'Shock therapy' and the freefalling greenback

"The dollar has embarked on a big decline that will see it fall against all leading currencies. The plunge is being prompted by America's $800 billion current-account deficit"-- David Smith, The Sunday UK Times

"We are in meltdown mode"-- David Brown, chief-European economist at Bear Stearns

The dollar is getting hammered almost daily now. It's like watching the blood ooze from an open wound. In just one month the dollar has tumbled from $1.20 to $1.29 vs. the euro; an astonishing 7% retreat.

Can't the American people see what is happening to their future? In just 6 years Bush has taken the world's strongest currency and chopped it into finally ground hash. By the time people rouse from their stupor, the greenback will be eye to eye with the peso.

Bush has piled up more debt than all the other presidents combined. His tax cuts have fattened the bankrolls of his constituents but they've put the dollar on a downward slide. Since he took office the once-mighty greenback has plummeted a whopping 35%.

Read the rest here.

-- Mike Whitney, The Smirking Chimp

And don't miss Mike's equally depressing 'The economic tsunami, just months away'