across the globe? Prairie2, I think it would be great to see you write a bit about Iceland and how they are faring... since they are a country that went totally bankrupt they might be a good case study to compare if the US also went belly-up.