Today's Stories

October 23-25, 2009

Christopher Ketcham
Unlearning the CIA: the Education of Bob Baer

October 22, 2009

Dan Pearson /
Kathy Kelly
The Rotten Fruits of War

Jonathan Cook
Israeli Police Don Arab Disguises

Paul Craig Roberts The US as Failed State

Mark Engler
Pranksters Fixing the World: and Interview with the Yes Men

Johann Hari
Three Myths Driving the Afghan War

Brian M. Downing
Losing the War

Eric Toussaint
Small Oversights and Big Lies About Latin America

Tom Mountain
Busting the Darfur Myth

Israel Shamir
Russia's Daring Vote

Charles Thomson
What is Damien Hirst Playing At?

Website of the Day
Hitler Upset At Balloon Boy Hoax

October 21, 2009

Pam Martens
The Next Financial Crisis Hits Wall Street: Judges Start Nixing Foreclosures

Linn Washington, Jr.
A Kafkaesque Deportation

Liaquat Ali Khan
Now Pakistan: Sequential Destruction of Muslim Nations

D. K. Wilson
Rush Limbaugh and the NFL

Franklin Lamb
Syria's Golan Heights

Norman Solomon
Uncle Sam in Afghanistan

Stephen Fleischman
Hypocrisy Unbridled

Patrice Higonnet
On Harvard's Financial Crisis

Binoy Kampmark
Herta Müller's Nobel

Kevin Coval /
Josh Healey
Searching for a Minyan

Website of the Day
How Wall Street is Making Its Bilions

October 20, 2009

Sharon Smith
Et Tu, Codepink?

Tariq Ali
Farce in Kabul, Tragedy in Pakistan

Mark Brenner
Pensions: the Next Casualty of Wall Street

Bouthaina Shaaban
The Adoption of the Goldstone Report: What Does It Mean?

Michael D. Yates
Down in the Valley With Cesar: Power, Paranoia and Purges in the UFW

Dean Baker
Does Citibank Need China?

Dave Lindorff
Depleted Uranium Weapons: Dead Babies in Iraq and Afghanistan are No Joke

John Ross
Chronicle of a Tormenta Electrica, II

Ricardo Alarcón de Quesada
Cuban Five: a Very Important Liar

Kevin Zeese
Can the Democrats Avoid a Populist Health Care Rebellion?

Gilad Atzmon
Autumn in Shanghai

Website of the Day
A Message From the Gyre

October 19, 2009

Mike Whitney
The Dollar Will Not Crash

Greg Moses
The Cash Cops of Tenaha

John Ross
Chronicle of a Tormenta Electrica

Michael Donnelly
Outside Agitator

Jayne Lyn Stahl
Dick's Fringe Army: Tea Baggers and Birchers?

Eric Walberg
The Battle in Canada

Russell Mokhiber
Pennsylvania, First in the Nation for Single Payer?

Barbara Rose Johnston
War, Peace and the Obamajority

John V. Whitbeck
Zionism: an Anti-Semite's Dream?

Christopher Ketcham
Swine Fools

Website of the Day
Greenspan: Break Up the Big Banks?

October 16-18, 2009

Alexander Cockburn
White House v. Fox News: a War Obama Can Win

Saul Landau
Autumn of the Patriarch

Paul Craig Roberts
The Rich Have Stolen the Economy

Carl Ginsburg
Where $18 an Hour is Too Much

Ralph Nader
Barney Frank the Bankers' Consort

Nikolas Kozloff
Rainforest Beef, Factory Farms and Anthony Bourdain's War on Vegetarians

Carlo Galli
Berlusconi: Still Doing Nothing, Still There

Dave Lindorff
Agent Orange in Vietnam: Ignoring the Crimes Before Our Eyes

Catherine Rottenberg / Neve Gordon
Educating Children in War Zones

Marshall Auerback
Dollar Spasms

Nicola Nasser
The Realistic Way Out of Iraq

Windy Cooler
The Ghost of John Brown

James L. Secor
Why I Miss China

Ron Jacobs
Escalation Unopposed

Wes Jackson
A Way of Knowing

Jesse Lerner-Kinglake
Global Food Fight

David Ker Thomson Against Leaders

Missy Beattie
Dinner With the President

Emily Ratner
Taping Our Mouths Shut to Scream Out Our Dissent

Stephen Martin
The Scorched Earth Mindset of the International Banker

Michael Snedeker
"A Place of Greater Safety"

Charles R. Larson
Cheeta: the Last of the Hollywood High-Rollers

David Yearsley
Judith Leyster's Sensuous Passions

Peter Stone Brown
It's a Bob Christmas for Halloween

Poets' Basement
Keeler, Beatty and Anderson

Website of the Weekend
Elements of Nature

October 15, 2009

Andrew Cockburn
Our Cheap Politicians

Brian M. Downing
Rethinking the Afghan Insurgency

Ramzy Baroud
Abbas and the Goldstone Report: Our Shame is Complete

Danny Weil
A Neo-Liberal Arts Education: Diploma Mills and Debt Peonage

M. Idrees Ahmad
Return to Peshawar: a Journey Home

Margaret Kimberley
Michelle's Family Tree

Ricardo Alarcón de Quesada
Cuban Five: Which Side Are You On?

Harvey Wasserman
Nuking the Climate Bill

Nirmal Ghosh
A Tale of Two Protocols: How Montreal Could Save Us From the Mire of Kyoto

Charles R. Larson
Sarah Palin Bears It All

Website of the Day
Tortured Law

October 14, 2009

Michael Neumann
Fearsome Words? a Suppressed Talk on the Israel/Palestine Conflict

M. Reza Pirbhai
Fighting the Taliban: What, Exactly, is Being Fought in Afghanistan?

Gareth Porter
Hawks Play Up the Taliban's Ties to Al Qaeda

Paul Craig Roberts
War Criminals Are Becoming Arbiters of the Law

John Strausbaugh Fortress Moon

Ralph Nader
The CBO's Flawed Report on Medical Malpractice

Dean Baker
Won't You Please Come to Chicago to Greet the Bankers?

Charles Modiano
White Silence: Where Does Brett Favre Stand on Rush Limbaugh?

Nadia Hijab
Abandoning "Women and Children"

Walter Brasch
An Extension of Her Motherhood: Sherry Carpenter, Journalist and Animal Care Provider

Website of the Day
Nader: Obama Has a "Concessionary Personality"

October 13, 2009

Peter Linebaugh
Putting the Spine Back in the Commonwealth

Shamus Cooke
What Obama Isn't Telling American Workers

John Ross
War on Mexican Women

Brendan Cooney
Ask Awal Khan About Obama's Prize

Frida Berrigan
Operation Enduring Detentions: Losing the Moral High Ground

Yves Engler
Is Canada More Pro-Israel Than the US?

David Macaray
Why the Government Fears Unions

Dave Lindorff
Democrats: Selling Out, But Still Getting Screwed

Mark Weisbrot
Occupying Afghanistan is Making Things Worse

Ricardo Alarcón de Quesada
History Repeats Itself

Binoy Kampmark
That Dirty Colonial War

Website of the Day
The Health Insurance Industry's Latest Doublecross

October 12, 2009

Pam Martens
Secret Deal Between Wall Street and Washington Shines a Harsh Light on Federal Housing Agency

Mike Whitney
A Dollar Rout or More Bernanke Trickery?

Martha Rosenberg
Yale Lab Tech Causes Two Problems for Animal Researchers

Jessica Arents
The Price of Peace: Our Arrest at the White House

Eamonn McCann
Massacre in Ireland, Massacre in Iraq

Bill Hatch
Dairy Industry Goes Down the Tubes

Sen. Russell Feingold
Time for a Timetable in Afghanistan

Niranjan Ramakrishnan
The Siren Song of World Praise

Gideon Levy
Obama's Betrayed Mission in the Middle East

Iyad Burnat
Why Does Obama Get a Prize and Bush Got Shoes?

Alan Cabal
Why Obama Deserves the Nobel

Dan Bacher
The Astroturf Method

Website of the Day
The Palestine Chronicle Needs Your Help

October 9-11, 2009

Alexander Cockburn
War and Peace

James Bovard
Eight Years of Big Lies on Afghanistan

Kathleen and Bill Christison
New Crisis Developing in Palestine

Andy Worthington
Congressional Depravity on Gitmo

Marc Levy
Talking Dirty to the Kids

Tariq Ali
Ahmed Rashid's War

Mike Whitney
The Securitization Boondoggle

Paul Craig Roberts
Warmonger Wins Peace Prize

Alan Nasser
Cockeyed Economics

Jack Z. Bratich
The Twitterest Pill: Policing Dissent in the Information Age

Steve Breyman
Time for a War Tax

David Michael Green
A Hapless Presidency

Dave Lindorff
The WTF Prize

Paul Buchheit
Fear of the Rich

Jim Goodman
Feedlots and E. Coli

Missy Beattie
Theater of the Absurd

Michael Leonardi
Ships of Poison

Nadia Hijab
The Plight of the Right of Return

Mel Packer
The Crackdown on Pittsburgh

David Macaray
The Raiding Game

James T. Phillips
Getting Burned

Charles R. Larson
One Man's Walk Through Hell

Michael Donnelly
Behind the Capitalist Curtain

David Yearsley
The Biggest Blot on Mel Gibson's Rap Sheet

Lorenzo Wolff
Rap That Threatens ... and Endures

Poets' Basement
Heyen, Ames and Buknatski

Website of the Weekend
Jobs Conference

October 8, 2009

Saul Landau
A Late September Morning With Fidel

Paul Fitzgerald /
Elizabeth Gould
Dark Omens for the US in Afghanistan

Linn Washington, Jr.
Pot and Perversion: Judicial Antics Expose Drug War Insanity

Marshall Auerback
Neo-Classical Economics Misses What Matters

Dave Lindorff
A Nation of Snoops

David Rosen
Bankrupt Morality: the Staying Power of Republican Sinners

Chris Darimont / Misty MacDuffee
The Bear Essentials: New Thinking Needed to Save BC's Salmon and Grizzlies

John V. Walsh
Remembering Hinton's Fanshen

Stewart Lawrence
The Edwards / Hunter Affair Reconsidered

Charles R. Larson
Conservatives in the Sandbox

Website of the Day
Et Tu, Code Pink?

October 7, 2009

Brendan Cooney
Are Republicans Breaking US Law in Honduras?

Paul Craig Roberts
Dead Labor: Marx and Lenin Reconsidered

Dean Baker
Bernanke's Recovery: Unemployment Up, Wages Down (But the Banks Have Been Saved ... Sort Of)

Jonathan Cook
A Third Intifada?

John Stanton
HTS: Congress Rewards Failure, Puts Personnel in Harms Way

Joanne Mariner
Tortured Language

Ricardo Alarcón de Quesada
Cherry Blossoms

Stephen Lendman
The Gaza War's Effect on Women

Sen. Russell Feingold
Time to Draw Down in Afghanistan

Mary Lynn Cramer
Doublespeak on Health Care

Website of the Day
How to Bag a Wolf by Aerial Assault

October 6, 2009

Mike Whitney
Dollar Hysteria: Is the Sky Really Falling?

Gareth Porter
The Iranian Rift in the IAEA: Leaked Paper Based on Disputed Intel

Jonathan Cook
How Israel Buried the UN's War Crime Probe

Boris Kagarlitsky
My Hour as Talking Head in Moscow

Iain Boal
The New Crisis at Pacifica

Ron Jacobs
Why Are We in Afghanistan?

John Ross
Wave of Anarchist Bombings Strikes Mexico

Michael Dickinson
Panic in Istanbul: Smoke, Mayhem and the World Bank

Stephen Fleischman
Beware the Predator

Ira Glunts
The Audacity of Nope

Missy Beattie
Outside Looking In

Website of the Day
Round Up the Usual Suspects

October 5, 2009

Pam Martens
Wall Street Titans Use Aliases to Foreclose on Families While Partnering with a Federal Agency

Mike Whitney
Dead Man Walking: Welcome to the US Economy

Paul Craig Roberts
How the Feds Imprison the Innocent

Harry Browne
Ireland Says, "Yes, Please"

Sara Mann
My Little Town: Nothin' But the Dead and Dyin'

Omar Barghouti
Dissolve the Palestinian Authority

Shamus Cooke
A Jobless Recovery?

Brenda Norrell
A Dirty New Low for Peabody Coal

Fred Gardner
Situation NORML: Reconciling Medical Pot Use and Legalization

Binoy Kampmark Copenhagen Blues: McChrystal and the Afghan Trap

Website of the Day
In Goldman Sachs We Trust?

October 2-4, 2009

Alexander Cockburn
Geezer Renditions

Saul Landau
News From Raul Castro

Diana Johnstone
After the German Elections: Is Socialism Really Dead in Europe?

Greg Moses
Cramming for the Downside

William Blum
The Fall of the Berlin Wall: Another Cold War Myth

Brian Cloughley
Iran's Nuclear Program: Where's the Proof?

Russell Mokhiber
Welcome Back, Michael Moore

John Ross
Chomsky in Mexico

Ellen Brown
IMF Catapults From Shunned Agency to Global Central Bank

David Ker Thomson
Cop Shocks

David Macaray
The Audacity of Toyota

Gary Engler
Unions in a Rut

Robert Fantina
Meet the New Boss (Same as the Old Boss)

Lisa Stolarski / Naomi Archer
Pittsburgh: Still a (Coal) Company Town

Anthony Papa
Here is Your Chance to Help End the Failed War on Drugs

Joe Allen
The Good Wife: Bad View of a Corrupt System

Harry Browne
Tarantino Scalps His Audience

Ron Jacobs
Collective Fiction

Charles R. Larson
Cultural Warriors: Austrialian Aboriginal Art Triennial

David Yearsley
Hanns Eisler's Great National Anthem for East Germany is Available: Make It America's

Poets' Basement
Taylor, Gardner and Landau

Website of the Weekend
Wrongful Convictions of Youth

Weekend Edition
October 23-25, 2009

"Obama Demands Pay in Euros!"

The Great Dollar Collapse Debate

By MIKE WHITNEY

The "dollar debate" on the Internet has been ferocious and emotionally-charged, but sadly lacking in logic. To oppose the "dollar will crash" theorists is like arguing a woman's right to choose with the fist-waving throng assembled outside an abortion clinic. The results are equally disappointing. To say that "minds are already made up and the issue is settled", is an understatement. For many, the dollar's transition from the world's reserve currency to a Wiemar era Deutschemark is not a question "if" but only of "when". One reader summed up the distrust that's felt for anyone who dares to challenge the prevailing dogma like this:

"Mike.....Your article on October 19th 2009 titled “The Dollar will NOT crash,” made all of us in this part of the world who respected your views and opinions feel disturbed and appalled....Then my friend explicated and reminded me, “From the time of Chaim Weizmann’s solicitous and guile behavior towards the politicians, the media and the newspersons, the powerful Zionists lobby had perfected the art of falsity and misrepresentation."

Uh, okay. So, now opposing the dominant theory not only proves that one is a fool, but also a tool of the "Zionist lobby"?

This is why struggling writers always keep the refrigerator stocked with a hearty malt.

No one can deny that the dollar COULD crash or that it faces stiff headwinds in the years ahead as the fiscal deficits continue to pile up. But let's not overreact. Japan's deficits are twice the size of GDP and bond yields are still hovering below 2 percent. In other words, the Japanese are fighting deflation, so no one is particularly worried about inflation. That's as it should be. In the US, deficits are a paltry 12 percent of GDP, and already people have their knickers-in-a-twist. Even deficits soar above 100 percent ($14 trillion) it's unlikely that they'll crush the dollar. But--on the other hand-- if the government suddenly stops spending money and running huge deficits; unemployment will skyrocket, banks and businesses will default, foreclosures will rise, and the economy will slip back into a very severe recession. The myth that "You can't solve a debt problem by creating more debt" is pure bunkum. That's for people who want to balance the budget at all costs, regardless of its effect on working people. The goal should be to get the economy back on its feet and worry about the red ink later.

Here's Paul Krugman explaining why the Fed is engineering a weaker dollar:

"Although there has been a lot of doomsaying about the falling dollar, that decline is actually both natural and desirable. America needs a weaker dollar to help reduce its trade deficit, and it’s getting that weaker dollar as nervous investors, who flocked into the presumed safety of U.S. debt at the peak of the crisis, have started putting their money to work elsewhere.

But China has been keeping its currency pegged to the dollar — which means that a country with a huge trade surplus and a rapidly recovering economy, a country whose currency should be rising in value, is in effect engineering a large devaluation instead.

And that’s a particularly bad thing to do at a time when the world economy remains deeply depressed due to inadequate overall demand." (Paul Krugman, "The Chinese Disconnect" New York Times)

So, if China is so worried about their massive investment in dollars, (as everyone seems to think) then why aren't they letting their currency rise so the dollar can strengthen? It's because they are more concerned about sustaining demand then problems with the greenback. They're showing they have more confidence in the dollar than most Americans.

It is true that the dollar has dipped 15 percent since summer, but so what? That just means that people are less scared now then they were after Lehman Bros. collapsed. Here's a clip from the Economist explaining it all:

"The simplest explanation for the currency’s decline is based on risk aversion. On the days when risky assets fall, the dollar tends to go up. When risky assets rise, the dollar falls. The dollar has fallen fairly steadily since March, a period which has seen stockmarkets enjoy a phenomenal rally. Domestic American investors may be driving the relationship, repatriating funds in 2008 when they were nervous about the state of financial markets and sending the money abroad again this summer because of a perception that the global economy is reviving." ("Down with the Dollar" The economist, Oct, 2009)

As time goes by, the relationship between stocks and the dollar will change, but for now, the rule is still holds.

So why is this debate about the dollar so important?

Because the majority of people believe that the real problem is the deficits, and not the economy. That's just flat wrong, and it creates political opposition to more stimulus, which we need. Blame it on the media for convincing people that we are in a recovery and that "green shoots" are sprouting up everywhere. It's pure fiction. The country could still wind up in a Depression when the stimulus wears off. And it's wearing off very quickly. (The effects of the stimulus will peak in the Third Quarter)

Consumer credit is contracting at a year-over-year rate of 5 percent. Household balance sheets are in tatters, savings are up, spending is down, and unemployment is headed for 10 percent. Record foreclosures, delinquencies, bankruptcies, and defaults are sucking credit from the system making it harder for the Fed to keep the economy sputtering along. If the Fed cuts off the bloodflow of monetary stimulus, the patient will slip into a deep coma.

Here's a likely scenario of what could take place in the next few months:

Even though the signs of severe deflation are visible everywhere, investors short the greenback and the dollar plunges to $1.60 per euro. That increases public angst which sets off a firestorm on Capital Hill. The Congress forces the Fed to stop its quantitative easing (QE) program (which has already pumped over $1 trillion into US Treasuries and mortgage-backed securities) and long-term interest rates spike overnight. This puts downward pressure on the housing market and the slump deepens. More jobs are lost, more banks and financial institutions default, perfectly good businesses cannot role over their debt and call it quits, prices fall across the board, the stock market retraces its March lows, and the economy ends up in the ditch.

Think it can't happen?

Bernanke's problem, is that all the tools at his disposal are blunt instruments. It's like performing kidney surgery with a meat cleaver. Dropping interest rates and printing money can stave off deflation, but it also pushes stocks higher than anyone really wants. That leaves traders on the sidelines waiting for a market correction before they jump back in. The same is true of the dollar. Sure, Bernanke wants a cheap greenback to spark exports and reduce household debt, but when the dollar plunges to $1.60 per euro, then the sh** hits the fan and the public outcry forces him to change directions. If the dollar falls any further, the Fed will have to shut down the printing presses altogether and watch while the boat capsizes. The problem is more political than economic.

US policymakers should drop this nonsense about the dollar and deal with the underlying problem itself; lack of demand. That means the focus should be on wage growth and full employment. If that means printing up a couple more trillion; then get to it! Getting people back to work and paying them decently should be job one.

(Note: Title was ripped off a comments line on a previous article from Dmark)

Mike Whitney lives in Washington state. He can be reached at fergiewhitney@msn.com

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