DEVALUING THE DOLLAR AGAIN
The dollar is devaluing again in
relation to other currencies. As
reported by the Financial Times recently: “The dollar hovered just above
the near three-year lows it hit against the euro last week as investors waited
to see if there was further downside or whether profit-taking would limit
dollar weakness.”
And it has
especially been declining in value against gold. As reported at http://www.washingtonpost.com/wp-dyn/articles/A1110-2002Dec17.html
:
“Reuters Tuesday, December 17, 2002; 9:52 AM -By Steven Swindells
LONDON (Reuters) - Gold hit its highest level in more than 5-1/2 years Tuesday as weakness in the dollar, rallying oil prices and fears of a war with Iraq opened the gates for a flood of fund money into the safe-haven asset. Spot gold hit a high of $341.25 an ounce, its firmest level for the metal since June 1997 and a 1.5 percent gain from closing levels in New York Monday. “
Long term devaluation is occurring
principally because government keeps pouring out more and more dollars to try
to spur economic activity in a languishing U.S. economy. This is just the latest round in the
longstanding policy of the US government as well as most other modern governments
which in effect steals wealth away from citizens in the devaluation
process. It is a sort of
institutionalized theft that has been occurring since the US and most other
nations went off gold and silver standards.
They can and do print money at will, and in the process erase wealth
from citizens stuck holding US dollars or assets denominated in dollars. They engage in theft as a price for holding
on to power.