The Euro plunged today, driving up the USD after Portugal (one of the PIGS countries) had its credit rating downgraded at the same time rumors that Greece (another PIGS country) will be cut loose rather than rescued. The PIGS (Portugal, Ireland, Greece and Spain) have been living on debt, credit derivatives and neo-con privatization and it’s time to pay the piper. The rest of Europe is terrified since they don’t know how deep the rot goes and this of course was all orchestrated by Wall Street banks. Remember when we were told that we didn’t need real jobs in this country because our financial services “industry” would pay our way.
You can bet the Wall Street firms that have been playing the inside line made a killing today on derivatives with the USD streaking past recent highs and destabilizing trade in oil, gold and other commodities. Remember that I mentioned yesterday that JP Morgan was talking down the USD and I said if this is true it would be a wild roller coaster ride. This turned out to be not true and set up people to take the down position just as USD was poised to rise. The USD spiking up is not a better turn of events because the higher the USD goes on roller coaster, the faster the drop will be when it comes. The insiders will make a killing on that too, then they can afford to add another wall around their gated communities. These places already resemble feudal keeps as the really rich live in gated communities inside gated communities.
This looting and pillaging is boiling over into the real international economy and this is great for certain people and bad for the rest of us. Your typical tea bagger chuckles over the plight of commie loving Europeans but they (Europe) are the only back stop we have when China cuts off trade and the pharmacy at Wal-Mart won’t be able to fill 80% of prescriptions anymore (the other 20% already come from Europe). How many meds do you suppose the average tea bagger takes? The answer: not enough. www.prairie2.com