machinehead Posted July 13, 2003 Report Share Posted July 13, 2003 Richard Duncan's The Dollar Crisis is, quite simply, a blueprint for the apocalypse; a modern-day Tunnel Through the Air about the dollar calamity. Its scope is the past, present, and future of the world monetary system. Its implications are chilling to the utmost degree. I read the book through in two successive nights. It made my flesh crawl. Duncan explains how the classical gold standard, and the gold-backed dollar exchange standard of Bretton Woods, contained an inherent adjustment mechanism. Profligate imports in a boom economy would drain it of gold, imposing a recession, falling prices, and the need to export to earn new foreign exchange. The adjustment mechanism was quick, impartial, and effective. When Bretton Woods broke down in 1973, unbacked paper dollars flooded the world with reserves, setting off bubbles in Latin America, Mexico, Asia ... followed by bank runs when the bubbles popped. But more importantly, the adjustment mechanism disappeared. Profligate imports by the U.S. do not drain it of dollars, because it can print dollars without limit. The ever-accelerating system has no brakes. Duncan draws a series of shocking conclusions. One is that since the flood of dollars shipped overseas is recycled into U.S. securities, the U.S. current account deficit -- and its mirror-image capital account surplus -- is a vast transmission belt which fed Bubble I ... and is feeding Bubble II. More shocking still is Duncan's assertion that the U.S. "trade deficit policy" is deliberate. Being able to buy real goods with worthless i.o.u.'s is f***ing miraculous. And like any boy who has found a magic lamp, the U.S. wants to do it on an even larger scale. Pursuing these thoughts to their ultimate, appalling conclusion, Duncan reasons that only the U.S. government is large and creditworthy enough to absorb the $500 billion backwash of recycled dollars. And thus, the only adjustment mechanism in the dollar standard is the ultimate bankruptcy of the U.S. government -- i.e., its inability to service its debt, when Treasury debt eventually soars to some nightmarish, unthinkable multiple of GDP. The dollar standard has careened along for three decades, leaving a trail of wreckage in its wake. But the ultimate sanction -- U.S. government insolvency -- is nowhere close to putting a brake on it. Duncan makes crystal clear that the worldwide bubble of the dollar standard is the granddaddy of ALL the bubbles in ALL the countries ... the stock, bond, dot-com, property, GSE bubbles; you name it -- all of them. And he leaves little doubt that the dollar bubble is probably the greatest, most disastrous folly in the history of human civilization. Duncan pulls the veil from our eyes, weaving all the disparate, disturbing signs of insane speculation and looming financial distress into one comprehensive, lovingly-detailed tapestry. He demonstrates, step by step, with graphs and tables, how the backwash of capital from the out-of-control dollar standard feeds the mind-boggling excesses of the "leveraged speculating community" which Doug Noland chronicles every week. Duncan's prose is executed with limpid precision. It functions as a rhetorical juggernaut. Duncan marshalls his facts, arranges them in a vast phalanx, and sallies forth in a stately wall of spears and shields, pulverizing any conceivable caveat. At a couple of points, MH was moved to fling down the book, leap from his seat and applaud, to the bafflement of the family pets. This is a book to make your heart sing ... until your eyes fall upon page 233: "Chapter 12: A Global Minimum Wage." OMG. OMFG. It's like stepping out your door on a cloudless morning, only to be hit in the face with a diarrhea-filled water balloon. It's like attending a tub-thumping Fleckenstein after-dinner speech, only to have him rip off the rubber mask and reveal the rouged, rheumy mug of Greenspan, as the guests recoil in horror. It's like reading an inspiring guide to personal transcendence by a Buddhist holy man, only to find that he's dedicated the final chapter to praising Pol Pot. And it gets worse. MUCH worse. In the final chapter (13 ... the Masonic number 13), Duncan issues the vilest threat against humanity since Khrushchev pounded the podium with his shoe and threated "to bury you." To wit: There are three important tasks that the IMF must now master if it is going to succeed [in becoming a Global Central Bank]. First, the IMF must gain control over the global money supply - that is, over the creation of international reserve assets. Second, it must learn how to allocate the future supply of global liquidity in quantities that are neither excessive nor too sparse. Finally, it must learn how to allocate the global money supply in a way that both ensures global economic stability and, simultaneously, supports the global development agenda. This satanic diatribe is the economic equivalent of the Marquis de Sade's farcical, faux-clerical moral appeals against buggery ... described in compelling, prurient detail. The dollar standard has gamely given head to the world economy for thirty years, avers Mr. D. But now it's time for the piece de resistance: a little IMF-sponsored fisting and reaming. This may HURT a little bit if you're not used to it ... mwa ha ha ha ha ... now why don't you just COME OVER HERE, cupcakes .... Your first reaction to these pornographic maledictions is that the real Richard Duncan is tied up in a cellar somewhere, and the Matrix has drafted these final two chapters as a parody to discredit him and heap ridicule on his book. But then, heart sinking, you read the book jacket: "At the height of the Asian crisis, [Duncan] worked as a consultant for the IMF in Thailand. Subsequently, he joined the World Bank in Washington DC ..." Duncan is a Matrix agent. He toils in the belly of the beast. Your mind reels. Why ... why would the Matrix allow this book to be published? Why would they allow Duncan to describe so plainly, ex cathedra, how the bubble machine works, and why it's going to break? (Chapter 6 is titled, "The Fate of the Dollar: Half a Trillion Reasons Why the Dollar Must Collapse.") You start to glimpse the unspeakable truth. They're going to let America blow out ... sacrifice it for the common good ... of the "global development agenda." But the Matrix will go on. And this is the bridge financing plan. The globalists are taking over, for once and for all. The great game is bigger than you thought. The Dollar Crisis, then, is obligatory reading. It is a dark jewel, shat from the bowels of the Matrix ... a depraved masterpiece ... the product of a lyrical, diseased, perhaps coerced mind ... an Ezra Pound of the capital markets, propounding a seductive, poisoned, incantatory collectivism. Somewhere below, lounging at a small poker table with Old Nick himself, the old Marquis quaffs the last of his brandy, rubs his hands with glee, and observes, "ooh la la ... cela serait dr?le ... touche pas mon pote Monsieur D., Vieux Nick" ... as night envelops the earth. Link to comment Share on other sites More sharing options...
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