Future Fear

Lending greater credence to the threat, the International Monetary Fund (IMF) has advocated the replacement of the U.S. dollar with Special Drawing Rights (SDRs); these would allow for certain assets traded in dollars to be priced using SDRs, a strategy that would reduce the dependence of central banks on U.S. Treasury bonds. “The dollar’s days as reserve currency are numbered,” blazons the Financial Times. Should an event of this magnitude come to pass, America will find itself virtually bankrupt. Every indicator -- the unlimited expansion of the monetary base, the impact of prospective rising interest rates on servicing the debt, a paper-thin currency, the international threat of abandoning the U.S.-based financial system as a result of a federal Treasury suffering from prolonged dollarrhea -- will have ominous consequences. Even as we speak, the Chinese devaluation of the yuan against the dollar spells further damage to the U.S. export market leading to greater unemployment (real unemployment is at least twice the official figure) -- the outcome of a failed or adversarial leadership.

The currency shift has already started to happen. According to the ITAR-Tass news agency, Russia’s Gazprom Neft has “signed additional agreements with consumers on a possible switch from dollars to euros for payments under contracts.” The oil company's head, Alexander Dyukov, told a press conference that “with Belarus, payments in roubles are agreed on [and] nine of ten consumers had agreed to switch to euros.” Dyukov is a leading proponent of the move toward ditching the dollar. In the same vein, Russia Today reports:

“Over the last few weeks there has been a significant interest in the market from large Russian corporations to start using various products in renminbi and other Asian currencies, and to set up accounts in Asian locations,” Pavel Teplukhin, head of Deutsche Bank in Russia, told the Financial Times.

Such foreign currency manipulations, however, are a mere handsel prefiguring the chaos that eventual reserve-deprivation will unleash. Ultimately, one should not forget Friedman’s resonant dictum in Money Mischief: “The fate of a country is inseparable from the fate of its currency.”

At this juncture, one recalls the infamous Cloward-Piven strategy of orchestrated crisis which, as the Discover the Networks website explains, “seeks to hasten the fall of capitalism by overloading the government bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse.” Choking the welfare rolls would serve to generate a political and financial meltdown, “break the budget, jam the bureaucratic gears into gridlock, and bring the system crashing down.” The fear, turmoil and violence accompanying such a debacle would provide the “perfect conditions for fostering radical change. That was the theory.”

And that, I am almost certain, is the theory that Obama, a master of presidential stealth, is attempting to convert into practice -- Cloward-Piven in its exponential form: burgeoning debt, calculated unemployment (i.e., freedom from “job-lock”), exploding entitlements, higher taxes for the employed and rising costs for everyone, a chaotic medical-and-insurance state of affairs, an unreliable currency, industrial stagnation, infringement of privacy concerns, a green energy boondoggle, a billion dollar global warming swindle (based on dodgy computer models and selective disinformation omitting the many salient facts that would discredit the AGW theory), and the continued flouting and undermining of the Constitution.

Accompanying this manufactured crisis is an amnesty scheme envisioning the legitimizing of an estimated eleven million illegal immigrants (aka “undocumented workers” and, now, “aspiring Americans”) who have streamed across porous borders to clog the welfare, housing, labor compensation and social assistance programs, foster the expansion of make-work bureaucracies, and, predictably, vote Democrat. As Donald Trump aptly remarked at the March 2014 Conservative Political Action Conference (CPAC), “We're either a country or we're not. We either have borders or we don't.” Borders, however, are anathema to a president who has further troubled the waters by ceding American legal and political space to foreign bodies like the United Nations.