I don't see any significant change in the broad holdings of dollars around the world. Dollars remain the dominant reserve asset and I expect that to continue to be the case," Bernanke said to the Congressional Economic Committee.



Really? So why is the greenback plummeting if people aren’t dumping it, Ben? What an absurd comment. The dollar has lost 63% against the euro and dropped to record lows against a basket of world currencies. Foreign central banks and investors have been ditching it as fast as they can before it loses more value. The dollar’s tumble has been the most dazzling currency-flameout in modern times and Bernanke is acting like he’s still asleep at the switch. It’s madness.



The greenback is getting clobbered by the Fed’s "low-interest" snake oil and the gargantuan current account deficit. If Bernanke clips rates again to bail out the stock market, the dollar will slip into irreversible respiratory failure. Food and oil prices will shoot to the moon overnight and the remains of the greenback will be carted off to the nearest boneyard.



September’s trade deficit was another blow to the waning dollar. The Census Bureau reported on Friday that the deficit clocked in at $56.5 billion. That’s $684 billion per annum! Bush has been crowing about the “shrinking deficit”, but the numbers are nothing to boast about. We’re still borrowing more than we’re producing. We’re still living beyond our means. The lower numbers just reflect the decline in home construction which is import-intensive. The fact is, we’re addicted to debt-fueled consumption and forgotten that, eventually, the trillions that we’ve borrowed from foreign creditors, will have to be repaid. If the dollar is replaced as the world’s reserve currency, then we’ll have to pay back $9 trillion of outstanding debt. We might as well hang out the “Foreclosed” sign right now and get fitted for Chinese workers-suits.



This is from Bloomberg News:



“As the dollar tumbles, concern is growing that its weakness may augur the end of the U.S. currency's 62-year reign as the world's specie of choice for trade, financial transactions and central-bank reserves…..The dollar owes its position as the world's premier international currency to its status as a haven during times of turmoil, the absence of a suitable rival, weak domestic demand in other countries and plain old inertia. Geopolitics also play a role.”



Nonsense. Who believes this rubbish? The dollar is the so-called “international currency” because the Federal Reserve and its well-heeled patrons are the directors of the US-Euro-Japan banking cabal which is at the center of the global Fiat money scam. There’s nothing more to it than that. Notice the recent “unilateral” clamp-down on Iran by the US-led banking syndicate. The action was initiated without UN approval for the simple reason that the UN, the World Bank, the IMF, the WTO and thousands of NGOs are just more of the Central Banks’ prime properties. Don’t expect the father to ask the child for permission to punish one of his errant children. The banks are the one’s who really call the shots and—behind the curtain of feigned respectability---they are the driving force behind the endless wars.



The Fed’s plan to “devalue” our way to prosperity appears to have hit a few ill-placed speed-bumps. The stock market is hanging by a thread and consumer confidence is at its lowest ebb since the start of the Iraq War. The falling dollar is expected to put a damper on Christmas spending and knock equities for a loop. That can’t be good for economy---especially when 72% of GDP comes from consumer spending.



We’ve already begun to see the telltale signs that the consumer is loosing ground and about to slip into a debt-induced coma.



According to data from the University of Michigan: