RUSH: Here is John in Detroit. Welcome, sir, glad to know the phone service still working. How are you?
CALLER: Very good. Thank you, Rush, for taking my phone call.
RUSH: You bet.
CALLER: I’m a little business, so please bear with me. You mentioned earlier that Sheila Jackson Lee, you know, they were talking about Homeland Security. There’s something a little more scarier than that, and that is Japan, China, Russia, UAE, Saudi Arabia, Brazil have all met. It was like November 2010 and what they’re trying to do is come up with a currency that they can trade oil on instead of the US dollar. And I believe that when that happens, that will be the beginning of the collapse of the US dollar, and my question is to you, you know, do you think this is inevitable, they get off of oil by, you know, not using the dollar, and the QE3 that they’re doing, Bernanke, $85 billion a month they’re pumping into the economy, is that gonna help sway them to get off the US dollar? I just wanted your take on that if you don’t mind.
RUSH: Well, here again I’m sitting here in a state of what many people might say naivete. I think right now this is bluster. I think these guys are scared to death of our fracking. I think they are scared to death that we have the ability to totally erase them from our oil equation. And so this is their response. “Oh, yeah? Well, we’ll just stop trading in the dollar and it’ll collapse and then you’re depending on the Chinese.” What was your question about Bernanke priming the pump with $85 billion in relation to this? What was your point there?
CALLER: The QE3 that they’re doing now —
CALLER: — the amount of money that they’re pumping in a month. I think it’s $85 billion a month —
CALLER: — that they’re printing, all it’s doing is the value of the dollar continues to drop.
RUSH: Yeah, that’s true.
CALLER: And with these countries, if they do stop trading oil on the dollar, there’s gonna be no reason for these countries to then hold US dollars —
RUSH: Let me tell you something. I do not — and again, in this regard I might be engaging a little naivete. But, John, these countries have been threatening to dump the dollar for years. It isn’t new. It’s almost as old — it’s not quite as old — it’s almost as old as we’ve been hearing the national debt’s gonna destroy the country. Now it’s actually starting to do that, but for most of my life, the national debt, you’d be hard-pressed to see on the surface any negative impact from it. The ChiComs, I don’t care what the ChiComs say, the ChiComs do not want the dollar devaluated.
The real reason that they have been threatening to dump the dollar is because Bernanke’s devaluing it, precisely what you have said. They have lots of debt in dollars. They underwrite our debt. Bernanke is devaluing it and they’re upset with that. And Bernanke is doing this. But this is really hideous to me. You want to talk about insiders taking care of each other, that’s what this is. This is the moneyed establishment making sure that they’re okay no matter what, holding on to their homes in the Hamptons is the way I describe it. It also helps Obama create the illusion that the economy is doing well, if you can point to Wall Street.
Now, normally the Democrats hate Wall Street. They hate the Dow Jones Industrial Average. It’s always been the Democrats who talk about Main Street instead of Wall Street. Now all of a sudden all they care about is Wall Street, because they can point to it and say, “See? The economy is growing.” Bernanke is hurting the middle class. The very group of people that Obama claims to be looking out for in his 19th or 20th revision now on trying to rev the economy. If these guys dump the dollar, it will be devalued even more, and that doesn’t help the ChiComs. Bernanke is devaluing the dollar, as you point out, with this $85 billion a month that’s ending up going to the stock market. It’s an intricate route that it takes, but it ends up purchasing stock, securities.
The middle class is being killed by this devaluation because their real costs, the costs of living are going up. Gasoline, food, you name it, the dollar is buying less. It’s so bad, folks, they’re not even printing the money. They’re simply digitizing. And, to me, this is really scary. Look at you, for example. Take your bank account. Let’s just pick a number. Let’s say that your bank statement every month says you’ve got $10,000 in your, let’s just call it a passbook account just for the sake of this discussion. You get a statement that says you’ve got $10,000 in it. But there isn’t $10,000 in a vault with your name, and there’s nothing in that vault worth $10,000. Your $10,000 exists because there’s a number on a piece of paper that says it does.
All Bernanke is doing is enlarging those numbers. He’s printing money, but they’re not really printing it. They’re just going to the ledgers. Folks, it’s really scary stuff. Now, they claim they’ve got backup for it, that there is backing for the money that they’re creating here. But they’re not even printing it. There aren’t new dollar bills in circulation. They’re just digitizing this, so I’ve been told and as it’s been explained to me. Because this stuff is really foreign language. These guys like it that way. But all this bluster about OPEC, changing the dollar, they talk that way, they’re just scared of fracking, I think, and our independence eventually. ‘Cause I don’t think the ChiComs in any way want that to happen.