AMERICAN FREE PRESS • August 2008
By Pat Shannan
hencurrencyexchangerateschange,busi-nesses must adapt quickly. In this era of international trading, knowing how aweakerAmerican dollar is likely to affectone’s business may avoid some critical mistakes.The dollar has shown continued weakness againstother currencies as well, including the British pound,Australian pound and Japanese yen. However, the mostdramatic losses have occurred against the euro. From itslow of 84 cents in July 2001, the euro has risen steadilyin value, stopping just short of $1.60 on July 11, 2008.When it rose to the then-record of $1.29 on Jan. 13,2004, Jean Claude Trichet, European Central Bank (ECB) president, signaled mounting concern over theeuro’s rapid rise by saying “brutal moves” in the dollar and “excessive exchange rate volatility were not wel-comeandnotappropriate”andthatEurope’spolicymak-ers were concerned. His remarks and those of other European officials triggered a sharp fall in the euro.However,observersnotethattalkwithoutsupportingac-tion usually produces only short-term results, and thedollar continued to trend downward in value.In recent years, Ferrari, the Italian sports car maker,reported that it is losing money on each car it sells in theU.S., its largest market, because of the falling value of the dollar. Other European carmakers, including BMW,Volkswagen and Porsche, have seen their profits plum-met as they have tried to absorb some of the loss rather than pass through the price increases to consumers.AfewEuropeanshopsandrestaurantshaverefusedtoaccept dollars from American tourists this summer be-causethebusinessownersdon’tknowwhattheexchangewill cost them when they go to the bank the next morn-ing. Others have simply added an extra 5% tariff over and above the known exchange rate of that day in order to protect against that unknown of tomorrow’s rates. Insome countries in the last century, the hyper-inflatingcurrency got so out of hand that people were paying for their restaurant meals at the time they ordered, fearingthatthecostwouldincreasebeforetheycouldfinisheat-ing.This brings to mind an anecdote from the 1923 post-WWIhyperinflationinGermany.Awomanwasstandingin line outside the grocery market holding a bushel bas-ket full of deutschmarks, waiting to buy bread and a fewotherstaples.Suddenly,herfour-year-oldchildbrokeand ran from the sidewalk into the dangerous street. Theyoung mother set down her basket full of cash and ranafterthechild,grabbing and scolding him.When shere-turned only a half minute later, her paper money wasdumped on the sidewalk, and someone had stolen her basket.This is the ultimate result of any paper currency un- backed by something of intrinsic value, and no
cur-rency in the history of this planet has ever survived.Theterm “sound as a dollar” is gone with the wind becausethere no longer is anything behind it to keep it sound,and no
currency is any more intrinsically valuablethan another.Richard Russell, who is sensitive to changes in mar-ket sentiment, commented on his web site July 7, 2008:
To start with, my instinct tells me that we aremoving into an era of momentous events. I believethat huge changes are being thrust upon us. I don’tthink these changes are being recognized as yet. I believe that underlying those changes will be thesubject of fiat money and the importance of central banks throughout the world. The creation of “wealth” through the mechanism of fiat money is basically irrational and yes—immoral.You cannotmandate prosperity through the process of printingmoney.Yet nations and their politicians and central banks have been doing this since 1971. My guessis that we are fast moving toward the period inwhich “the piper will be paid.” That’s the big pic-ture as I see it.
The U.S. dollar index was 120 seven years ago. It isnow 72, a decline of 40 percent. Market participants be-lieve that the dollar will continue to fall against theeuro. Forecasts that the euro will continue its increasearerampantastheoncegreatAmericandollarcontinuesits decline. U.S. firms that export their products to Eu-rope can look for another banner year. U.S. firms thatimportfrom Europe should protectthemselves by hedg-ing in foreign exchange markets, say the experts. And whataretheimplicationsforU.S.citizens?Onefinancialwriter put it this way: “Have you ever seen the Grand Canyon?” Consider yourself forewarned.
The U.S.Dollar vs.the Euro:Predicting How LowWill it Go
gives you the key to understanding why the illumi-natedonesoftheNewWorldOrderneedtosubstitutesecrecyforjustice.LearnhowGod Moloch, devoid of any capacity for either mercy or forgiveness, is moving with bruteforce for world control behind the myth called Israel.The Moloch myth conceals the invention of credit based money. Belief in money drives the human condition to prey on the planet and its in-habitants.MoneycreationhasBiblicalconsequencescalledusury.Thekeytousuryishiddeninthelegend of the Holy Grail. The covenant obligation to take dominion and prosper in harmony withnature is subverted by secretive organizations.There is talk of Bilderbergers, and various councilsandglobalistcorporations.Asifbydesign,thecollectivemindremainshypnotizedbytheirMolochmagicof centralbankingwithitsperpetual(national)debts,moneyatinterestandstockexchangesand income taxes.
Money:The 12th & Final Religion
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Pat Shannan is the assistant editor of
American Free Press
. See morefrom Pat at www.patshannan.com or www.AmericanFreePress.net. He isthe author of
One in a Million:An IRSTravesty
fromAFP. Softcover, 270 pps., $20. Call 1-888-699-NEWS toll free to charge toVisa/MC.
THE U.S. FINANCIAL CRISIS: A SPECIAL REPORT FROM AFP