Kudlow: “The dollar is actually up 6% over the last fifty-two weeks, even while gold is up over 20% and the whole CRB basket of commodities futures is up 15%.”

So the dollar is up 6% compared to what? Other currencies? Meanwhile, everything you buy is getting more expensive. How is that indication that the dollar has being getting stronger? It sounds like the opposite.

Currencies have been getting weaker, more diluted. Goods have been getting more expensive relative to currencies.

The good news is that money has remained constant relative to goods. Why don’t we just use money?

I have a knack for bringing up the topic of the coming collapse of the United States with people who just don’t wanna hear about it.

What’s even better is having this discussion with someone who is interested but completely ignorant of the underlying economic fragility of the United States that they can’t bring themselves to accept what lies ahead. Most of the time this bunch will offer up the following statements:

• “that could never happen to the U.S.”
• “we are too powerful to collapse”
• “there are too many people and businesses that rely on the U.S. economy; the powers that be would never let that happen.”

I have yet to hear anybody point to a strong U.S. economy in the coming decade with an argument focused on strong economic fundamentals. This is because there doesn’t exist such an argument. Those who are adamantly against the notion of a complete and definitive economic collapse base their opinions on emotion and nothing else.

There are plenty of facts which point to the inevitable devastation of the U.S. economy. They don’t even need to be dug up; they are staring us right in the face.

Those in collapse denial should take a glance at the following chart and try to steer their emotions in the proper direction—maybe towards reality.

Ben Bernanke warns that China is not playing fair by intentionally debasing their currency. If you think that this is a bit hypocritical coming from a man who has flooded the U.S. economy with liquidity over the past few years then Bernanke has news for you: his intention is not U.S. dollar debasement.

The Fed’s Treasury bond-buying program is intended to invigorate the economy in part by lowering interest rates, lifting stock prices and encouraging more spending. Lower interest rates on loans would prompt companies to borrow and expand.  And higher stock prices would boost the wealth and confidence of individuals and businesses, Bernanke has suggested. The additional spending would lift incomes, profits and growth.

Ok so Bernanke attempts to steer clear of the “hypocrite” label and instead ops for “moron.” He wants to improve the economy by blowing up another bubble. All he knows is bubbles. Apparently, helicopter Ben thought the Fed’s inflationary response to the dot-com bust was brilliant. He sees no connection between our refusal to undergo the necessary restructuring back in 2000-2001 and the larger bubble implosion that resulted in the housing and credit sector a few years later. Reflating bubbles is all Ben knows.

He is an idiot.

He also thinks that higher nominal stock values are great for consumer confidence and therefore great for the economy. Someone please pull up a graph of a Zimbabwe Stock Exchange and show it to this moron.

As we all expected, the Fed has announced their intention for QE2—which of course, only six months ago was called “monetizing the debt” and a year ago was called “printing money.”

The central bank will buy $600 billion in long-term Treasuries over the next eight months, the Fed said Wednesday. The Fed also announced it will reinvest an additional $250 billion to $300 billion in Treasuries with the proceeds of its earlier investments.

I wonder where the government will get the $250 to $300 billion to make those payments to the Fed. From the Fed perhaps? Remember, the Treasury needs to actually make good on bonds that are reaching maturity, it’s not just about paying for the government’s programs.