Bear Stearns "expects the dollar will fall to $1.60 per Euro in 12 months"

The Chief Economist for Bear Stearns makes an amazing statement covered byBloomberg regarding how hard it is to have economic growth with a weak dollar. Bear Stearns is predicting $1.60 per Euro within the year.

Of course, what is causing the weak dollar is the inflationary act of the Federal Reserve creating $200 billion in new credit and the socialized banking bailout of guaranteeing $50 billion to JP Morgan for Bear Stearns.

JP Morgan, who partially owns the Federal Reserve Corporation, stole bought Bear Stearns for $2/share or $236.2 million. Bear Stearns had traded at $170 dollars 15 months ago. It's current share price is $30 giving them a market value of $3.54 billion.

Bloomberg, Dollar Doomsayers Draw Signs From Bernanke Rate Cuts:

Ben S. Bernanke's interest-rate cuts have touched off a vicious circle of doom for the dollar.

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If that weren't enough to make bears out of bulls, the weakest dollar since at least 1971 based on a Fed trade-weighted index is helping push oil, grains and metals, which are priced in the U.S. currency, to record highs. That in turn is causing economists to lower growth forecasts for the U.S. and preventing central banks concerned that inflation is accelerating from cutting interest rates, further undermining the dollar.

"The whole world feels there's inflation when a good part of that is the weak dollar itself," said Stephen Jen, head of global foreign-exchange research at Morgan Stanley in London. "Watching the dollar plummet like this is very dangerous."

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"It's hard to stimulate an economy when the currency is going down the tubes," said David Malpass, the chief economist at Bear Stearns & Co. The New York-based firm expects the dollar will fall to $1.60 per Euro in 12 months.

NOTE: Morgan Stanley was founded by partners from JPMorgan, including Henry Morgan, son of John Pierpont Morgan. The 1933 Glass-Steagall Act prevented JPMorgan from being a commercial bank and an investment bank. This was repealed in 1999 by President Clinton. It is the owners of JPMorgan and Morgan Stanley making the dollar plummet.