by Jeff Davis

One of the most significant developments in the Obama Depression has been missed by the general public, possibly because it’s one of those esoteric economic issues that no one really understands. Despite the apparent public apathy, the death of the U.S. dollar is BIG.

The U. K. Independent tells us: “The price of gold is surging on world markets amid fears that the old economic order based on the supremacy of the US dollar could be breaking down. A new spike has sent the cost of the precious metal to a level not seen before. The dollar slid sharply after yesterday’s report in The Independent that Gulf Arab states are secretly planning to stop trading oil in dollars, and a senior UN official said that the US should be stripped of its position as the main source of currency reserves for other countries.”

We’ve all heard rumors of oil producing nations wanting to switch to the euro so that their profits would not be inflated away. A few people have said that Saddam Hussein wanted to switch to the euro. Maybe that accelerated the effort to fabricate another war against Iraq.

The article notes “The developments come on top of speculation that the Obama administration is operating a policy of benign neglect of the dollar, engineering a devaluation that could help repair some of the economic damage caused by the recession.”

In other words we can’t afford to pay out Social Security anymore, and inflation is helping to cheat all the old retired Americans. Pretty soon it will be $10 for each can of dog food.

The main way the American empire has held itself together in the past has been through the almighty dollar, and the dollar ain’t so almighty any more. Obama, Barney Frank and Ben Bernanke at the Federal Reserve are trying to spend their way out of the economic bad times, despite the fact that most sane economists with any credibility have said this is impossible. Running the printing presses just like Zimbabwe will result in an economic disaster just like Zimbabwe.

No wonder the countries that actually produce a valuable natural resource like petroleum want to get real money for it. By the end of Obama’s first term in office, the U.S. dollar will be lucky if it isn’t a complete joke. And what will happen when the government can no longer pay its bureaucrats and mercenaries in money that will actually buy things (if there’s anything left to buy)? Maybe we’re looking at a complete collapse of the US federal government.