Bank of England Governor Mervyn King told the Financial Times yesterday that the world’s central bankers are now holding conference calls every day to discuss the credit collapse. Its clear now that they have lost all semblance of control over the hyperinflationary dollar collapse.
- The price of Gold leapt to $845
- Oil passed the $98 a barrel mark
- The dollar fell to nearly $2.11 against Sterling, to a 60 year low against the Canadian dollar, to below $1.47 against the Euro, nearly 113 Yen
- In their insanity, Wall Street was demanding that the Fed cuts interest rates again
- Stock indices continue to fall
- Morgan Stanley discovered a further $3.7 billion of new losses in mortgage securities
- Fitch Ratings threatened to cut the AAA ratings of the world’s largest bond insurers after a review of their $2.5 trillion exposure to the global market in collateralised debt obligations (CDOs, parcels of repackaged debt securities), which could trigger a fresh credit crisis.
More dangerous still, Xu Jian, a vice director of China’s central bank was quoted telling a Beijing conference a couple of days ago that the US dollar is “losing its status as the world currency.” Chinese government officials have said elsewhere that China will further diversify some of its $1.33 trillion of foreign exchange reserves, which can only increase the pressure on the dollar.
The only solution to the ongoing crisis is to admit defeat with the current fraudulent system, and build a new one based on principles of national sovereignty and science driven infrastructure development. The sooner we admit that, the sooner we can begin the work necessary to give our children a future worth living.