Obama White House, British Financial Press Push Dollar to `Breaking Point'

London's plan to use the global financial blowout now under way to usher in a New Dark Age—with a wrecking operation against the U.S. dollar and the United States itself— is proceeding, as many foreign central banks are reportedly taking the British bait and moving out of the dollar and into the euro and the yen.

That is the upshot of a Bloomberg News wire this morning, as confirmed to LPAC by a well-informed Washington source.

"Dollar Reaches Breaking Point as Banks Shift Reserves" was the Bloomberg News headline this morning, a blow in the psywar by the international financial press—and the Obama White House—against the dollar's value. It was accompanied by columns and "news reports" throughout the British press, covering each others' puff pieces for a dollar collapse. But the Obama Administration, "Helicopter Ben" Bernanke et al. are definitely committed to that British policy pushing the dollar down. Lyndon LaRouche has warned them: You can forget the U.S. economy, the global economy, and the world's population, if you "succeed" in provoking a dollar crash.

LaRouche months ago identified the Oct. 12-15 interval as the financial disintegration trigger-point under these insane policies.

The Bloomberg article reports a Barclays Capital study which says that foreign central banks have shifted their new reserve purchases out of the dollar, and into euro and yen, in a dramatic way. Since 1999, the average composition of central bank currency purchases has been 63% dollars, 37% other currencies. But in the second quarter of this year, those purchases were completely reversed: the average was 37% dollars, 63% other currencies.

Well-informed sources in Washington confirmed to LPAC that major movements out of the dollar are indeed underway—and that the Federal Reserve continues to actively purchase Treasury bills in order to keep pumping liquidity into the exploding global system.

Bloomberg says "world leaders are acting on threats to dump the dollar while the Obama administration shows a willingness to tolerate a weaker currency." This means the dollar "won't rebound anytime soon after losing 10.3% ... the past six months, the biggest drop since 1991." Former Fed researcher Steven Englander is quoted saying that it's not just talk: "It looks like they [including the Fed] are really backing away from the dollar." A money manager from Aletti Gestielle in Milan is trotted out to draw the conclusion: "The diversification out of the dollar will accelerate...the U.S. will not be the same powerful country that it once was."

That, at least, is London's intention—and it will be the case if the LaRouche Plan for bankruptcy reorganization is not immediately implemented.