Get Real On the Dollar, Chacha

Chacha Manmohan S Gandhi has asked G-20 leaders not to withdraw their stimulus packages; he has also asked for more funds for the World Bank.

I wonder where Chacha gets his “market intelligence” from. Does he, indeed, get such information at all?

This morning, I found this little gem on a major multinational bank:

HSBC bids farewell to dollar supremacy

The report goes on to say:

"The dollar looks awfully like sterling after the First World War," said David Bloom, the [HSBC] bank's currency chief. "The whole picture of risk-reward for emerging market currencies has changed. It is not so much that they have risen to our standards, it is that we have fallen to theirs. It used to be that sovereign risk was mainly an emerging market issue but the events of the last year have shown that this is no longer the case. Look at the UK – debt is racing up to 100pc of GDP," he said.

Crucially, China and rising Asia have reached the point where they can no longer keep holding down their currencies to boost exports because this is causing mayhem to their own economies, stoking asset bubbles. Asia's "mercantilist mindset" of recent decades is about to be broken by the spectre of an inflation spiral.

In the meantime, in the USSA, the pressure is on to audit the Fed – and then shut it down. LRC today has this series of videos of a Congressional hearing on the Fed. Watch Ron Paul in action, and Tom Woods too. Incidentally, Woods studied under Murray Rothbard.

Further, Ron Paul’s new book, End The Fed, is topping the charts. In the final analysis, the real battle is over public opinion. And public opinion is veering towards sound money. People are seeing that central banking is fraud. A change is in the air.

We are winning!

What should libertarian strategy be for the future? The great philosopher Hans-Hermann Hoppe offers this excellent advice in an interview available here:

First of all, they [libertarians] must develop a clear class consciousness, not in the Marxian sense, but in the sense of recognizing that there exists a clear distinction between taxpayers (the exploited) and tax consumers (the exploiters). Politicians as agents of the state live parasitically off the labor of taxpayers. Accordingly, instead of admiring them or seeking their association, politicians (and the more so the higher their rank) should be treated with contempt and as the butt of all jokes, as emperors without clothes. The political class and their intellectual bodyguards, teachers and professors, must be delegitimized as self-serving frauds, and democracy in particular must be attacked as an immoral system in which the have-nots vote themselves the property of the haves. Political activities, if they are to take place at all, should be restricted to the local level and be motivated by decentralist or better still secessionist objectives.

Chew on that.