The War of the World currency

The below news articles are foretelling of the battle in the World over a World currency and to whom it will move to, if at all. Presently, the U.S. Dollar is the preferred currency, but the value of this dollar is much weaker then the EURO.

The American currency has been inflated tremendously during this current fiscal crisis. As this truth will finally become reality, will it depress the dollar so much that there is a run on it, that all the Nations of the World holding the dollar will try to be the first out of the gate to shed themselves of the deflation that this inflation will cause on their investment holdings?

China, the holder of 30% of the worlds wealth has a different idea. They want to go to a new currency known as the World Reserve currency printed by the International Banking Community. This currency is already in place, since 1931, but has yet to be distributed. The current debate is to administer 250 billion as soon as possible. But with Europe holding 8 of the 20 seats of the G-20, this prospect is in doubt.

The Euro has resisted the need to lower the currency borrowing by the European Reserve, named the World Reserve when the EURO was created. Though their banks are also in dire straights as the rest of the world, their currency is holding fast and as the world pulls out of this foray of fiscal debacle, the EURO will be manifold in strength.

It is a war of a monetary tsunami. The EURO could fail, the U.S. Dollar could collapse, China could lose much of the wealth. Which way will the world turn? Time will tell. As for what I think? Sorry, can't tell you.

• But one fact that makes one wonder is Iceland. They are the first to collapse and they are going to the EURO. Is that the wave that will result?
• Will the U.S. citizen uprising against the totalitarian Federal Government succeed and cause America to isolate from the World's fiscal folly?
• Will Europe be able to sustain the fiscal pressures of the debt on it's shoulders?
• Will China, Russia and those outside of the G-20 succeed in a new world currency?

God knows what the future holds once we have one world order.

R. George Dunn
***

Premier Wants Iceland to Join European Union
New York Times - United States
Ms. Sigurdardottir, 66, argues that membership, together with abandoning Iceland's currency, the krona, for the euro, would provide a shield for Iceland as ...
See all stories on this topic

World Bank, IMF say crisis becoming 'human calamity'
AFP
"No one knows how long this crisis will last," World Bank president Robert Zoellick told a news conference. Although the bank's finances are "in a strong ...

China Vice Fin Min Li Calls For Reform Of Intl Monetary System Wall Street Journal - USA In his speech Sunday, Li noted that the global economic crisis originated from the developed world, as diminishing demand from developed countries "is one ... See all stories on this topic

China Calls for Accelerated Timetable for Reform of World Bank CRIENGLISH.com - Beijing,China "Therefore, we should improve the regulatory mechanism for reserve currency issuance, maintain the relative stability of the exchange rates of major reserve ... The US Rapidly Losing Respect In The World InvestmentWatch By Daniel 'We have agreed to support a general SDR allocation which will inject $250bn (£170bn) into the world economy and increase global liquidity,' it said. SDRs are Special Drawing Rights, a synthetic paper currency issued by the ... Now, it is losing its ability to fund its military, economy, debt service, entitlements and is rapidly losing respect in the world. They will dump it like a hot potato if they think doing so will give them the one world government they have worked ... InvestmentWatch - http://investment-blog.net/ European Tribune - Community, Politics & Progress. By European Tribune The US Dollar will remain "a" major reserve currency for decades to come, if not the only one. While it is conceivable that the US Dollar will no longer be the dominant reserve currency (whether because the euro increases its share, .... This is also why a world currency won't happen. Since most value still comes from threatened violence and the ability to pillage and dominate smaller countries, a world currency without an army to back it up would be meaningless. ... Time to Short the EuroDollar With Forex Currency Trading? World ... By shidie35 I am sure many think currency trading is easy…however there are huge risks due to the leverage involved. It is not prudent to purchase any forex software or forex system to trade forex.There is a learning curve. One does not become a ...

Team Huck ... What Does It Look Like?

Huck PAC

April 04, 2009 - 06:54 PM

Team Huck ... What Does It Look Like?

by Peggy Erickson - Minnesota Coordinator

I got an e-mail from a Republican Party committee person who expressed interest in what we are doing at Team Huck. He wondered what that would look like. Here was my answer:

I can't really tell you what our efforts will look like in the months ahead. We want to see conservative candidates elected at all levels. And we want to get people involved in the process ... to make them feel like their opinions matter. We want them to feel like this is their government. Too many people feel disenfranchised right now and that makes your job and mine much harder. We want to change that, although I hesitate to even use the word change.

We are looking for leaders in every county who will help recruit people and raise funds so that we are ready to hit the ground running for the 2010 elections. We are looking for candidates Huck PAC can endorse and promote. Our teams will help with local rallies, with literature drops, with canvasing and the many other tasks involved in campaigns. Last year our volunteers made thousands of calls in support of conservative candidates through online phone banks.

Today Team Huck members were responsible for sending thousands of Red Envelopes to the White House. Next week they will send many more thousands of tea bags to Congress. They have taken part in and will take part in Tea Parties all over the country and are even planning a campaign in July. The enthusiasm and energy that have gone into these events will also go to supporting candidates. Just give us good candidates and we will give them willing volunteers. There is much we can do, but first we need to get everyone involved in the process. I hope this answers your question.

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• Cates, Bob

  04/04/2009 07:48 PM

  It's time for a true conservative party that stands on our founding Christian principles with no PC or appologies. I'm not sure the current republican party fills that bill.

  ***

My comment:

 

God knows where this is headed!

 

One fact is for sure that stands out from the campaign and that is

 

[b]"I stand for Main Street, not Wall Street!"[/b]  The entire platform of your campaign Governor Huckabee is exactly where the American people will head when they are finally woke up as these tea parties, 9/12 indicate. 

 

Fair Tax Please!!!  If there is one factor that the GOP must get their Platomic infected minds around is that the Fair Tax plan is a must for the GOP to survive.  The tax structure now in place is big government pure and simple.  It is weakening this Nation, for what ever reason: to provide for those tin foil one world crowd shadow people in Washington to destroy the dollar; or because they are so self centered they cannot see that after the free trade policy was implemented, our tax structure became an excise tax on American business, thus the real reason we lost all those manufacturing jobs. If it was planned to share the wealth of American enterprise to those around the world , it worked. 

 

Now is the time to end this charade and bring about fair free trade, and liberty and freedom the individual worker.  It is time for blue collar conservative America to dominate the GOP and the Democrats! 

 

The Nationalism jig is up and over with.  It is  [b]time for States to take back their sovereignty[/b]

 

Make sure the candidates we support are on board for the Fair Tax, the Constitution as Written and for inalienable rights and Morals set forth by GOD!!!

 

R. George Dunn
Northern Light 

World Currency moves nearer after Tim Geithner's slip

A world currency moves nearer after Tim Geithner’s slipUS Treasury Secretary Tim Geithner confessed on Wednesday that he had not read the plans by China’s central bank governor for a “super-sovereign reserve currency” run by the International Monetary Fund, but nevertheless let slip that Washington was “open” to the idea. Whoops.

By Ambrose Evans-Pritchard
Last Updated: 8:58AM GMT 27 Mar 2009

A world currency moves nearer after Tim Geithner’s slip
As President Barack Obama – pictured with Geithner – put it, the US is going through a ‘rough patch’ Photo: AP

This is how matters quickly escalate in geo-finance. China’s suggestion – backed by Russia, Brazil, and India, and clearly aimed at breaking US dollar hegemony – is making its way onto the agenda of the G20 Summit next week. ‘Dollar-dämmerung’ no longer looks so far-fetched.

China’s paper, by Governor Zhou Xiaochuan, is couched in understated language – more a ‘thought experiment’ than a declaration of monetary war. His ideas could be mistaken for the musings of an academic theorist. Nobody should be fooled by decorum.

It comes days after premier Wen Jiabow demanded US action to safeguard the value of China’s holdings of US bonds – $740bn of US Treasuries and a further $600bn or so of other debt. “We have lent huge amounts of money to the US. Of course we are concerned about the safety of our assets,” he said.

China’s Communist Party seems to fear that the Federal Reserve is orchestrating a beggar-thy-neighbour devaluation – and a disguised default on America’s foreign debt – by resorting to the nuclear option of printing money to buy US Treasury bonds.

China’s proposal is to activate the IMF’s power to issue Special Drawing Rights (SDRs). The IMF would be groomed as de facto central bank for the planet. The SDRs would gradually become an “accepted means of payment”. Call it the ‘globo’.

It would be an error dismiss this idea as a pipe-dream. Cynics once ridiculed Maastricht plans to launch the euro. John Major famously said chatter about a European currency had “all the quaintness of a rain-dance and about the same potency”. Yet once officialdom began assembling the machinery for monetary union, EMU acquired a life of its own.

The pitfalls of a world central bank are obvious. It is hard enough for the European Central Bank to run policy for 16 states in a region with a shared history, and shared EU institutions (Commission, Court of Justice, competition police, etc). The politics of global monetary management would be poisonous.

The heads of the Fed, the ECB, and the Bank of England, must all testify before parliaments and answer to democracy. There is no world parliament, no world government. Who would control a super-IMF?

In theory, this world reserve bank would be above politics. China’s plan suggests a resource currency along the lines of the “Bancor” floated by Keynes at Bretton Woods. This was anchored on 30 commodities, giving it a broader base than the Gold Standard. Such a currency would prevent the “credit-based” debauchery of today’s fiat system, says Mr Zhou.

True, but this would be jumping from frying pan to fire. If the world is running out of oil, metals, freshwater, and arable land – as many believe – then the price of commodities must rise over time. The ‘globo’ would become a deflation machine, like the late 19th Century gold as it asphyxiated endebted US farmers.

The China-Russia plans may never come to much. As President Barack Obama put it, the US is going through a “rough patch” but still commands the world’s biggest economy, under a stable democracy and the rule of law. He might have added that it will largely avoid the aging crisis already dulling Japan’s dynamism, and soon to ensnare Germany, Italy, above all China.

For all its bluster, Beijing must move with care. After years of export-driven mercantilism China is even more dependent on US markets than America is dependent on Chinese capital. The risks of currency and trade conflict are not symmetric. The hegemon must prevail.

***

My comment::

Points to ponder:

What if those in Washington the Beltway crowd, the Shadow, want to go to a one world currency for the benefit of the shift of power to their agenda?

Why and when will the Federal Reserve, the American National Bank become transparent to the World Banking Community as has all the rest of the members?

If China holds 30% of the world's wealth, what leverage would that produce on the world stage? With the blood in the water by the (purposeful) stumble of Geithner on adopting to a world currency, what will stop the rest of the world from seeing this as an opportunity to bring down the last superpower to equitable level?

Has Obama, stating that the United States is the most stable government in the world, provided the green light to a one world domination being as leaders around the world are telling America to not go down the road it is on, one very unstable?

The greatest tool in the process of changing is to put out a statement of controversy then deny it, to which one day becomes reality.

The RINOs are putting up smoke on the one world currency

Geithner say we should look into dropping the U.S. Dollar as the dominant currency and give credence to a one world currency, then he backed off that saying he only meant to be friendly in conversation.  Right, he is that naive.  We are being desensitized into accepting that thought of a one world currency, once these tyrants in Washington get done devaluing the Dollar.  How many trillions over the past year?

 

First Newt says that Treasury Secretary Geithner makes a stupid move to friend up to the Chinese, then Rover comes along and calls it a stumble.  Why are we being fed all this BS?  What is it that these guys are trying to do?  Could it be that they secretly want the one world currency?  Think about it.  Who came out publicly in support of the one world order while in office as President?  Bush 41.  So would it not be plausible that Bush one is for the one world currency?  And how about all the other supporters we now know are of the one world order.  Bush two, the son, Rove, the Bush two twin, Newt sitting on the couch with Hillary, George Soros which brings in the rest of the left , Romney with all his overseas investments, RNC power brokers  of 2008,  Clinton, Obama, etc.

 

Shall we now once again call those who fear the one world order to be wearing their tin foil hats, or are we going to stop being led around by the shadow behind both parties and stand up to this tyranny and get back to the Constitution.

 

Here is an article that shows the smoke being put up to hide the agenda:

http://www.examiner.com/x-243-Progressive-Politics-Examiner~y2009m3d25-Reserve-currency-vs-global-currency

 

R. George Dunn

Why a Tea Party === US backing for world currency stuns markets

We must fight the fight.  There is hope to bring us back.  The Constitution was founded to protect from this by merely going by it's doctrine.  That is our hope, to awake America to TRUTH!  We are having a Tea Party in Lansing on the Capital steps on 4/15.  Some are gathering in front of Post Offices to protest the Federal Reserve and all the tyranny going on in the Federal Government.  People are coming!  There may be a bus lot set up for transporting to the steps.  Go here for details and to sign up  http://www.reteaparty.com/category/tea-parties/michigan/

----- Original Message -----

From: CT Mom

To: mikehuckabee-154@meetup.com

Sent: Wednesday, March 25, 2009 5:56 PM

Subject: Re: [mikehuckabee-154] US backing for world currency stuns markets

George, Thought you & your recipients of your list might want more UNbiased coverage of tiny Tim's lastest blunder, and more importantly, the TRUTH about the corrupt Fed Reserve, "pimping OWE-bamunist's REAL agenda" prostituting the dollar - which is an insult to the world's oldest profession - and the dire consequences that will catch too many "average" American's by surprise & crush all of us, especially those least able to survive the catastrophy these utterly corrupt, greedy power lusting synchophants in DC are manipulating to keep the PRIVATE Fed banking/DEBT system afloat - at taxpayers expense...engineering not only the most massive power grab in the HISTORY of the world, but condemning furture generations into indentured servitude... Financial Times provides not only useful tools to understand & monitor the markets, it's editorials and resources provides salient insight for those unaware or naive... It was not without irony former Fed Chair Greenspan testified numerous times that we, as a nation, needed to better "educate" the public... the democrat's dominance of the dysfunctional, failed public education monopoly has DELIBERATELY dummed down, revised and omitted the most BASIC knowledge every generation needs - while denying parents free choice but demanding "choice" for abortion on demand, attempting to FORCE higher prices on all consumers by FORCING Unionization by Intimidation - aka Card Check - and the enormous SCAM & FRAUD ever perpetrated against all taxpayers, a long litany as you know. Following Market Watch & comments thereon, the RAGE can not be overstated. The politicians - especially OWE-bamunuts - are either ignorant, which is cureable, stupid, which is not, or, more likely, far more sinister than the vast majority realize.  The "sheeple" simply don't get it. They've been duped and are being fleeced and coerced into submission. We can't wait til July for more Tea parties...nor can any of us AFFORD to allow Congress to pass OWE-Bamunist's obscene bankrupting Marxist plot...on the way to installing his Islamic rule once he has destroyed the dollar & allowed China & Russia to impose a "new world currency" managed by the IMF - over which China wants greater say but refuses to play by fair rules, artificially manipulating & suppressing their currency - which Putin laid out in his Blueprint of the Future of US last month at Davos - which OWE-Buma didn't attend, empty suited coward that he is, sending credibility challenged tiny Tim  instead. At the Congressional Finance Committee hearings Tuesday, both Burnacke & tiny Tim gave the most succinct responses any official has uttered - as did OWE-Bamunut during his insufferable, contrived PARTISAN theatrics last night - to the question about US dollar as reserve currency...AS IF JUST SAYING THE DOLLAR WILL REMAIN the world's reserve currency makes it so - which they merely uttered JUST BECUZ THAT's what they know the Markets & Bankers want to hear... the writing is on the wall, folks... Some of the best advise market observers have been giving for over a year now is: "get your gold, guns and ammo" and stock up for a very long, hard time ahead. --- On Wed, 3/25/09, George <rgdunn@veionline.com> wrote: From: George <rgdunn@veionline.com> Subject: [mikehuckabee-154] US backing for world currency stuns markets To: mikehuckabee-154@meetup.com Date: Wednesday, March 25, 2009, 10:05 PM   ----- Original Message ----- From: R George Dunn To: Alger Meetup Sent: Wednesday, March 25, 2009 4:29 PM Subject: US backing for world currency stuns markets US backing for world currency stuns markets US Treasury Secretary Tim Geithner shocked global markets by revealing that Washington is "quite open" to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund.   http://www.telegraph.co.uk/finance/economics/5050407/US-backing-for-world-currency-stuns-markets.html By Ambrose Evans-Pritchard Last Updated: 8:12PM GMT 25 Mar 2009 US backing for world currency stuns markets The dollar plunged instantly against the euro, yen, and sterling as the comments flashed across trading screens. David Bloom, currency chief at HSBC, said the apparent policy shift amounts to an earthquake in geo-finance. "The mere fact that the US Treasury Secretary is even entertaining thoughts that the dollar may cease being the anchor of the global monetary system has caused consternation," he said.... -- Please Note: If you hit "REPLY", your message will be sent to everyone on this mailing list (mikehuckabee-154@meetup.com) This message was sent by George (rgdunn@veionline.com) from Mid Michigan Mike Huckabee HUCKPAC Meetup Group. To learn more about George, visit his/her member profile To unsubscribe or to update your mailing list settings, click here Meetup Support: support@meetup.com 632 Broadway, New York, NY 10012 USA

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Who is Geithner working for?

http://washingtontimes.com/weblogs/taras-two-cents/2009/Mar/12/the-ghost-of-geithner/#comments

The Ghost of Geithner

Tara's Two Cents (View Blog)

POSTED March 12 2009 1:22 PM BY Tara Wall

Will the real Timothy Geithner please stand up? Is what we've seen thus far the true Geithner, his disembodied spirit, or is he in fact a disembodied spirit? I'm going with the apparition. Which begs the question, is he the ghost of economies past, present or future? No one, not even him, seems to know. As spirits go, they're partly transparent -- sometimes seen without being heard or heard without being seen. Geithner is good at both.

President Barack Obama's opened his economic briefing Wednesday at "a[n] obvious critical time in the world's economy," he said and handed it over to Geithner, on the heels of his visit to the G20 Summit. Watching the brief, bumbling and wholly unimpressive remarks by the Treasury secretary, left me in wonderment --- just who was there? I'm thinking: "I can see you, lips are moving, but I can't really hear you." With all the government spending, talk of transparency, bank bailouts that have gone bust, more questions than answers during his not so informational announcement to unveil the administration's economic plan, surely the Treasury secretary would use the briefing as an opportunity to provide more clarity to the murkiness surrounding his ghostliness. 

"Everything we do in the United States will be more effective if we have the world moving with us."

Pretty vague. Anything else?

"We have a lot of work to do, but I think we can make a lot of progress."

Wow. And just how will we do that? Can you offer some specifics? No, that was it!  With just a few pat lines in under ten seconds, Geithner was done. Ghosts (like magicians) are great at illusional mind tricks -- saying something without saying anything at all. The money man with his own money problems took no questions from reporters and left President Obama offering "just one last point" in an attempt to elaborate on what Geithner could have offered:

"We have already started laying the groundwork. you're starting to see a lot of coordination at various levels, both in terms of financial regulators and those who are shaping potential stimulus packages in their own countries."

So that's the answer, not only are we now in the trillions worth of stimulus and pork spending, but we're encouraging other countries (some of whom we're indebted to), to do the same thing. Now that's a plan! I'm no economist, but that sounds a little reckless and condescending. With the madman Madoff sent off to a jail cell, approximately $1.2 trillion dollars in spending signed into law by President Obama just inside of 50 days, banks using bailout money for more bonuses and oversees investing, Americans are sick and tired of being sick and tired. The last thing they need is more double-talk from the man at the top....

***

My comment:

If I did not know better, I would say Geittner was speaking as a lackey for the One World Order crowd, no, I don't know better. 

 

Are they all staging for the failure of the U.S. Dollar in order to convert our Nation into surrendering to the One World Currency? 

 

This is getting very serious Folks.  WE need answers, not blindsided double talk.  Are we not a free people?  Are we going to be spreading our dollars overseas?  Is that the general welfare of the American People, or the international bankers?

 

Time for an audit of the Federal Reserve and of the gold they are supposedly holding for our Country.  Imagine a private company having the treasure of Fort Knox.

http://www.usmint.gov/about_the_mint/fun_facts/index.cfm?flash=yes&action=fun_facts13

 

RNCC- Fiscal Responsibility Starts Now *** REALLY?***

You think it is time to be serious and save this Nation or are you smoke and mirrors for the one world order crowd?  Washington does not adhere to the Constitution in hardly any manner what so ever.  If our GOP, who are called by conservative Founding Father values, would look up and do what is right, We would follow Passionately!!!

 

***

Note to Americans:

This would seem to be a BIG breakthrough.  It would be well to post this at your blogs, websites, groups - with a follow-up link to Aaron Russo's film (can use http://snipr.com/freedom2fascism ).

 

What's more, contact your local PBS station.  Send them this video, and request that they show "America: From Freedom To Fascism"

***

 

Ten percent of the tax revenue in the Federal treasury is derived from the individual income tax.  That is probably less then half of the heals on desks that could go find a constitutionally legal  job.  Simply do away with the IRS on individuals.  That would certainly stimulate our nations fiscal crisis and it would protect us from the dollar collapsing so that we will be manipulated into the One World Currency, the EURO!

 

If you truly want to hold the Democrats accountable, do it and know that there are four fingers pointing back at you.  You do not need money to stand for truth, not today.

 

May GOD Help Us,

R. George Dunn

 

Ps

America, welcome to the new media.  Let Truth Flourish!  Let us embrace individual State Sovereignties once more!  Let us sit down wisely and create a ten year plan to move the Federal programs back to Constitutional compliance.  Put social programs in the Board of Governors as voluntary programs to each State.

***

America: Freedom to Fascism - Director's Authorized Version - 1:51:16 - May 5, 2007
http://www.freedomtofascism.com - www.freedomtofascism.com

Over 3 million views before Google removed it. Get this on DVD now for $1 order at www.freedomtofascism.com

 

<<<America

Do not let Liberty and Freedom slip away.  It came to be by a heavy cost, and will not be retrievable in today's technology of warfare.  Demand Constitutional Conduct NOW!

"A heavy or progressive or graduated income tax is necessary for the proper development of Communism." - Karl Marx

If you want a progressive tax, try the Fair Tax Plan, at a constitutional spending level, say 4% for defense.

See you at the April 15th Tea Party!

See the Light,

George blogging at www.rgeorgedunn.blogspot.com

 

----- Original Message -----

From: Congressman Paul Ryan

To: rgdunn@veionline.com

Sent: Thursday, March 12, 2009 5:46 PM

Subject: Fiscal Responsibility Starts Now

Dear NRCC supporter, As the Ranking Republican on the Budget Committee, I am outraged by the wild and irresponsible spending under the current Democratic Congress. On top of the $787 billion "stimulus package" passed by the Democrats this year, Speaker Nancy Pelosi announced just yesterday that we need to "keep the door open" to another stimulus package. Another "stimulus package"?! Nancy Pelosi and the Democrats won't stop spending until our country is completely bankrupt! She and her far-left allies continue to believe that big government and expanded spending can solve anything. But, you and I know that big government and failed policies are not the answer. And today, I'm asking you to join me in holding Nancy Pelosi and her spend-thrift Democratic allies accountable. The NRCC needs your immediate support today. Will you follow this link to make an immediate donation of $25, $50, $100, $250 or more to help us put a stop to the Democrats' wasteful spending? Every dollar you give is put to work electing fiscally responsible candidates to the House of Representatives. The only way to stop the Democrats' unprecedented spending spree of your tax dollars is to elect a fiscally responsible Congressional majority in 2010 - and this is what the NRCC has set out to do. Every Republican vote for fiscal responsibility counts in putting a stop to the pork-filled, inflated spending bills from the Democratic far-left. And your urgent contribution of $25 or more is needed to get our message of responsible spending to the American people. With your support, we will be able to put a stop to the wasteful spending of your tax dollars and get our economy back on track. Thank you for your generosity and steadfast support. Sincerely, Paul Ryan Ranking Republican, Budget Committee P.S. I'm asking you to stand with me today by calling for fiscal responsibility. The NRCC is dedicated to electing a fiscally responsible majority in 2010 to put a stop to the Democrats' spending spree. And you can help us reach our goal by making an immediate donation of $25, $50, $100, $250 or more to the NRCC. Your generous financial support will make all the difference in our ability to put a stop to the reckless spending from the Democrats. Thank you. -Paul   Unsubscribe   Paid for by the National Republican Congressional Committee and not authorized by any candidate or candidate's committee. www.nrcc.org Contributions to the National Republican Congressional Committee are not deductible as charitable contributions for Federal income tax purposes.

Federal Reserve Board, the money supply in the United States has increased by 271 percent on the last five months

 

 

COMING NEXT YEAR: OBAMA'S INFLATION

By DICK MORRIS

Published on TheHill.com on March 3, 2009

Printer-Friendly Version

In the last five months, according to the Federal Reserve Board, the money supply in the United States has increased by 271 percent. It has almost tripled.

Have car sales tripled? Home purchases? Consumer spending? Corporate investment? Not only have they not tripled, they have all declined more sharply than they have since at least the recession of 1981-82, and perhaps since the Great Depression.

So where is the money? If it isn't being spent, where is it?

It is being parked, squirreled away. Consumers are using it to pay down their credit card balances, pay off their mortgages, reduce their student loans, make the payments on the car sitting in their driveway -- not the one in the dealer's lot. Businesspeople are buying T-bills, investing the money and saving it. They aren't spending, either.

But one day this recession -- despite Obama's best efforts -- will end and things will begin to look up again. Then we can expect all of this money to come out of its parking space and get back on the highway of commerce. All at once. The inevitable result will be double-digit hyperinflation.

Since the spending and borrowing splurge is not confined to Washington, but is being mimicked all over the world, the inflation will not strike just one country but will be global in scope. The first global inflation in our history (except, perhaps, right after World Wars I and II), it will confront our policymakers with yet another unprecedented challenge and send them back, once more, to their economics texts. There, they will find that the only remedy for global inflation is global recession, a la Paul Volker. Having just emerged from a ruinous depression, nobody will be in the mood for more unemployment, but that is just what will have to happen to cool off the inflation and break the inflationary psychology that is likely to set in.

The point of this gloom and doom is that all this pain is entirely preventable. It will be caused by Obama's excessive spending and trillion-dollar-plus deficits. This spending, of questionable utility in overcoming the current recession/depression, is so far out of line with what the economy can handle that it will do more harm than good when the inflation hits.

Proof that his spending will have little impact on the depression is the vast increase in money supply with no commensurate improvement in the economy. Providing money, via spending hikes or tax cuts, does not guarantee that the money will be spent. Tax cuts can be saved and spending increases, while surely spent once (on the initial project), can rapidly lose their multiplier effect as wage-earners on the government payroll bank their money just like those who get tax cuts will do. Getting out of this economic mess depends on consumer and business confidence, a faith that Obama is eroding with his looming tax increases as rapidly as he tries to kindle it with his excessive spending.

None of this should come as any news to Obama. He likely knows all this. But he is determined to pass his agenda of bigger government, nationalized healthcare and vastly greater spending even at the price of inflation and subsequent recession. He puts ideology first and the economy a distant second.

The stock market has figured out his priorities and is responding accordingly. One can only hope that voters also eventually realize what is going on.

Go to DickMorris.com to read all of Dick's columns!
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