I have been saying for such a long time that what makes me so nervous about the U.S. is the collapse of the dollar, which I am sure is going to happen.
I feel like I'm sitting in the past, remembering what it was like when the USD was the world's reserve currency, and when it had value because China needed it to be lofty to help China with exports.
I am completely against these bailouts, but today in the President's speech, he made his pitch for why trillions of dollars have to be injected. He said if the consumer stops spending, and business stops spending, and the government stops spending, it all spirals. But what he's doing is betting that the world will still put a blind eye to the fact that fiat currency is completely only worth the perceived value of its buying power, and nothing else. Gold's price has been supressed for two big reasons -
1) Reserve banks are selling to keep market prices low and 2) Gold paper contracts are as worthless as the dollars are becoming. Gold paper contracts are traded like securities, with the ability to place naked short sells. In this collapsing house of cards of paper money, the only thing that will have any value really would be commodities.
3 comments:
Dollar Gains on Bets Record Decline on Fed Too Big to Sustain
http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=aEhdEIIoiwWE
The Feds...printing money out of thin air,Pricless!..errr....make that Worthless!
Obama and Tim are clueless. Or even scarier is the fact they do know what they are doing!
When the US Gov starts regulating Executive pay (see Sunday's NY Times) then we have ceased to become a free America and quickly becoming Socialist.
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