Death of the dollar
The sliding dollar has prompted the region’s governments to question if their currencies’ dollar peg is doing more harm than good (again).
November 16, 2009 9:32 by Jay Akasie
One thing’s for certain: Barack Obama won’t be winning the Nobel Prize for Economics.
The American president’s misguided plans for a European-style social welfare system are sending the American economy into a tailspin. The actions of this former neighborhood organizer, who apparently knows nothing about how the capital markets operate, is sending chills down the spines of central bankers around the globe.
Nowhere is Obama’s anti-capitalist fervor more closely scrutinized than in the Gulf. One effect of the president’s economic fumblings is that the severely weakened American dollar is in danger of being scrapped as the standard to which most currencies here are pegged.
Stuffy Norwegians aside, it’s difficult to find anyone these days who thinks America’s leader has a clear plan for anything, especially a plan to restore credibility to the dollar. Obama’s social welfare programs are costing vast amounts of money – some $1.4 trillion this year and rising. The debt accounts for a greater percentage of that country’s Gross Domestic Product (GDP) than at any time since 1945, when America mobilized its economy to fight and win a two-front world war.
Speaking of World War II, we can’t help but think of the hyperinflation that plagued the Weimar Republic and helped Hitler’s rise to power. In what could be an eerie reprise of that troubled era, Obama is choosing to print cash like it’s going out of style in order to pay for his socialist agenda. Which means America is in danger of facing its own hyperinflation soon. Not to mention the fact that the buying power of the dollar is sure to erode even further.