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Re: A worth of a dollar???
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Posted by Hayman on December 30, 2004 at 21:33:02 from (22.214.171.124):
In Reply to: A worth of a dollar??? posted by KatG on December 30, 2004 at 16:50:52:
Fact 1 -The U.S. dollar has lost about 99% of it's value since the thirties.How long can it hang on to it's remaining 1%?
Pres. Nixon closed the Gold for dollars window in 1970.This meant that the U.S would no longer sell gold for dollars.Thus the U.S. dollar became a fiat currency with no intrinsic value.I mean,it's just a scrap of paper.It only has value because the people think it has.
Fact 2 -No fiat currency has ever survived for long;the dollar is going down.
The U.S. dollar has enjoyed an enviable position;it was and is the reserve currency of the world.This reserve status has allowed the U.S.to export it's debt to unbelievable levels with Japan holding the most debt in the form of bonds.china also holds oceans of bonds.
But the dollar is falling in International markets because people are beginning to doubt that the U.S. can ever repay this debt and they are absolutely right.Everyday the U.S. has to borrow 2 1/2 billion dollars to keep going.Are you good people seeing where this is going yet?
No country wants to start cashing in those bonds because they don't want to start a global financial panic and yet everyday the dollar falls
these countries take more loses.Who knows when they will cut and run
The inflation numbers are being manipulated.
The employment numbers are being manipulated.
The U.S. well paying blue collar industry is being gutted--the new jobs are mostly low paying service jobs.
The Iraq war is costing way to much.
Dollars can be created by the federal reserve with the stroke of a pen and since the dollar was cut loose from the gold standard in 1970 this is exactly what politicions have done in spades.
So what I see coming down the pipe for the U.S.is an inflationary depression with high interest rates and folks,it ain't gonna be pretty.I think the dollar will fall by half again(on it's way to zero} and I think when the Chinese revalue THEIR currency upwards against the dollar,that will export inflation to the U.S. in the form of higher prices for Chinese made goods.Whether the Chinese will time this to their advantage remains to be seen.But it looks that way since all Whitehouse efforts to China have been rebuffed.
I would call it the perfect financial storm.
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