One of the things that will interest me over the next few years will be to see how the U.S. media spins the devaluation of the national currency. Today, CNN contributor Peter Garnham has chosen “short term speculators” as his scapegoat.

Short-term speculators have built up record bets on further gains in the Australian dollar, pushing the currency to fresh highs, as optimism over global growth and elevated commodity prices boost its appeal.

The news came as the Australian dollar hit 29-year highs against the U.S. dollar as traders bet that resource-rich Australia would profit from rampant demand for its raw materials from emerging Asian economies.

CNN wants Americans to believe that the US dollar has weakened against the Australian dollar because of petty gamblers. There is no mention whatsoever in this article of the insanity taking place at the Federal Reserve. Apparently, all the blame lies with currency speculators.

Only in the Empire of Lies can such bullshit go unchallenged, and I am certain that most Americans will buy into this nonsense more and more as the value of their currency evaporates, their standard of living crumbles, and they are left in a pathetic state looking for answers from the very same sources who brought on their misery.

The real story with the Aussie dollar is a combination of the massive amounts of money being printed by the Federal Reserve, an the rise in commodity prices.

Concerning the former, how else would CNN try to spin the story that every singly currency in the world—with the exception of the Japanese Yen—strengthening against the US dollar of late? Who is the boogeyman causing that? Will CNN—aka Washington D.C.’s lapdog—admit that Ben Bernanke is directly responsible for the weakness in the U.S. dollar? No, they will likely keep peddling some scapegoat for the American sheeple to blame.

In terms of the latter, it is true that currency trading does play a part in the rise of the Aussie dollar. And it is also true that some of that can be attributed to speculation. However, forex trading is one of the most efficient markets in the world—speculators play an even more negligible role than they do in other circumstances where they are wrongly scapegoated (which happens during every negative economic circumstance).

To the extent that currency trading does influence the price, so what? What’s the point of trading anything if traders are vilified for seeking out the better deal? People who hold currency want the Aussie dollar instead of the U.S. dollar because one is garbage and the other is slightly less garbage. Why does this moron from CNN think that’s such a bad thing?

It’s really this next paragraph which sheds some light on Peter Garnham’s intentions (emphasis is mine).

The Australian dollar has also benefited from a re-emergence of the global carry trade, in which increasing confidence in global growth prompts investors to sell low-yielding currencies such as the dollar and the yen to finance the purchase of riskier, higher-yielding currencies.

Peter Garnham wants us to believe that the U.S. dollar is a low-risk currency and the Aussie dollar is a high-risk currency. Peter Garnham is a stooge. He is carrying the water for Ben Bernanke, Obama and the rest of the American establishment, plain and simple.

The fact is that the Aussie dollar strengthens when commodities strengthen because people who want those commodities must first get their hands on the Australian dollar. This applies to Canada, and to a lesser extent, New Zealand.

America, on the other hand, offers a currency that rests on its status as the world’s reserve currency. This is a political status and provides the entirety of the value that the U.S. dollar derives.

The real story is that the rest of the world is only now waking up to this sham.

The world is increasingly ignoring establishment stooges like Peter Garnham. I am confident that Americans will continue embracing these stooges.