US Dollar R.I.P.

The panicked US Federal Reserve has just cut rates again. It's also approved JP Morgan's takeover of Bear Stearns, whose Chairman played cards last week while his investment bank went down the tube. World Bank president Robert Zoellick now says there is a risk that the US "may well be heading into recession". No shit, dude?

For rather more informed and reputable analysis of the global financial crisis, I recommend Mike Whitney:

On Friday, Bear Stearns blew up. It was the worst possible news at the worst possible time... The world's most transparent and profitable markets have been transformed into a carnival sideshow managed by hucksters, flim-flam men, and rip off artists. The Bear bailout is yet another glaring example of a system that lacks all credibility and is quickly self-destructing.

More Whitney analysis here:

The dollar has plunged from $.87 on the euro in 2002 to $1.55 on March 12, 2008; losing nearly half its value since Bush took office. And there's no sign of a turnaround...

As the massive cycle of deleveraging continues for the over-extended hedge funds; Triple A assets will be sold for merely pennies on the dollar sending the faltering banking system into a last, lethal swan dive. Good riddance.

I like this quote from John Quiggin's blog:

“Gold is for optimists, I am diversifying into canned goods.”