The elites’ hope is that they can depopulate the planet via this mechanism, leaving their heirs its sole possessors.

This issue is the basic fault of the current crisis. The dollar has been overvalued for years due to its role as THE global currency. But similarly, other currencies have been undervalued. The major impact of this can be seen in both Asian producer countries like Chinese and Oil producing countries. In the case of China, it has purposely and artificially kept its currency cheap, copying the example set by Japan’s export economy.

The international monetary inequality created by the currency manipulation of Asian producer countries like China and oil rich countries enabled these rich countries to hoard an inordinate amount of wealth. The US stood by and took advantage of the artificial inflation of the USDollar because the higher currency enabled the maintenance of the current standard of living. The true Bretton Woods model would have the strong producer nations currencies rise and the weaker consumer currencies fall. This has not happened however. The developed world like the US simply borrowed to maintain it’s lifestyle.

Investors in wealthy countries needed to find ways to re-invest their dollars. This need to reinvest dollars, in a convoluted and perverted way, set in motion the search for investment vehicles which the investment banks profited from in the form of relatively unregulated subprime mortgages, CDO’s, and CDS’s. The perfect storm. Money looking for a home and no one minding the chicken coup.

If my premise is correct that the root cause of this financial crisis is the currency imbalance, supply and demand currency inequality between producer nations (Oil countries and China) and consuming economies (the so called developed world), then the obvious solution is currency realignment. If oil were priced higher, it would spur alternatives and conservation. If Chinese products cost more, fewer would be sold. The problem is that it is in the selfish interest of all parties to maintain the status quo, otherwise, we would all be poorer in the short term.

Our current international monetary system is a mix of Bretton Woods, distorted by country currency manipulation. If the USDollar continues to be THE global currency and our domestic financial environment is not strong enough to support the rest of the world, the current crisis will linger.

If the US were to tack on a fee on imported products to compensate for the lack of regulation in some producing countries, this would be deemed protectionist and would result in a 1929-32 collapse, similar to the wrong policies enacted in the 1929-32 era.

However, if currencies were allowed to float freely as they should, a similar impact would be achieved that would not be deemed protectionist. Theoretically, oil country currencies and Asian producer countries like China’s currency would rise.

Currently we have is a symbiotic dependency where the new producing nations are addicted to selling, and the developed world is addicted to buying. The trade imbalance is larger than it has ever been. The solution is a new global currency that will free the dollar from it’s global role. My only suggestion for this is a theoretical market basket currency that will be the currency of the IMF.a domestic currency.

If currencies were allowed to realign as I am suggesting, we would be paying back our debt with cheaper dollars. We would be poorer, and the world economy will need time to adjust.

25 billion dollars can be “earmarked,” if you will, (from the TARP as it’s called) for banks and big financial firms, but not one penny of that 25 billion can go for preventing 3 million workers from being thrown out of their jobs as a result of the Detroit crisis.

This is the White House view as I think most of us are aware, and I heard nothing from your guest that would help dissuage the President from going forward with his “middle class massacre.” What hatred this administration has for the working poor in this country.

That’s okay, Mr. Bush. If I were you I’d quit worrying so much about my historical legacy as President and begin worrying about the salvation of my soul.

One interesting idea is whether a fixed amount of dollars per capita could be issued (changing every day with births/deaths), and then credit could then be regulated to be more conservative. The current 3-10% reserve requirements seem very agressive and risky. But that is so far from where we are that we’d have to move gradually (and in good economic times) towards such a more conservative system.

The printing of currency and the issuing of instruments of credit need to be returned to the congress as the CONSTITUTION says. We’ve tried this experiment (off the gold standard and free money) and rich folks got richer. Now its time to return to capitalism 101 or admit the fact that we’re headed toward socialism. I don’t advocate one over the other, I just want us to stop deceiving ourselves.

The Fed manages the money supply and has not engaged in inflating the money supply excessively. Instead the Fed tries to achive monetary stability, in which the total amount of money and credit neither shrinks nor expands too rapidly. But….”tries” doesn’t always lead to stability of course.

Nonetheless, without massive printing of new dollars, hyperinflation is impossible.

The recent huge deficit spending is *financed through new US treasury bonds/bills* — not thru printing money.

See?

Instead of too many dollars, we have too many treasury notes, in a sense.

The current situation is one where consumers think to delay purchases, and this leads to falling demand for goods and then lower prices and more job losses.

This is “deflation” — falling prices. And don’t think it’s just a momentary blip, or re-adjustment — that would be the good case. The probability is different — that we get further deflation, leading to further job losses, and a feedback loop. And *this* is what the Fed and Congress have to fight.

I guess what would really be funny if inflation would rise to the point of the dollar being worthless and all of those greedy people on wall street and congress would lose the value of their greedy millions and billions. “If you live by the sword you will die by the sword.”

We Americans are the victims of the biggest shill game in the history of this country and I’m (as the saying goes, mad as hell). Your guest today said that point fingers will not solve the problem but I disagree. The American psyche needs to see fingers point and people responsible for this outrage punished; our sense of fairness has been trampled upon. Read De Tocqueville on capital punishment.

What is rubbing salt into the open wound is that companies that are receiving billions of dollars in tax payer funding are planning to give their top managers bonuses, have business meetings at luxury resorts and are doing this publicly. They are literally thumbing their collective noses at us and laughing at what chumps we are. The Congress should be ashamed of themselves for not being better managers of our money and their conduct is just as outrageous as the Wall Street folks. The people that got us into this through greed, malfeasance, and just plan incompetence should be made to feel the pain in their pocket books and in the courts. Once that is done then we can get about rebuilding what they destroyed.

On Detroit, we are just prolonging the inevitable. Why is GM the most popular auto manufacturer worldwide, but is suffering here at home? Because they have outsourced there capital base. They now want to prop it up for a few months so that they can give us the illusion of stability and then they will sell off their interests and we’ll (taxpayers) be stuck holding the bag. Oy vay…

You spoke @ China pulling out of developed nations and shifting focus to internal market “like Russia” in the 30s. If we use history as a guide, won’t Russia be a cautionary tale given the state of their finances?