Favored populist economic hyperbolist Max Keiser was in top form this morning on France 24’s Face Off with Robert Parsons.

Late in the video, Kaiser makes the claim that the dollar’s 52-week low (which is actually a 14 month low) is not only due to a weakening economy, but efforts by other nations to dump US dollars as a reserve currency.

There is a growing body of evidence that Kaiser is right on the money. According to the New York Post, foreign banks have about half as many reserves in dollars as they did ten years ago. With less willing dollar hoarders overseas, the Federal Reserve can no longer count on flippantly increasing the money supply to spur on the economy. Global patience for US economic hegemony is quickly running out.

China, Russia, and the EU seem to be staging a financial intervention for their shop-a-holic, denial-laden, American counterpart. They no longer seem interested in cleaning up his mess. These countries know that when you have a delusional addict wreaking havoc on your life, sometimes you simply have to step back and let him go it alone.

The question is, how far will America go before self-awareness kicks in? How hyper-inflated will we allow dollars to become before we acknowledge the consequences of having a completely unhinged, unaccountable monetary policy?
It may hurt for now, but there may come a day when we thank our global trading partners for cutting us off. It might even spur us into joining a twelve-step recovery program for former World Powers living beyond their means.

Update: For those interested, here’s the second half of the Face Off discussion:

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