I don’t have much time at all to write, but I couldn’t resist after seeing this news item arrive in my Inbox.
Mr. Davis has passed along an article from the UK’s Telegraph (link below), reporting on a closed-door meeting in Riyadh. Apparently, though it was a closed door meeting the ministers’ microphones were accidentally left on (don’t you hate when that happens?) and for 40 minutes their comments were broadcast to the press room. (40 minutes? Apparently the press guys were not in a hurry to let them know of the error…)
Among the comments were these (emphasis added mine):
In an embarrassing blunder at the meeting in Riyadh, ministers’ microphones were not cut off during a key closed meeting, and Prince Al-Faisal was heard saying: “My feeling is that the mere mention that the Opec countries are studying the issue of the dollar is itself going to have an impact that endangers the interests of the countries.
“There will be journalists who will seize on this point and we don’t want the dollar to collapse instead of doing something good for Opec.”
Did you catch that? Does anyone in America really care how precarious the state of things really is?
So MUCH of our economy — and, therefore, the world’s — is currently standing on a foundation of functional pretense. It’s a public pretending because the only thing that appears to be holding back the horrific reality is the refusal to admit the reality. The dollar was once backed by gold, then by American confidence. Eventually, the dollar came to be backed by the world’s confidence. Now, it is backed merely by the world’s desperation and fears. The dollar continues merely because the world is so horrified by the thought of its collapse that they are propping it up against all other rational thought.
Eventually, the false belief that ignoring reality can change reality will kick in, and the world will begin to cut its losses, drop the dollar, and look to other, stronger currencies — such as the euro.
We have discussed this in this blog numerous times (and at greater length than I can afford here). Here are just a few of those entires (some of which should contain info or links relating relevant Bible prophecy on the matter):
- “The US dollar’s debt to nervous central banks”
- “Investors play ‘hot potato’ with US securities; Dollar beginning to sweat”
- “Excellent Commentary on the Dollar’s Plummet”
- “On the US Dollar: Remember, your seat may be used as a floatation device…”
The last link in that list was written a little more than a year ago, but the last paragraph is still true:
Basically, it would seem that what is currently preventing a plummeting dollar is the world’s concern about a plummeting dollar. But the way in which that concern is expressed may be shifting-from anxiously trying to prop it up, to cutting losses and insuring against the inevitable. That’s a dangerous shift in the weather for a plane that so desperately needs a “soft landing.”
Here’s the Telegraph article that was sent to me: “Saudi minister warns of dollar collapse.” It’s short and worth a read.
As with so many things, the only REAL solution at this point is not a matter of policy, it is a matter of repentance. But that is a discussion for another time — I wish I could write more, but real life calls!