Jim Rogers’ reaction to Fed moves on Bloomberg  

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  1. From the Telegraph on April 19’th we see that European authorities are getting increasingly irritated by the dollar’s slide.

    I quote:
    “Authorities lose patience with collapsing dollar”
    By Ambrose Evans-Pritchard
    Last Updated: 1:44am BST 19/04/2008
    “Jean-Claude Juncker, the EU’s ‘Mr Euro’, has given the clearest warning to date that the world authorities may take action to halt the collapse of the dollar and undercut commodity speculation by hedge funds.”

    BUT the classic counterpoint to these comments comes from financial commentator Andy Sutton this week at the following link:

    http://www.financialsense.com/fsu/editorials/sutton/2008/0418.html

    Andy says, and I quote:
    “Is it not true that to an ever-increasing degree the Federal Reserve Notes that circulate in the economy are now ostensibly backed by worthless mortgage bonds rather than AAA rated US Government Treasury bonds?”

    Sad, but true.
    The full faith and credit backing the US dollar is now depending increasingly upon a huge pile of worthless mortgage debts.

    Does anyone doubt that the US Gov’t must already have a (covert) plan to begin monetizing this debt??? How could it be otherwise?

    PeteCA

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